Digital Transformation And Enterprise Innovation

The era of mass entrepreneurship and innovation spurred a surge of invention from all walks of life.Digital transformation has become an irreversible trend in all sectors of life due to the rapid development of the digital economy.In order to adapt to the changes of the modern era,businesses must constantly adjust and transform themselves.The combination between technical advances and company business development needs results in digital transformation.The use of big data technology and artificial intelligence algorithms can make the R&D and design process of enterprises more efficient and convenient.It is an important force to promote enterprise innovation.The importance of enterprise transformation and upgrading has become a pressing matter for businesses;yet,the majority of studies conducted are from a macro viewpoint,mainly focusing on qualitative theoretical analysis of how the digital economy affects enterprise innovation.There are few empirical studies,No thorough and in-depth comprehension of the interplay between digital transformation and enterprise innovation endeavors is achievable.In the context of the "14th Five Year Plan" clearly proposing to accelerate digital development,more and more enterprises have grasped the new opportunities of Digital transformation,and It is critical to investigate the connection between digital transformation and enterprise innovation.The text analysis method based on machine learning is used in this research to create a "digital dictionary" with the help of national policy terms connected to the digital economy in order to create a more comprehensive indicator reflecting the digitalization of Chinese listed firms.Using all A-share listed businesses in China from 2007 to 2019,an exploration of the effect of digital alteration on micro enterprises’ enterprise creativity is the focus of this article.,as well as the impact’s distinctive transmission mechanism.The study discovered that: first,digital transformation considerably boosted enterprise innovation levels and shown a continual improvement effect.Considering endogenous issues and a robustness test,this conclusion remains valid.Mechanism analysis reveals that Digit al transformation can optimize human capital structure,minimize business risks,and improve internal control quality,and thus promote enterprise innovation;Secondly,considering that both the micro factors of the enterprise itself and the empirical findings demonstrate that Digital transformation has had a considerable effect on the innovation effect in high-tech industries and mature enterprises,despite the varying effects it has had on the relationship between Digital transformation and enterprise innovation.while in the group with weak management capabilities and high marketization,enterprise The promotion of an enterprise’s level of innovation is more heavily influenced by digital transformation.The influence of enterprise digital transformation on innovation was also found to have a considerable industry spillover effect,according to another studies.The Digital transformation of peer enterprises not only affects their own innovation,but also may promote the innovation level of focus enterprises.This research employs big data text recognition to assess the strength of enterprise digital transformation.The study’s discoveries augment the proof of Digital transformation’s sway on business creativity,demonstrating the precise route of Digital transformation to enhance enterprise innovation,and serve as a guide for enterprises undergoing Digital transformation.In addition,this paper combines the Digital transformation of micro enterprises with the economic development of macro regions,and studies the economic consequences of Digital transformation,It provides essential empirical proof and policy knowledge for the government to guide top-notch Digital transformation of enterprises,and provides preliminary empirical evidence for Digital transformation to improve regional innovation level,which has certain reference significance for the upgrading of Chinese enterprises’ industries.