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12 pages, 230 KiB

Open AccessEditorial

Factors and Steps for Successful Transition from a State of Making to One of Innovating

by Jeffrey Yi-Lin Forrest and Zaiwu Gong

Sustainability 2019, 11(15), 4205; https://doi.org/10.3390/su11154205 - 3 Aug 2019

Viewed by 2159

Abstract

Other than serving as the introduction to this special issue, this paper looks at the question of how an underdeveloped or a developing economic entity can manage to acquire the knowledge and ability to overcome various barriers, be they social, cultural, or institutional, [...] Read more.

Other than serving as the introduction to this special issue, this paper looks at the question of how an underdeveloped or a developing economic entity can manage to acquire the knowledge and ability to overcome various barriers, be they social, cultural, or institutional, to establish its desired momentum of self-sustained growth. It addresses the question by surveying relevant literatures, first, about what factors, both internal and external, positively determine the innovativeness of an economic entity; and second, regarding what steps are necessary for an underdeveloped or a developing entity to engineer its momentum of self-sustained growth and for an established entity to maintain its existing momentum. By doing so, we demonstrate the theoretical significance and practical importance of this issue and the works contained in this issue. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

Research

Jump to: Editorial

15 pages, 1012 KiB

Open AccessArticle

Forecasting Quarterly Sales Volume of the New Energy Vehicles Industry in China Using a Data Grouping Approach-Based Nonlinear Grey Bernoulli Model

by Ling-Ling Pei and Qin Li

Sustainability 2019, 11(5), 1247; https://doi.org/10.3390/su11051247 - 27 Feb 2019

Cited by 25 | Viewed by 4279

Abstract

The new energy vehicles (NEVs) industry has been regarded as the primary industry involving in the transformation of the China automobile industry and environmental pollution control. Based on the quarterly fluctuation characteristics of NEVs’ sales volume in China, this research puts forwards a [...] Read more.

The new energy vehicles (NEVs) industry has been regarded as the primary industry involving in the transformation of the China automobile industry and environmental pollution control. Based on the quarterly fluctuation characteristics of NEVs’ sales volume in China, this research puts forwards a data grouping approach-based nonlinear grey Bernoulli model (DGA-based NGBM (1,1)). The main ideas of this work are to effectively predict quarterly fluctuation of NEVs industry by introducing a data grouping approach into the NGBM (1,1) model, and then use the particle swarm optimization (PSO) algorithm to optimize the parameters of the model so as to increase forecasting precision. By empirical comparison between the DGA-based NGBM (1,1) and existing data grouping approach-based GM (1,1) model (DGA-based GM (1,1)), DGA-based NGBM (1,1) can effectively reduce the prediction error resulting from quarterly fluctuation of sales volume of the NEVs, and prediction performance are proven to be favorable. The results of out-of-sample forecasting using the model proposed show that the sales volume of NEVs in China will increase by 57% in 2019–2020 with a quarterly fluctuation. In 2020, the sales volume of NEVs will exceeds the target of 2 million in the “13th Five-Year Strategic Development Plan”. Therefore, China needs to pay more attention to infrastructure construction and after-sales service for NEVs. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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22 pages, 775 KiB

Open AccessArticle

Female CEOs and Corporate Innovation Behaviors—Research on the Regulating Effect of Gender Culture

by Shuo Han, Weijun Cui, Jin Chen and Yu Fu

Sustainability 2019, 11(3), 682; https://doi.org/10.3390/su11030682 - 28 Jan 2019

Cited by 24 | Viewed by 7199

Abstract

With the increasing number of female senior executives, the relationship between female senior executives and corporate innovation behaviors has attracted widespread attention, but few works have studied the influences of female CEOs on innovation behaviors and their mechanisms. This paper studies the relationship [...] Read more.

With the increasing number of female senior executives, the relationship between female senior executives and corporate innovation behaviors has attracted widespread attention, but few works have studied the influences of female CEOs on innovation behaviors and their mechanisms. This paper studies the relationship between CEO’s gender and the selection of corporate innovation behaviors, as well as the regulating effect of gender culture on the relationship between them. It was discovered in the studies that (1) if compared with male CEOs, female CEOs have significantly promoted both incremental innovation behaviors and radical innovation behaviors; (2) gender culture has positively regulated the relationship between CEO’s gender and corporate incremental innovation behaviors, yet the regulating effect of gender culture on the relationship between CEO’s gender and corporate radical innovation behaviors is not significant. Thus, the government needs to further foster a gender culture with gender equality, and actively promote the positive effect of female CEOs in corporate innovations. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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16 pages, 1201 KiB

Open AccessArticle

An Empirical Study on the Key Factors of Intelligent Upgrade of Small and Medium-sized Enterprises in China

by Zhengxin Wang, Minghuan Shou, Shuai Wang, Ruinan Dai and Keqian Wang

Sustainability 2019, 11(3), 619; https://doi.org/10.3390/su11030619 - 24 Jan 2019

Cited by 21 | Viewed by 4215

Abstract

Promoting the intelligent upgrades of small and medium-sized enterprises is one of the important tasks of implementing “Made in China 2025” in China. As a front runner of nation-level reform, Zhejiang Province has provided much room for innovation and development, along with the [...] Read more.

Promoting the intelligent upgrades of small and medium-sized enterprises is one of the important tasks of implementing “Made in China 2025” in China. As a front runner of nation-level reform, Zhejiang Province has provided much room for innovation and development, along with the emergence of a new type of ecology, accelerated formation of two ecosystems and international cooperation, and a supportive policy environment. Therefore, this paper uses 173 Small and Medium-sized Enterprises (SMEs) from Zhejiang Province as the research objects, builds a binary selection model, and analyzes the dynamic and constraining mechanism of intelligent upgrades of SMEs with regard to employee qualification, technology, capital, policy environment, and so on. The study finds that: First, among three main industries, manufacturing is the major industry for the intelligent upgrades of SMEs and there are significant demonstration effects and industry heterogeneity. Secondly, the willingness to upgrade intelligently for SMEs is relatively strong. More than half of SMEs that have not intelligently upgraded show willingness to implement intelligent upgrades. Thirdly, factors such as corporate profitability, human capital quality, and industry intelligence level have significantly promoted the intelligent upgrades of SMEs, while the impact of labor cost, capital structure, government subsidies, and other variables are not significant. This conclusion still works after a number of robustness tests. Last but not least, based on the above conclusions, this paper proposes corresponding policy recommendations which are practically beneficial to the development of SMEs in China. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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26 pages, 5003 KiB

Open AccessArticle

Analyzing and Forecasting Energy Consumption in China’s Manufacturing Industry and Its Subindustries

by Wei Sun, Yufei Hou and Lanjiang Guo

Sustainability 2019, 11(1), 99; https://doi.org/10.3390/su11010099 - 24 Dec 2018

Cited by 9 | Viewed by 4172

Abstract

In the context of new industrialization, the energy problem being experienced by the manufacturing industry has aroused social concerns. This paper focuses on the energy use of 27 subindustries in China’s manufacturing industry and it develops an energy consumption index for 1994–2015. Subsequently, [...] Read more.

