Technological Innovation and Firm Financial Performance: Evidence from Blockchain-Related Listed Firms in China

Shujun Sheng ()
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Shujun Sheng: Shanghai Normal University, Tianhua College, School of business

A chapter in Proceedings of the 2026 2nd International Conference on Data Mining and Project Management (DMPM 2026), 2026, pp 103-114 from Springer

Abstract: Abstract Technological innovation is widely regarded as a key driver of firm competitiveness and long-term value creation. However, due to high investment intensity, uncertainty, and long commercialization cycles, the financial consequences of innovation remain empirically ambiguous. Using a panel of block chain-related Chinese A-share listed firms from 2020 to 2024, this study examines how technological innovation affects firm financial performance across multiple dimensions. From a computer science perspective, blockchain-related innovation represents investment in distributed computing systems that integrate cryptographic algorithms, consensus mechanisms, and decentralized data architectures. Such technologies directly influence system performance, computational efficiency, data integrity, and information-processing costs within firm-level information systems. From a resource reallocation perspective, we distinguish between innovation inputs and innovation outputs and analyze their contemporaneous and dynamic effects on profitability, operating efficiency, solvency, and growth capability. The empirical results show that innovation inputs significantly enhance firm profitability and solvency but reduce contemporaneous operating efficiency. Innovation outputs exhibit asymmetric effects: patent quantity is generally associated with improved financial performance, whereas patent quality imposes short-term financial pressure. Overall, the findings provide a mechanism-based explanation for the mixed evidence in the innovation–performance literature and offer implications for innovation-oriented firms in emerging technology sectors.

Keywords: technological innovation; financial performance; blockchain; patents; resource reallocation (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-689-0_10

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