IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i22p15028-d971873.html
   My bibliography  Save this article

The Impact of the Digital Economy on Innovation: New Evidence from Panel Threshold Model

Author

Listed:
  • Jianing Xu

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Weidong Li

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

Abstract

The digital economy has aroused widespread concern. This paper studies the impact of the digital economy on innovation using a panel threshold model. Taking 30 provinces, municipalities, and autonomous regions in China as the research object, the time span is from 2013 to 2019. The data are from the National Bureau of Statistics of China (NBSC), China National Intellectual Property Administration (CAIPA), the China Stock Market and Accounting Research (CSMAR), and the Ministry of Industry and Information Technology (MIIT)of China. Data analysis is performed with ArcGIS 10.2 and STATA 16 software. The influence mechanism of digital economy on innovation is innovatively analyzed from the aspects of innovation elements, innovation tools, innovation subjects, and innovation environment. A digital economy development level index system is constructed using the entropy method, and the development level of China’s digital economy in time and space is analyzed. On this basis, the nonlinear impact of digital economy on innovation, i.e., the threshold effect, is innovatively studied using the panel threshold model. It is found that China’s digital economy develops rapidly, but there is a serious spatial imbalance, and there are great differences in the different dimensions of the digital economy. At the same time, the impact of digital economy on innovation has a double threshold effect with industrial structure as the threshold variable and a single threshold effect with urbanization level as the threshold variable. Specifically, the promoting effect of digital economy on innovation increases with the optimization of industrial structure or the improvement of urbanization level. This study enriches the theoretical research on the impact of digital economy on innovation, and it has important support and reference value for China’s development of digital economy and improvement of innovation capacity.

