Academic Journal

Coordination mechanism of financial subsidies and tax incentives for intelligent transformation of manufacturing enterprises in China.

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Title: Coordination mechanism of financial subsidies and tax incentives for intelligent transformation of manufacturing enterprises in China.
Authors: Tian, Yang1 (AUTHOR) tianyang0505@163.com, Mao, Kaikai2 (AUTHOR) maokaikai@hafu.edu.cn, Yang, Juan1 (AUTHOR) yangjuan1121@163.com, Pan, Langxuan3 (AUTHOR) panlangxuan@gmail.com
Source: Engineering Construction & Architectural Management (09699988). 2026, Vol. 33 Issue 8, p6387-6413. 27p.
Subject Terms: *Subsidies, *Tax incentives, *Government aid, *Manufacturing industries, *Digital transformation, Differential games, Incentive (Psychology), Chinese people
Geographic Terms: China
Abstract: Purpose: To incentivize Chinese manufacturing enterprises to increase input in intelligent transformation, the Chinese government typically offers financial and tax incentives as policy support. However, the mechanisms by which these joint tax-subsidy policies affect intelligent transformation input of manufacturing enterprises, and the optimal design of these policies have not been thoroughly explored yet. To address this gap, this study aims to explore the optimal combination of financial subsidies and tax incentives at different stages of the intelligent transformation of manufacturing enterprises in China to maximize the implementation efficiency of financial subsidies and tax incentives. Design/methodology/approach: In this study, a differential game model involving government departments and manufacturing enterprises is constructed by using differential game theory. It explores the boundary conditions and dynamic mechanisms that guide the effective implementation of financial subsidies and tax incentives to foster intelligent transformation. Through simulation analysis, the conclusion is well supported. Findings: First, during the demonstration and cultivation stage, financial subsidies are more effective than tax incentives in incentivizing intelligent transformation input of manufacturing enterprises, whereas in the gradual promotion stage, tax incentives are more effective than financial subsidies. Second, the incentive effectiveness of financial subsidies does not change during the process of intelligent transformation, while that of tax incentives increases gradually. Originality/value: This study fills a research gap by designing the optimal combination of financial subsidies and tax incentives to improve intelligent transformation input of manufacturing enterprises in China. To optimize government resources, during the initial demonstration and cultivation stage, the Chinese government should prioritize high financial subsidies and low tax incentives, while manufacturing enterprises should focus on deploying intelligent transformation projects supported by financial subsidies. In the later stage of gradual promotion, the Chinese government should prioritize high tax incentives and low financial subsidies, while manufacturing enterprises should concentrate on advancing intelligent transformation projects supported by tax incentives. [ABSTRACT FROM AUTHOR]
Copyright of Engineering Construction & Architectural Management (09699988) is the property of Emerald Publishing Limited and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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  Data: Coordination mechanism of financial subsidies and tax incentives for intelligent transformation of manufacturing enterprises in China.
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– Name: Abstract
  Label: Abstract
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  Data: Purpose: To incentivize Chinese manufacturing enterprises to increase input in intelligent transformation, the Chinese government typically offers financial and tax incentives as policy support. However, the mechanisms by which these joint tax-subsidy policies affect intelligent transformation input of manufacturing enterprises, and the optimal design of these policies have not been thoroughly explored yet. To address this gap, this study aims to explore the optimal combination of financial subsidies and tax incentives at different stages of the intelligent transformation of manufacturing enterprises in China to maximize the implementation efficiency of financial subsidies and tax incentives. Design/methodology/approach: In this study, a differential game model involving government departments and manufacturing enterprises is constructed by using differential game theory. It explores the boundary conditions and dynamic mechanisms that guide the effective implementation of financial subsidies and tax incentives to foster intelligent transformation. Through simulation analysis, the conclusion is well supported. Findings: First, during the demonstration and cultivation stage, financial subsidies are more effective than tax incentives in incentivizing intelligent transformation input of manufacturing enterprises, whereas in the gradual promotion stage, tax incentives are more effective than financial subsidies. Second, the incentive effectiveness of financial subsidies does not change during the process of intelligent transformation, while that of tax incentives increases gradually. Originality/value: This study fills a research gap by designing the optimal combination of financial subsidies and tax incentives to improve intelligent transformation input of manufacturing enterprises in China. To optimize government resources, during the initial demonstration and cultivation stage, the Chinese government should prioritize high financial subsidies and low tax incentives, while manufacturing enterprises should focus on deploying intelligent transformation projects supported by financial subsidies. In the later stage of gradual promotion, the Chinese government should prioritize high tax incentives and low financial subsidies, while manufacturing enterprises should concentrate on advancing intelligent transformation projects supported by tax incentives. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Engineering Construction & Architectural Management (09699988) is the property of Emerald Publishing Limited and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
  BibEntity:
    Languages:
      – Code: eng
        Text: English
    PhysicalDescription:
      Pagination:
        PageCount: 27
        StartPage: 6387
    Subjects:
      – SubjectFull: Subsidies
        Type: general
      – SubjectFull: Tax incentives
        Type: general
      – SubjectFull: Government aid
        Type: general
      – SubjectFull: Manufacturing industries
        Type: general
      – SubjectFull: Digital transformation
        Type: general
      – SubjectFull: Differential games
        Type: general
      – SubjectFull: Incentive (Psychology)
        Type: general
      – SubjectFull: Chinese people
        Type: general
      – SubjectFull: China
        Type: general
    Titles:
      – TitleFull: Coordination mechanism of financial subsidies and tax incentives for intelligent transformation of manufacturing enterprises in China.
        Type: main
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    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: Tian, Yang
      – PersonEntity:
          Name:
            NameFull: Mao, Kaikai
      – PersonEntity:
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            NameFull: Yang, Juan
      – PersonEntity:
          Name:
            NameFull: Pan, Langxuan
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          Dates:
            – D: 01
              M: 08
              Text: 2026
              Type: published
              Y: 2026
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              Value: 09699988
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              Value: 33
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              Value: 8
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            – TitleFull: Engineering Construction & Architectural Management (09699988)
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