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| Digital Economy, Innovation Spiral and the Control Capability of Key Links in the industrial chain |
| Pang Lei1,Yang Xiaowei2 |
| (1.School of Economics and Management, Yunnan Normal University, Kunming 650500, China;2.Law School, Ningbo University, Ningbo 315211, China) |
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Abstract In the digital economy, China′s industrial chain is confronted with two-way competition among which the low-end industrial chain is transferred to developing countries and the high-end industrial chain returns back to developed countries, and there is a risk of "chain broken at both ends". Government policies put forward the intrinsic requirements of enhancing the resilience of the industrial chain, maintaining the security of the industrial chain, promoting the integration of the industrial chain and complementing the extension of the industrial chain, so as to keep the key links of the industrial chain in China, build a modern industrial chain system, and realize the external goal of data-enabled transformation of the whole industrial chain. By accelerating the construction of the digital economy, digital transformation drives the change of production methods, creates digital economy advantages, and promotes digital power through digital technology innovation. From the perspective of digital economy, this paper aims to provide an effective way for improving the control capability of key links of industrial chain in China.#br#Since the key links of China′s industrial chain are facing problems of low level, high dependence, weak innovation capability, unreasonable structure, etc., it is urgent to strengthen the construction of a digital technology collaborative innovation system. This paper adopts the input-output tables from 2017-2022, and the data from the CEInet statistical database and the Guotaian database to study the digital economy, innovation spiral and key link control capability of the industrial chain by employing propensity score matching (PSM) combined with the progressive DID method.#br#The following conclusions are drawn. First, the digital economy effectively enhances the industrial chain′s centrality and mediation degree, and promotes the industrial chain. The strength of the digital economy in enhancing the centrality of the industrial chain is greater than that of its mediation. Second, digital industrialization and industrial digitization can enhance the control ability of key links of the industrial chain, and the strength of digital industrialization in enhancing the control capability of key links of the industrial chain is higher than that of industrial digitization. Third, the development of digital economy in eight regions has significantly improved the control capability of key links in the industrial chain, and this effect decreases from the eastern coast region, the northern coast region, the southern coast region, the middle reaches of the Yangtze River, the middle reaches of the Yellow River, the southwestern region, the northeastern region to the northwestern region. Fourth, the development of digital economy can gradually overcome the restrictions of "bottleneck" industries and improve China's control capability towards them in the whole industrial chain. The control capability of industrial chain with technological bottleneck issues includes the role of special equipment, instruments, communications equipment, computers and other electronic equipment, electrical machinery and equipment, etc. Fifth, the "innovation spiral" effect of digital technology works as a partial mediating effect of digital economy development and industrial chain key link control capability. The mediating effect size of centrality is 0.426 1, accounting for 79.50% of the total effect, and the mediating effect size of intermediation degree is 0.344 2, accounting for 64.34% of the total effect. #br#From the perspectives of government, region and industry, this paper proposes some suggestions to improve the control capability over key links in China's industrial Chain. First, the government should take advantage of the new national system , increase the cultivation of key core technologies such as big data, cloud computing and artificial intelligence, improve the new national system to break through the bottlenecks of digital technology, and enhance the capability to control key links in the industrial chain. Second, the regions should build the infrastructure for digital technology. The eight regions across China should collaborate with each other to build digital infrastructure such as the Internet of Things (IoT), 5G communication and blockchain. Third, the industry should set accurate goals for the digital economy′s development. The digital economy industry should improve independent innovation capability and solve bottleneck issues in key and core technologies. To sum up, it is significant for China to promote the independence and control capability of the key links of the industrial chain. In addition, China should strengthen the linkage between digital industrialization and industrial digitalization, and build a digital economy system with a smooth domestic cycle.#br#
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Received: 31 January 2023
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