Since the reform and opening up, Jiangsu’s economic development and industrialization process have gone through three important development stages. In line with the development characteristics of these three stages, three important arbitrages can be used. They are the “domestic market arbitrage”, the “international market arbitrage” stage and the “factor market arbitrage” stage. On the whole, the first two arbitrage stages were very successful, but there are many obstacles at the “factor market arbitrage” stage. The fundamental reason is the lack of the high-strength “institutional arbitrage” stage. Jiangsu government’s system innovation and system supply should be guided by the five development concepts of “innovation, coordination, openness, green, and sharing” determined by the Party Central Committee, and it is necessary to focus on Jiangsu’s own shortcomings to optimize the relevant system environment.
