IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i19p8858-d1764500.html
   My bibliography  Save this article

The Impact of Computing Infrastructure Construction on Innovation in Manufacturing Enterprises: Evidence from a Quasi-Natural Experiment Based on the Establishment of China’s National Supercomputing Centers

Author

Listed:
  • Meng Li

    (Business School, Nanjing University, Nanjing 210093, China)

  • Yang Xu

    (Business School, Nanjing University, Nanjing 210093, China)

Abstract

This study examines the establishment of China’s national supercomputing centers as an exogenous policy shock. Utilizing data from Chinese manufacturing enterprises listed between 2003 and 2023, it applies a multi-period difference-in-differences (DID) model to assess the impact of computing infrastructure on innovation within Chinese manufacturing enterprises. Results indicate that computing infrastructure significantly enhances manufacturing innovation, a finding that is robust across various tests. This effect is positively moderated by the internal R&D investment of enterprises and the external market share. Heterogeneity analysis reveals that the enhancement effect of computing infrastructure on innovation is more pronounced in non-state-owned enterprises, those located in the eastern region, and those with low ownership concentration. Furthermore, computing infrastructure not only boosts the quantity of innovation but also enhances its quality. This paper offers micro-level evidence for emerging countries to advance sustainable development, transformation, and upgrading of the manufacturing sector through computing infrastructure.

