Does Digitization Promote Green Innovation? Evidence from China

Chuanlin Wang, Guowan Yan () and Juan Ou
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Chuanlin Wang: School of Economics and Business Administration, Chongqing University, Chongqing 400044, China
Guowan Yan: School of Economics and Business Administration, Chongqing University, Chongqing 400044, China
Juan Ou: International Business School, University of International Business and Economics, Beijing 100105, China

IJERPH, 2023, vol. 20, issue 5, 1-27

Abstract: Green innovation is an important strategy in seeking sustainable competitive advantages. This paper investigates the impact of enterprise digitization on green innovation and its mechanisms. We find that enterprise digital transformation has a significant effect on the promotion of green innovation. This positive effect mainly stems from the advantage of resource reallocation generated by enterprise digitalization that can alleviate financing constraints and raise risk-taking levels. Furthermore, the level of economic development strengthens the impact of enterprise digitization on green innovation, and the positive relationship between enterprise digitization and green innovation is stronger in regions with stronger environmental regulation and higher intellectual property protection, as well as in state-owned and heavily polluting enterprises. Digitization can optimize resource utilization, strengthen the capacity of green innovation in pollution reduction and promote the clean production of enterprises. Our results show that enterprise digitization plays a positive role in innovation activities. Furthermore, our results show that enterprise digitization plays a positive role in innovation activities.

Keywords: enterprise digitization; green innovation; resource allocation; cleaner production (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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