sustainability

Article
Innovation Ecosystem of CNG Vehicles: A Case
Study of Its Cultivation and Characteristics in
Sichuan, China
Ling Ding 1,2 and Jinxi Wu 2, *
1 Chinese Academy of International Trade and Economic Cooperation, Ministry of Commerce,
Beijing 100710, China; [email protected]
2 School of Social Sciences, Tsinghua University, Beijing 100084, China
* Correspondence: [email protected]; Tel.: +86-010-6279-8443-23

Received: 17 October 2017; Accepted: 4 December 2017; Published: 25 December 2017

Abstract: Under the constraints of resources and environment, China is eager to cultivate a new
industrial system with ecological characteristics in light of local circumstances. This paper selects the
innovation ecosystem of Compressed Natural Gas (CNG) vehicles in Sichuan, China as the objective
of the case study to explore its cultivation and characteristics. The theoretical significance lies in
three areas. Firstly, the cultivation path of the CNG vehicle innovation ecosystem is manifested.
Secondly, the symbiotic process model among the communities within the CNG vehicle innovation
ecosystem is found. Thirdly, the substitutive process model of the CNG vehicle innovation ecosystem
is discovered, which reveals the substitutability among innovation ecosystems, the communities
of similar products, and the enterprises of similar products. This paper is of theoretical, practical,
and political significance for the development of a CNG vehicle innovation ecosystem in emerging
markets in terms of regional energy security and emission reduction.

Keywords: innovation ecosystem; CNG vehicles; cultivation path; strategic management

1. Introduction
A vibrant innovation ecosystem (IE) can offer enterprises an innovation environment of “tropical
rain forests” where the internal interaction has much in common [1]. Under the constraints of resources
and environment, China is eager to develop a new industrial system with ecological characteristics in
light of local circumstances [2]. However, based on the literature review, this study finds that there
have been insufficient theoretical contributions in the study of the cultivation and characteristics of
regional IEs in resource-rich areas. In 2015, natural gas accounts for nearly 24% of the global primary
energy consumption, while the Chinese counterpart only accounts for 5.8%, less than 1/4 of the world
average. Many countries in the world are developing the natural gas vehicle industry for energy
security and emission reduction. Recently, China follows to develop the natural gas vehicle industry to
boost natural gas consumption. Up to 2014, the amount of Chinese Compressed Natural Gas (hereafter
referred to as CNG) vehicles had been 4.411 million, and the amount of gas stations had been 4455,
both ranking the first in the world.
Sichuan province is the leading region in China initiating the development of CNG vehicle
technologies and CNG filling stations, and continuously developing CNG vehicle industry based on
its unique resource advantages. This study takes the CNG vehicle IE of Sichuan province as the object
of case study and tries to discuss the following questions:

(1) How is Sichuan’s CNG vehicle IE cultivated?

(2) What are the characteristics of Sichuan’s CNG vehicle IE?

Sustainability 2018, 10, 39; doi:10.3390/su10010039 www.mdpi.com/journal/sustainability

Sustainability 2018, 10, 39 2 of 16

The study is of theoretical and political significance for the region with the resource advantage to
develop CNG vehicle IE for energy security and emission reduction.

2. The Literature Review of IE

2.1. Origin and Concept of IE

The understanding of the conception of IE in academia is a gradually deepening process. Ander
thought that the IE is a kind of cooperative arrangement that combines multiple enterprises’ products
together to customers [3]. Lumoa-aho and Halonen defined the IE as a persistent or temporary
system that consists of various innovation organizations interacting, communicating, and promoting
innovation in the ecological environment [4]. Zahra and Nambisan considered that IE is a loose but
interconnected enterprise network where every enterprise develops in coordination with the help of
the innovation platform and depends on each other for the whole’s efficiency and survival [5]. Adner
and Kapoor revealed that IE not only contains the innovation of focal enterprises, but also that of their
upstream suppliers, downstream customers, and complementors. It is impossible to offer valuable
products and services without complementary cooperation with various cooperative partners, and
the complementary network organization is called IE [6]. Chinese scholars Zeng et al. thought that IE
derived from the organization’s deepening cognition of the innovation system [7].
This study defined innovation ecosystem as “a network system consisting of the communities
of governments, product enterprises, complementary products enterprises, and customers, which
interact, communicate, or promote innovation in order to create valuable new products”. CNG vehicle
innovation ecosystem is defined as a network system consisting of the communities of governments,
CNG vehicle product enterprises, CNG complementary products enterprises, and customers, which
interact, communicate, or promote innovation in order to create valuable new CNG vehicle products.

2.2. Structure and Characteristics of IE

Scholars have different points of view on describing the structure or composition of IE. According
to Rohrbeck et al., IE is composed of three subsystems, namely the research subsystem, development
subsystem, and application subsystem [8]. Enterprises span the boundary of research and development
between organizations to obtain external knowledge resources and improve innovation competence [8].
Birol and Göktaş explained the composition of IE as a cluster, the university-industry cooperation,
and a culture to innovate [9]. Using network analysis, Rubens et al. further revealed the role of the
investment companies as resource routers in China’s IE [10].
IE is featured with some characteristics. Curley and Salmelin pointed out that today’s innovation
success is a combination of IE with quick adoption of new and better products and services that
are created by many participants [11]. For materials (such as product-focused improvement), many
projects or proposals are still inappropriate and expensive due to the disadvantages of the “shelter” in
IE [12]. Autio et al. revealed the importance of innovation context for an enterprise [13].

2.3. Mechanism and Building of IE

Scholars have demonstrated some mechanisms of IE. Hansen et al. argued that different players
connect and interact within IE [14]. By re-using and re-structuring the internal platform and assets of
an enterprise, its suppliers, or both, the enterprise may become more profitable. In a similar vein, an
industry platform may facilitate the re-structuring of a new round of innovative cooperation within
the supply chain [15]. Zhang et al. expounded the relationship between platform enterprises and
supporting enterprises [16]. Platform enterprises maintain the leading position in platform IE on the
basis of trust and control mechanisms, while supporting enterprises are involved in developing
supporting products. When platform enterprises and supporting enterprises complement their
strength and resources, supporting enterprises invest more on research and development (R&D),
and the revenue sharing coefficient is increased along with the increased financial support by platform
Sustainability 2018, 10, 39 3 of 16

enterprises. In contrast, when resources and strength are substitutive between platform enterprises
and supporting enterprises, even if platform enterprises invest more, supporting enterprises may be
less active in R&D activities, leaving the revenue sharing coefficient decreased.
Scholars also examined what the influential factors are in building and maintaining IE. Arimoto
and Levien argued that along with the investment on manpower and finance, knowledge creation
and long-term basic research was the investment on innovation in a sustainable IE [17]. The regional
cluster will create new products or services and increase enterprise profit and social welfare through
collaboration between university and industry. In an industry with frequent and rapid changes,
enterprises need to be highly cooperative to cope with the continuously changing market expectations.
The pressure from the market forces the enterprise to be more innovative, and resort to more external
resources for the sake of profits [18]. The total cost of social R&D is the main ecological factor
influencing regional GDP, and the number of patents is the main ecological factor influencing the
value of high and new technology industry [19]. Collaborative innovation network is an innovation
ecosystem of automatic cycle [20]. Concerning the evolution of innovation ecosystems, the unique
value is to keep its own health and vitality [21]. The cultivation of an innovation ecosystem is regarded
as the most advantageous environment to adapt to all kinds of expansive visions [22]. Organizational
resource, network resource, and system resource interact and co-evolve in the cultivation process of
innovation ecosystem [23].
Existing theoretical research provide significant inspiration and foundation for this study.
However, there have been insufficient theoretical contributions to the cultivation and characteristics of
regional IE of resource-rich areas, leaving much room for in-depth research.

