The Mechanism of Industrial Internet Platforms in Promoting Industrial Transformation and Upgrading

ZHANG Xiao, SHI Dai

Journal of Beijing Jiaotong University(Social Sciences Edition) ›› 2025, Vol. 24 ›› Issue (4) : 51-60.

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Journal of Beijing Jiaotong University(Social Sciences Edition) ›› 2025, Vol. 24 ›› Issue (4) : 51-60.
Applied Economics Studies

The Mechanism of Industrial Internet Platforms in Promoting Industrial Transformation and Upgrading

  • ZHANG Xiao, SHI Dai
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Abstract

As China is currently in a critical period of transitioning from old to new growth drivers, accelerating industrial upgrading and transformation is a top priority for current development. As a derivative of digital technology, the industrial internet platform is a hybrid institutional arrangement distinct from a single administrative or market-based institutional arrangement. This type of institutional arrangement can not only leverage external regulation to promote enterprises’ transformation and upgrading, but also stimulate the motivation for transformation and upgrading from within enterprises, which is conducive to addressing the long-standing challenges in China’s industrial upgrading. This paper argues that industrial internet platforms can drive industrial transformation and upgrading in three aspects: Facilitate the standardized and personalized development of small and medium-sized enterprises, and enhance the internal production efficiency and overall quality of enterprises; Break the objective constraints of geographical distance to enable virtual industrial agglomeration, thereby effectively promoting the efficient and flexible supply and allocation of resources; Amplify the “network effects” of leading enterprises to accelerate the accumulation of factors required for industrial upgrading, thus promoting the integration and upgrading of manufacturing and service industries. As a hybrid institutional arrangement, industrial internet platforms can systematically advance industrial transformation and upgrading. Among them, market-driven institutional arrangements stimulate the vitality of enterprises, while administrative-led institutional arrangements facilitate enterprise upgrading.

Key words

industrial internet platform / industrial transformation and upgrading / digital economy / institutional arrangement

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ZHANG Xiao, SHI Dai. The Mechanism of Industrial Internet Platforms in Promoting Industrial Transformation and Upgrading[J]. Journal of Beijing Jiaotong University(Social Sciences Edition). 2025, 24(4): 51-60

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