Stability-Oriented Innovation in Machinery Manufacturing: Evidence from China’s Wood-Based Panel Machinery Industry

This study examines how firms in low- and medium-technology (LMT) manufacturing industries improve product stability during technological upgrading. While existing innovation research has largely focused on high-technology sectors and radical innovation, relatively little attention has been paid to stability-oriented innovation in traditional manufacturing industries. In machinery manufacturing, however, product reliability and operational stability are often more critical to customers than frequent technological novelty. To address this gap, the study investigates the mechanisms through which firms enhance product stability in the wood-based panel machinery industry. The research adopts a longitudinal multiple-case study approach based on two leading Chinese machinery manufacturers located in the Linyi industrial cluster. Empirical data were collected through in-depth interviews, field observations, and secondary materials. The findings indicate that product stability improvements emerge from the interaction of industrial agglomeration, incremental innovation, and technological integration. Industrial clusters facilitate knowledge exchange among firms, suppliers, and downstream users. Continuous incremental improvements based on operational feedback enable firms to refine product designs, while technological integration allows them to combine internal capabilities with external technological components. By highlighting the importance of stability-oriented innovation, this study contributes to the literature on innovation in LMT industries and provides insights into the technological learning processes of machinery manufacturers. The findings also offer practical implications for managers and policymakers seeking to promote technological upgrading in traditional manufacturing sectors.