In the context of new industrialization, the energy problem being experienced by the manufacturing industry has aroused social concerns. This paper focuses on the energy use of 27 subindustries in China’s manufacturing industry and it develops an energy consumption index for 1994–2015. Subsequently, the method of grey relational analysis is used, with the full period divided according to years in which change points occur. The empirical analysis indicates that the energy consumption indexes generally exhibit a declining trend. Using the grey model (GM (1,1)) to forecast the index indicates a continued downward trend up to 2025 for energy-intensive industries, which is a more optimistic scenario than the trend forecast for the whole manufacturing sector. Thus, these energy-intensive industries do not drag down the performance of the whole manufacturing industry in regard to energy intensity. In future, more attention should be paid to energy-saving efforts by nontraditional high-energy-consuming industries. Although the results show that energy efficiency is improving in China, total annual consumption is rising rapidly. Therefore, the industry needs to continue to strengthen independent innovation and improve the efficiency of new energy use. The Chinese government should formulate feasible long-term plans to encourage enterprises to save energy. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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22 pages, 4386 KiB

Open AccessArticle

Macroprudential Regulation for the Chinese Banking Network System with Complete and Random Structures

by Qianqian Gao, Hong Fan and Shanshan Jiang

Sustainability 2019, 11(1), 69; https://doi.org/10.3390/su11010069 - 23 Dec 2018

Cited by 1 | Viewed by 3396

Abstract

There has been little quantitative research on macro-prudential regulation for the Chinese banking system while the existing relevant research in other countries has not considered the network structure. Therefore, the present paper constructs a dynamic Chinese banking network system with complete and random [...] Read more.

There has been little quantitative research on macro-prudential regulation for the Chinese banking system while the existing relevant research in other countries has not considered the network structure. Therefore, the present paper constructs a dynamic Chinese banking network system with complete and random structures and a quantitative model of macro-prudential regulation using four risk allocation mechanisms (Component VaR, Incremental VaR, Shapley value EL, and ΔCoVaR). Then we analyze empirically the macro-prudential regulation effect on the dynamic Chinese banking network system. The results show that the macro-prudential regulation focus on capital requirements for the Chinese banking network system is very effective in that most banks’ default probabilities have been reduced. Moreover, the regulation effect of the ΔCoVaR mechanism is the most significant and it has strong applicability because it is not affected by the two network structures. The next effective methods are Component VaR and Shapley value EL mechanisms. The last is the Incremental VaR mechanism. The Chinese banking system with random network is more stable in most years than that of the complete network. Lastly, our analysis suggests that setting up capital requirements based on each bank’s systemic risk contribution is able to promote the stability of the Chinese banking system. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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27 pages, 2854 KiB

Open AccessArticle

The Value of Business–Government Ties for Manufacturing Firms’ Product Innovation during Institutional Transition in China

by Chun Yang, Bart Bossink and Peter Peverelli

Sustainability 2019, 11(1), 63; https://doi.org/10.3390/su11010063 - 22 Dec 2018

Cited by 5 | Viewed by 3576

Abstract

This study investigates how firms invest in building and maintaining business–government (B–G) ties when they aim to innovate in regions where, due to institutional transitions, institutional contexts differ remarkably. Using data from the China Enterprise Survey of the World Bank, empirical findings suggest [...] Read more.

This study investigates how firms invest in building and maintaining business–government (B–G) ties when they aim to innovate in regions where, due to institutional transitions, institutional contexts differ remarkably. Using data from the China Enterprise Survey of the World Bank, empirical findings suggest that the influence of B–G ties on Chinese firms’ product innovation is different in distinctive institutional contexts in China. More specifically, during institutional transition, B–G ties become less efficient for facilitating product innovation when regional legal institutions and infrastructural supporting systems in a region are more stable, fair, and efficient. By contrast, during institutional transition, a positive effect of B–G ties on firm product innovation in a region becomes more significant when financial systems are relatively advanced. In addition to this, the value of B–G ties for firm product innovation appears to be more stable when business regulation develops within subnational regions. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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24 pages, 3238 KiB

Open AccessArticle

Exploring Driving Forces of Sustainable Development of China’s New Energy Vehicle Industry: An Analysis from the Perspective of an Innovation Ecosystem

by Jianlong Wu, Zhongji Yang, Xiaobo Hu, Hongqi Wang and Jing Huang

Sustainability 2018, 10(12), 4827; https://doi.org/10.3390/su10124827 - 18 Dec 2018

Cited by 26 | Viewed by 8575

Abstract

The sustainable development of the new energy vehicle (NEV) industry is receiving increasing attention worldwide. However, as a “catch-up” country in the automobile industry, China has made remarkable achievements in NEV industry development. To explore this phenomenon, this paper develops an “innovation-demand-policy” (IDP) [...] Read more.

