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The first study on industrial competitiveness came from western developed countries. Industrial competitiveness is the core element of regional economic competitiveness, so, the regional competitiveness has become a kind of important mark for evaluating the real and potential competitive advantages in one region, and the decisive element for sustained developing power.Yangtze River Delta is one of the fastest developing and strongest synthesis economics power regions, and also one of the most energetic economic regions with bright future around the world. As the important city in Yangtze River Delta region, Zhenjiang want to gain the developing initiative in fierce marketing competition, and reach the grant target of ’Two in advance and two stages’, which all determined by the industrial economy competitiveness, discovery and cultivation of relative advantages, and how to transfer it to competitiveness advantage.Except for the conventional statistical methods, this paper innovational applied the technique of system dynamics to the study on regional industrial competitiveness,This paper mainly has two sections, the first section is Analysis of Zhenjiang competitiveness. In the beginning of this section, this paper summarized some theories and application cases related to industrial competitiveness, then depending on current statistic data, analyzed Zhenjiang industrial development, meanwhile, compared Zhenjiang with other five cities in South Jiangsu (Nanjing, Changzhou, Wuxi, and Suzhou), finally, found advantages and disparity in Zhenjiang industrial development.The Chapter 2 emphasized on the establishment of industrial competitiveness index system for evaluation of industrial competitiveness. Based on other experts’ theories and real situation, author built one index system, according to the statistic data founded, author analyzed Zhenjiang’s industrial competitiveness and compared it with other cities’ in Jiangsu province by use of this index system. This index system composed of indexes classified in 4 aspect, they were Competitiveness Strength index system, Competitiveness Potential index system, Competitiveness Environment index system and Competitiveness Tendency index system.In the second section of the paper, author introduced the methodology and the approaches of system dynamics, and established a industrial system model and processed the simulation by employing the Vensim PLE 5.4b (SD software), obtained industrial developing trend in next few years, at last brought forward policy advices.This industrial development SD model included 3 sub-system, they are Industrial Manufacturing sub-system, Regional Tech-Innovation sub-system and Regional Economic Environment sub-system, thereinto, Industrial Manufacturing sub-system is primary sub-system, other 2 sub-system are accessorial sub-system which connected with each other by the influence on industrial manufacture. Chapter 3 is mainly about explanation of SD model system, finally, after the history test and processed the simulation by employing the Vensim PLE 5.4b (SD software), obtained industrial developing trend in next few years, at last brought forward policy advices.
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