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Does “Made in China (2025)” improve innovation quality in robotics? Evidence from PageRank-based patent network

Author

Listed:
  • Han, Yihan
  • Pang, Silu
  • Jiang, Fuxin
  • Wang, Tao

Abstract

As industrial policy shifts toward innovation orientation, understanding its role in shaping high-quality innovation is both timely and essential. This paper evaluates the impact of China's “Made in China (2025)” (MIC2025) pilot policy on the innovation quality of robotics firms using a difference-in-differences approach. To overcome limitations of traditional patent indicators, we introduce an enhanced PageRank algorithm to measure high-value innovation through patent citation networks. Results show that the MIC2025 policy significantly improves innovation quality, particularly in midstream and downstream segments of the robotics value chain. Mechanism analysis reveals that targeted innovation subsidies, stronger intellectual property protection, enhanced technology diffusion, and talent agglomeration jointly contribute to this improvement. These findings highlight how targeted industrial policy can foster high-quality innovation and suggest that future policy design should align support with firm capabilities and value chain characteristics.

Suggested Citation

  • Han, Yihan & Pang, Silu & Jiang, Fuxin & Wang, Tao, 2025. "Does “Made in China (2025)” improve innovation quality in robotics? Evidence from PageRank-based patent network," Economic Modelling, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:ecmode:v:152:y:2025:i:c:s0264999325002949
    DOI: 10.1016/j.econmod.2025.107299
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    Keywords

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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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