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Does Digitization Promote Green Innovation? Evidence from China

Author

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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)

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.

Suggested Citation

  • Chuanlin Wang & Guowan Yan & Juan Ou, 2023. "Does Digitization Promote Green Innovation? Evidence from China," IJERPH, MDPI, vol. 20(5), pages 1-27, February.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:5:p:3893-:d:1076621
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    2. Carmen Elena Stoenoiu & Lorentz Jäntschi, 2024. "Connecting the Computer Skills with General Performance of Companies—An Eastern European Study," Sustainability, MDPI, vol. 16(22), pages 1-25, November.
    3. Ge, Yuanqin & Xia, Yifan & Wang, Tongyu, 2024. "Digital economy, data resources and enterprise green technology innovation: Evidence from A-listed Chinese Firms," Resources Policy, Elsevier, vol. 92(C).
    4. Guixiang Cao & Xintong Fang & Ying Chen & Jinghuai She, 2023. "Regional Big Data Application Capability and Firm Green Technology Innovation," Sustainability, MDPI, vol. 15(17), pages 1-29, August.
    5. Courage Simon Kofi Dogbe & Nyankomo Marwa, 2024. "Digital Orientation and Manufacturing Firms’ Green Innovation Performance: The Mediating Role of Green Competence," JRFM, MDPI, vol. 17(10), pages 1-16, September.

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