IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i10p3935-d1390468.html
   My bibliography  Save this article

The Impact of the Industrial Internet on the Innovation and Development Level of China’s Manufacturing Industry: Under the Perspective of Government Incentives

Author

Listed:
  • Liang Ma

    (School of Management, Shanghai University, Shanghai 200444, China
    Institute of Regional and Urban Development, Shanghai University, Shanghai 200444, China)

  • Weiqiang Hu

    (School of Management, Shanghai University, Shanghai 200444, China
    Institute of Regional and Urban Development, Shanghai University, Shanghai 200444, China)

  • Ru Liang

    (School of Management and Engineering, Nanjing University, Nanjing 210093, China)

Abstract

In the era of the digital economy, it has become an inevitable trend for manufacturing enterprises to establish industrial Internet platforms toward achieving transformation and innovative development. However, the current development model of industrial Internet platforms is still imperfect, wherein the application scenario is complex, the investment cost is too high, the return-on-investment cycle is too long, and other factors have hindered the willingness of manufacturing enterprises to employ cloud services and capital investment. For this reason, governments have introduced a series of relevant incentive policies to promote the development of industrial Internet platforms and the transformation and upgrading of manufacturing enterprises. Considering the role of government incentives, this study first constructs an evolutionary game model with local governments, manufacturing enterprises, and industrial Internet platforms as the main players. Then, the dynamic change process of each game player’s strategy choice and the stable state of the system evolution under multiple scenarios are analyzed, and the validity of the conclusions is verified through a numerical simulation analysis. Finally, the statistical data of 28 provinces in China from 2018 to 2020 are used to conduct an empirical test to explore the impact of the industrial Internet on the transformation and innovation development of the manufacturing industry and the role of government incentives. The results show that the development of the industrial Internet has a significant role in promoting the innovation and development of the manufacturing industry; government incentives can promote the innovation and development of the industrial Internet and manufacturing industry, but incentives should not be too generous; and the impact of developing the industrial Internet on the level of innovation input/output of the manufacturing industry shows obvious regional differences. This study takes the local government as an independent game participant into consideration, which enriches the research field of combining evolutionary game theory with the transformation and innovative development of the manufacturing industry. In addition, this study provides theoretical guidance and practical references for the government to formulate incentive policies to promote the development of industrial Internet platforms and for manufacturing enterprises to utilize these platforms to carry out innovation and perform upgrades.