The sustainable development of the new energy vehicle (NEV) industry is receiving increasing attention worldwide. However, as a “catch-up” country in the automobile industry, China has made remarkable achievements in NEV industry development. To explore this phenomenon, this paper develops an “innovation-demand-policy” (IDP) framework to investigate the driving forces of sustainable development of the NEV industry from the perspective of an innovation ecosystem. Based on a comprehensive data collection and processing of interviews, patents, industry reports, and policy documents, the findings showed that technological innovation, market demand, and government policy drive NEV industry development together, and policy can play an effective role of coordination only when it follows an innovation process and market demand selection mechanism. Specifically, technological grafting, potential market demand, and supply-side policy create a minimum viable ecosystem and the embryonic form of the NEV industry. Technological breakthroughs, public demand, and demand-side policy enhance the NEV industry’s ability to grow via a platform ecosystem. Additionally, total innovation, private demand, and environmental-side policy upgrade the NEV industry through expanding and reconfiguring the innovation ecosystem. This study also provides suggestions for policymakers and industrialists to promote sustainable development of the NEV industry in the future. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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17 pages, 542 KiB

Open AccessArticle

Research on Technological Innovation Efficiency of Tourist Equipment Manufacturing Enterprises

by Yuanyuan Lin, Nianqi Deng and Hailian Gao

Sustainability 2018, 10(12), 4826; https://doi.org/10.3390/su10124826 - 18 Dec 2018

Cited by 16 | Viewed by 3301

Abstract

With the lack of quantitative literature related to the tourist equipment manufacturing industry, this study used the innovation input and output data from 12 listed tourist equipment manufacturing companies in 2011–2017 and employed data envelopment analysis (DEA)–Malmquist to analyze the change of technological [...] Read more.

With the lack of quantitative literature related to the tourist equipment manufacturing industry, this study used the innovation input and output data from 12 listed tourist equipment manufacturing companies in 2011–2017 and employed data envelopment analysis (DEA)–Malmquist to analyze the change of technological innovation efficiency. The Malmquist index and its decompositions were used as dependent variables separately, and government ownership, cooperation with academics, and cooperation with international corporations as independent variables to construct a Tobit regression model. The results of static DEA show that the efficiencies of 12 tourist equipment manufacturing enterprises display a slight decline rule, and DEA–Malmquist analysis showed that the decline of technological innovation efficiency main derives from both the decline of technical efficiency and technical level. Moreover, other innovative subjects have different impacts on the technological innovation efficiency of China’s tourist equipment manufacturing enterprises. Thus, enterprises need to increase input of innovation and enhance the management level. In addition, they should manage the relationship between these innovative subjects and enhance the ability of collaborative innovation and independent innovation. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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16 pages, 1159 KiB

Open AccessArticle

Measuring the Benefits of the “One Belt, One Road” Initiative for Manufacturing Industries in China

by Jianing Hou, Shih-Chih Chen and De Xiao

Sustainability 2018, 10(12), 4717; https://doi.org/10.3390/su10124717 - 11 Dec 2018

Cited by 6 | Viewed by 6926

Abstract

China has shifted its focus from export-led growth to technology-driven growth. The “One Belt, One Road” initiative (OBOR) is aimed at promoting economic integration with the rest of the world that might boost China’s ability to upgrade its manufacturers. We evaluate the impact [...] Read more.

China has shifted its focus from export-led growth to technology-driven growth. The “One Belt, One Road” initiative (OBOR) is aimed at promoting economic integration with the rest of the world that might boost China’s ability to upgrade its manufacturers. We evaluate the impact of the OBOR initiative on the manufacturing industries of China. In other words, we examine whether the greater openness entailed by the initiative has been a catalyst for upgrading China’s export portfolio. We demonstrate that the proposition has been such a catalyst formally and adduce some empirical support for the proposition by using a panel of the top 80 exporting countries in the world during the period from 2002–2017 to evaluate the impact of the economic integration brought by the OBOR in terms of upgrades to Chinese manufacturers. Meanwhile, when domestic R&D generates knowledge spillover, the benefits of greater openness become partly indeterminate, thus counterfactual analysis was adopted to preclude potential endogeneity. By relating the values of exports at the two-digit harmonized system level to data on sectors to conduct integration within global production networks, we find that the greater openness brought by the OBOR initiative has actively increased manufacturing complexity and facilitated industrial upgrading in China. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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18 pages, 575 KiB

Open AccessArticle

TMT’s Attention towards Financial Goals and Innovation Investment: Evidence from China

by Shouming Chen, Kaidi Xu, Luu Thi Nguyen and Guangsheng Yu

Sustainability 2018, 10(11), 4236; https://doi.org/10.3390/su10114236 - 16 Nov 2018

Cited by 9 | Viewed by 3933

Abstract

Will the top managers’ attention to financial goals such as profit targets, operating expenses or debt payback schedule affect the firm’s innovation investment? The purpose of this study was to examine the relationship between the attention that the top management team (TMT) allocate [...] Read more.

Will the top managers’ attention to financial goals such as profit targets, operating expenses or debt payback schedule affect the firm’s innovation investment? The purpose of this study was to examine the relationship between the attention that the top management team (TMT) allocate on financial goals and R&D investment in Chinese firms. The roles of ownership type and company size as moderating effects in the relationship were also analyzed. This study used a panel dataset of 484 firms listed on the Shanghai Stock Exchange from 2010 to 2014. The results show that TMT’s attention to monetary objectives was negatively related to the R&D investment. In the state-owned and large-scale enterprises, the negative relationship between the TMT’s financial orientation and R&D investment is weak compared to that in private companies and smaller enterprises, respectively. Several conclusions have been drawn. First, the attention paid by TMT to financial goals significantly affects the innovation investment of the company. Specifically, when executives press the importance of monetary targets, they reduce innovation investment, given that the effects of firm-specific characteristics are controlled. Second, corporate ownership significantly moderates the relationship. Given the same degree of attention bias toward financial targets, compared with those in private companies, executives in state-owned companies tend to be more willing to invest in corporate innovation activities. Third, as the size of the company increases, the company’s comprehensive strength and ability to resist risks would increase, which in turn raises the willingness to undertake high-cost and long-term-to-realize-benefit innovation activities, thus alleviating the effect of TMT’s pressure on financial performance. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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24 pages, 607 KiB

Open AccessArticle

Entry Mode, Market Selection, and Innovation Performance

by Chong Wu, Fang Huang, Caihong Huang and Huiming Zhang

Sustainability 2018, 10(11), 4222; https://doi.org/10.3390/su10114222 - 15 Nov 2018

Cited by 4 | Viewed by 5296

Abstract

Recent studies highlighted the need for multi-perspective research on the internationalization and performance of emerging market multinational enterprises (EM-MNEs) and revealed why many EM-MNEs perform negatively when they respond to the host-country environment. Using a sample of listed Chinese manufacturing firms from 2003 [...] Read more.

