The impact of R&D innovation strategy on the sustainable development of intelligent manufacturing: evidence from a quasi-natural experiment in China

Abstract Promoting the sustainable development of intelligent manufacturing enterprises is crucial for driving the green and efficient transformation of the manufacturing sector while safeguarding the ecological environment. Utilizing panel data from listed manufacturing firms in China, this study employs a quasi-natural experiment approach to investigate the impact of the additional deduction policy for R&D expenses (the R&D policy) on corporate sustainable development performance. The empirical results demonstrate that this policy significantly enhances the sustainable development outcomes of intelligent manufacturing enterprises. These findings remain robust across a battery of tests, including parallel trend analysis, placebo tests, propensity score matching (PSM), and alternative measures of sustainable performance. Further mechanism analysis reveals that the policy effect operates through three key channels: alleviating financing constraints, boosting innovation capabilities, and improving total factor productivity (TFP). Heterogeneity analysis indicates that the policy exerts stronger effects on firms characterized by rapid technological obsolescence, high capital intensity, non-state ownership, and larger scale. This study contributes to the literature by providing empirical evidence on the efficacy of fiscal policies in fostering sustainable industrial upgrading, offering valuable insights for policymakers in emerging economies seeking to balance economic growth with environmental sustainability.