Abstract: Under the mode of capture value chain governance of the global value chain leading enterprise, Chinese manufacturing enterprises have long been locked in the low-end of value chain. Agglomeration, as an effective mechanism of producer service industry embedded in the manufacturing process, is of great significance for the upgrading of manufacturing enterprises. In the principal-agent relationship of “leading enterprises-OEM enterprises” in the global value chain, producer service industry agglomeration increases the chance for a breakthrough in the low-end value chain lock by relaxing the incentive compatibility constraint of OEM enterprise. Empirical study shows that producer service industry agglomeration can help the labor intensive and capital intensive manufacturing industry break through the low-end lock, but it has no significant effect on the upgrading and development of the technology intensive manufacturing. The development orientation of the technology intensive manufacturing is dislocated, and the system reform of producer service industry is not thorough and its development level is low, which may be the causes of this phenomenon.

Key words: capture governance, producer service industry, agglomeration, low-end lock