How Can Government Promote Technology Diffusion in Manufacturing Paradigm Shift? Evidence From China

• Published in: IEEE transactions on engineering management 2023-04, Vol.70 (4), p.1547-1559
• Main Authors: Xu, Guannan, Zhou, Yuan, Ji, Huanyong
• Format: Article
• Language: English
• Subjects: China; Diffusion; Economics; Government; Government interventions; Industries; Manufacturing; manufacturing paradigm shift; Organizational aspects; technology adoption; technology diffusion (TD); Trajectory; Urban areas
• ISSN: 0018-9391; 1558-0040
• DOI: 10.1109/TEM.2020.2981147

Traditional technology diffusion literature focuses on the diffusion of technologies within the extant manufacturing paradigm. By contrast, few studies have explored the determinants and mechanisms of technology diffusion when moving across manufacturing paradigms. In this article, therefore, we aim to explore the intrinsic and institutional factors, as well as the impact mechanism on technology diffusion in the context of manufacturing paradigm shift. Specifically, this article investigates the role of the government in this scenario. A firm-level survey is conducted to investigate the National Programme "Made in China 2025" and its first demonstration city Quanzhou. The data comes from multiple sources, including questionnaires, official statistics data, and patent databases. Logistical regression is used to analyze 236 valid observations. Results reveal that besides the intrinsic factors including the characteristics of general purpose technology (GPT) and economic expectation, GPT-oriented service platforms also have significant impacts on technology diffusion in a manufacturing paradigm shift. In addition, government interventions, especially indirect ones, have significant moderating effects on this influential mechanism. This study provides insight into how government can promote technology diffusion in a manufacturing paradigm shift. These results will be of interest to policy makers, industrialists, and academics.