It is necessary to rely on the resource background and the theory of actual action to position cities and industries in regions with ecological resource advantages. Regarding the positioning of Liyang’s industry, my opinion is to take ecological resources as the development background and supporting conditions, and focus on action, that is, to develop modern industries through institutional innovation, mainly choosing modern service industries, strategic emerging industries and advanced manufacturing industries. The main means to promote regional economic development is to improve the location and carry out institutional innovation, and to enhance the level of urbanization and technological innovation capabilities.Regions with advantages in ecological resources need to consider three constraints when engaging in manufacturing. The first is the growthist-oriented economic system and local government functions during the transition period. The second is the reality that the ecological compensation mechanism is not perfect. The third is that the local tax system has not become the institutional model of developed countries. As far as the current development of Liyang is concerned, it cannot avoid advanced manufacturing. The key issue is that the protection and control of the ecological environment must be in place.