3. Research Design and Data Collection

3.1. Research Method

This paper adopted the case study method. Case study is an important research method in
management and organizational studies. The case study method is adopted in this research for the
following reasons. First, the generalization method is a suitable way to study questions involving
“how” [24]. One key point of this paper is to discuss how Sichuan province cultivates its CNG vehicle
IE. Second, the analytic generalization principle from case to theory is suitable for exploring and
explaining the research phenomena above. The phenomena of cultivation and characteristics of CNG
vehicle IE are complex and multifaceted, leaving relative factors and processes still unclear. Therefore,
it is hard to answer the above research questions by using quantitative methods. Third, the case study
method is very suitable for research aiming at an overall process [25]. CNG vehicle IE in this paper is
featured with characteristics of the overall process.

3.2. Research Case Selection

This research selects Chinese Sichuan province’s CNG vehicle IE as the case for the reason that it
reflects the following three principles of case selection:
First of all, the case selection takes into account both importance and representativeness [26].
Sichuan, as the leader of CNG vehicle IE with rich CNG resources in China, can represent the practices
in the CNG vehicle industry with the same characteristics. Sichuan province is the first region in
China to develop CNG vehicle technologies and CNG filling stations. Over the past 27 years, the
government and enterprises of Sichuan province continuously cultivated the CNG vehicle IE based on
its advantage of resources. Above all, the cultivation and characteristics of the resource-rich area’s IE
are obvious.
Secondly, the selection of research sample follows the principle of theoretical sampling. The
choice of case is based on the need to fill existing theoretical gaps or develop new theories rather than
statistical sampling [27]. The cultivation and characteristics of IE are important topics of academic
concern. Existing theoretical research provides significant inspiration and foundation for the concepts,
Sustainability 2018, 10, 39 4 of 16

structures, characteristics, mechanisms, and establishment of IE. However, the theoretical background
is insufficient in the cultivation and characteristics of a resource-rich area’s IE from an evolutionary
perspective. The research on Sichuan CNG vehicle IE tries to discover of how the communities of
the governments, enterprises, and so on practice the symbiosis innovation to cultivate an IE for a
resource-rich area. It helps to improve the IE theory.
Thirdly, the case selection takes into account the consistency principle of theory and research
object. The author team who attended the field surveys is deeply impressed by the importance of IE’s
cultivation process for the rapid growth of Sichuan province’s CNG vehicle industry. Since the 1950s,
Sichuan province has been promoting the development of CNG vehicle industry. The data is abundant
and relatively integrated.

3.3. Research Tactics and Data Collection

In the aspect of study tactics, this research followed a standard case study process: literature
review, draft design and data collection, and data analysis [28,29]. First, we collected and reviewed the
literature of IE theory and confirmed the research questions and targets. Second, during the stage of
draft design and data collection, we specified the methods and tactics of the interview outline design
for data collection. Third, we implemented the iteration cycle in the data collection and analysis stage.
In the literature review, this research collected and studied relevant information to confirm the
nature of exploratory research and research problems of this paper [28,29]. It was found that the key
elements of the existing research lack an evolutionary perspective in the cultivation and characteristics
of IE for a resource-rich area. Accordingly, this study sets “the in-depth research of the CNG vehicle
IE of a resource-rich area from the perspectives of the IE’ cultivation and characteristics” as the
research target.
In terms of draft design, modeling, and data collection, this study is led by interview and
observation, and is supplemented by documents and archives [29]. First, in order to get the whole
picture of practical activities of Sichuan CNG vehicle IE, the interview outlines were designed. Second,
the study team conducted formal and informal in-depth interviews with the provincial government of
Sichuan, the municipal governments of Chengdu, Mianyang, and Luzhou, the enterprises of Shudu
Bus, Yema car, and Yajun van, the local taxi drivers, and the vehicle researchers in research institutes.
Third, the data was collected through the government units, Internet, published papers, and books.
Finally, based on multiple data sources and interviewees, the reliable data was screened out by using
the triangulation method [28,29].
According to the literature review and data collection, the logic of data analysis is as follows:
First of all, it was based on the view of IE, arranging the three phases of practice for the cultivation
of Sichuan CNG vehicle IE. Data were reflected in the case description part of this paper. This is
an important part of case study that gives readers a clear data linkage. Secondly, it analyzed the
cultivation path of the CNG vehicle IE. Finally, it explores the characteristics of the CNG vehicle IE.
The case study focuses on the continuous theoretical exploration of data for a mature analysis [29].

4. Case Description: Three Phases of the IE Cultivation

CNG vehicles have been developed in Sichuan for decades. The cultivation process of its IE can
be summed up as the following three typical phases.

4.1. Phase 1: The Birth of Sichuan CNG Vehicle Industry (1990–2000)

In the 1950s, the Sichuan Petroleum Administration Bureau, a local enterprise, and other local
enterprises successfully developed CNG vehicles, initiating the development of Chinese CNG vehicles.
However, the 1950s did not witness sustainable development because of technologies, petroleum
prices, cognition, and other reasons [30]. In 1990, the CNG vehicle developed by the Sichuan Petroleum
Administration Bureau was granted with three national patents, and was regarded as a national new
Sustainability 2018, 10, 39 5 of 16

product. The gas stations constructed by the Sichuan Petroleum Administration Bureau supplied the
Sustainability
CNG 2017, 9, 2269 products for the CNG vehicles.
complementary 5 of 16

In the following 10 years, the Sichuan provincial government promoted CNG vehicles to the
were approved
whole province and as important
the wholeprojects
country.for
In the promotion
1993, of national
the projects science
of Sichuan CNGand technology.
vehicle In 1994,
and gas stations
the project was among Sichuan province’s torch programs and Chongqing municipality’s
were approved as important projects for the promotion of national science and technology. In 1994, high-tech
projects,
the projectandwaswasamongregarded as an
Sichuan energy-saving
province’s and environment-conservation
torch programs project of
and Chongqing municipality’s Sichuan
high-tech
province, one of the top 10 National Technological Achievements promoted in the provincial and
projects, and was regarded as an energy-saving and environment-conservation project of Sichuan
national level [31]. Up to September 1995, Sichuan built 25 CNG filling stations and popularized more
province, one of the top 10 National Technological Achievements promoted in the provincial and
than 1300 CNG vehicles [32]. In 1996, it constructed CNG vehicle gas stations in 14 counties and cities,
national level [31]. Up to September 1995, Sichuan built 25 CNG filling stations and popularized more
such as Chengdu, Nanchong, Zigong, and Chongqing [33], with the issuing of The Technical
than 1300 CNG vehicles [32]. In 1996, it constructed CNG vehicle gas stations in 14 counties and
Conditions of CNG Vehicles and The Technical Conditions of CNG Vehicle Stations by the provincial
cities, such as Chengdu, Nanchong, Zigong, and Chongqing [33], with the issuing of The Technical
government. In 1999, Chengdu became one of the 12 pilot cities (regions) of clean energy vehicles in
Conditions of CNG Vehicles and The Technical Conditions of CNG Vehicle Stations by the provincial
China, which helped the Sichuan CNG vehicle industry obtain a high-speed development.
government. In 1999, Chengdu became one of the 12 pilot cities (regions) of clean energy vehicles in
China, which helped the Sichuan CNG vehicle industry obtain a high-speed development.
4.2. Phase 2: The Extension of Sichuan CNG Vehicle Industry (2001–2010)
4.2. Phase
In the2: 2000s,
The Extension of Sichuan
the Sichuan CNGCNG Vehicle
vehicle Industry
industry (2001–2010)
entered a phase of rapid extension. In 2001,
Sichuan province
In the formed
2000s, the a streamlined
Sichuan CNG vehicle industrial
industry production, which of
entered a phase contained the research
rapid extension. and
In 2001,
production of natural gas and CNG vehicles, and the number of CNG vehicles
Sichuan province formed a streamlined industrial production, which contained the research and and gas stations in the
province reached
production 25,000
of natural gasand
and81,
CNG respectively
vehicles, and[34].the
In number
2003, theofproject of the popularized
CNG vehicles application
and gas stations in the
of CNG for diesel buses was approved by the Transportation Bureau of Sichuan
province reached 25,000 and 81, respectively [34]. In 2003, the project of the popularized application of provincial
government.
CNG for diesel buses was approved by the Transportation Bureau of Sichuan provincial government.
The rapid
The rapid development
development of of the
the CNG
CNG vehicle
vehicle industry
industry in in Sichuan
Sichuan province
province benefits
benefits fromfrom thethe
advantageous price of oil and CNG as shown in Figure 1. Domestic gasoline prices
advantageous price of oil and CNG as shown in Figure 1. Domestic gasoline prices increased rapidly in increased rapidly
in 2003–2008
2003–2008 withwith the increasing
the increasing international
international crude oil crude
price.oil price. According
According to the U.S. to the U.S.
Energy Energy
Information
Information Administration,
Administration, U.S. crude oilU.S. crude
price oil price
had been had been
hovering hovering
around around
$15/barrel in $15/barrel
the 20 years in before
the 20 years
early
2003. In early 2004, U.S. crude oil price topped $30/barrel, rising rapidly year by year. Byby
before early 2003. In early 2004, U.S. crude oil price topped $30/barrel, rising rapidly year year.U.S.
2008, By
2008, oil
crude U.S. crude
price had oil priceto had
soared soared to
$128/barrel. $128/barrel.
According to ourAccording
survey, the toNational
our survey, the National
Development and
Development and Reform Commission advised that the price ratio of natural
Reform Commission advised that the price ratio of natural gas and petroleum be adjusted to 0.75:1 in gas and petroleum be
adjusted to 0.75:1 in 2007, so that the price of CNG for vehicles increased about
3
2007, so that the price of CNG for vehicles increased about 0.3–0.5 yuan/Nm . In 2010, the National 0.3–0.5 yuan/Nm 3. In

