Industry 4.0 Transition in China’s Manufacturing: A Case Study of Liaoning Province Using System Dynamics

The transition to Industry 4.0 is a critical phase for China's manufacturing sector. This study applies a System Dynamics (SD) model to evaluate and simulate the industrial capabilities of 10 listed equipment manufacturing companies in Liaoning Province. The research identifies key factors, such as technological investment, talent development, and enterprise performance. Our findings demonstrate that an increase in technological investment significantly enhances enterprise competitiveness, particularly in companies like Siasun Robot & Automation and Anzhong Corporation. We propose strategic recommendations for policymakers and businesses, including boosting research and development (R&D) investments and fostering collaboration between academia and industry to support the transition to Industry 4.0 in Liaoning.