In recent years, the term "industrial innovation" has emerged as a frequently discussed topic across various sectorsBut what exactly does industrial innovation mean? How does it differ from and relate to technological innovation? And why is it essential to promote industrial innovation, especially in conjunction with technological advancements?

At its core, industrial innovation can be simply broken down into two components: "industry" and "innovation." While this creates a basic understanding, it fails to capture the nuances and underlying logic of industrial innovationUnlike Joseph Schumpeter’s perspectives that focus on micro-level innovations like new products, methods, markets, elements, and organizations, industrial innovation involves a macro-level analysis that questions and reconstructs both innovation goals and industry objectivesIt addresses the complexities arising from new technological revolutions and global competition, viewing industrial innovation through the lens of national development and competitive strategies that encompass three main forms: creating entirely new industries, transforming and upgrading existing ones, and innovating industry development models.

The first form of industrial innovation is the creation of new industries, described as "creating something from nothing." This stems from the interplay of technological, engineering, and manufacturing system revolutions, as well as from entrepreneurial initiativesThink of groundbreaking products like automobiles, computers, digital cameras, smartphones, and 3D printersThese innovations not only yield revolutionary products but also lead to the emergence of integrated industries such as productive service sectorsThe second form is the upgrading and transformation of existing industries, described as "adding more". This type of innovation results from the fusion of new technologies, interdisciplinary approaches, and existing industriesIt not only enhances the efficiency of traditional industries but also enables them to leverage new technologies to strengthen their competitive edge

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For instance, the utilization of smart manufacturing not only boosts productivity but also addresses challenges posed by rising labor costs, thereby preserving competitive advantages.

The third form represents the innovation of industry development models, which can be termed as "the perfect match". This is about how new organizational models drive industry growth by enhancing international competitivenessClassic examples include Germany's industrial clusters and the innovative ecosystems present in Silicon ValleyThese models of industrial development foster synergistic interactions where the growth of new industries requires effective adaptation and optimization of development strategies, continuously incorporating and utilizing new technologies for transformation and upgrading, therefore establishing a symbiotic industrial ecosystem.

Why is there a pressing need to focus on industrial innovation? The changing landscape of global competition is deeply interconnected with the competition of industrial development patternsThe capacity for industrial innovation is closely tied to a nation's ability to build competitive advantagesLooking at the history of global industrial transitions, one can see that each technological revolution not only introduced new technologies but also spurred industrial transformationsThese transformations created windows of opportunity for emerging economies while providing new conditions for established economies to reinforce their competitive advantagesFor example, the steam engine revolutionized industries such as textiles and transportation, contributing to the rise of machine-based heavy industries and enabling Britain to ascend as the foremost global power; the widespread use of internal combustion engines and electricity brought about transformations across transportation, manufacturing, and daily living styles, fostering new industries like automobiles—highlighted by Ford's assembly lines that significantly enhanced manufacturing productivity, allowing the U.S. to leapfrog ahead of Britain; and the semiconductor industry ushered us into the information era, prompting nations to seize opportunities to accelerate technological and industrial innovations in hopes of claiming future growth trajectories.

Today, we witness a rapid emergence of new industries driven by a fresh wave of technological revolutions

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Digital technologies are swiftly permeating traditional sectors, accelerating innovations in industrial development modelsFor China, promoting industrial innovation while achieving a seamless integration of technological and industrial innovation is imperative to establish new national competitive advantages in the digital economy era.

This endeavor involves several strategic approachesThe first is to foster collaborative efforts among diverse stakeholders to act as a "booster" for industrial innovationThis entails leveraging the government's guiding role through integrated industrial and innovation policies that ignite enthusiasm among different actors within the innovation landscapeBy strengthening the foundational capabilities of various industries and enhancing development levels, we can facilitate the transformation of traditional industries, the growth of emerging sectors, and the nurturing of future industriesMarket forces must also be harnessed to drive the gathering of various innovative elements and support dynamic movements from innovation entities, creating an integrated developmental ecosystem of innovation and industryMoreover, there is a pressing need to stimulate the proactive involvement of enterprises, particularly high-quality SMEs, to encourage their contributions across technological innovations, product developments, market expansions, and international competitiveness, while also leveraging the capabilities of leading enterprises in the industry chain to propel industrial innovations collectively.

The second approach calls for encouraging the emergence of diverse modes of innovation, cultivating a landscape of industrial innovation that is "blossoming like flowers." The focus should be on the development of emerging and future industries, inspiring creativity and imagination to develop new productsThe entrepreneurial spirit must play a significant role in engineering development and rapid iteration that yields impactful "epoch-making products." Enhancing the quality of product supplies can create new demands

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