Suggested Citation

  • Jianing Xu & Weidong Li, 2022. "The Impact of the Digital Economy on Innovation: New Evidence from Panel Threshold Model," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15028-:d:971873
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/22/15028/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/22/15028/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Seo, Myung Hwan & Shin, Yongcheol, 2016. "Dynamic panels with threshold effect and endogeneity," Journal of Econometrics, Elsevier, vol. 195(2), pages 169-186.
    2. Caner, Mehmet & Hansen, Bruce E., 2004. "Instrumental Variable Estimation Of A Threshold Model," Econometric Theory, Cambridge University Press, vol. 20(5), pages 813-843, October.
    3. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    4. Mikhail Yakovlevich Veselovsky & Tatiana Vitalievna Pogodina & Raisa Vasilyevna Ilyukhina & Tatyana Anatolyevna Sigunova & Nina Fedorovna Kuzovleva, 2018. "Financial and economic mechanisms of promoting innovative activity in the context of the digital economy formation," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(3), pages 672-681, March.
    5. Michael L. Polemis & Thanasis Stengos, 2019. "Does competition prevent industrial pollution? Evidence from a panel threshold model," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 98-110, January.
    6. Gault, Fred, 2018. "Defining and measuring innovation in all sectors of the economy," Research Policy, Elsevier, vol. 47(3), pages 617-622.
    7. Jinlin Li & Litai Chen & Ying Chen & Jiawen He, 2022. "Digital economy, technological innovation, and green economic efficiency—Empirical evidence from 277 cities in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 616-629, April.
    8. Zahid Yousaf & Magdalena Radulescu & Crenguta Ileana Sinisi & Luminita Serbanescu & Loredana Maria Păunescu, 2021. "Towards Sustainable Digital Innovation of SMEs from the Developing Countries in the Context of the Digital Economy and Frugal Environment," Sustainability, MDPI, vol. 13(10), pages 1-28, May.
    9. Daniel Zachary & Stephen Dobson, 2021. "Urban Development and Complexity: Shannon Entropy as a Measure of Diversity," Planning Practice & Research, Taylor & Francis Journals, vol. 36(2), pages 157-173, March.
    10. García-Granero, Eva M. & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2018. "Eco-innovation measurement: A review of firm performance indicators," MPRA Paper 119905, University Library of Munich, Germany.
    11. Claude Diebolt & Ralph Hippe, 2022. "Human Capital and Regional Development in Europe," Frontiers in Economic History, Springer, number 978-3-030-90858-4, December.
    12. Muhammad Asif Khan & Mollah Aminul Islam & Usman Akbar, 2021. "Do economic freedom matters for finance in developing economies: a panel threshold analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 28(10), pages 840-843, June.
    13. Sachs,Jeffrey & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2021," Cambridge Books, Cambridge University Press, number 9781009098915, November.
    14. Akram, Vaseem & Rath, Badri Narayan, 2020. "Optimum government size and economic growth in case of Indian states: Evidence from panel threshold model," Economic Modelling, Elsevier, vol. 88(C), pages 151-162.
    15. Janger, Jürgen & Schubert, Torben & Andries, Petra & Rammer, Christian & Hoskens, Machteld, 2017. "The EU 2020 innovation indicator: A step forward in measuring innovation outputs and outcomes?," Research Policy, Elsevier, vol. 46(1), pages 30-42.
    16. Fang, Zhen & Razzaq, Asif & Mohsin, Muhammad & Irfan, Muhammad, 2022. "Spatial spillovers and threshold effects of internet development and entrepreneurship on green innovation efficiency in China," Technology in Society, Elsevier, vol. 68(C).
    17. Margaret Coaquira & Juan Tudela & Miguel Jiménez, 2022. "Regional Comparative Evaluation: Synthetic Regional Development Index (RDI) for Peru," Economic Research Guardian, Mutascu Publishing, vol. 12(2), pages 72-96, December.
    18. Stepan Zemtsov & Maxim Kotsemir, 2019. "An assessment of regional innovation system efficiency in Russia: the application of the DEA approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(2), pages 375-404, August.
    19. Sachs,Jeffrey D. & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2022. "Sustainable Development Report 2022," Cambridge Books, Cambridge University Press, number 9781009210089, November.
    20. Claude Diebolt & Ralph Hippe, 2022. "The Long-Run Impact of Human Capital on Innovation and Economic Growth in the Regions of Europe," Frontiers in Economic History, in: Human Capital and Regional Development in Europe, chapter 0, pages 85-115, Springer.
    21. John Mann & Scott Loveridge, 2022. "Measuring urban and rural establishment innovation in the United States," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(7), pages 650-667, October.
    22. Caragliu, Andrea & Del Bo, Chiara F., 2019. "Smart innovative cities: The impact of Smart City policies on urban innovation," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 373-383.
    23. Mikhail Yakovlevich Veselovsky & Tatiana Vitalievna Pogodina & Raisa Vasilyevna Ilyukhina & Tatyana Anatolyevna Sigunova & Nina Fedorovna Kuzovleva, 2018. "Financial and economic mechanisms of promoting innovative activity in the context of the digital economy formation," Post-Print hal-01829712, HAL.
    24. Baslandze, Salomé & Argente, David & Hanley, Douglas & Moreira, Sara, 2020. "Patents to Products: Product Innovation and Firm Dynamics," CEPR Discussion Papers 14692, C.E.P.R. Discussion Papers.
    25. Run Luo & Nianxing Zhou, 2022. "Dynamic Evolution, Spatial Differences, and Driving Factors of China’s Provincial Digital Economy," Sustainability, MDPI, vol. 14(15), pages 1-16, July.