Recent studies highlighted the need for multi-perspective research on the internationalization and performance of emerging market multinational enterprises (EM-MNEs) and revealed why many EM-MNEs perform negatively when they respond to the host-country environment. Using a sample of listed Chinese manufacturing firms from 2003 to 2014, this study examines the relationship between entry mode choice, which is driven by different environmental response patterns, and firms’ innovation performance. We further analyze the moderating role of market selection on the relationship between host-country institutional factors and firms’ innovation performance. The results show that the international breadth of firms and the economic stability and investment protection of the host country significantly promote firms’ innovation performance. While the entry mode is unilaterally driven by the host-country response, early international experience and the international depth of firms have significant negative effects on firms’ innovation performance. The level of economic development in the invested area plays a moderating role in the relationship between the host-country institutional factors and firms’ innovation performance. Our findings enrich the literature on the relationship between internationalization and EM-MNE performance, and provide inspiring and straightforward empirical evidence. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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22 pages, 2712 KiB

Open AccessArticle

Multiple Urban Domestic Water Systems: Method for Simultaneously Stabilized Robust Control Decision

by Kebai Li, Tianyi Ma and Guo Wei

Sustainability 2018, 10(11), 4092; https://doi.org/10.3390/su10114092 - 8 Nov 2018

Cited by 6 | Viewed by 2720

Abstract

The distribution of water resources and the degree of economic development in different cities will result in different parameters for the supply and demand of domestic water in each city. In this paper, a simultaneous stabilization and robust control method is proposed for [...] Read more.

The distribution of water resources and the degree of economic development in different cities will result in different parameters for the supply and demand of domestic water in each city. In this paper, a simultaneous stabilization and robust control method is proposed for decision-making regarding multiple urban domestic water systems. The urban water demand is expressed as the product of the urban domestic water consumption population and per capita domestic water consumption. The fixed capital investment and labor input of the urban domestic water supply industry are used as control variables. Based on the Lyapunov stability theory and the linear matrix inequality method, multiple urban domestic water supply and demand systems can accomplish asymptotical stability through the coordinated input of investment and labor. For an empirical analysis, we take six cities—Nanjing, Wuxi, Nantong, Yangzhou, Xuzhou, and Lianyungang—in Jiangsu Province, China, to study the simultaneously stabilized coordinated control scheme. The simulation results show that the same control scheme simultaneously achieves the asymptotic stability of these urban domestic water supply and demand systems, and is robust when it comes to the variation of system parameters. This method is particularly suitable for a water resources administrative agency to make a unified decision-making arrangement for water supply input in different areas. It will help synchronize multiple urban domestic water managements and reduce the difficulty of control. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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18 pages, 1113 KiB

Open AccessArticle

Comprehensive Evaluation of Regional Sustainable Development Based on Data Envelopment Analysis

by Zhijiang Li, Decai Tang, Mang Han and Brandon J. Bethel

Sustainability 2018, 10(11), 3897; https://doi.org/10.3390/su10113897 - 26 Oct 2018

Cited by 19 | Viewed by 3327

Abstract

In the light of the shortcomings of the analytic hierarchy process and other common regional sustainable development evaluation methods, this paper proposes the use of a combination of subjective and objective weights to generate input/output indicators using the Data Envelopment Analysis (DEA) method. [...] Read more.

In the light of the shortcomings of the analytic hierarchy process and other common regional sustainable development evaluation methods, this paper proposes the use of a combination of subjective and objective weights to generate input/output indicators using the Data Envelopment Analysis (DEA) method. Using this methodology, we construct a comprehensive evaluation index which is useful in expanding the application of Data Envelopment Analysis (DEA) in the comprehensive evaluation of sustainable development. Moreover, this paper addresses the shortfalls of the traditional DEA evaluation model and uses the Super-Slack Based Measure (SBM)-Undesirable and DEA-Malmquist evaluation models, which are based on traditional DEA model optimization, to analyze the spatio-temporal characteristics of sustainable development on regional scales. Using China’s Yangzte River Economic Belt as an example, an empirical analysis is carried out. We show that analysis results are virtually identical to the extant situation and can objectively reflect the status and abilities of sustainable development in each subregion. Additionally, from the angles of input, output and technological progress, this paper uses the DEA evaluation method to analyze the reasons behind the slow development in several provinces and municipalities along the Yangzte River Economic Belt (YERB). The regional characteristics of each province and city within our study are combined to explore the optimal mechanisms for sustainable development. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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18 pages, 424 KiB

Open AccessArticle

Characteristics of Corporate R&D Investment in Emerging Markets: Evidence from Manufacturing Industry in China and South Korea

by Jian Xu and Jae-Woo Sim

Sustainability 2018, 10(9), 3002; https://doi.org/10.3390/su10093002 - 24 Aug 2018

Cited by 54 | Viewed by 7616

Abstract

The issue concerning the increasing research and development (R&D) investment in emerging markets is especially attractive for many researchers and practitioners. This paper measures and compares the characteristics of Chinese and South Korean R&D expenditures of manufacturing companies from 2012 to 2016. It [...] Read more.

The issue concerning the increasing research and development (R&D) investment in emerging markets is especially attractive for many researchers and practitioners. This paper measures and compares the characteristics of Chinese and South Korean R&D expenditures of manufacturing companies from 2012 to 2016. It also examines the impact of R&D investment on firm performance. The results show that debt maturity and cash reserves are positive determinants of R&D investment in China and South Korea. Firm size, internal financing, and debt ratio are restrictive factors of R&D intensity in Chinese manufacturing companies, while debt ratio is the only negative determinant of R&D investment in their South Korean counterparts. The results also show that R&D intensity exhibits a strong positive impact on the performance of manufacturing companies in both countries. Moreover, this impact is stronger in South Korea than in China. In addition, R&D investment has a positive time-lag effect only on the performance of Chinese manufacturing companies. Our study presents some new evidence for the relationship between R&D intensity and firm performance in emerging markets. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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16 pages, 558 KiB

Open AccessArticle

Can China’s Carbon Emissions Trading Rights Mechanism Transform its Manufacturing Industry? Based on the Perspective of Enterprise Behavior

by Yue Dai, Nan Li, Rongrong Gu and Xiaodong Zhu

Sustainability 2018, 10(7), 2421; https://doi.org/10.3390/su10072421 - 11 Jul 2018

Cited by 32 | Viewed by 6912

Abstract

The pilot policy of carbon emissions trading rights covers six heavy pollution industries in the manufacturing industry and has achieved considerable emission reductions. Based on enterprise behavior, this study analyzes the impact of the carbon emissions trading rights pilot policy on the productivity [...] Read more.

