How to get evidence? The role of government-business interaction in evidence-based policy-making for the development of Internet of Things industry in China

This paper provides theoretical bases and a framework to describe the incremental process of macro-level innovation policy-making for emerging industry in China and the role of government-business (G-B) interactions in generating policy-making evidence. By analyzing the decision-making processes of three macro-level innovation policies for the Internet of Things as a mode of industry development, the paper finds that the macro-level innovation policy-making resulted from a gradual sub-issue solving in each of several sub-processes. The specific micro-level policy tools are formed and implemented through G-B interactions to generate evidence, and these processes are gradual and incremental, helping policy-makers to overcome the high levels of uncertainties in emerging industry development. Five interactive approaches in this research are identified: inspections, investigations, soft lobbying, conferences, and cooperation. The patterns of interactions vary with the nature of the innovation policies. Our findings contribute to the evidence-based policy-making perspective, by clarifying the innovation policy-making sub-process and the evidence-generating mechanism of G-B interactions in dealing with emerging industry development uncertainties.