IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v16y2025i1d10.1007_s13132-024-01982-1.html
   My bibliography  Save this article

Synergies of Technological and Institutional Innovation Driving Manufacturing Transformation: Insights from Northeast China

Author

Listed:
  • Yufeng Zhang

    (Northwestern University)

  • Xun Tang

    (Changchun Rudder Investment Group Co.Ltd)

  • Jianfei Yang

    (Northwestern University)

Abstract

This research explores the relationship between institutional and technological breakthroughs in Northeast China’s manufacturing sector, which is important for the region’s recovery. It reveals the complex dynamics influencing the industrial landscape of the region using a composite system synergy model. The results show a worrisome downturn in the orderly flow of innovation, which is ascribed to inadequate investment and erratic funding schemes. Moreover, there is a lack of effective synergy between industry, institutions, and technology, calling for integrated improvement initiatives. Targeted policy actions that strengthen the benefits-driven mechanisms, incentive structures, and synergy of technology innovation are necessary to address these difficulties. This report provides factual insights and practical recommendations to drive innovation-led growth in Northeast China by aligning with the demands of the knowledge economy. It seeks to create an environment favorable to knowledge generation, dissemination, and application through evidence-based policymaking and stakeholder involvement, which helps to accelerate sustainable development and economic revitalization in the area.

