How Does Industrial Intelligence Impact the Integration of the Industrial and Innovation Chains: Evidence from China

Promoting the integration of the industrial and innovation chains (ICIC) constitutes a crucial strategy adopted by the Chinese government to foster sustainable economic development. Industrial intelligence (II), as a prominent application of artificial intelligence in the manufacturing sector, serves as a key engine for China’s industrial upgrading and has garnered widespread scholarly attention regarding its economic impacts. Using provincial-level panel data from China spanning 2011 to 2023, this study empirically investigates the impact of II on ICIC. The empirical results indicate the following: First, II exerts a significant positive impact on ICIC, and this conclusion remains robust after a series of robustness tests. Second, high-tech enterprises agglomeration and high-skilled labor agglomeration act as two critical channels through which II promotes ICIC, whereas technological innovation fails to play a mediating role. Third, both digital infrastructure and marketization positively moderate the relationship between II and ICIC, thereby significantly amplifying the positive impact of II on ICIC. Fourth, the positive effect of II on ICIC is found to be universally applicable: II can significantly promote ICIC in provinces with either strong or weak manufacturing (service) industries. These findings offer valuable theoretical support and practical implications for countries worldwide with diverse endowments in manufacturing and service industries that are pursuing II and striving to promote ICIC.