2010, the National

Development Development
and Reform and Reform
Commission alerted to Commission alerted to
raise the wellhead raise
price the wellhead
of natural gas, and price
some of
natural gas, and some provinces including Sichuan
provinces including Sichuan raised the price by about 1–2 yuan/Nm .raised the price by
3 about 1–2 yuan/Nm 3.

Figure 1.
Figure 1. Price trends
trends of
of the
the United
United States’
States’ crude
crude oil
oil and
and Sichuan’s
Sichuan’s natural
natural gas
gas in
inthe
thepast
past42
42years.
years.

With the
With the increase
increase of
of China’s
China’s natural
natural gas
gas price,
price, the
the amount
amount ofof natural
natural gas
gas for
for chemical
chemical use
use
decreased, which caused excessive capacity in main provinces producing natural gas (the total
decreased, which caused excessive capacity in main provinces producing natural gas (the total output output
of gas
of gasinin Shanxi,
Shanxi, Xinjiang,
Xinjiang, and Sichuan
and Sichuan accounted
accounted for more forthan
more thanpercent
seventy seventy percent Meanwhile,
in China). in China).
Meanwhile, gasoline prices increased. Therefore, it was an inevitable choice for Sichuan province to
strengthen policy support on CNG vehicle development and quicken the pace of supporting facilities’
construction. Since the People’s Republic of China was founded, there have been 13 Five-Year Plans,
and the thirteenth Five-Year Plan was started in 2016). The Five-Year Plan mainly makes plans for
important construction projects at national level, the distribution of productivity, and the ratio of the
Sustainability 2018, 10, 39 6 of 16

gasoline prices increased. Therefore, it was an inevitable choice for Sichuan province to strengthen
policy support on CNG vehicle development and quicken the pace of supporting facilities’ construction.
Since the People’s Republic of China was founded, there have been 13 Five-Year Plans, and the
thirteenth Five-Year Plan was started in 2016). The Five-Year Plan mainly makes plans for important
construction projects at national level, the distribution of productivity, and the ratio of the national
economy, defining objectives and directions for the vision of national economic development. In the
period of the Eleventh Five-Year Plan (2006–2010), the industrialization and technology innovation of
Sichuan CNG vehicles has achieved great progress. At the end of 2010, the number of local enterprises
engaged in CNG vehicle production, equipment manufacturing, vehicle re-equipment and repair, and
gas stations, reached over 400, while the number of local CNG vehicle ownership accounted for 8.38%
of national vehicle volume [35]. Sichuan built 247 CNG filling stations in total with 252,000 CNG
vehicles used, making the amount and promotion rank the first in China [36].

4.3. Phase 3: The Formation of Sichuan CNG Vehicle IE (2011–Now)

In the period of Twelfth Five-Year Plan (2011~2015), Sichuan CNG vehicle IE developed
continuously. By the end of 2013, Sichuan had put nearly 400,000 CNG vehicles into use, and had
built around 320 CNG filling stations. The accumulative output value of CNG vehicle industry was
78.8 billion yuan, and there were 1.82 million tons of harmful gas reduced, saving 34.5 billion yuan for
fuel. In 2014, Sichuan formed a CNG filling station network which covered 20 cities (states) and over
100 counties. From 2014 to 2015, the domestic and international petroleum price dropped dramatically.
The domestic price difference declined between natural gas and petroleum prices. Therefore, the price
of CNG was decreased with the price of petroleum of Sichuan province by the government. The price
reduced three times from ¥4 yuan/Nm3 in 2014 to ¥3 yuan/Nm3 in November 2015.
However, in the face of the decline in international crude oil price and the subsidy policies
of central government on the electric vehicles, Sichuan CNG vehicle policy dividends and price
dividends were relatively reduced in this phase. Therefore, Sichuan CNG vehicle IE was squeezed
to some extent by the fuel IE and the electric vehicle IE. According to the data of the U.S. Energy
Information Administration (refer to Figure 1), the U.S. crude oil price in 2009 fell sharply to $35/barrel,
then quickly rose to $109/barrel in 2011. From 2011 to 2013, the crude oil price was stable at the
high range of $85~$110/barrel. In the second half of 2014, the crude oil price dived from the peak
price. In 2015, the crude oil price fell to $45~$70/barrel. Correspondingly, the National Development
and Reform Commission of China announced to improve the wellhead price of natural gas in 2010.
From 2010 to 2014, the price of CNG in Sichuan rose to 4 yuan/Nm3 for the second time. At the
same time, the central government issued a financial subsidy policy for electric vehicles. The Sichuan
provincial government also introduced 50% of the financial subsidy policy in comparison with the
central government for electric vehicles. However, there were no subsidies in the policies of the central
government and the provincial government for CNG vehicles.

5. Discussion: The CNG Vehicle IE

5.1. Cultivation Path of the CNG Vehicle IE

According to the Sichuan case, the cultivation path of the CNG vehicle IE was derived and shown
in Figure 2.
At the first phase of the cultivation of the CNG vehicle IE, the key point was the innovation of
products and complementary products. Enterprises developed reequipping fittings and products of
CNG vehicles. They formed product patents and mastered the technologies of CNG filling stations
to provide complementary products and were promoted at national and provincial level through the
impact of central and local governments. Complementary products indicated that only when the two
products work in coordination can they satisfy one demand of consumers. Generally speaking, the
increasing price of one product’s complementary products because of the decreasing demand of the
Sustainability 2018, 10, 39 7 of 16

complementary products, will result in the decreasing demand of this product. At the beginning of
2000, Sichuan province constructed 30 CNG filling stations and owned 5000 CNG vehicles [35], which
satisfied the consumption demand of CNG vehicles and complementary products and promoted the
Sustainability 2017, 9, x FOR PEER REVIEW    7 of 16 
industrialization of CNG vehicles.