The pilot policy of carbon emissions trading rights covers six heavy pollution industries in the manufacturing industry and has achieved considerable emission reductions. Based on enterprise behavior, this study analyzes the impact of the carbon emissions trading rights pilot policy on the productivity of manufacturing enterprises. In addition, we examine whether the pilot policy can aid in the transformation and upgrading of China’s manufacturing industry. Furthermore, we examine the influence of carbon emissions trading rights on manufacturing enterprises of different sizes and with different property rights. The results show that the trading rights have not produced a “Porter effect” on the productivity of manufacturing enterprises in China or in subsamples based on the nature of enterprise ownership. The impact of the carbon trading rights on the productivity of state-owned manufacturing enterprises in the pilot provinces is based on the compliance cost hypothesis. Therefore, the pilot policy has yet to achieve coordinated economic, social, and environmental development. Lastly, we put forward several policy suggestions on the coordinated development of a carbon trading policy and manufacturing enterprises from the perspective of the government, enterprises, and society. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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18 pages, 1095 KiB

Open AccessArticle

Tendency of Embodied Carbon Change in the Export Trade of Chinese Manufacturing Industry from 2000 to 2015 and Its Driving Factors

by Ji Guo, Lei Zhou and Xianhua Wu

Sustainability 2018, 10(6), 1839; https://doi.org/10.3390/su10061839 - 1 Jun 2018

Cited by 5 | Viewed by 2776

Abstract

The manufacturing industry is an important part of the national industrial system, and is usually an industry with high carbon content. However, few studies have been carried out on the total amount, structure and the trend of the embodied carbon emission in the [...] Read more.

The manufacturing industry is an important part of the national industrial system, and is usually an industry with high carbon content. However, few studies have been carried out on the total amount, structure and the trend of the embodied carbon emission in the international trade of the Chinese manufacturing industry. Based on the input–output method, the thesis proposes the coefficient of direct carbon emission and complete carbon emission and a method for calculating the embodied carbon of the export trade. It also calculates the coefficient of direct carbon emission and complete carbon emission for the Chinese manufacturing sector from 2000 to 2015 and breaks down the embodied carbon change of export trade in the manufacturing industry to a technological effect, structural effect and scale effect by using the method of structural decomposition. Several inspiring conclusions could be drawn from the thesis. For example: (1) the coefficient of both the direct carbon emission and the complete carbon emission has been decreasing significantly, indicating the achievements of the energy saving and emission reduction of the Chinese manufacturing industry. (2) The embodied carbon emission from the manufacturing exports remains high and presents a rising tendency. The main sectors that export the embodied carbon includes “S10 mechanical equipment and instruments”, “S9 metal products”, “S6 chemical industry”, etc., which should be the key sectors on reducing embodied carbon in exports. (3) The driving force of the embodied carbon exports lies in the scale effect of the manufacturing industry, on which the technical effect of the industry has a significant negative effect. The structural effect should have a positive influence that takes on a rising tendency; generally, this effect is only two-thirds of the scale effect. Finally, the corresponding policy suggestions have been made. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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11 pages, 532 KiB

Open AccessArticle

The Effectiveness of Government Subsidies on Manufacturing Innovation: Evidence from the New Energy Vehicle Industry in China

by Cailou Jiang, Ying Zhang, Maoliang Bu and Weishu Liu

Sustainability 2018, 10(6), 1692; https://doi.org/10.3390/su10061692 - 23 May 2018

Cited by 91 | Viewed by 9541

Abstract

Manufacturing innovation is of strategic importance to China in its effort to reshape future technology. This study explores the impact of government subsidies on the research and development (R&D) intensity of China’s new energy vehicle (NEV) enterprises. The dynamic relationship between government subsidies [...] Read more.

Manufacturing innovation is of strategic importance to China in its effort to reshape future technology. This study explores the impact of government subsidies on the research and development (R&D) intensity of China’s new energy vehicle (NEV) enterprises. The dynamic relationship between government subsidies and R&D intensity is tested with a panel regression model and a threshold regression model. We find that government subsidies have a significantly positive impact on R&D intensity when considering the sample group as a whole, but market profit does not contribute to R&D intensity. As for the sub-sample, government subsidies have a significantly positive impact on R&D intensity in assembly enterprises but are insignificant in supporting enterprises. Two threshold values are also identified with the logarithm of government subsidy. We find that government subsidies have a significant crowding in effect on the R&D intensity of NEV enterprises. With the increasing of government subsidy, the crowding in effect weakens gradually. The policy implication is that the structure of government subsidies should be optimized. More demand-oriented policy instruments should be adopted to cultivate the market. The government subsidies should be reduced gradually until full withdrawal. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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15 pages, 1080 KiB

Open AccessArticle

Evaluating Water Consumption Based on Water Hierarchy Structure for Sustainable Development Using Grey Relational Analysis: Case Study in Chongqing, China

by Wanjuan Zhang, Yang Yu, Xueyu Zhou, Shuai Yang and Chuan Li

Sustainability 2018, 10(5), 1538; https://doi.org/10.3390/su10051538 - 12 May 2018

Cited by 11 | Viewed by 4303

Abstract

With the economic development, the demand for water resources has been increasing dramatically during the last several decades. The sustainable development of water resources has become a major challenge in our society. As the largest economic center in west China, Chongqing was chosen [...] Read more.

