Abstract: China has become the world's second largest economy, but the quality of development is still not high. The need for industrial upgrading is becoming more and more urgent. “Internet+” provides a strategic opportunity for industrial upgrading through reducing information asymmetry, accelerating information flow and improving social connectivity. Based on the SCP (structure-conduct-performance) model, this paper establishes a theoretical model of how “Internet+” promotes industrial upgrading. “Internet+” can improve performance by changing structure and conduct. They optimize and adjust each other, which makes industrial upgrading success. “Internet+” can also improve the level of government's service and optimize their supervision, which indirectly promotes industrial upgrading. As the earliest “Internet+” industry in China, the evolution of the taxi industry is a classic example of “Internet+” promoting industrial upgrading. Based on this study, this paper offers some advice on how enterprises and governments use “Internet+” to promote industrial upgrading.

Key words: Industrial upgrading, Industrial policy, Internet +, Informatization, Structure-conduct-performance(SCT) model