Intelligent manufacturing and corporate human capital upgrade in China

This paper investigates whether and how intelligent manufacturing affects corporate human capital upgrade. We employ China’s intelligent manufacturing demonstration project as a quasi-natural experiment. Using a staggered difference-in-differences approach, we find that intelligent manufacturing is positively associated with corporate human capital upgrade. Moreover, it is shown that the capital-technology complementary effect and the enhancement of inventory management efficiency are mechanisms through which intelligent manufacturing promotes corporate human capital upgrade. Finally, our findings are more pronounced among firms in the high-tech industry and firms in the growth stage. Overall, we provide a timely assessment of China’s intelligent manufacturing demonstration project from the new perspective of corporate labor upgrading.