Promoting Industrial Symbiosis: Does the Synergistic Drive of Innovation and Domestic Demand Work? Evidence from Listed Enterprises in China

Wei Qiu, Yunfei Zhang and Lingzhang Kong ()
Additional contact information
Wei Qiu: School of Economics, Xinjiang University of Finance and Economics, Urumqi 830012, China
Yunfei Zhang: School of Public Administration, Xinjiang University of Finance and Economics, Urumqi 830012, China
Lingzhang Kong: School of Economics, Xinjiang University of Finance and Economics, Urumqi 830012, China

Sustainability, 2024, vol. 17, issue 1, 1-33

Abstract: Driving the coexistence of manufacturing and producer services by enhancing the synergistic effect of innovation and domestic demand has important practical significance for China in building a new development paradigm with domestic circulation as the mainstay and dual circulation as a complement. Based on the time-series input–output tables and using data from China’s A-share listed companies from 2007 to 2022, this paper selects manufacturing and producer services as research objects to empirically test the driving role of innovation, domestic demand, and their synergy in the co-development of these two industries. The results indicate that innovation, domestic demand, and their synergy positively drive the coexistence and development of the two industries. After addressing endogeneity issues and conducting multiple robustness checks, the results remain robust. Heterogeneity analysis reveals that the synergistic effect of innovation and domestic demand on the coexistence of manufacturing and producer services is more pronounced in emerging enterprises, high-tech enterprises, small-sized enterprises, highly competitive enterprises, and enterprises with a high labor income share. This study provides reliable empirical evidence for the coordinated development of enterprise innovation and domestic demand, as well as its economic consequences. They have practical significance for China in forming an industrial symbiosis model, promoting the development of the Fourth Industrial Revolution, and breaking the low-end lock-in in the value chain.

Keywords: innovation; domestic demand; synergistic driving force; industrial symbiosis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/1/165/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/1/165/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:17:y:2024:i:1:p:165-:d:1555539

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().