The Influence of “Made in China 2025” upon Innovation Behavior of China’s Manufacturing
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Abstract
This paper is occupied with the “Made in China 2025” plan unveiled by China’s State Council in 2015 for transforming China’s manufacturing. In this paper, the panel data of A-share public manufacturing companies in 2014 and 2016 are taken, along with the adoption of the difference-in-differences model (“DID”), to examine influences that the plan imposes upon the innovation of a company. As far as manufacturing companies are concerned, it is disclosed through the empirical study that the plan has variably interfered with its innovation ability at different stages of its product development. Besides that, the innovation path has bridged innovation performance and fiscal subsidies. Finally, the paper has set forth suggestions from the perspectives of the enterprise and the government. In 2019, the fifth year since the plan was initiated, this paper will substantially benefit China’s manufacturing industry through ways to avail of policies, for a more efficient improvement in the product development of a company, and an acceleration in intelligent development of corporate innovation. This paper also provides further verification of the relationship between government policy implementation and enterprise innovation performance and provides more references for Chinese enterprises to effectively implement innovation behaviors.
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