    26. Sabyasachi Tripathi & Evgeniy Kutsenko & Victoria Boos, 2022. "How different patterns of urbanization affect regional innovation? Evidence from Russia," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 26(2), pages 213-243, April.
    27. Sachs,Jeffrey & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2021," Cambridge Books, Cambridge University Press, number 9781009102896, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yong Hu & Qian Liu, 2023. "Local Digital Economy and Corporate Social Responsibility," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    2. Pengyang Zhang & Lewen Zhang & Dandan Han & Tingting Wang & He Zhu & Yongtao Chen, 2023. "Coupled and Coordinated Development of the Tourism Industry and Urbanization in Marginal and Less Developed Regions—Taking the Mountainous Border Areas of Western Yunnan as a Case Study," Land, MDPI, vol. 12(3), pages 1-24, March.
    3. Zhou, Qiuyang, 2024. "Does the digital economy promote the consumption structure upgrading of urban residents? Evidence from Chinese cities," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 543-551.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Chaoyi & Polemis, Michael & Stengos, Thanasis, 2019. "Can exchange rate pass-through explain the asymmetric gasoline puzzle? Evidence from a pooled panel threshold analysis of the EU," Energy Economics, Elsevier, vol. 81(C), pages 1-12.
    2. Chung‐Hua Shen & Hsing‐Hua Hsu, 2022. "The determinants of Asian banking crises—Application of the panel threshold logit model," International Review of Finance, International Review of Finance Ltd., vol. 22(1), pages 248-277, March.
    3. Aizenman, Joshua & Ho, Sy-Hoa & Huynh, Luu Duc Toan & Saadaoui, Jamel & Uddin, Gazi Salah, 2024. "Real exchange rate and international reserves in the era of financial integration," Journal of International Money and Finance, Elsevier, vol. 141(C).
    4. Zhimin Luo & Ma Junfeng & Babar Nawaz Abbasi & Li Zilong, 2024. "Institutional structure and governance capability in universities: an empirical study from the perspectives of time, space, and quantity dimensions," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    5. Ho, Sy-Hoa & Saadaoui, Jamel, 2022. "Bank credit and economic growth: A dynamic threshold panel model for ASEAN countries," International Economics, Elsevier, vol. 170(C), pages 115-128.
    6. Lee, Chien-Chiang & Xing, Wenwu & Lee, Chi-Chuan, 2022. "The impact of energy security on income inequality: The key role of economic development," Energy, Elsevier, vol. 248(C).
    7. Anna Martyka & Dorota Jopek & Izabela Skrzypczak, 2022. "Analysis of the Sustainable Development Index in the Communes of the Podkarpackie Voivodeship: A Polish Case Study," Sustainability, MDPI, vol. 14(16), pages 1-23, August.
    8. Miao, Ke & Su, Liangjun & Wang, Wendun, 2020. "Panel threshold regressions with latent group structures," Journal of Econometrics, Elsevier, vol. 214(2), pages 451-481.
    9. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2021. "Determinants of renewable energy consumption: Importance of democratic institutions," Renewable Energy, Elsevier, vol. 179(C), pages 75-83.
    10. Hwang, Inwook & Zhu, Xiaoyang, 2024. "State-dependent oil price shocks on inflation and the efficacy of inflation targeting regime," Journal of International Money and Finance, Elsevier, vol. 144(C).
    11. Mateev, Miroslav & Moudud-Ul-Huq, Syed & Sahyouni, Ahmad & Tariq, Muhammad Usman, 2022. "Capital regulation, competition and risk-taking: Policy implications for banking sector stability in the MENA region," Research in International Business and Finance, Elsevier, vol. 60(C).
    12. Dang, Hai Anh H. & Jolliffe, Dean & Serajuddin, Umar & Stacy, Brian, 2024. "Country statistical capacity: a recent assessment tool and further reflections on the way forward," LSE Research Online Documents on Economics 124060, London School of Economics and Political Science, LSE Library.
    13. Awoa, Paul Awoa & Efogo, Françoise Okah & Ondoa, Henri Atangana, 2023. "Oil dependence and entrepreneurship: Non-linear evidence," Economic Systems, Elsevier, vol. 47(1).
    14. Krambia-Kapardis Maria & Stylianou Ioanna & Demetriou Salomi, 2022. "Nonlinear nexus between corruption and tourism arrivals: a global analysis," Empirical Economics, Springer, vol. 63(4), pages 1997-2024, October.
    15. Hui Jin & Xu Ma & Shi Jiao, 2022. "Cultural Capital and Its Impact on Academic Achievement: Sustainable Development of Chinese High School Students," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    16. Osathanunkul, Rossarin & Dumrong, Pasinee & Yamaka, Woraphon & Maneejuk, Paravee, 2023. "The nonlinear impacts of aging labor and government health expenditures on productivity in ASEAN+3 economies," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 450-470.
    17. Ridha Nouira & Mohamed Kouni, 2018. "Optimal Government Size and Economic Growth in Developing and MENA Countries: A Dynamic Panel Threshold Analysis," Working Papers 1256, Economic Research Forum, revised 15 Nov 2018.
    18. Ben Cheikh, Nidhaleddine & Ben Zaied, Younes & Ben Ameur, Hachmi, 2023. "Recent developments in exchange rate pass-through: What have we learned from uncertain times?," Journal of International Money and Finance, Elsevier, vol. 131(C).
    19. Shuyu Li & Qiang Wang & Rongrong Li, 2024. "How aging impacts environmental sustainability—insights from the effects of social consumption and labor supply," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-16, December.
    20. Anetta Barska & Janina Jędrzejczak-Gas & Joanna Wyrwa, 2022. "Poland on the Path towards Sustainable Development—A Multidimensional Comparative Analysis of the Socio-Economic Development of Polish Regions," Sustainability, MDPI, vol. 14(16), pages 1-17, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15028-:d:971873. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.