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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Main Authors: Dangru Zhao, Tianshu Zhao, Ran Du
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2024-11-01
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
description 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
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
work_keys_str_mv AT dangruzhao tfpshocksandendogenousinnovationabilityinmanufacturingindustryfromtheperspectiveofstructuralstickiness
AT tianshuzhao tfpshocksandendogenousinnovationabilityinmanufacturingindustryfromtheperspectiveofstructuralstickiness
AT randu tfpshocksandendogenousinnovationabilityinmanufacturingindustryfromtheperspectiveofstructuralstickiness