Digital Transformation And Enterprise Innovation Quality

Innovation is not only an important support for enterprises to survive in the fierce market competition,but also the cornerstone of achieving sustainable economic growth in China.For a long time,Chinese enterprises have been integrated into the global division of labor network based on their comparative advantages in labor resources.However,due to the lack of innovation ability,most of them are in the middle and low end of the industrial chain,and the phenomenon of " stuck neck " occurs from time to time.The issue of how to enhance the quality of enterprise innovation has drawn widespread attention from various sectors.Although the quality of innovation in Chinese enterprises has significantly improved in recent years,it still lags behind that of developed countries.Currently,the flourishing digital economy,represented by rapidly evolving digital technologies such as artificial intelligence and big data,has become a significant force in accelerating China’s economic structural adjustment and realizing highquality development.As one of the primary drivers of digital economic development,digital transformation has had a far-reaching impact on high-quality innovation in enterprises.This thesis aims to reveal the inherent mechanism of how digital transformation enhances the quality of enterprise innovation from a theoretical perspective and empirically examine its impact on the quality of enterprise innovation.In this thesis,we first analyze the impact mechanism of digital transformation on corporate innovation quality from the perspectives of operational efficiency,R&D investment,and human capital.Secondly,using panel data of Chinese listed companies from 2007 to 2020 as a sample,we adopt a two-way fixed effect model to test the impact of digital transformation on corporate innovation quality,and mitigate endogeneity issues by using Instrumental Variable method,Heckman two-stage model,and a series of robustness tests.Thirdly,we explore the heterogeneous impact of digital transformation on innovation quality,and verify the mechanism channel between the two.Finally,we examine the influence of digital transformation on corporate green technology innovation in the exploratory analysis.The main research conclusions are as follows:(1)Baseline regression analysis reveals that digital transformation can significantly improve the quality of enterprise innovation.(2)Endogeneity tests indicate that the impact of endogeneity issues on research conclusions is mitigated after using lagged variables,instrumental variables,and Heckman two-stage models.Moreover,robustness tests,such as replacing the dependent variables,changing the sample size and measurement methods,confirm the reliability of the empirical results.(3)Heterogeneity tests based on three characteristics,namely factor intensity,industry concentration,and government R&D subsidies,reveal that the positive effect of digital transformation on innovation quality is more significant in technology-intensive industries,highly competitive industries,and samples that receive more government support.(4)Mechanism tests show that digital transformation positively influences enterprise innovation quality through three channels:improving business efficiency,increasing R&D investment,and optimizing human capital.(5)Expansion analysis suggests that digital transformation also contributes to enhancing the level of green technology innovation in enterprises.To expedite the digital transformation process of Chinese enterprises and achieve highquality innovation,this study recommends the following policy measures based on the research findings: Firstly,expedite the refinement of digital infrastructure to enhance the digital transformation capabilities of enterprises.Secondly,implement precise policies and provide differentiated support for digital transformation based on the specific characteristics of different enterprises.Lastly,improve the corporate governance model,reinforce financial support,and prioritize talent development to facilitate the digital transformation of enterprises.