Abstract:     Promoting a shift in the mode of economic development to the innovation-driven model is an important way for China′s economy to achieve high-quality development. However, the double-low dilemma of "low quality and low efficiency" in manufacturing innovation has not only hindered the improvement of the efficiency of the utilization of R&D resources, but also constrained China′s economic development towards a high-quality economy. At the same time, the degree of integration between the manufacturing industry and the Internet is increasing. This paper attempts to study whether the application of the Internet in the manufacturing industry can break the dilemma of "innovation inefficiency" from the perspective of innovation efficiency. To provide theoretical and empirical support for deepening the integration of manufacturing and Internet development.
    Through a review of the relevant literature, it is possible to qualitatively summarize the possible impact of the Internet on innovation efficiency: First, the biggest change brought about by the Internet is information, including the analysis and flow of information. At the level of knowledge structure, the Internet has greatly improved information asymmetry. Second, enterprises can quickly access low-cost technical resources and knowledge for research and development activities through the Internet, thus improving the efficiency of research and development. Third, firms, consumers, and research institutions are closely integrated through the Internet platform, which improves the efficiency of matching innovation activities. In short, the Internet facilitates the rapid flow of information, the efficient spillover of knowledge and the accelerated updating of technology, which increases the efficiency of innovation in industries. By building an innovation platform, firms can access innovation resources at lower cost, thus improving innovation efficiency. However, the discussion is mostly at the theoretical level and is still lacking empirical evidence.
    This paper measures the innovation efficiency based on the data of Chinese manufacturing industry segments, empirically examines the role of Internet use on innovation efficiency in the industry, and selects the degree of industry competition as the threshold variable, in order to analyze how the degree of industry competition affects the relationship between Internet and innovation efficiency. 
     This paper draws the following conclusions: Firstly, the increased use of the Internet in the industry has significantly improved the efficiency of innovation in the Chinese manufacturing sector, and the findings remain robust after a series of robustness and endogeneity tests. Deeper integration of the manufacturing industry and the Internet can promote knowledge spillover with lower information search and matching costs, increase the industry′s knowledge stock, and boost the industry′s innovation efficiency. It can be seen that the use of the Internet in industry is another source of driving innovation capacity enhancement in addition to human and physical capital investment.
     Secondly, the role of the use of the Internet in innovation efficiency is influenced by the degree of competition in the industry. When the industry is highly competitive, there is a catalytic effect of the Internet on innovation efficiency, i.e. there is an innovation effect of flight from competition. However, as the level of competition decreases, so does the incentive effect. When the level of competition exceeds the second threshold, this facilitative effect turns into a disincentive effect. This may be because, when the intensity of competition within an industry is stronger, it indicates that more firms are entering this market, resulting in more knowledge spillovers and lower learning costs between firms, which is conducive to more efficient innovation.

Key words: Internet, manufacturing, innovation efficiency, competition, threshold effect