The Impact of the Convergence of Advanced Manufacturing and Modern Services on Green Innovation Efficiency

Cross-region and cross-industry cooperation has become a key driver of industrial transformation. Advanced manufacturing is boosting the modern service industry and fostering innovation and development, while the modern service industry is promoting advanced manufacturing and stimulating the market demand. The convergence of advanced manufacturing and modern services (CAMMS) is a key driver of environmental innovation in China’s modern economy. This study explores the impact of CAMMS on green innovation efficiency and its spatial correlations. Employing a two-way fixed-effect model, along with the mediating-effect model and the spatial Durbin model (SDM), we analyze Chinese provincial panel data from 2006 to 2021 to explore the effects of CAMMS on green innovation efficiency and its spatial spillover effects. Our findings reveal the following: (1) CAMMS significantly enhances green innovation efficiency. (2) Optimizing industrial structure and improving factor allocation are the primary mechanisms through which CAMMS promotes green innovation efficiency. (3) The CAMMS mechanism positively influences spatial spillover effects on green innovation efficiency, with these effects becoming more pronounced in the eastern region and after 2011. (4) Finally, due to increasing information transmission costs and local protectionism, the “spillover effect” of CAMMS on green innovation efficiency has geographical boundaries. This study contributes to the literature by providing valuable insights for future practices in CAMMS and green innovation strategies in China. This also provides strong support for the local economy to achieve green transformation and sustainable development.