Blending Tech and Industry: Innovation Synergy in the Automotive Sector

Qin Yi*

Institute of Industrial Economics, Chinese Academy of Social Sciences (IIE-CASS)

Abstract: The automotive sector is experiencing a profound evolution in its innovation and value creation. This transformation, fueled by a technological and industrial revolution, represents a crucial shift from relying on isolated breakthroughs to building an ecosystem-driven approach. This synergy has driven a dynamic partnership and sparked a collaborative model across the value chain in which technology and industry evolve in lockstep. In the automotive sector, the fusion of technological and industrial innovation depends on an organic framework anchored by three forces: collaborative networks of multiple agents, direction set by industrial policies and focused initiatives through market-selected key projects, and support from capital markets. To fast-track this deep integration, seamless coordination is key: empowering businesses as innovation hubs, streamlining resource allocation and end-to-end support, and fostering an open, collaborative innovation ecosystem.

Keywords: Industrial chain; Innovation chain; Disruptive technology; Innovation

JEL Classification Codes: O33, L62

DOI: 10.19602/j.chinaeconomist.2025.11.04