The Impact of New infrastructure Construction on Optimization and Upgrading of Industrial Structure

Abstract

Industrial optimization is needed as China’s economy moves toward high-quality growth. The construction of new infrastructure, driven by new development concepts and patterns, facilitates industrial optimization. This study aims to explore the impact and mechanisms of new infrastructure construction on industrial structure optimization. The index of industrial structure upgrading and the pace of industrial transformation were calculated using panel data from 266 prefecture-level cities, which spanned from 2011 to 2018. This study uses two-way fixed effects and mediation effect methodologies to experimentally investigate the impact of new infrastructure construction on the optimization of industrial structure, while also considering possible endogeneity concerns. We found that new infrastructure building promotes industrial transformation and urban industrial structure upgrading. These results pass robustness and endogeneity testing. However, the impact of new infrastructure construction on industrial structure upgrading varies across cities. There is a significant driving effect in economically larger cities with better traditional infrastructure, and those in the eastern region. Smaller cities and those with inferior infrastructure have less impact. New infrastructure construction optimizes urban industrial structures through technological innovation and professional agglomeration, according to mediation effect study. Diversified agglomeration does not significantly upgrade industrial structures. The limitations of our model include the fact that the data does not describe industrial structural dynamics and it does not apply on other geographic scales. We illuminate the intricate connection between new infrastructure and industry upgrading by including city heterogeneity and the mediating impacts of technical innovation and professional clustering.

A Catalyst for China’s High-Tech Export Competitiveness: Perspective of Technological Innovation

“…Empirical studies have shown that the shift from labor-intensive to knowledge-based and technology-oriented industries signifies a radical change in the industrial landscape [45,46]. This shift not only redefines the industrial structure [41], but also provides a solid foundation for the technological support necessary for exporting high-tech products [47].…”

“…In high-tech industries, technological innovation is crucial for improving product quality and reorganizing industrial chains [45,51]. It enables the identification and either the restructuring or elimination of enterprises lacking in innovation, thereby optimizing resource utilization and strengthening international market competitiveness [47].…”

“…With the advent of economic globalization, high-tech products are increasingly able to enhance their position in the value chain through continuous development and innovation [36,45]. Technological innovation facilitates effective control over various stages of product life, from design and development to production and sales [47]. This leads to substantial growth in related industries, accumulation of knowledge wealth, and technical expertise, thus creating higher value [50].…”

“…Central to this process is the concept of self-driven innovative branding and the continuous enhancement of the industrial structure [49]. By adopting a path of technological innovation, industries can gradually break free from low-end industrial chains, improve their positioning in the global market, and effectively open up new international markets [47]. This strategy is instrumental in elevating the overall competitiveness of high-tech products on the global stage [45].…”

The Impact of China’s New Infrastructure Development on Urban Innovation Quality—A Quasi-Natural Experiment of Smart City Pilots

“…We utilized two-stage least squares (2SLS) regression analysis [37], and the results are presented in Table 6. According to Table 6, the estimated coefficient of new infrastructure development on urban innovation quality is significantly positive at a 1% level.…”