 
Figure 2. Cultivation path of the CNG vehicle innovation ecosystem. 
Figure 2. Cultivation path of the CNG vehicle innovation ecosystem.

In the second phase of the cultivation of the CNG vehicle IE, the CNG vehicle industry witnessed 
In the second phase of the cultivation of the CNG vehicle IE, the CNG vehicle industry witnessed
a rapid growth. From 2001 to 2005, the Sichuan CNG vehicle industry represented an annual average 
a rapid growth. From 2001 to 2005, the Sichuan CNG vehicle industry represented an annual average
growth of 10% [35]. With the regional popularization of local governments, and the formation of the 
growth of 10% [35]. With the regional popularization of local governments, and the formation of
technical  standards  of  products  and  complementary  products,  Sichuan  CNG  vehicles  and  the 
the technical standards of products and complementary products, Sichuan CNG vehicles and the
complementary products had been large‐scaled, which formed a streamlined industrial chain based 
complementary products had been large-scaled, which formed a streamlined industrial chain based on
on researching and manufacturing products and complementary products.   
researching and manufacturing products and complementary products.
In the third phase of the cultivation of the CNG vehicle IE, CNG vehicles formed an IE through 
In the third phase of the cultivation of the CNG vehicle IE, CNG vehicles formed an IE through
local  policies,  enterprise  patents,  and  the  network  of  complementary  products.  In  this  phase,  the 
local policies, enterprise patents, and the network of complementary products. In this phase, the
Sichuan CNG vehicle industry improved the research and manufacturing of equipment and crucial 
Sichuan CNG vehicle industry improved the research and manufacturing of equipment and crucial
parts via the processes of introduction, digestion, absorption, and innovation. It formed a relatively 
parts via the processes of introduction, digestion, absorption, and innovation. It formed a relatively
complete industrial chain. Nine national achievements, including operational testing and technique 
complete industrial chain. Nine national achievements, including operational testing and technique
examination  of  CNG  vehicles,  were  approved.  Over  20  technical  achievements,  including  the 
examination of CNG vehicles, were approved. Over 20 technical achievements, including the
equipment of gas stations, the technology of gas storage wells, and energy‐saving compressors, were 
equipment of gas stations, the technology of gas storage wells, and energy-saving compressors,
granted national patents. In 2015, Sichuan CNG IE formed a relatively complete system of gas station 
were granted national patents. In 2015, Sichuan CNG IE formed a relatively complete system of
construction, vehicle manufacturing, reequipping and equipment manufacturing, and testing service. 
gas station construction, vehicle manufacturing, reequipping and equipment manufacturing, and
testing service.
5.2. Symbiosis among the Communities within the CNG Vehicle IE 
5.2. Symbiosis among the Communities within the CNG Vehicle IE
The symbiotic process model among communities within the CNG vehicle IE was generalized 
and  shown  as  Figure  3  from  the  cultivation  process  of  Sichuan  CNG  vehicle  IE.  Inside  the  CNG 
The symbiotic process model among communities within the CNG vehicle IE was generalized
vehicle  IE,  there  was  a  symbiosis  among  the  communities  of  governments,  CNG  vehicle  product 
and shown as Figure 3 from the cultivation process of Sichuan CNG vehicle IE. Inside the CNG vehicle
enterprises, CNG complementary products enterprises, and customers. In other words, the strategies 
IE, there was a symbiosis among the communities of governments, CNG vehicle product enterprises,
among  these  four  communities  are  not  a  zero‐sum  game  of  innovation  performance,  but  a  sum 
CNG complementary products enterprises, and customers. In other words, the strategies among these
growth improving the innovation performance. 
four communities are not a zero-sum game of innovation performance, but a sum growth improving
the innovation performance.
Sustainability 2018, 10, 39 8 of 16
Sustainability 2017, 9, 2269 8 of 16

CNG Vehicle
Innovation Ecosytstem

·Central government
·Local government
(Strategy and Policy)

·Complementary
enterprise ·Customers
(Network of CNG (CNG vehicle and
resource, technology and CNG demand)
gas filling station)

·Product enterprise
(CNG vehicle
innovation)

Figure
Figure 3.3. Symbiotic process
Symbiotic modelmodel
process amongamong
the communities within the
the communities CNG the
within vehicle
CNG innovation
vehicle
ecosystem.
innovation ecosystem.

5.2.1. Government Community Is a Propeller for Other Communities

5.2.1. Government Community Is a Propeller for Other Communities
Government community plays a propeller role. First, it promotes the development of CNG
Government community plays a propeller role. First, it promotes the development of CNG vehicle
vehicle products and complementary products enterprises. The assessment of national new products
products and complementary products enterprises. The assessment of national new products and the
and the national important popularized technology projects are dominated by central government
national important popularized technology projects are dominated by central government departments.
departments. The popularization of high-tech projects at provincial and national level is also
The popularization of high-tech projects at provincial and national level is also dominated by local
dominated by local government departments. Second, local government departments build the
government departments. Second, local government departments build the technical standards for
technical standards for CNG vehicles and filling stations. They also approve provincial capitals as
CNG vehicles and filling stations. They also approve provincial capitals as national pilot cities. These
national pilot cities. These actions set good examples for the benign development of product
actions set good examples for the benign development of product enterprises and complementary
enterprises and complementary enterprises. Third, local government departments focus on the price
enterprises. Third, local government departments focus on the price of petroleum and unify the
of petroleum and unify the decreasing price of CNG in the province. It expands the demand of CNG
decreasing price of CNG in the province. It expands the demand of CNG vehicles and CNG.
vehicles and CNG.
5.2.2. Product Enterprise Community Is the Focus for Other Communities’ Innovation
5.2.2. Product Enterprise Community Is the Focus for Other Communities’ Innovation
The product enterprise community lays stress on product innovation, and is the focus for other
The product
communities’ enterpriseFirst,
innovation. community
according lays
to stress on product
the literature [30],innovation, and is thecommunity
the local enterprise focus for other
was
communities’ innovation. First, according to the literature [30], the local
the earliest organization to develop CNG vehicles and obtain national patents in China. Second, enterprise community was
the earliest organization to develop CNG vehicles and obtain national
the product enterprise community is the dominator of the streamlined service on CNG vehicle patents in China. Second, the
product
R&D and enterprise community
manufacturing. Theis the dominator
product of thecommunity
enterprise streamlined mainly
service on CNG vehicle
engages in CNG R&D and
vehicle
manufacturing. The product enterprise community mainly engages in
manufacturing, equipment manufacturing, vehicle reequipping and repairing, and so on. Third, CNG vehicle manufacturing,
equipment
the product manufacturing,
enterprise communityvehicle isreequipping
the dominator andofrepairing,
the applied and so on. Third,
development the product
on CNG vehicle
enterprise community is the dominator of the applied development
product technology promotion. All of the CNG vehicle aftermarket parts are developed and made by on CNG vehicle product
technology promotion.
the local product All ofcommunity.
enterprise the CNG vehicle aftermarket parts are developed and made by the local
product enterprise community.
5.2.3. Complementary Product Enterprise Community Is the Premise for Other Communities
5.2.3. Complementary Product Enterprise Community Is the Premise for Other Communities
The CNG complementary product enterprise community is the premise for other communities
due toThe
theCNG complementary
network constructionproduct enterprise
of resources, community
technology, and is the premise
filling stations.forOnother communities
the one hand, the
due to the network
complementary construction
product enterpriseof resources,
community technology,
has the CNGand filling
resource stations. On the onebecause
cost advantage hand, the
of
complementary productin
the abundant resources enterprise
the local community
area and thehas the CNG resource
characteristics cost advantage
of volatility because of the
and high transportation
abundant resources
cost for natural gas. in theproven
The local area and the
reserves characteristics
of natural of volatility
gas in Sichuan andthan
is more high5000
transportation cost
billion normal
for natural gas. The proven reserves of natural gas in Sichuan is more than
cubic meters, which takes up 35–50% of the nation’s storage [30]. On the ground of internal survey 5000 billion normal cubic
meters,
documents,which thetakes
total up
gas 35–50%
output in of Sichuan
the nation’s storage
in 2014 [30]. billion
was 25.4 On thenormalgroundcubic
of internal
meters. survey
There
documents,
were the total
14.3 billion gas cubic
normal output in Sichuan
meters in 2014out
transferred wasof 25.4 billion normal
the province, cubicnormal
5.4 billion meters.cubic
There were
meters
14.3 billion normal cubic meters transferred out of the province, 5.4 billion
moved in from other provinces, and 16.5 billion cubic meters consumed in the local area (the road normal cubic meters
moved in from other provinces, and 16.5 billion cubic meters consumed in the local area (the road
transportation consumption accounted for 4%). Meanwhile, in the Thirteenth Five-Year Plan, Sichuan
Sustainability 2018, 10, 39 9 of 16

