Optimizing Nonspatial Proximity to Increase Green Technological Innovation in Manufacturing

Green technological innovation (GTI) is critical for addressing environmental challenges and achieving sustainable development. However, its driving factors and underlying mechanisms require further exploration. In this study, the impact of nonspatial proximity—comprising cognitive, social, and technological proximity—on GTI in China’s manufacturing sector is examined. Drawing upon in-depth interview transcripts and case data from seven Chinese fine chemical enterprises, a system dynamics (SD) model is constructed, progressing from a qualitative causal loop diagram that maps the system’s feedback structure to a quantitative stock-and-flow model for simulation. This model simulates the complex interactions among nonspatial proximity dimensions and their effects on GTI over time. Sensitivity analysis reveals the effects of different proximity levels and their combinations on GTI in enterprises. The findings indicate that moderate levels of cognitive, social, and technological proximity significantly increase GTI, whereas excessive proximity may lead to organizational rigidity and inhibit innovation activities. This study not only advances the theoretical understanding in the field of GTI but also provides practical insights for manufacturing enterprises to optimize proximity management and improve GTI performance.