| Since the reform and opening up,relying on the export-oriented development model and the advantage of cheap labor,China’s manufacturing industry has expanded rapidly and become the world’s first manufacturing power since 2010.However,the problems of relatively low production efficiency of Chinese manufacturing enterprises and the limitation of high-tech manufacturing industry cannot be ignored.In the face of the deepening of aging and the diminishing demographic dividend,the transformation and upgrading of China’s manufacturing industry is a long way to go.General Secretary Xi Jinping stressed the need to promote the deep integration of digital technology and the real economy,to empower the transformation and upgrading of traditional industries,to give birth to new industries and new business models,to drive the "revolution" with new technology,to revitalize traditional industries and cultivate production dynamic energy.Digitalization is the main trend of modern manufacturing development,but there is little literature on the upgrading of manufacturing industry from the perspective of digital input.In the era of digital economy,promoting the development of digitalization,networking and intelligence of manufacturing industry is not only an inevitable choice to deepen the structural reform on the supply side,but also a necessary way to coordinate the construction of digital China and manufacturing power.On the basis of theoretical foundation and Chinese economic reality,based on different macro and micro dimensions,taking into account the two perspectives of production efficiency and structural optimization,this paper examines the effect of digital input on the upgrading of the manufacturing industry and its mechanism of action.Under the top-level strategic design of the government,this paper reveals the policy effects and mechanisms of the construction of "National Big Data Comprehensive Pilot Zone" on the upgrading of the manufacturing industry.This study mainly attempts to address the following questions.(1)What are the typical facts of digital input and manufacturing upgrading in China?(2)From the micro-firm level,how do digital inputs affect manufacturing productivity,all else being equal? And what are the mechanisms of action?(3)From the macro-provincial level,what is the impact of digital inputs on the structural optimization of manufacturing and the mechanism of action,assuming that other factors remain constant?(4)In the digitalization context,how does the policy supply of government departments-the pilot policy of "National Big Data Comprehensive Pilot Zone"-affect the upgrading of manufacturing industry?In order to answer the above questions,this paper constructs an analytical framework of the impact of digital inputs on the upgrading of China’s manufacturing industry based on two perspectives: production efficiency and structural optimization of manufacturing industry,from two dimensions of micro-enterprise level and macroprovincial level,and explains the inner mechanism of the impact of digital inputs on the production efficiency of manufacturing enterprises and structural optimization of manufacturing industry at the provincial level.In addition,this paper evaluates the policy effect and policy mechanism of the "National Big Data Comprehensive Pilot Zone" on the upgrading of manufacturing industry.Through the above theoretical analysis and empirical research,the following conclusions are drawn.First,a simple mathematical analysis shows that digital inputs are beneficial to manufacturing productivity and manufacturing structure optimization.Based on the theories of new structural economics,endogenous growth theory,Schumpeter’s "Creative Destruction Theory",industrial convergence theory and other existing literature,further mechanism analysis shows that digital technology,digital industry and digital business model are the main mechanisms of digital input-driven manufacturing upgrading.Second,the typical factual analysis of digital input and the upgrading of Chinese manufacturing industry finds that(1)the level of digital input of Chinese manufacturing enterprises has increased significantly since 2013,and decreased in the last two years due to the COVID-19;in addition,the level of digital input is relatively high in the eastern region and technology-intensive industries.(2)At the macro level,the level of digital input in China shows a dynamic increase,and the balance of digital input is not enough,with the eastern region having a distinct leading edge.(3)The total factor productivity of manufacturing enterprises shows a fluctuating upward trend,and the productivity of technology-intensive industries still has more space for improvement.(4)The overall level of structural optimization of China’s manufacturing industry has improved,but currently the western region has become the concentration of low-and medium-tech industries,and the gap between the east and the west is also the main reason for the spatial unevenness of the degree of structural optimization of manufacturing industry.Third,the empirical study based on the panel data of manufacturing enterprises in Shanghai and Shenzhen A-shares in China from 2007-2021 finds that(1)other conditions being equal,digital inputs significantly contribute to the productivity improvement of manufacturing enterprises,and this result is also robust.(2)The effect of digital inputs on total factor productivity of manufacturing firms is more significant in the samples with high digital attention of local governments,large scale of Internet broadband access users,capital-intensive industries,digital enterprises,state-owned enterprises,and high level of human capital.(3)Digital technology and digital industry strengthen the promotion effect of digital inputs on manufacturing productivity;at the same time,digital inputs also enhance the total factor productivity of enterprises through the innovation and application of digital business models.(4)Assuming that the digital input level of all enterprises is increased to the best existing state,there is still scope for at least 3.2% improvement of enterprise productivity.Fourth,an empirical study based on Chinese provincial panel data from 2003 to2020 finds that(1)with other factors held constant,digital inputs significantly contribute to the optimization of manufacturing structure and the results are robust.(2)The positive effect of digital inputs on manufacturing structure optimization is limited to the eastern regions,regions with higher level of economic development,better rule of law environment,and higher entrepreneurial activity.Therefore,although the structural optimization of manufacturing industry shows a high dependence on digital inputs,it may also be a trigger to exacerbate the problem of regional development imbalance in China.(3)Digital technologies,digital industries and digital business models enhance the role of digital inputs in promoting the structural optimization of manufacturing industries.(4)The factual analysis reveals that if there is no "digital divide" between regions,there is space for improvement of the manufacturing structure optimization by 117.63%.Fifth,a multi-temporal DID model was used to evaluate the impact of the pilot policy of "National Big Data Comprehensive Pilot Zone" on the upgrading of the manufacturing industry,and it was found that:(1)the big data pilot zone is conducive to the improvement of the productivity of manufacturing enterprises and the optimization of the manufacturing structure at the provincial level.This result still holds after various robustness tests such as parallel trend test,placebo test and instrumental variable method.(2)The promotion of total factor production efficiency by big data pilot zones is more significant in the sample of regions with larger Internet users,regions with better rule of law environment,enterprises with larger assets,and enterprises in the growth and maturity stages.The pilot policies also significantly promote the optimization of manufacturing structures in eastern China,regions with higher levels of economic development and better rule of law environments.(3)In a mechanism test using the Difference-in-Differences-in-Differences model,it was discovered that the major mechanisms by which the data pilot zones support manufacturing upgrading are technology empowerment and data empowerment.Based on the above comprehensive evidence chain from micro to macro,this paper puts forward the following targeted policy recommendations:(1)increase investment in digital assets and cultivate digital skills talent.(2)Accelerate the integration innovation and commercialization application of digital technologies,support the development of digital industries,and use digital business models to subvert the traditional value creation logic.(3)Give full play to the demonstration effect of the big data pilot area,tap the potential value of data elements,and empower the upgrading of the manufacturing industry.(4)Grasp the good opportunity of digitalization,combine economic and social characteristics with enterprise characteristics,and drive manufacturing upgrading in a targeted manner. |