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Service Input of Manufacturing and Enterprise Technological Progress: Effects and Mechanism

【Authors】
LIU Weigang, NI Hongfu
【WorkUnit】
LIU Weigang(Beijing University of Technology,100124)
NI Hongfu(Institute of Economics,CASS,100836)
【Abstract】

The service input of manufacturing(SIM)reflects the degree of integration of manufacturing and service and is an important driving force for the transformation and upgrading of manufacturing. This paper empirically analyzes the effects and mechanisms of SIM and the results show that:(1) In general,SIM(especially domestic service) in China is still low-end and with low quality,in sharp contrast to high-intelligence services,which fails to promote the technological progress of enterprises. However,indirect and foreign service input have promoting effects.(2)SIM has heterogeneous characteristics,showing different effects on the technological progress of the enterprises that differ in ownership system,location,and operation of export business. The traditional service input does not have an improving effect while the modern service input has a significant improving effect.(3)The analysis of mechanisms shows that corporate innovation and division of labor in manufacturing are the channels for service input to affect technological progress. The proportion of traditional and direct services input in China's manufacturing industry is relatively high, which is not conducive to enterprises' innovation and participation in the division of labor,thus to some degree impeding technological progress.
 
JEL:L60,L80

【KeyWords】
Service Input of Manufacturing,Enterprise Technological Progress,Corporate Innovation, Division of Labor