How Does Human Capital Promote the Application of Industrial Robots in Chinese Firms:A Quasi-natural Experiment Based on Higher Education Reform in China
As crucial components of the current technological revolution and industrial transformation,industrial robots have become a focal point in the global competition among major industrial countries that aim to reshape the industrial landscape.According to the 2023 World Robotics Report by the International Federation of Robotics,the global annual installation of industrial robots exceeded 500,000 units for the second consecutive year,with China accounting for half of these installations.This marks a significant leap from the 550 units installed in 1999,demonstrating China's rapid advancement in the new wave of industrial transformation.This success is largely attributed to China's long-standing commitment to bolstering human capital,aligned with the national strategy of invigorating the country through science and education.The surge in intelligent manufacturing,driven by industrial robots,signifies a major technological paradigm shift,where the critical factor is the presence of high-quality labor equipped to integrate sophisticated manufacturing technologies.However,cultivating such advanced human capital,suited to operate cutting-edge technologies such as industrial robots,is not an instantaneous process.The expansion of higher education enrollments starting in 1999,guided by the national education strategy,has crucially enhanced the supply of skilled labor,laying a solid foundation for China to engage with and lead in the international technological arena.Utilizing a matched sample from the Chinese industrial firm database and the Chinese customs database from 2000 to 2014,this study employs a generalized difference-in-differences model alongside a quasi-experimental design based on the 1999 higher education reform in China.This approach is used to investigate the impact of human capital expansion on the deployment of industrial robots in firms and elucidate the underlying mechanisms driving this phenomenon.The findings indicate that after the educational reform,industries with high human capital intensity have experienced significantly greater growth in the application of industrial robots.This demonstrates that an increase in human capital considerably enhances the utilization of industrial robots across Chinese firms—a result that remains consistent and robust across a variety of rigorous tests.In line with the theoretical framework,the empirical evidence identifies the enrichment of skilled talent pools and the promotion of technological innovation as primary drivers of this trend.Further,the impact is particularly pronounced in firms involved in processing trade,those with low financial constraints,and those located in the eastern regions of China.Additionally,the integration of industrial robots has played a significant role in aiding the transformation and upgrading of trade in these firms.The contributions of this study to the literature are as follows.First,our study is the first to systematically explore the causal effects of human capital expansion on the adoption of industrial robots in firms,enriching research on the economic effects of human capital and identifying the factors that drive the adoption of industrial robots.These findings not only provide robust empirical support for the strategy of invigorating China through science and education but also offer valuable policy insights on how to enhance the adoption and facilitate the automation and intelligent development of the manufacturing sector.Second,in terms of mechanisms,while previous research has predominantly focused on how rising labor costs compel firms to adopt industrial robots,our study examines how improvements in human capital—through enhancing the pool of skilled talent and stimulating technological innovation—proactively drive firms to adopt these technologies.This enriches our understanding of the interactions between human capital and industrial robot application.Third,regarding the content of the research,our work not only systematically investigates the motivations behind industrial robot adoption but also extensively analyzes its economic outcomes.We make an early discovery that the application of industrial robots can propel firms to upgrade from processing exports to ordinary exports,thus enriching research on the economic effects of industrial robot application.
Human CapitalHigher Education ReformIndustrial RobotsGeneralized Difference-in-Differences
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