With the economic development, the demand for water resources has been increasing dramatically during the last several decades. The sustainable development of water resources has become a major challenge in our society. As the largest economic center in west China, Chongqing was chosen as a typical unit to investigate this issue by using statistical data of fifteen years. In this study, the complexity of the water resource system was simplified through hierarchical structure analysis. Then, grey relational analysis was used to measure hierarchical correlation degree. The correlation between the levels of water consumption was analyzed, especially between water consumption and socio-economic indicators. Based on the result of hierarchical grey evaluation, three conclusions were drawn: (1) from the water consumption-oriented aspect, the correlation rankings, from high to low, are production water use, domestic water use, and eco-environmental water use respectively; (2) from industrial structure aspect, the secondary industry has the highest grey relational degree, which is followed by the primary industry (agriculture); and (3) from the economic and social indicators aspect, many significant factors are highly related to water consumption, such as precipitation, urbanization rate, total population, GDP, the proportion of output value of the three industries and residential water price. In this paper, to achieve the goal of the strictest system of water resource management during the 13th Five-Year Period, the corresponding policy suggestions are proposed for the municipal government of Chongqing. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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25 pages, 2110 KiB

Open AccessArticle

A Supply Chain Coordination Mechanism with Cost Sharing of Corporate Social Responsibility

by Yong Liu, Bing-ting Quan, Jiao Li and Jeffrey Yi-Lin Forrest

Sustainability 2018, 10(4), 1227; https://doi.org/10.3390/su10041227 - 17 Apr 2018

Cited by 21 | Viewed by 4122

Abstract

The competition of modern enterprises has shifted from brand competition among enterprises of the past to that of supply chains; and considering corporate social responsibility (CSR) within supply chain management has become an inevitable requirement for improving the competitiveness of enterprises and conforms [...] Read more.

The competition of modern enterprises has shifted from brand competition among enterprises of the past to that of supply chains; and considering corporate social responsibility (CSR) within supply chain management has become an inevitable requirement for improving the competitiveness of enterprises and conforms to the trend of standardization of social responsibility guidelines. This paper deals with channel coordination and decision-making in a CSR supply chain that is comprised of a dominant retailer and n homogeneous suppliers. The Stackelberg game is employed to analyze the optimal decision-making of this supply chain under either decentralized or centralized decision-making processes. After that, the thought and method of super conflict equilibrium are used to design the coordination decision-making mechanism of this supply chain based on the cost sharing of CSR to solve channel conflict and to optimize the decision. The results show that the proposed mechanism based on the cost sharing of CSR is better than those with only either the retailer or the suppliers being CSR; and it can well describe the relationship between the retailer and the suppliers, and increase the eagerness of the retailer and suppliers to carry out their CSR under various circumstances without having the profits adversely affected. As a matter of fact, this mechanism maximizes the profits of the entire supply chain system and also enhances the competitiveness of the chain. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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28 pages, 1442 KiB

Open AccessArticle

Manufacturing Decisions and Government Subsidies for Electric Vehicles in China: A Maximal Social Welfare Perspective

by Xiaoxue Zheng, Haiyan Lin, Zhi Liu, Dengfeng Li, Carlos Llopis-Albert and Shouzhen Zeng

Sustainability 2018, 10(3), 672; https://doi.org/10.3390/su10030672 - 1 Mar 2018

Cited by 49 | Viewed by 11037

Abstract

In order to address challenges in the sustainable development of transportation, economy, and environment, governments of China and conventional automobile manufacturers are extremely concerned about the development of the electric vehicle (EV) manufacturing industry and market. However, owing to the limitations of EVs [...] Read more.

In order to address challenges in the sustainable development of transportation, economy, and environment, governments of China and conventional automobile manufacturers are extremely concerned about the development of the electric vehicle (EV) manufacturing industry and market. However, owing to the limitations of EVs and the government economic policies on decreasing subsidies in China, many manufacturers are worried about entering the EV market. Given the low consumer preference for EVs, using a leader-follower Stackelberg game model, we investigate the impact of government a subsidy on the optimal production and pricing decisions of an auto manufacturer who could produce both EVs and conventional vehicles. We characterize whether/under what conditions the manufacturer’s decision to offer EV products under government subsidy, whilst increasing its profits (a win-win situation). On the policy side, we delineate how government a subsidy can be set to realize the inherent economic, environmental, and social benefits of EV production (the triple win of EV production). We further investigate the impact of EV manufacturing- and society-related factors on the balance among manufacturer profits, environmental impact and social welfare. This study also finds that the adoption of EVs is not bound to be beneficial for the environment. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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16 pages, 718 KiB

Open AccessArticle

Can Environmental Regulations Promote Corporate Environmental Responsibility? Evidence from the Moderated Mediating Effect Model and an Empirical Study in China

by Benhong Peng, Yu Tu and Guo Wei

Sustainability 2018, 10(3), 641; https://doi.org/10.3390/su10030641 - 28 Feb 2018

Cited by 24 | Viewed by 6126

Abstract

Based on the Stakeholder theory, a moderated mediating effect model is developed to reach the study objective, revealing an important connection that suggests environmental regulations (ERs) influence corporate environmental responsibility (CER) (Porter Hypothesis). In building the model, the validity of the questionnaire data [...] Read more.

Based on the Stakeholder theory, a moderated mediating effect model is developed to reach the study objective, revealing an important connection that suggests environmental regulations (ERs) influence corporate environmental responsibility (CER) (Porter Hypothesis). In building the model, the validity of the questionnaire data was analyzed with factor analysis. By employing a two-step approach, a regression analysis is utilized to discuss the mediating effect of altruistic motivation and moderating effect of green innovation, and a structural equation model is used to explore the interactive mechanism of different variables. It is found that altruistic motivation plays a medium role in the relationship between ERs and CER, and green innovation engages a positive coordination in the relationship. The empirical study identifies factors affecting enterprises’ willingness to undertake environmental responsibility, including environment policies, corporate culture, and personal characters among others. It is also revealed that altruistic motivation is conducive to forming a community interests among enterprises and enhancing their resistance to market risks, which explains and corroborates the Stakeholder theory; and the higher the level of green innovation, the more willing enterprises are to implement environmentally friendly operations. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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17 pages, 1117 KiB

Open AccessArticle

Economic and Emission Dispatch Using Ensemble Multi-Objective Differential Evolution Algorithm

by Xiaobing Yu, Xianrui Yu, Yiqun Lu and Jichuan Sheng

Sustainability 2018, 10(2), 418; https://doi.org/10.3390/su10020418 - 6 Feb 2018

Cited by 35 | Viewed by 4763

Abstract

In the past two decades, China’s manufacturing industry has achieved great success. However, pollution and environmental impacts have become more serious while this industry has grown. The economic and emission dispatch (EED) problem is a typical multi-objective optimization problem with conflicting fuel costs [...] Read more.

