Digital transformation, industrial structure upgrading and green technology innovation

Abstract

This study empirically examines the effect of digital transformation on green technology innovation in Chinese A-share listed companies from 2014 to 2023, while also considering the moderating influence of industrial structure upgrading. Using a sample of 30,970 firm-year observations, digital transformation is measured by the frequency of related keywords in annual reports, green innovation is proxied by green patent applications, and industrial upgrading is captured by the ratio of tertiary to secondary industry. Panel data regression models are employed to test the hypotheses. The research findings indicate that digital transformation substantially enhances the level of green technological innovation in firms, and this positive effect is consistent across multiple green innovation metrics. The upgrading of industrial structure significantly influences the relationship between digital transformation and green innovation, enhancing the innovative impacts of digitalization. Further heterogeneity analysis reveals that the impact of digital transformation varies significantly across regions and firm sizes, with eastern regions and larger firms exhibiting more pronounced effects. This study also finds that the moderating role of industrial structure upgrading is particularly evident in green invention innovation, though its influence on utility model innovation is relatively limited. These findings provide comprehensive insights into how digital transformation and industrial upgrading jointly shape corporate green innovation patterns. The profound integration of digital transformation with green development is essential for enhancing enterprise competitiveness and fostering high-quality, sustainable economic growth. This study offers empirical evidence and specific recommendations for promoting this process at the institutional and policy levels.