Research on the mechanism and effect of digitalization on technology innovation: evidence from Chinese manufacturing listed enterprises

Hang Zheng, Azhong Ye and Ru Xie

Applied Economics, 2025, vol. 57, issue 30, 4411-4425

Abstract: Digitalization provides a new impetus for technological innovation in manufacturing enterprises. However, research on the influence of digitalization on technological innovation is still in an exploratory phase, lacking a systematic theoretical framework and unified conclusions. It is crucial to clarify the mechanisms by which enterprise digitalization impacts technological innovation and to confirm the role of digitalization in promoting technological innovation in the digital era. The listed A-share manufacturing enterprises in China from 2010 to 2019 serve as the research samples in this study. Moreover, the influence mechanism and effect of enterprise digitalization on technology innovation are studied at the micro level. The improvement of enterprise’s digital level can facilitate technology innovation, and this effect continues to be significant after a series of endogenous and robustness tests are performed, as indicated by the results of this study. In the above research, a more comprehensive and in-depth discussion at the micro level has been conducted to gain more insights into the correlation between enterprise digitalization and technology innovation, such that the black box of digitalization affecting technology innovation can be revealed more effectively.

Date: 2025
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DOI: 10.1080/00036846.2024.2360685

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