In the past two decades, China’s manufacturing industry has achieved great success. However, pollution and environmental impacts have become more serious while this industry has grown. The economic and emission dispatch (EED) problem is a typical multi-objective optimization problem with conflicting fuel costs and pollution emission objectives. An ensemble multi-objective differential evolution (EMODE) is proposed to tackle the EED problem. First, the equality constraints of the problem have been transformed into inequality constraints. Next, two mutation strategies DE/rand/1 and DE/current-to-rand/1 have been implemented to improve the conventional DE. The performance of the proposed algorithm is evaluated on six test functions and the numerical results have indicated that the proposed algorithm is effective. The proposed algorithm EMODE is used to solve a series of six generators and eleven generators in the EED problem. The experimental results obtained are compared with those reported using single optimization algorithms and multi-objective evolutionary algorithms (MOEAs). The results have revealed that the proposed algorithm EMODE either matches or outperforms those algorithms. The proposed algorithm is an effective candidate to optimize the manufacturing industry of China. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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14 pages, 252 KiB

Open AccessArticle

Independent R and D, Technology Introduction, and Green Growth in China’s Manufacturing

by Zhonghua Cheng and Wenwen Li

Sustainability 2018, 10(2), 311; https://doi.org/10.3390/su10020311 - 25 Jan 2018

Cited by 29 | Viewed by 4122

Abstract

An analysis of not only the effects of independent research and development (R and D), but also of the effects of the introduction of domestic and foreign technology on the growth of green manufacturing, can help China achieve the green transformation of manufacturing. [...] Read more.

An analysis of not only the effects of independent research and development (R and D), but also of the effects of the introduction of domestic and foreign technology on the growth of green manufacturing, can help China achieve the green transformation of manufacturing. In this paper we first use a non-directional distance function (NDDF) and meta-frontier methods to calculate a green growth index. Then, using 2003 to 2015 manufacturing panel data, we empirically test the effects of three different types of R and D investment on the green growth of China’s manufacturing. The regression results show that there is significant industrial heterogeneity in the effects of independent R and D, in the introduction of domestic technology and in the introduction of foreign technology on the green growth of China’s manufacturing. Independent R and D is conducive to the green growth of the three types of technological industries, but the contribution of independent R and D to green growth has gradually weakened with improvements in industrial technology. Domestic technology introduction is conducive to green growth in low and middle-technology industries, but its effect on high-technology industries is not significant. On the other hand, foreign technology introduction is conducive to the green growth of middle and high-technology industries, but its effect on low-technology industries is not significant. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

22 pages, 580 KiB

Open AccessArticle

Environmental Regulation, Green Innovation, and Industrial Green Development: An Empirical Analysis Based on the Spatial Durbin Model

by Zhijun Feng and Wei Chen

Sustainability 2018, 10(1), 223; https://doi.org/10.3390/su10010223 - 16 Jan 2018

Cited by 223 | Viewed by 13778

Abstract

Environmental regulation and green innovation are two main fulcrums in the realization of green transition of industrial growth. However, few studies have done an empirical analysis of the impact of environmental regulation and green innovation on green development. Based on the theory of [...] Read more.

Environmental regulation and green innovation are two main fulcrums in the realization of green transition of industrial growth. However, few studies have done an empirical analysis of the impact of environmental regulation and green innovation on green development. Based on the theory of systematic interduality, regional industrial green development is regarded as a dynamic system composed of two subsystems: the state and the process subsystem. Using provincial industrial panel data from 2007–2015 and the spatial Durbin model under the unified analysis framework, this paper examines the role and mechanism of environmental regulation (divided into administrative environmental regulation, market-based environmental regulation, and public participation environmental regulation) in the impact of green innovation (divided into green product innovation and green craft innovation) on industrial green development. The results indicate a sharp fluctuating trend in China’s overall industrial green development performance, and that China’s 30 provinces can be divided into four categories, based on the development levels of two subsystems of industrial green development. There is a clear positive spatial correlation between the industrial green development performance in different provinces. Considering the impact of environmental regulation on industrial green development performance, different types of environmental regulation have different regional influences. Considering the impact of green innovation on industrial green development performance, in the absence of environmental regulation constraints, green product innovation shows a certain promotional role, and green craft innovation has a significant inhibitory effect. However, under environmental regulation constraints, market-based environmental regulation through the encouragement of green craft innovation rather than green product innovation achieves a positive impact on industrial green development. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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4263 KiB

Open AccessArticle

Manufacturing Quality Prediction Using Intelligent Learning Approaches: A Comparative Study

by Yun Bai, Zhenzhong Sun, Jun Deng, Lin Li, Jianyu Long and Chuan Li

Sustainability 2018, 10(1), 85; https://doi.org/10.3390/su10010085 - 30 Dec 2017

Cited by 47 | Viewed by 6107

Abstract

Under the international background of the transformation and promotion of manufacturing, the Chinese government proposed the “Made in China 2025” strategy, which focused on the improvement of a quality-based innovation ability. Moreover, predicting manufacturing quality is one of the crucial measures for quality [...] Read more.

Under the international background of the transformation and promotion of manufacturing, the Chinese government proposed the “Made in China 2025” strategy, which focused on the improvement of a quality-based innovation ability. Moreover, predicting manufacturing quality is one of the crucial measures for quality management. Accurate prediction is closely related to the feature learning of manufacturing processes. Therefore, two categories of intelligent learning approaches, i.e., shallow learning and deep learning, are investigated and compared for manufacturing quality prediction in this paper. Specifically, the feed forward neural network (FFNN) with one hidden layer and the least squares support vector machine (LSSVM) with no hidden layers are selected as the representatives for shallow learning, and the deep restricted Boltzmann machine (DRBM) and the stack autoencoder (SAE) are chosen as the representatives for deep learning. The manufacturing data is collected from a competition about manufacturing quality control in the Tianchi Data Lab of China. The experiments show that the deep framework overwhelms the shallow architecture in terms of mean absolute percentage error, root-mean-square error, and threshold statistics. In addition, the prediction results also indicate that the performances depend on the length of the training data. That is, the bigger the sample size is, the better the performance is. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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4576 KiB

Open AccessArticle

A Novel Grey Wave Method for Predicting Total Chinese Trade Volume

by Kedong Yin, Danning Lu and Xuemei Li

Sustainability 2017, 9(12), 2367; https://doi.org/10.3390/su9122367 - 18 Dec 2017

Cited by 5 | Viewed by 3783

Abstract

The total trade volume of a country is an important way of appraising its international trade situation. A prediction based on trade volume will help enterprises arrange production efficiently and promote the sustainability of the international trade. Because the total Chinese trade volume [...] Read more.

