| Heterogeneity of converting innovation resources into economic growth in China’s light industry |
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Author: Olga A. Chernova, Southern Federal University; Russian Research Institute for Integrated Water Management and Protection, Rostov-on-Don, Russia Olga I. Dolgova, Southern Federal University, Rostov-on-Don, Russia Dapeng Wang, Southern Federal University, Rostov-on-Don, Russia Abstract: Most studies examine light industry in the aggregate, without accounting for interindustry differences, which impedes implementing differentiated policies and prioritising growth mechanisms by industry. The study’s purpose is to reveal the heterogeneity of innovation resources conversion into economic growth in China’s light industry. The methodological foundation of the research consists of the innovation theory, the evolutionary innovation theory, the concept of dynamic capabilities, as well as the economic growth theory, and the concept of sustainable development. Based on the 2016–2024 panel data for eight light industries in China, the paper analyses the growth rates of innovation resources indicators (R&D expenditure, the share of innovation-active enterprises, R&D personnel) and economic performance indicators (operating revenue, total profit, the share of new products in revenue and exports) accounting for a two-year time lag. The paper classifies the industries according to the type of conversion by comparing composite indicators with median values, and identifies four types of innovation resources conversion into economic performance: innovation-to-product, innovation-toprocess, inert, and inefficient. The findings only partially confirm the hypothesis about higher conversion efficiency in industries leading in technological development: some of them fall into the inert group, while one low-tech industry demonstrates efficient product conversion, and one medium-tech industry shows inefficient conversion. The research results can be used to develop and justify differentiated industrial policies within the implementation of the “Made in China 2025” initiative. Keywords: light industry; industrial policy; innovation resources; innovation conversion; technological intensity; economic growth. For citation: Chernova O. A., Dolgova O. I., Wang D. (2026). Heterogeneity of converting innovation resources into economic growth in China’s light industry. Journal of New Economy, vol. 27, no. 3, pp. 121–141. DOI: 10.29141/2658-5081-2026-27-3-6. EDN: EWFTBD. Article info: received May 12, 2026; received in revised form June 18, 2026; accepted August 3, 2026 |