Sustainability 2017, 9, 2269 9 of 16

transportation consumption accounted for 4%). Meanwhile, in the Thirteenth Five-Year Plan, Sichuan
has a relatively comprehensive plan for natural gas production. On the other hand, the
has a relatively comprehensive plan for natural gas production. On the other hand, the complementary
complementary product enterprise community offers reliable technological guarantee for the
product enterprise community offers reliable technological guarantee for the development of other
development of other communities by means of CNG production, the network construction and
communities by means of CNG production, the network construction and distribution of natural
distribution of natural gas transmission, and CNG filling stations. According to Sichuan Twelfth Five-
gas transmission, and CNG filling stations. According to Sichuan Twelfth Five-Year Energy Plan,
Year Energy Plan, in terms of the exploration of natural gas, up to 2015, it would be expected that the
in terms of the exploration of natural gas, up to 2015, it would be expected that the accumulative
accumulative investment would be 32.1 billion yuan. The added ascertained storage of gas was about
investment would be 32.1 billion yuan. The added ascertained storage of gas was about 1017 billion
1017 billion normal cubic meters within the basin. The key explorations covered six projects: both
normal cubic meters within the basin. The key explorations covered six projects: both sides of the
sides of the Kaijiang-Liangping through exploration project, Yuanba block exploration project, shale
Kaijiang-Liangping through exploration project, Yuanba block exploration project, shale gas, and
gas, and other exploration projects. The gas transmission network in Sichuan and Chongqing was
other exploration projects. The gas transmission network in Sichuan and Chongqing was initiated
initiated in the 1960s. With the development of natural gas exploration, distribution and
in the 1960s. With the development of natural gas exploration, distribution and transformation of
transformation of marketing in Sichuan and Chongqing, it has formed a pipe network system
marketing in Sichuan and Chongqing, it has formed a pipe network system combined with large
combined with large natural gas fields and markets, which consists of gathering pipeline network in
natural gas fields and markets, which consists of gathering pipeline network in the natural gas fields,
the natural gas fields, regional gathering pipeline network and national main pipelines. The total
regional gathering pipeline network and national main pipelines. The total length of the pipes is more
length of the pipes is more than 20,000 kilometers through several dozen years’ development and
than 20,000 kilometers through several dozen years’ development and reformation. Because of the
reformation. Because of the highly overlapping feature in the gas fields and gas markets in Sichuan
highly overlapping feature in the gas fields and gas markets in Sichuan province, most of the gas
province, most of the gas pipelines possess the outstanding characteristics of the integration of “gas
pipelines possess the outstanding characteristics of the integration of “gas production, gas collection,
production，gas collection，gas transmission and gas distribution”. As to the construction subjects,
gas transmission and gas distribution”. As to the construction subjects, the gas pipelines in Sichuan are
the gas pipelines in Sichuan are mainly constructed and managed by the oil and gas enterprises
mainly constructed and managed by the oil and gas enterprises belonging to China National Petroleum
belonging to China National Petroleum Corporation and China Petro-Chemical Corporation.
Corporation and China Petro-Chemical Corporation.
5.2.4. Customer
5.2.4. Customer Community Is aa Power
Community Is Power Supply
Supply for
for Other
Other Communities
Communities
Customer community
Customer community is is aa power
power supply
supply for
for other
other communities,
communities, which
which is
is mainly
mainly reflected
reflected in
in the
the
customer’s demand for the high cost performance of the CNG vehicle and CNG. In order
customer’s demand for the high cost performance of the CNG vehicle and CNG. In order to meet this to meet this
demand as
demand as soon
soon asas possible,
possible, the
the local
local product
product enterprise
enterprise community
community hashas introduced
introduced oil-gas
oil-gas (fuel
(fuel oil
oil
and CNG) dual-fuel vehicles. From 2010 to 2015, the average annual share of oil-gas dual-fuel
and CNG) dual-fuel vehicles. From 2010 to 2015, the average annual share of oil-gas dual-fuel taxis in taxis
in Sichuan’s
Sichuan’s cities
cities waswas 77.6%,
77.6%, andand thenumber
the numberofofthe
thetaxis
taxisincreased
increasedyear
yearby
byyear.
year.The
The average
average annual
annual
share of
share of CNG
CNG single-fuel
single-fuel taxis
taxis was
was 5.1%,
5.1%, and
and the
the number
number of of CNG
CNG single-fuel
single-fuel declined
declined steadily
steadily over
over
the past years, as shown in Figure
the past years, as shown in Figure 4. 4.

Sichuan city taxi numbers

50,000

40,000

30,000

20,000

10,000

0
2010 2011 2012 2013 2014 2015

CNG taxis oil-gas duel-fuel taxis other taxis

Figure
Figure 4. Sichuan city
4. Sichuan city taxi
taxi numbers
numbers in
in 2010–2015.
2010–2015.

follows: First, the local customer community expects high-cost performance

The reasons are as follows:
CNG products, which promotes the product enterprise community to develop low-cost CNG vehicle
products in a short term. The CNG vehicle reequipping only needs to add CNG cylinders, priced at
¥5000 or so, on a traditional fuel oil vehicle.
Second, the price ratio of CNG and petroleum fluctuates, which pushes the product enterprise
community to develop the oil–gas dual-fuel vehicle products and meet the customers’ high-cost
Sustainability 2018, 10, 39 10 of 16

