Enhancing Technological and Green Innovation Through Digital Leapfrogging in Manufacturing

Yuqi Su, Hai‐Chao Li, Gary Gang Tian, Chante Jian Ding and Abdullahi D. Ahmed

Business Strategy and the Environment, 2025, vol. 34, issue 5, 5240-5259

Abstract: This paper examines the impact of digital transformation on the transformation and upgrading of China's manufacturing industry. Utilizing regression analysis, a two‐way fixed effects model, a mechanism analysis model, and a panel threshold model, the study explores how digital transformation enhances technological advancement and green innovation in China's manufacturing industry. The findings highlight heterogeneity across dimensions, regions, and industries, and reveal a nonlinear, increasing marginal effects of digital transformation on the transformation and upgrading of manufacturing industry. When digital transformation surpasses key thresholds (0.2770 for digital transformation, 0.4884 for technological level, and 8.9504 for green innovation), its positive impact is significantly amplified. This research provides a theoretical framework and empirical evidence to guide the manufacturing industry's strategic development for sustainable transformation and upgrading.

Date: 2025
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