The purpose of this paper is to analyze and determine the best course of action for policymakers in China when dealing with the implementation of best practices for the internet of things (IoT). The recently introduced Internet Plus strategy is an attempt by Chinese policymakers to boost the Chinese economy by diminishing its reliance on manufacturing and export in favor of a knowledge-based economy driven by services and the tech sector. The IoT is arguably one of the key drivers behind this transformation.
This paper conducts an analysis of existing literature on the IoT and uses two complimentary theories, resource-based view and dynamic capabilities theory, to determine a set of policy recommendations.
A cooperative relationship between policymakers, start-up firms and academia is essential to the success of the IoT. The artificial intelligence industry also plays a key role in the development of the IoT and requires strategic funding and favorable policy. Finally, established and cost-effective standards and practices are much more likely to be effective than new and costly alternatives.
This paper examines the newly established field of the IoT and sets out a number of policy recommendations needed for its success. To achieve this, the author uses two complimentary theories unique to the business management field but increasingly compatible with the Chinese public policy sector.