Second, the price ratio of CNG and petroleum fluctuates, which pushes the product enterprise
community to develop the oil–gas dual-fuel vehicle products and meet the customers’ high-cost
Sustainability 2017, 9, 2269 10 of 16
performance demand of complementary products. The CNG vehicle industries are developing
relatively fast in the areas where CNG price is lower than 60% price of #90 gasoline, such as Sichuan,
performance demand of complementary products. The CNG vehicle industries are developing
Xinjiang, Shandong
relatively fast in the province, etc. The
areas where CNGCNGpricevehicle
is lowerindustries are developing
than 60% price extremely
of #90 gasoline, fast in areas
such as Sichuan,
where CNG Shandong
Xinjiang, prices areprovince,
50% loweretc. than gasoline
The CNG prices,
vehicle suchare
industries as developing
in most ofextremely
Xinjiang’s cities,
fast except
in areas
Urumqi.
where CNG prices are 50% lower than gasoline prices, such as in most of Xinjiang’s cities, except are
For the areas where gas prices are 60% higher than gasoline prices, CNG vehicle industries
developing
Urumqi.slowly.
For the For
areasthewhere
areasgas
where gasare
prices prices
60% are 70%than
higher higher than prices,
gasoline gasoline prices,
CNG the industries
vehicle development
are developing
of CNG slowly. stagnant.
vehicles is almost For the areas where gas prices are 70% higher than gasoline prices, the
development of CNG vehicles is almost stagnant.
5.3. The Substitutability between CNG Vehicle IE and Other Vehicle IEs
5.3. The Substitutability between CNG Vehicle IE and Other Vehicle IEs
From the cultivation process of CNG vehicles IE in Sichuan province, we can see the substitutive
From the
process model cultivation
between CNG process of CNG
vehicle vehicles
IE and otherIEvehicle
in Sichuan province,as
ecosystems wegeneralized
can see the substitutive
and shown in
process model between CNG vehicle IE and other vehicle ecosystems as generalized
Figure 5. In the buyer’s market environment, the substitutability exists between the IEs andwhich
shown in
provide
Figure 5. In the buyer’s market environment, the substitutability exists between the IEs which provide
similar products between similar product communities and between similar product enterprises. That
similar products between similar product communities and between similar product enterprises.
is to say, even in the innovation performance sum growth of the external buyers’ environment (referred
That is to say, even in the innovation performance sum growth of the external buyers’ environment
in Appendix A), the relationship between CNG vehicle IE and other vehicle IEs is not to improve the
(referred in Appendix A), the relationship between CNG vehicle IE and other vehicle IEs is not to
totalimprove
innovation performance
the total innovationjointly, but a jointly,
performance game of butinnovation performance.
a game of innovation Consumers
performance. are greatly
Consumers
affected by the substitutive IEs in the use stage.
are greatly affected by the substitutive IEs in the use stage.

Figure 5. Substitutive process model between CNG innovation ecosystem and other vehicle
Figure 5. Substitutive process model between CNG innovation ecosystem and other vehicle
innovation ecosystems.
innovation ecosystems.
5.3.1. The Substitutability between CNG Vehicle IE and Other Vehicle IEs
5.3.1. The Substitutability between CNG Vehicle IE and Other Vehicle IEs
CNG vehicle IE is substitutive to other vehicle IEs. Some scholars believe that CNG vehicle IE is
inCNG vehicle
transition IE iscounterpart
to the substitutive to othervehicles.
of electric vehicleThis
IEs.research
Some scholars believe
argues that that CNGtovehicle
it is necessary discussIE is
in transition
the problemto the counterpart
in light of electricFrom
of local conditions. vehicles. This research
a long-term argues
perspective, anythat it is necessary
technology to discuss
is transitional.
From 2010intolight
the problem 2015,ofthe average
local annual share
conditions. Fromofa Sichuan
long-termfuelperspective,
vehicle production increased from
any technology 41.3%
is transitional.
From to 2010
88.6%,towhich
2015, showed
the averagea year-by-year
annual sharetrendofasSichuan
shown in Figure
fuel 5. The
vehicle average annual
production sharefrom
increased of oil–
41.3%
gas dual fuel vehicle fell from 58.7% to 11.2%, manifesting the trend of production
to 88.6%, which showed a year-by-year trend as shown in Figure 5. The average annual share of oil–gas fluctuation as
dualshown in Figure
fuel vehicle fell6.from
The reasons
58.7% toare:
11.2%, manifesting the trend of production fluctuation as shown in
First, the traditional oil fuel vehicle IE quickly took over the local market, driven by the GDP
Figure 6. The reasons are:
performance of the local government. By 2015, the province had 2 million oil fuel vehicle
First, the traditional oil fuel vehicle IE quickly took over the local market, driven by the GDP
manufacturing capacity and formed a relatively complete product series from the vehicle to the
performance of the local government. By 2015, the province had 2 million oil fuel vehicle manufacturing
powertrain, key parts, and so on. However, the local matching rate of vehicle manufacturing in
Sichuan was less than 30%. Sichuan had 14 oil vehicle enterprises including FAW-Volkswagen
Sustainability 2018, 10, 39 11 of 16

Sustainability 2017, 9, 2269 11 of 16

capacity and formed a relatively complete product series from the vehicle to the powertrain, key parts,
and so on.branch,
Chengdu However, the local
Sichuan matching
Hyundai, rate of
Sichuan vehicle manufacturing
FAW-Toyota, Zhongjia Volvo,in Sichuan was lessShare,
and Chuanqi than 30%.
etc.
Sichuan had 14 oil vehicle enterprises including FAW-Volkswagen Chengdu
It had nearly 400 oil vehicle components production enterprises and more than 2000 stations (99% branch, Sichuan Hyundai,
Sichuan
coverage). FAW-Toyota, Zhongjia Volvo, and Chuanqi Share, etc. It had nearly 400 oil vehicle components
production
Second, enterprises
the switching and more
cost wasthanlower
2000 from
stations
fuel(99% coverage).
to CNG vehicle IE. There were price dividends
in consuming CNG for consumers. The local CNG vehicle IE adjusted IE.
Second, the switching cost was lower from fuel to CNG vehicle There were
measures to addprice dividends
the gas station
in consuming CNG for consumers. The local CNG vehicle IE adjusted
facilities to the petrol stations. The users reequipped the traditional oil fuel vehicles with measures to add the gas
the
station facilities
installation of CNGto thecylinders.
petrol stations.
In thisThe way,users
the reequipped
CNG vehicle theIEtraditional
seized theoillocal
fuelvehicle
vehiclesmarket
with thein
installation of CNG cylinders. In this way,
improving the cost performance according to local conditions. the CNG vehicle IE seized the local vehicle market in
improving
Third,the
undercosttheperformance
encouragement according
of thetocentral
local conditions.
government and Sichuan provincial government
Third, under the encouragement of the central government
for the electric vehicle subsidies, the local electric vehicle IE also has andaSichuan
strategicprovincial
commanding government
position
for
in the local vehicle market by developing pure electric or petrol–electric hybrid vehicles.position
the electric vehicle subsidies, the local electric vehicle IE also has a strategic commanding Sichuan'sin
the local vehicle market by developing pure electric or petrol–electric
local vehicle makers, such as Shudu Bus, Yema car, and Yajun van, had been able to seize the hybrid vehicles. Sichuan’s local
vehicle
commandingmakers, such as
heights ofShudu
strategyBus,of Yema car,electric
the local and Yajun van,market,
vehicle had been able to
relying onseize the commanding
financial subsidies of
heights of strategy of the local electric vehicle market, relying
central and local governments. Because of the cost factors, such as battery technology,on financial subsidies of central and
charging
local governments.
infrastructure, andBecause
charging of the
time,costthe
factors, such ascost
switching battery
fromtechnology, chargingvehicle
fuel to electric infrastructure,
is high and
for
charging
consumers. time, the switching cost from fuel to electric vehicle is high for consumers.

Sichuan vehicle outputs (thousand units）

1200.0 1050.0
962.0
1000.0 808.0
800.0
600.0 407.0
400.0 191.4
152.3 164.0 160.0 133.0
200.0 141.0
107.1 120.3 2.0 2.0
0.0
2010 2011 2012 2013 2014 2015
oil vehicle oil-gas hybrid vehicle electronic or oil-electronic hybrid vehicle

Figure 6. Sichuan vehicle outputs in 2010–2015.

Figure 6. Sichuan vehicle outputs in 2010–2015.

