Digital governance and AI: boosting OFDI’s impact on regional innovation performance

Zhaoxing Wang, Yuchen Gao, Yuan Zhou and Lan Xue

Science and Public Policy, 2025, vol. 52, issue 3, 438-449

Abstract: In the realm of global innovation, outward foreign direct investment (OFDI) serves as a pivotal channel for firms to integrate into international innovation networks. However, scant research has probed into the impact mechanisms of OFDI on firms’ innovation, particularly in the era of digitization and artificial intelligence (AI). In this study, we investigate OFDI’s effect on regional innovation performance by analysing a panel data of Chinese provinces. We find that OFDI significantly promotes the performance of regional innovation development. Moreover, we also identify two moderating factors, digital governance and AI, which significantly enhance the effect of OFDI on regional innovation performance.

Keywords: OFDI; digital governance; artificial intelligence; regional innovation performance (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:oup:scippl:v:52:y:2025:i:3:p:438-449.

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