TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness
This paper identifies the systemic shocks of total factor productivity (TFP) at the macro level and industry level, and then evaluates the structural stickiness of TFP shocks by using information entropy and industry correlation degree through counterfactual structural simulation based on China’s m...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2024-11-01
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| Series: | Technological and Economic Development of Economy |
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| Online Access: | https://jeelm.vgtu.lt/index.php/TEDE/article/view/22020 |
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| author | Dangru Zhao Tianshu Zhao Ran Du |
| author_facet | Dangru Zhao Tianshu Zhao Ran Du |
| author_sort | Dangru Zhao |
| collection | DOAJ |
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This paper identifies the systemic shocks of total factor productivity (TFP) at the macro level and industry level, and then evaluates the structural stickiness of TFP shocks by using information entropy and industry correlation degree through counterfactual structural simulation based on China’s manufacturing companies. We find that: in the face of TFP systemic shocks, the industries with less structural stickiness include computer communication and other electronic equipment manufacturing, special equipment manufacturing and general equipment manufacturing, indicating that these industries have a strong internal innovation power. The TFP distribution of electrical machinery and equipment manufacturing industry and ferrous metal smelting and rolling industry showed structural differentiation, and the lower tail enterprises are not sensitive to TFP shocks. The industries with strong structural stickiness are non-ferrous metal processing industry and non-metallic mineral products industry, etc., which have weak internal innovation power and need exogenous innovation incentives. In addition, there is a significant positive correlation between industry correlation and information entropy, which emphasizes the radiation effect role of industries with high industry correlation degree. The research provides a new method to evaluate the innovation ability of the industry and a basis for the differentiation of innovation incentive policies in the industry.
First published online 15 November 2024
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| format | Article |
| id | doaj-art-19238af346de4262afb45f0f6bc91f70 |
| institution | Kabale University |
| issn | 2029-4913 2029-4921 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj-art-19238af346de4262afb45f0f6bc91f702024-11-15T16:29:00ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212024-11-0110.3846/tede.2024.22020TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickinessDangru Zhao0Tianshu Zhao1Ran Du2School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei, ChinaLibrary of Wuhan Textile University, Wuhan, Hubei, ChinaSchool of Economics, Huazhong University of Science and Technology, Wuhan, Hubei, China This paper identifies the systemic shocks of total factor productivity (TFP) at the macro level and industry level, and then evaluates the structural stickiness of TFP shocks by using information entropy and industry correlation degree through counterfactual structural simulation based on China’s manufacturing companies. We find that: in the face of TFP systemic shocks, the industries with less structural stickiness include computer communication and other electronic equipment manufacturing, special equipment manufacturing and general equipment manufacturing, indicating that these industries have a strong internal innovation power. The TFP distribution of electrical machinery and equipment manufacturing industry and ferrous metal smelting and rolling industry showed structural differentiation, and the lower tail enterprises are not sensitive to TFP shocks. The industries with strong structural stickiness are non-ferrous metal processing industry and non-metallic mineral products industry, etc., which have weak internal innovation power and need exogenous innovation incentives. In addition, there is a significant positive correlation between industry correlation and information entropy, which emphasizes the radiation effect role of industries with high industry correlation degree. The research provides a new method to evaluate the innovation ability of the industry and a basis for the differentiation of innovation incentive policies in the industry. First published online 15 November 2024 https://jeelm.vgtu.lt/index.php/TEDE/article/view/22020total factor productivity shocksmanufacturing industrystructural viscosityendogenous innovation |
| spellingShingle | Dangru Zhao Tianshu Zhao Ran Du TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness Technological and Economic Development of Economy total factor productivity shocks manufacturing industry structural viscosity endogenous innovation |
| title | TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness |
| title_full | TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness |
| title_fullStr | TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness |
| title_full_unstemmed | TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness |
| title_short | TFP shocks and endogenous innovation ability in manufacturing industry: from the perspective of structural stickiness |
| title_sort | tfp shocks and endogenous innovation ability in manufacturing industry from the perspective of structural stickiness |
| topic | total factor productivity shocks manufacturing industry structural viscosity endogenous innovation |
| url | https://jeelm.vgtu.lt/index.php/TEDE/article/view/22020 |
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