5.3.2. The Substitutability between the Similar Communities of Vehicle IEs

5.3.2. The Substitutability between the Similar Communities of Vehicle IEs
The underlying reason for the substitutability between CNG vehicle IE and other vehicle IEs is
The underlying reason for the substitutability between CNG vehicle IE and other vehicle IEs is the
the substitutability between the similar communities of their vehicle IEs. The substitutability of
substitutability between the similar communities of their vehicle IEs. The substitutability of customers’
customers’ demand on power sources such as oil, gas, electricity, etc. results in the substitutability
demand on power sources such as oil, gas, electricity, etc. results in the substitutability between
between the vehicle product enterprise communities and between the complementary product
the vehicle product enterprise communities and between the complementary product enterprise
enterprise communities of oil-, gas-, and electricity-powered vehicles, etc. The discussion takes the
communities of oil-, gas-, and electricity-powered vehicles, etc. The discussion takes the Sichuan city
Sichuan city bus as an example (referring to Figure 7). Fuel prices continuously rose from 2010 to
bus as an example (referring to Figure 7). Fuel prices continuously rose from 2010 to 2014. As a result,
2014. As a result, the number of CNG buses in Sichuan grew at an annual rate of 12.1%. From the
the number of CNG buses in Sichuan grew at an annual rate of 12.1%. From the second half of 2014,
second half of 2014, petroleum prices plunged from a high level. As a result, the number of CNG and
petroleum prices plunged from a high level. As a result, the number of CNG and oil–gas hybrid buses
oil–gas hybrid buses in Sichuan province declined significantly in 2015, while the number of oil buses
in Sichuan province declined significantly in 2015, while the number of oil buses continued to rise.
continued to rise.
Sustainability 2018, 10, 39 12 of 16
Sustainability 2017, 9, 2269 12 of 16

Sichuan city bus numbers

30,000 42 0
36 388
25,000 128 346 4,241 892
0 214 3,310 4,257
0 29 2,573 3,937 3,710
20,000 2,940 6,816
10
2,472 6,135
15,0003,485 3,981
10,000 19,476 18,787
14,342 14,576 16,290
5,00012,406
0
2010 2011 2012 2013 2014 2015

CNG bus oil-gas hybrid bus

oil bus electronic or oil-electronic hybrid bus
liquified petroleum gas bus

Figure 7. Sichuan city bus numbers in 2010–2015.

Figure 7. Sichuan city bus numbers in 2010–2015.

5.3.3. The Substitutability between the Enterprises in the Communities of CNG Vehicle IE
5.3.3. The Substitutability between the Enterprises in the Communities of CNG Vehicle IE
There are two aspects of the substitutability between the enterprises in the communities of CNG
There are two aspects of the substitutability between the enterprises in the communities of CNG
vehicle IE. First, within the product enterprise community of the CNG vehicle IE, the enterprises that
vehicle IE. First, within the product enterprise community of the CNG vehicle IE, the enterprises that
provide similar CNG products exclude each other. In Chengdu, Sichuan, for example, there are 19
provide similar CNG products exclude each other. In Chengdu, Sichuan, for example, there are 19 CNG
CNG vehicle reequipping enterprises in the city, including six first-class repairing enterprises with
vehicle reequipping enterprises in the city, including six first-class repairing enterprises with road
road transportation operation permits, and 13 second-class repairing enterprises with road
transportation operation permits, and 13 second-class repairing enterprises with road transportation
transportation operation permits. All of the 19 enterprises may engage in CNG vehicle modification.
operation permits. All of the 19 enterprises may engage in CNG vehicle modification. These enterprises
These enterprises supplied similar product reequipping service in adjacent areas. As a customer
supplied similar product reequipping service in adjacent areas. As a customer chooses one enterprise of
chooses one enterprise of CNG vehicle modification services, they cannot choose other enterprises,
CNG vehicle modification services, they cannot choose other enterprises, so these enterprises exclude
so these enterprises exclude each other.
each other.
Second, within the complementary product enterprise community of the CNG vehicle IE, the
Second, within the complementary product enterprise community of the CNG vehicle IE, the
enterprises that provide similar CNG complementary products exclude each other because of the
enterprises that provide similar CNG complementary products exclude each other because of the
overcapacity. This research takes the conventional natural gas exploration enterprises in Sichuan
overcapacity. This research takes the conventional natural gas exploration enterprises in Sichuan
province as an example. The current natural gas development enterprises in Sichuan mainly include
province as an example. The current natural gas development enterprises in Sichuan mainly include
the southwest oil and gas field branch of China National Petroleum Corporation (CNPC), the
the southwest oil and gas field branch of China National Petroleum Corporation (CNPC), the southwest
southwest oil and gas field branch and the Zhongyuan Puguang branch of China Petro-Chemical
oil and gas field branch and the Zhongyuan Puguang branch of China Petro-Chemical Corporation
Corporation (Sinopec). In 2015, the oil and gas fields of the southwest oil and gas branch of CNPC
(Sinopec). In 2015, the oil and gas fields of the southwest oil and gas branch of CNPC produced
produced 15.67 billion normal cubic meters of natural gas. The annual production of natural gas
15.67 billion normal cubic meters of natural gas. The annual production of natural gas reached a
reached a record of 350 million normal cubic meters higher than the earlier record. In 2015, the
record of 350 million normal cubic meters higher than the earlier record. In 2015, the southwest oil
southwest oil and gas branch of Sinopec produced 4.825 billion normal cubic meters of natural gas,
and gas branch of Sinopec produced 4.825 billion normal cubic meters of natural gas, an increase
an increase of 1.45 billion normal cubic meters more than in 2014. The Zhongyuan Puguang branch
of 1.45 billion normal cubic meters more than in 2014. The Zhongyuan Puguang branch of Sinopec
of Sinopec recently had 52 development wells, with a daily production of 12–13.5 million normal
recently had 52 development wells, with a daily production of 12–13.5 million normal cubic meters
cubic meters of mixed natural gas and average 10 million normal cubic meters of natural gas
of mixed natural gas and average 10 million normal cubic meters of natural gas transported per day.
transported per day. Because of the current overcapacity of natural gas in Sichuan, these three natural
Because of the current overcapacity of natural gas in Sichuan, these three natural gas development
gas development enterprises exclude each other.
enterprises exclude each other.
6. Conclusions:
6. Conclusions: Theoretic,
Theoretic, Practical
Practical Significance and Policy
Significance and Policy Implication
Implication
By studying
By studying the
the CNG
CNG vehicle
vehicle IE
IE in
in Sichuan
Sichuan province
province of
of China,
China, this
this research provides important
research provides important
theoretical, practical and political reference value to cultivate alive IE in emerging markets,
theoretical, practical and political reference value to cultivate alive IE in emerging markets, andand to
to
achieve energy
achieve energy security
security and
and emission
emission reduction
reduction for
for regional
regional vehicle
vehicle IEs
IEs with
withresource
resourceadvantages.
advantages.

