Abstract:     China′s economy is at a critical stage of transformation and upgrading from a high-speed development to a high-quality development model and it plays a crucial role in advancing the high-quality development of manufacturing enterprises. This paper adopted the individual champion cultivation policy implemented in batches from 2016 to 2019 as the natural experiment. Based on the perspective of corporate innovation, we used the staggered difference-in-difference (DID) model to empirically demonstrate the impact of selective industrial policy on the high-quality development of manufacturing enterprises. We found that the individual champion cultivation policy can promote the substantial innovation of enterprises. The results of the mechanism test showed that the individual champion cultivation policy improves the innovation ability of enterprises by alleviating financing constraints and optimizing human capital. The heterogeneity analysis found that among private enterprises and enterprises in the western regions, the individual champion cultivation policy showed a more significant innovation incentive effect. Ultimately, the individual champion cultivation policy fosters the high-quality development of manufacturing enterprises through substantial innovation. This paper will provide certain empirical evidence and inspiration for the government to improve the cultivation system of individual champions, fully leverage the innovation-driven effect of selective industrial policies, and thereby advance the high-quality development of manufacturing enterprises.

Key words:  selective industrial policy, individual champion cultivation policy, high-quality development, corporate innovation