Suggested Citation

  • Liang Ma & Weiqiang Hu & Ru Liang, 2024. "The Impact of the Industrial Internet on the Innovation and Development Level of China’s Manufacturing Industry: Under the Perspective of Government Incentives," Sustainability, MDPI, vol. 16(10), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:3935-:d:1390468
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/10/3935/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/10/3935/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
    2. Zhang, Juan & Huang, Jian, 2021. "Vehicle product-line strategy under government subsidy programs for electric/hybrid vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    3. Tao Feng, 2023. "Do Intelligent Manufacturing Concerns Promote Corporate Sustainability? Based on the Perspective of Green Innovation," Sustainability, MDPI, vol. 15(14), pages 1-21, July.
    4. Cai, Gangshu & Kock, Ned, 2009. "An evolutionary game theoretic perspective on e-collaboration: The collaboration effort and media relativeness," European Journal of Operational Research, Elsevier, vol. 194(3), pages 821-833, May.
    5. Ziqing He & Qin Liu, 2023. "The Crossover Cooperation Mode and Mechanism of Green Innovation between Manufacturing and Internet Enterprises in Digital Economy," Sustainability, MDPI, vol. 15(5), pages 1-28, February.
    6. Philippe Aghion & Ufuk Akcigit & Antonin Bergeaud & Richard Blundell & David Hemous, 2019. "Innovation and Top Income Inequality," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 1-45.
    7. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    8. Jung, Seung Hwan & Feng, Tianjun, 2020. "Government subsidies for green technology development under uncertainty," European Journal of Operational Research, Elsevier, vol. 286(2), pages 726-739.
    9. Yang, Rui & Tang, Wansheng & Zhang, Jianxiong, 2021. "Technology improvement strategy for green products under competition: The role of government subsidy," European Journal of Operational Research, Elsevier, vol. 289(2), pages 553-568.
    10. Ghalayini, Alaa M. & Noble, James S. & Crowe, Thomas J., 1997. "An integrated dynamic performance measurement system for improving manufacturing competitiveness," International Journal of Production Economics, Elsevier, vol. 48(3), pages 207-225, February.
    11. Ron Adner & Phanish Puranam & Feng Zhu, 2019. "What Is Different About Digital Strategy? From Quantitative to Qualitative Change," Strategy Science, INFORMS, vol. 4(4), pages 253-261, December.
    12. Bigerna, Simona & Wen, Xingang & Hagspiel, Verena & Kort, Peter M., 2019. "Green electricity investments: Environmental target and the optimal subsidy," European Journal of Operational Research, Elsevier, vol. 279(2), pages 635-644.
    13. Bian, Junsong & Zhang, Guoqing & Zhou, Guanghui, 2020. "Manufacturer vs. Consumer Subsidy with Green Technology Investment and Environmental Concern," European Journal of Operational Research, Elsevier, vol. 287(3), pages 832-843.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li Liu & Zhe Wang & Jiangtao Xu & Zaisheng Zhang, 2023. "Green baton: how government interventions advance green technological innovation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11121-11152, October.
    2. Jin, Wei & Yang, Jun & Wang, Chengfu, 2024. "Cost subsidy or environmental regulation? The effects of government interventions on environmental quality and 3BL performance," International Journal of Production Economics, Elsevier, vol. 270(C).
    3. Decai Tang & Jiannan Li & Shaojian Qu & Valentina Boamah, 2023. "Tripartite Collaboration among Government, Digital Technology Platform, and Manufacturing Enterprises: Evolutionary Game Model," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    4. Jinxuan Song & Xu Yan, 2023. "Impact of Government Subsidies, Competition, and Blockchain on Green Supply Chain Decisions," Sustainability, MDPI, vol. 15(4), pages 1-27, February.
    5. Zheng, Shiyuan & Jiang, Changmin & Fu, Xiaowen & Ge, Ying-En & Shu, Jia, 2022. "Subsidies for green technology adoption under uncertain demand and incomplete information," Omega, Elsevier, vol. 112(C).
    6. Junjian Wu & Jennifer Shang, 2021. "Optimal Green Operation and Information Leakage Decisions under Government Subsidy and Supply Uncertainty," Sustainability, MDPI, vol. 13(24), pages 1-19, December.
    7. Liu, Samuel Shuai & Hua, Guowei & Ma, Benedict Jun & Cheng, T.C.E., 2023. "Competition between green and non-green products in the blockchain era," International Journal of Production Economics, Elsevier, vol. 264(C).
    8. Ke Li & Gengxin Dai & Yanfei Xia & Zongyu Mu & Guitao Zhang & Yangyan Shi, 2022. "Green Technology Investment with Data-Driven Marketing and Government Subsidy in a Platform Supply Chain," Sustainability, MDPI, vol. 14(7), pages 1-22, March.
    9. Xiaofeng Xu & Xiangyu Chen & Yi Xu & Tao Wang & Yifan Zhang, 2022. "Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    10. Golmohammadi, Amirmohsen & Kraft, Tim & Monemian, Seyedamin, 2024. "Setting the deadline and the penalty policy for a new environmental standard," European Journal of Operational Research, Elsevier, vol. 315(1), pages 88-101.
    11. Fang, Lei & Zhao, Sai, 2023. "On the green subsidies in a differentiated market," International Journal of Production Economics, Elsevier, vol. 257(C).
    12. Barbosa, Luciana & Rodrigues, Artur & Sardinha, Alberto, 2022. "Optimal price subsidies under uncertainty," European Journal of Operational Research, Elsevier, vol. 303(1), pages 471-479.
    13. Juan Zhang & Ziyue Wang & Huiju Zhao, 2020. "The Impact of Consumer Subsidy on Green Technology Innovations for Vehicles and Environmental Impact," IJERPH, MDPI, vol. 17(20), pages 1-24, October.
    14. Srivastava, Abhishek & Kumar, Rajeev Ranjan & Chakraborty, Abhishek & Mateen, Arqum & Narayanamurthy, Gopalakrishnan, 2022. "Design and selection of government policies for electric vehicles adoption: A global perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    15. Li Liu & Zhe Wang & Zhao Song & Zaisheng Zhang, 2023. "Evolutionary game analysis on behavioral strategies of four participants in green technology innovation system," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 960-977, March.
    16. Hong Zhang & Paul Georgescu, 2022. "Sustainable Organic Farming, Food Safety and Pest Management: An Evolutionary Game Analysis," Mathematics, MDPI, vol. 10(13), pages 1-17, June.
    17. Chanchan Hao & Qiang Du & Youdan Huang & Long Shao & Yunqing Yan, 2019. "Evolutionary Game Analysis on Knowledge-Sharing Behavior in the Construction Supply Chain," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    18. Bhattacharya, Sourav & Chakraborty, Pavel & Chatterjee, Chirantan, 2022. "Intellectual property regimes and wage inequality," Journal of Development Economics, Elsevier, vol. 154(C).
    19. Niu, Baozhuang & Zhang, Nan & Zhang, Jianhua, 2024. "How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?," European Journal of Operational Research, Elsevier, vol. 315(2), pages 613-625.
    20. Jin, Wei & Ding, Wen & Yang, Jun, 2022. "Impact of financial incentives on green manufacturing: Loan guarantee vs. interest subsidy," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1067-1080.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:3935-:d:1390468. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.