6.1. Theoretical Significance

The theoretical significance of this study mainly includes three aspects: Firstly, because the
research on the cultivation of innovative ecosystem in a region with rich resources needs more
theoretical contributions, this study generalizes a feasible cultivation path of CNG vehicle IEs. By
Sustainability 2018, 10, 39 13 of 16

6.1. Theoretical Significance

The theoretical significance of this study mainly includes three aspects: Firstly, because the
research on the cultivation of innovative ecosystem in a region with rich resources needs more
theoretical contributions, this study generalizes a feasible cultivation path of CNG vehicle IEs.
By tracing back the history of three phases of the cultivation of the CNG vehicle IE in Sichuan
province, it is revealed that the cultivation path of the CNG vehicle IE can be divided into three
phases, which consists of products and complementary products innovation, scale and rapid growth
of industry, and the formation of IE.
Secondly, this study deduces the symbiotic process model among communities within the CNG
vehicle IE (see Figure 3). It reveals the symbiosis among the communities of CNG vehicle product
enterprises, CNG complementary products enterprises, customers, and governments within the CNG
vehicle IE. Its essence is to create an “ecological environment” which connects the strategies and policies
of the government, product innovation of product enterprises, resource supply of complementary
product enterprises, and product and complementary product demands of customers in the process of
industrialization of technological achievements. This ecological environment helps to improve the
system of product innovation and complementary product network. Without this vibrant ecological
environment, the innovation may fall into the “valley of death” at any time.
Thirdly, it deduces the substitutive process model between CNG vehicle IE and other vehicle IEs
(see Figure 5). The CNG vehicle IE is substitutive to the traditional fueled vehicle IE and the electric
vehicle IE. There is also substitutability between their product enterprise communities and between the
complementary product enterprise communities. Moreover, there is substitutability between similar
product enterprises and between complementary product enterprises of the CNG vehicle IE. In brief,
the substitutability appears between the IEs that provide similar products, between the similar product
communities and between the similar product enterprises.

6.2. Practical Significance

The important practical significance is to guide the resource-rich areas’ governments and
enterprises to cultivate IEs based on the characteristics of symbiosis and substitutability of IE, which
guides the emerging market enterprises in resource-rich areas to obtain the sustainable innovation
ability. In addition, in tracking the practitioners and characteristics of CNG vehicle industrial expansion
from the initial phase to the phase of formation of IE similar to “tropical rain forest”, this study helps
future practitioners manage the expansion of enterprises and industries in different stages. When
practitioners meet difficulties in expansion, they may use the process models in this paper as detailed
road signs, which may identify the appropriate corrective measures. Thus, they may try their best to
use the largest resources and capacity to invest in the management of technology and market oriented
enterprises so as to reach maximum potential.

6.3. Policy Implication

Emerging industry development always requires some first impetus, either market price dividend,
government policy promotion, or enterprise technological innovation. The Sichuan CNG vehicle
industry developed from the rich energy and cheap price, low switching cost of the vehicle, and
more surplus for consumers. Therefore, the CNG vehicle IE rode on a momentum. These driving
factors are universal, which is of great significance to the future development of emerging industries.
As a result of the symbiosis and the substitutability of IE, the government needs to formulate the top
design based on local resources, guide innovation, and reduce the resource consumption and internal
friction. To achieve the domain position of the local CNG vehicle IE, the government may start from
the following several aspects.
First, the innovation policy for cultivating CNG vehicle IE needs to be adjusted with local
conditions as the development of any IE is rooted in the local context. Sichuan has abundant natural gas,
Sustainability 2018, 10, 39 14 of 16

low price, and dense distribution of gas transmission pipelines, offering a natural resource advantage
for complementary
Sustainability product enterprise populations of the CNG vehicle IE. Sichuan may absorb
2017, 9, 2269 the
14 of 16
natural gas overcapacity by using the CNG vehicle IE to surpass the traditional oil vehicle ecosystem.
squeezing
Second,ofthe future fuel policies,
government shouldthere will be
strictly no way for
implement theenterprises
policy of lowstilloil
running in the path
consumption, of
forcing
traditionaloil
traditional vehicles. On 1 IE
fuel vehicle January 2016, theand
to transform “Average
strivingFuel Consumption
to develop the CNG Evaluation Method
vehicle IE. Under andthe
Index” (GB 27999 of 2014) was implemented. According to the requirements
squeezing of future fuel policies, there will be no way for enterprises still running in the path of of the Chinese
government,
traditional the average
vehicles. On 1 fuel consumption
January 2016, theof“Average
all enterprises’ passenger vehicles
Fuel Consumption must decline
Evaluation Method fromand
6.9 L/100 km in 2015 (the third stage) to 5.0 L/100 km by 2020 (the fourth stage).
Index” (GB 27999 of 2014) was implemented. According to the requirements of the Chinese government, Therefore, it is feasible
foraverage
the enterprises to develop CNG
fuel consumption of allvehicles and passenger
enterprises’ other clean energymust
vehicles vehicles
declinebased
fromon6.9the resource
L/100 km in
advantages of Sichuan.
2015 (the third stage) to 5.0 L/100 km by 2020 (the fourth stage). Therefore, it is feasible for enterprises
Third,
to develop CNGthe vehicles
government and ought to promote
other clean energy the special
vehicles engines
based of resource
on the CNG vehicles and reduce
advantages the
of Sichuan.
sulfur content in the CNG, therefore, the product enterprise can form joint
Third, the government ought to promote the special engines of CNG vehicles and reduce the force to promote deeper
technology innovation and develop high performance products of CNG vehicles. Sichuan shall tap
sulfur content in the CNG, therefore, the product enterprise can form joint force to promote deeper
the potential of energy conservation and emissions reduction. Currently, Sichuan is promoting CNG
technology innovation and develop high performance products of CNG vehicles. Sichuan shall tap
cylinder technology. However, the special engines for CNG vehicles has not been widely promoted.
the potential of energy conservation and emissions reduction. Currently, Sichuan is promoting CNG
On one hand, special engines will improve the combustion adequacy and dynamic performance of
cylinder technology. However, the special engines for CNG vehicles has not been widely promoted.
CNG vehicles. On the other hand, the sulfide of CNG has a corrosive effect on the CNG vehicle
On one hand, special engines will improve the combustion adequacy and dynamic performance of
engines, which increases the maintenance cost of the vehicle and reduces the life of the vehicle.
CNG vehicles. On the other hand, the sulfide of CNG has a corrosive effect on the CNG vehicle engines,
Acknowledgments:
which The research was
increases the maintenance cost funded by the and
of the vehicle project of China
reduces Postdoctoral
the life Science Foundation
of the vehicle.
(2016M591197), and the project of National Natural Science Foundation of China (71172176, 71172004). This
paper had been presented
Acknowledgments: at SOItmC
The research 2017.
was The authors
funded by thehave carefully
project and fully
of China developed this
Postdoctoral studyFoundation
Science based on
(2016M591197), and the
the great comments project
from of National Natural Science Foundation of China (71172176, 71172004). This paper
the conference.
had been presented at SOItmC 2017. The authors have carefully and fully developed this study based on the great
Author Contributions:
comments Ling Ding wrote all of this paper, from the building of the research framework to the
from the conference.
analysis; she is the first author. Jinxi Wu proposed important amendments for this research; he is the
Author Contributions: Ling Ding wrote all of this paper, from the building of the research framework to
corresponding author.
the analysis; she is the first author. Jinxi Wu proposed important amendments for this research; he is the
corresponding
Conflicts of author.
Interest: The authors declare no potential conflicts of interest with respect to the research,
authorship,
Conflicts and/or publication
of Interest: The authorsof declare
this article.
no conflict of interest.

AppendixAA
Appendix
Accordingtotothe
According thedata
datafrom
fromthe
the National
National Bureau of Statistics
Statistics of
ofChina,
China,the
thepast
past2525years
yearswitnessed
witnessed
morethan
more than10%
10%high-speed
high-speedgrowth
growth of
of Sichuan civil vehicles
vehiclesexcept
exceptthethepast
pastfive
fiveyears
years(see
(seeFigure A1).
Figure A1).

Quantities of Sichuan civil vehicle(10,000 units)

666.92
650.8
573.0252
481.5016
422.1706
354.97
284.69
219.05
183.62
157.23
126.78
113.87

138
98.97
85.49
76.49
68.78
64.56
62.55
54.23
53.35
50.62
44.57
31.05

38.8
34.2
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

FigureA1.
Figure A1.Quantities
Quantities of
of Sichuan civil vehicle
vehicle in
in 1990–2015
1990–2015(10,000
(10,000units).
units).
Sustainability 2018, 10, 39 15 of 16

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