Suggested Citation

  • Meng Li & Yang Xu, 2025. "The Impact of Computing Infrastructure Construction on Innovation in Manufacturing Enterprises: Evidence from a Quasi-Natural Experiment Based on the Establishment of China’s National Supercomputing C," Sustainability, MDPI, vol. 17(19), pages 1-23, October.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8858-:d:1764500
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/19/8858/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/19/8858/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yang, Yuhan & Zhang, Chong & Liu, Baoliu & Huang, Yujie & Tai, Yafei, 2024. "Mystery of special government subsidies: How does digital transformation promote enterprise innovation and development?," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 1-16.
    2. Zhao, Xiang & Liu, Jiali, 2025. "The impact of digital infrastructure on labor productivity," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 274-287.
    3. Ading Li & Adul Supanut & Jianxu Liu, 2025. "Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment," IJFS, MDPI, vol. 13(2), pages 1-26, May.
    4. Chunyan Zhao & Linjing Wang, 2025. "Artificial Intelligence and Enterprise Green Innovation: Evidence from a Quasi-Natural Experiment in China," Sustainability, MDPI, vol. 17(6), pages 1-17, March.
    5. Xuanwei Zhao & Fangzhu Dong, 2025. "Digital infrastructure construction and corporate innovation efficiency: evidence from Broadband China Strategy," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-11, December.
    6. Shleifer, Andrei & Vishny, Robert W, 1986. "Large Shareholders and Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 461-488, June.
    7. Binhui Wei & Chunkai Zhao & Wenjun Cai & Boou Chen & Yufeng Lu, 2025. "The entrepreneurial effect of digital infrastructure development: micro evidence from China," Information Technology for Development, Taylor & Francis Journals, vol. 31(3), pages 604-634, July.
    8. Mary Amiti & Sebastian Heise, 2025. "U.S. Market Concentration and Import Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(2), pages 737-771.
    9. Chenggang Wang & Fan Xu & Chang Lu & Tiansen Liu, 2025. "The Impact of Global Value Chain Restructuring on the OFDI Transformation of Manufacturing Industry: Evidence from China," Sustainability, MDPI, vol. 17(12), pages 1-24, June.
    10. Kun, Qin & Chang, Yao & Runkai, Niu, 2024. "The impact of environmental regulation on enterprise green innovation," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1933-1944.
    11. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    12. Li, Yanqiong & Li, Sihao, 2024. "ESG performance and innovation quality," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1361-1373.
    13. Ru, Xue & Si, Fangjie & Lei, Pengfei, 2024. "Research on the impact of environmental regulation on enterprise high-quality development," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    14. Juanmei Zhou & Jie Mei, 2025. "Supply chain integration and innovation performance of manufacturing firms: The moderating role of research and development investment intensity," PLOS ONE, Public Library of Science, vol. 20(2), pages 1-23, February.
    15. Zhong, Kai & Song, Liangrong, 2025. "Artificial intelligence adoption and corporate green innovation capability," Finance Research Letters, Elsevier, vol. 72(C).
    16. Sonia Sayari & Nidhal Mgadmi & Imed Ben Dhaou & Mohammed Almehdar & Syed Khusro Chishty & Abbassi Rabeh, 2025. "Advancing Sustainable Development Through Digital Transformation and Fintech Innovation," Sustainability, MDPI, vol. 17(11), pages 1-23, May.
    17. Li, Zhaochen & Xu, Zimu, 2025. "Digital technology and innovation:The impact of blockchain application on enterprise innovation," Technovation, Elsevier, vol. 139(C).
    18. Aishan Ye & Jiayi Cai & Zhenjie Yang & Yangyang Deng & Xiaohua Li, 2025. "The Impact of Intelligent Logistics on Logistics Performance Improvement," Sustainability, MDPI, vol. 17(2), pages 1-19, January.
    19. Chen, Jiajia & Mai, Sheng & Liu, Yuya, 2025. "Industrial internet platform ecosystem embeddedness and enterprise business model innovation," Finance Research Letters, Elsevier, vol. 80(C).
    20. Cui, Xin & Wang, Chunfeng & Ma, Tingting, 2025. "Bankruptcy reform and breakthrough innovation: Evidence from the quasi-experiment in China," Finance Research Letters, Elsevier, vol. 71(C).
    21. Huangfu, Jianhua & Wei, Weixian & Yu, Lei & Li, Guoliang, 2025. "The impact of environmental policy stringency and oil prices on innovation: Evidence from the new energy vehicle industry in China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 979-996.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Howard Bodenhorn, 2012. "Voting Rights, Share Concentration, and Leverage at Nineteenth-Century US Banks," NBER Working Papers 17808, National Bureau of Economic Research, Inc.
    2. Chen, Shenglan & Lin, Bingxuan & Lu, Rui & Zhang, Ting, 2015. "Controlling shareholders’ incentives and executive pay-for-performance sensitivity: Evidence from the split share structure reform in China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 34(C), pages 147-160.
    3. Bennedsen, Morten & Nielsen, Kasper & Pérez-González, Francisco & Wolfenzon, Daniel, 2005. "Inside the Family Firm," Working Papers 21-2005, Copenhagen Business School, Department of Economics.
    4. Lixiong Guo & Patrick Lach & Shawn Mobbs, 2015. "Tradeoffs between Internal and External Governance: Evidence from Exogenous Regulatory Shocks," Financial Management, Financial Management Association International, vol. 44(1), pages 81-114, March.
    5. Guthrie, Katherine & Sokolowsky, Jan, 2010. "Large shareholders and the pressure to manage earnings," Journal of Corporate Finance, Elsevier, vol. 16(3), pages 302-319, June.
    6. Jing Huang & Steven R. Matsunaga & Z. Jay Wang, 2020. "The Role of Pension Business Benefits in Institutional Block Ownership and Corporate Governance," Contemporary Accounting Research, John Wiley & Sons, vol. 37(4), pages 1959-1989, December.
    7. Francis, Bill B. & Samuel, Gilna & Wu, Qiang, 2023. "The impact of short selling on dividend smoothing," Journal of Financial Stability, Elsevier, vol. 65(C).
    8. Bok Baik & Omri Even‐Tov & Russell Han & David Park, 2024. "The Real Effects of Supply Chain Transparency Regulation: Evidence from Section 1502 of the Dodd–Frank Act," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 62(2), pages 551-587, May.
    9. Morten Bennedsen & Kasper Nielsen & Francisco Pérez-González & Daniel Wolfenzon, 2005. "Inside the Family Firm: The Role of Families in Succession Decisions and Performance," CIE Discussion Papers 2005-13, University of Copenhagen. Department of Economics. Centre for Industrial Economics, revised Sep 2005.
    10. Thomas Conlon & Xing Huan & Steven Ongena, 2020. "Operational Risk Capital," Swiss Finance Institute Research Paper Series 20-55, Swiss Finance Institute.
    11. Wang, Liping & Chen, Longjun & Jin, Shucen & Li, Chuang, 2025. "Forecasting the green behaviour level of Chinese enterprises: A conjoined application of the autoregressive integrated moving average (ARIMA) model and multi-scenario simulation," Technology in Society, Elsevier, vol. 81(C).
    12. Alan D. Crane & Andrew Koch, 2018. "Shareholder Litigation and Ownership Structure: Evidence from a Natural Experiment," Management Science, INFORMS, vol. 64(1), pages 5-23, January.
    13. Ing-Haw Cheng & Harrison Hong & Kelly Shue, 2023. "Do Managers Do Good with Other People’s Money?," The Review of Corporate Finance Studies, Society for Financial Studies, vol. 12(3), pages 443-487.
    14. Xiong Zhou & Pengcheng Jiang, 2025. "Does e‐commerce infrastructure increase enterprise productivity? Evidence from China's e‐commerce demonstration city," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 1758-1784, April.
    15. Kristine Watson Hankins & Mark J. Flannery & M. Nimalendran, 2008. "The Effect of Fiduciary Standards on Institutions' Preference for Dividend‐Paying Stocks," Financial Management, Financial Management Association International, vol. 37(4), pages 647-671, December.
    16. Berzins, Janis & Bøhren, Øyvind & Stacescu, Bogdan, 2019. "Dividends and taxes: The moderating role of agency conflicts," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 583-604.
    17. Andrew Ellul & Levent Guntay & Ugur Lel, 2007. "External governance and debt agency costs of family firms," International Finance Discussion Papers 908, Board of Governors of the Federal Reserve System (U.S.).
    18. Yuxian Lin & Jingxuan Dong & Naiwen Kang & Zhen Yan, 2025. "Does China’s Zero Growth Policy Promote Green Enterprise Entry? Evidence from the Agricultural Input Sector," Agriculture, MDPI, vol. 15(17), pages 1-28, August.
    19. Wright, Austin L. & Sonin, Konstantin & Driscoll, Jesse & Wilson, Jarnickae, 2020. "Poverty and economic dislocation reduce compliance with COVID-19 shelter-in-place protocols," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 544-554.
    20. Iacovone, Leonardo & Ferro, Esteban & Pereira-López, Mariana & Zavacka, Veronika, 2019. "Banking crises and exports: Lessons from the past," Journal of Development Economics, Elsevier, vol. 138(C), pages 192-204.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8858-:d:1764500. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.