Strategy of Government, Industrial Internet Platform and SMEs in Regional Industrial Internet Ecosystem: Role of Government Subsidies and Value Co-creation

The regional industrial Internet ecosystem plays a crucial role in enhancing the regional economic competitiveness. This study examines the co-evolution among the government, industrial Internet platforms, and SMEs within China’s regional industrial Internet ecosystem. Employing a tripartite evolutionary game model, the research examines the functions of government subsidies and value co-creation. Findings indicate that government strategy is shaped by subsidies for platforms and SMEs, and the reputational benefits derived therefrom. The industrial Internet platform is primarily driven by government subsidies, synergistic benefits, and revenue-sharing allocation ratios with SMEs. SMEs’ strategy is contingent upon government subsidies, synergistic benefits, revenue-sharing allocation ratio, digital transformation costs, and potential risk loss. The study contributes to the theory on regional industrial Internet platform ecosystem by clarifying the role of government subsidies and value co-creation. It offers targeted implications to facilitate SMEs’ digital transformation and the sustainable development of regional industrial Internet ecosystem.