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Digital infrastructure and cross-regional collaborative innovation in enterprises

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  • Tian, Xiaohan
  • Lu, Haiyong

Abstract

This article delves into the role that digital infrastructure plays in facilitating cross-regional collaboration in the innovation processes of enterprises. Collaborative innovation has emerged as a crucial mode of innovation for businesses engaged in technological R&D as the complexity of such R&D grows more sophisticated. In this study, we leveraged the recent nation-wide rollout of China's “Broadband China” strategic pilot program as a natural experiment to empirically investigate the impact of digital infrastructure on cross-regional collaboration in innovation. Our analysis of the financial data of Chinese A-share listed companies from 2008 to 2019 reveals that investments in digital infrastructure have a major impact on encouraging cross-regional collaborative innovation within businesses. Through the study, we examined the mechanisms through which digital infrastructure promotes cross-regional collaboration in innovation and found that the reduction in transaction costs serves as the key rationale for this phenomenon. Moreover, a heterogeneous analysis revealed that businesses with higher levels of technological R&D, industries characterized by rapid technological transformation, and cities with elevated levels of human capital are more likely to benefit from digital infrastructure investments that foster cross-regional collaborative innovation.

Suggested Citation

  • Tian, Xiaohan & Lu, Haiyong, 2023. "Digital infrastructure and cross-regional collaborative innovation in enterprises," Finance Research Letters, Elsevier, vol. 58(PC).
  • Handle: RePEc:eee:finlet:v:58:y:2023:i:pc:s1544612323010073
    DOI: 10.1016/j.frl.2023.104635
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    References listed on IDEAS

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    Cited by:

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    2. Wang, Lianghu & Shao, Jun, 2024. "The energy saving effects of digital infrastructure construction: Empirical evidence from Chinese industry," Energy, Elsevier, vol. 294(C).

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