Suggested Citation

  • Yufeng Zhang & Xun Tang & Jianfei Yang, 2025. "Synergies of Technological and Institutional Innovation Driving Manufacturing Transformation: Insights from Northeast China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1014-1048, March.
  • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-01982-1
    DOI: 10.1007/s13132-024-01982-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-01982-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s13132-024-01982-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. C. Cindy Fan & Allen J. Scott, 2003. "Industrial Agglomeration and Development: A Survey of Spatial Economic Issues in East Asia and a Statistical Analysis of Chinese Regions," Economic Geography, Taylor & Francis Journals, vol. 79(3), pages 295-319, July.
    2. Richard Nelson, 2008. "Economic Development from the Perspective of Evolutionary Economic Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 9-21.
    3. Meiling Han & Martin De Jong & Zhuqing Cui & Limin Xu & Haiyan Lu & Baiqing Sun, 2018. "City Branding in China’s Northeastern Region: How Do Cities Reposition Themselves When Facing Industrial Decline and Ecological Modernization?," Sustainability, MDPI, vol. 10(1), pages 1-25, January.
    4. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    5. Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).
    6. Wasi Ul Hassan Shah & Bo Wang & Rizwana Yasmeen, 2023. "Evaluating the role of banking efficiency, institutions and financial development for sustainable development: Implications for Belt and Road Initiative (BRI)," PLOS ONE, Public Library of Science, vol. 18(10), pages 1-19, October.
    7. Wenting Chen & Chunjia Han & Lei Wang & Petros Ieromonachou & Xiaochen Lu, 2021. "Recognition of entrepreneur’s social ties and firm innovation in emerging markets: explanation from the industrial institutional environment and survival pressure," Asia Pacific Journal of Management, Springer, vol. 38(2), pages 491-518, June.
    8. Coe, Neil M. & Yeung, Henry Wai-chung, 2015. "Global Production Networks: Theorizing Economic Development in an Interconnected World," OUP Catalogue, Oxford University Press, number 9780198703914, Decembrie.
    9. Ghosh, Swapan & Hughes, Mat & Hodgkinson, Ian & Hughes, Paul, 2022. "Digital transformation of industrial businesses: A dynamic capability approach," Technovation, Elsevier, vol. 113(C).
    10. Zeng, Douglas Zhihua, 2011. "How do special economic zones and industrial clusters drive China's rapid development ?," Policy Research Working Paper Series 5583, The World Bank.
    11. Pengzhen Liu & Liyuan Zhang & Heather Tarbert & Ziyu Yan, 2021. "Analysis on Spatio-Temporal Characteristics and Influencing Factors of Industrial Green Innovation Efficiency—From the Perspective of Innovation Value Chain," Sustainability, MDPI, vol. 14(1), pages 1-20, December.
    12. Sarooghi, Hessamoddin & Libaers, Dirk & Burkemper, Andrew, 2015. "Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors," Journal of Business Venturing, Elsevier, vol. 30(5), pages 714-731.
    13. Barbieri, Elisa & Di Tommaso, Marco R. & Bonnini, Stefano, 2012. "Industrial development policies and performances in Southern China: Beyond the specialised industrial cluster program," China Economic Review, Elsevier, vol. 23(3), pages 613-625.
    14. Joana Costa & João C.O. Matias, 2020. "Open Innovation 4.0 as an Enhancer of Sustainable Innovation Ecosystems," Sustainability, MDPI, vol. 12(19), pages 1-19, October.
    15. Feng Wang & Changhai Gao & Wulin Zhang & Danwen Huang, 2021. "Industrial Structure Optimization and Low-Carbon Transformation of Chinese Industry Based on the Forcing Mechanism of CO 2 Emission Peak Target," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    16. Fan Yang & Yanming Sun & Yuan Zhang & Tao Wang, 2021. "Factors Affecting the Manufacturing Industry Transformation and Upgrading: A Case Study of Guangdong–Hong Kong–Macao Greater Bay Area," IJERPH, MDPI, vol. 18(13), pages 1-14, July.
    17. Davinder Singh & J.S. Khamba & Tarun Nanda, 2017. "Influence of technological innovation on performance of small manufacturing companies," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 66(7), pages 838-856, September.
    18. Markard, Jochen, 2020. "The life cycle of technological innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    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. Kroll Henning & Neuhäusler Peter, 2020. "Recent Trends of Regional Development in China – Technological Portfolios and Economic Growth," ZFW – Advances in Economic Geography, De Gruyter, vol. 64(1), pages 14-27, March.
    2. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.
    3. Attila Havas & Doris Schartinger & K. Matthias Weber, 2022. "Innovation Studies, Social Innovation, and Sustainability Transitions Research: From mutual ignorance towards an integrative perspective?," CERS-IE WORKING PAPERS 2227, Institute of Economics, Centre for Economic and Regional Studies.
    4. Juan Ricardo Perilla Jimenez, 2019. "Mainstream and evolutionary views of technology, economic growth and catching up," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 823-852, July.
    5. Jiawei Wu & Yehua Dennis Wei & Qizhai Li & Feng Yuan, 2018. "Economic Transition and Changing Location of Manufacturing Industry in China: A Study of the Yangtze River Delta," Sustainability, MDPI, vol. 10(8), pages 1-28, July.
    6. Christine Ngoc Ngo & Charles R. McCann, 2019. "Rethinking rent seeking for technological change and development," Journal of Evolutionary Economics, Springer, vol. 29(2), pages 721-740, April.
    7. Yoon, Hyungseok (David) & Boudreaux, Christopher & Kim, Namil, 2024. "Connecting the dots between democracy and innovation: The role of pro-market institutions and information processing," Research Policy, Elsevier, vol. 53(8).
    8. Haichao Yu & Shangze Dai & Haiqian Ke, 2024. "Industrial collaborative agglomeration and green economic efficiency—Based on the intermediary effect of technical change," Growth and Change, Wiley Blackwell, vol. 55(2), June.
    9. Tong Liang, 2025. "Innovating Regional Policy Frameworks in China: The Strategic Zone + Type Zone Model for Sustainable Growth," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1887-1928, March.
    10. Tianchu Feng & Andrea Appolloni & Jiayu Chen, 2024. "How does corporate digital transformation affect carbon productivity? Evidence from Chinese listed companies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 31425-31445, December.
    11. Shuai Shi & Kathy Pain, 2020. "Investigating China’s Mid-Yangtze River economic growth region using a spatial network growth model," Urban Studies, Urban Studies Journal Limited, vol. 57(14), pages 2973-2993, November.
    12. Li, Zhaochen & Xu, Zimu, 2025. "Digital technology and innovation:The impact of blockchain application on enterprise innovation," Technovation, Elsevier, vol. 139(C).
    13. John M. de Figueiredo & Brian S. Silverman, 2017. "On the Genesis of Interfirm Relational Contracts," Strategy Science, INFORMS, vol. 2(4), pages 234-245, December.
    14. Yunyao Li & Yanji Ma, 2022. "Research on Industrial Innovation Efficiency and the Influencing Factors of the Old Industrial Base Based on the Lock-In Effect, a Case Study of Jilin Province, China," Sustainability, MDPI, vol. 14(19), pages 1-23, October.
    15. Wignaraja, Ganeshan, 2008. "FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia," MERIT Working Papers 2008-061, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Lai, Kuei-Kuei & Chen, Yu-Long & Kumar, Vimal & Daim, Tugrul & Verma, Pratima & Kao, Fang-Chen & Liu, Ruirong, 2023. "Mapping technological trajectories and exploring knowledge sources: A case study of E-payment technologies," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    17. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    18. Andrea Borsato & André Lorentz, 2025. "Public science vs. mission-oriented policies in long-run growth: An agent-based model," Post-Print hal-05092674, HAL.
    19. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    20. Lee, Keun & Juma, Calestous & Mathews, John, 2014. "Innovation capabilities for sustainable development in Africa," WIDER Working Paper Series 062, World Institute for Development Economic Research (UNU-WIDER).

    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:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-01982-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.