Abstract
This study analyzed the manufacturing implemented different modes of innovation at different regions, and established a model to predict the likelihood that the enterprise would follow the innovation mode dominated by the local government. Governmental regulation of innovation and spurring enterprises to innovate were important tools for development of the manufacturing in China, but regional differences in economic development required different coupling strategies of innovation. The results revealed that the developed region in China was biased to undertake disruptive innovation, while the developing region drived incremental innovation mainly, and made a theoretical model to explore the probability respectively. We assigned corresponding values based on theoretical analysis and relevant assumptions, and discovered that in the developing region was more likely to follow the innovation mode proposed by the local government than that in the developed region, but the data demonstrated that the probability were comparatively small for both the developed region and the developing region.
Highlights
Driven by the policy of “Encourage People to Start Their Own Businesses and to Make Innovations,” the government and the enterprise in China regarded the service industry and the manufacturing industry as two economic engines
There was obvious lack of coordination between the government’s push for innovation and the survival pressures the manufacturing faced in the real economy in China, which could be reflected by the fact that many enterprises sold real estate to achieve survival, especially under background of Covid-19 epidemic and anti-globalization
This study made promotion of the manufacturing under governmental intervention be the target, proposed coupling development between the manufacturing and differentiated innovation policy dominated by the local government as the driver, it established a theoretical model to explain innovation decision brought by the manufacturing by assigning corresponding values to relevant indexes, so as to make an attempt to evaluate various possibilities for linking the manufacturing with innovation modes advocated by local governments
Summary
Driven by the policy of “Encourage People to Start Their Own Businesses and to Make Innovations,” the government and the enterprise in China regarded the service industry and the manufacturing industry as two economic engines. For breaking Economic New Normal and accelerating the strategy of “Made in China 2025,” innovation in the manufacturing became the national policy for achieving efficient transformation and upgrading, and many countermeasures were proposed. For studying the influence of incremental and disruptive innovation on China’s manufacturing development, scholars made analysis from many aspects, such as dynamic competition (Cao et al, 2020; Govindarajan et al, 2011), institutional benefit (Shu et al, 2016), and external knowledge searched by the enterprise (Wang et al, 2012; Wang, Wang, et al, 2016). Regional governments might promote different modes of innovation that were coincided to different stages of economic development, which might affect innovation decisions made by the manufacturing in those regions; the relevant literature did not demonstrate this, which was the research point of this article. This study made promotion of the manufacturing under governmental intervention be the target, proposed coupling development between the manufacturing and differentiated innovation policy dominated by the local government as the driver, it established a theoretical model to explain innovation decision brought by the manufacturing by assigning corresponding values to relevant indexes, so as to make an attempt to evaluate various possibilities for linking the manufacturing with innovation modes advocated by local governments
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