The total trade volume of a country is an important way of appraising its international trade situation. A prediction based on trade volume will help enterprises arrange production efficiently and promote the sustainability of the international trade. Because the total Chinese trade volume fluctuates over time, this paper proposes a Grey wave forecasting model with a Hodrick–Prescott filter (HP filter) to forecast it. This novel model first parses time series into long-term trend and short-term cycle. Second, the model uses a general GM (1,1) to predict the trend term and the Grey wave forecasting model to predict the cycle term. Empirical analysis shows that the improved Grey wave prediction method provides a much more accurate forecast than the basic Grey wave prediction method, achieving better prediction results than autoregressive moving average model (ARMA). Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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960 KiB

Open AccessArticle

Analysis of Interval Data Envelopment Efficiency Model Considering Different Distribution Characteristics—Based on Environmental Performance Evaluation of the Manufacturing Industry

by Zaiwu Gong and Xiaoqing Chen

Sustainability 2017, 9(12), 2080; https://doi.org/10.3390/su9122080 - 27 Nov 2017

Cited by 17 | Viewed by 4345

Abstract

This study utilizes the Data Envelopment Efficiency (DEA) model to assess input–output efficiency from two perspectives. First, not considering the distribution of interval data, we introduce an adjusted parameter to transform interval data to determination data. Second, by contrast, we take into account [...] Read more.

This study utilizes the Data Envelopment Efficiency (DEA) model to assess input–output efficiency from two perspectives. First, not considering the distribution of interval data, we introduce an adjusted parameter to transform interval data to determination data. Second, by contrast, we take into account the distribution characteristics of interval data and test the DEA model with interval data based on linear uniform distribution and normal distribution with uncertainty. Based on the normal distribution DEA evaluation model, this paper aims to evaluate the input–output performance of the manufacturing industry with the constraint of environmental pollution in the Yangtze River Delta (YRD) region, China. Research has shown that the optimal solution of the normal distribution model is better than that of linear distribution. Therefore, it is imperative to adopt an appropriate method to evaluate the energy and environmental efficiency of this region. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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982 KiB

Open AccessArticle

Going Public and Industrial Upgrading of Traditional Clusters in Developing Countries: Rethinking the Dynamics of the ‘Jinjiang Model’ in China

by Huasheng Zhu and Yue Ding

Sustainability 2017, 9(11), 2133; https://doi.org/10.3390/su9112133 - 19 Nov 2017

Cited by 5 | Viewed by 4883

Abstract

Extant literature concerns about industrial upgrading in developing countries, and stresses the importance of joining global production networks (GPN). Taking the perspective of the updating approach of GPN theory, this paper selects the case of China to combine local industrial upgrading with financial [...] Read more.

Extant literature concerns about industrial upgrading in developing countries, and stresses the importance of joining global production networks (GPN). Taking the perspective of the updating approach of GPN theory, this paper selects the case of China to combine local industrial upgrading with financial activities, and explores how going public triggers industrial upgrading in developing countries. In 2015, semi-structured interviews were conducted with 36 listed firms and their related partners in Jinjiang, a county-level city in China. The findings indicate that local lead firms in developing countries have been increasingly involved in the global financial market by going public, which in turn provides these countries with opportunities of industrial upgrading. However, it does not necessarily guarantee industrial upgrading. Whether or not going public can bring about industrial upgrading depends mainly on intrafirm coordination, reconfiguration of interfirm relationships, and extrafirm bargaining with local governments. This case study suggests that finance be integrated into GPN theory as some scholars suggest, and the impacts of local lead firms in developing countries on the dynamics or reconfiguration of GPN be taken consideration, especially in some specific sectors. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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1247 KiB

Open AccessArticle

Forecasting the Energy Consumption of China’s Manufacturing Using a Homologous Grey Prediction Model

by Bo Zeng, Meng Zhou and Jun Zhang

Sustainability 2017, 9(11), 1975; https://doi.org/10.3390/su9111975 - 31 Oct 2017

Cited by 22 | Viewed by 4239

Abstract

With the rapid development of China’s manufacturing, energy consumption has increased rapidly, and this has become a major bottleneck affecting the sustainable development of China’s economy. This paper deduces and constructs a homologous grey prediction model with one variable and one first order [...] Read more.

With the rapid development of China’s manufacturing, energy consumption has increased rapidly, and this has become a major bottleneck affecting the sustainable development of China’s economy. This paper deduces and constructs a homologous grey prediction model with one variable and one first order equation (HGEM(1,1)) for forecasting the total energy consumption of China’s manufacturing based on the Grey system theory. Both parameter estimation (PE) and the deduction of the final restored expression (FRE) of the HGEM(1,1) model are all from the time response expression of the whitenization differential equation, which solves the ‘non-homologous’ defects of PE and FRE with traditional grey prediction models. HGEM(1,1) has good performance and can unbiasedly simulate a homogeneous/non-homogeneous exponential function sequence and a linear function sequence. Then, the HGEM(1,1)model is used to simulate and forecast the total energy consumption of China’s energy manufacturing, and the results show that the comprehensive performance of this model is much better than that of the classic Grey Model with one variable and single order equation, GM(1,1) for short and the frequently-used Discrete Grey Model with one variable and single order equation, DGM(1,1) for short. Finally, we forecast the total energy consumption of China’s manufacturing industry during the years 2018–2024. The results show that the total energy consumption in China’s manufacturing is slowing down but is still too large. For this, some measures, such as optimizing the manufacturing structure and speeding up the development and promotion of energy saving and emission reduction technologies, to ensure the effective supply of energy in China’s manufacturing industry are suggested. Full article

(This article belongs to the Special Issue Transition from China-Made to China-Innovation )

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