Green Innovation Driven by Digital Transformation: An Innovation Chain Perspective

Taking the innovation chain (IC) as the perspective, we discuss the effect of digital transformation (DT) on enterprises’ green innovation (GI) using data from Chinese listed companies from 2013 to 2021. The results show that DT has a positive effect on enterprises’ GI, and this effect is not only reflected in the quantity of green patent applications but also the GI efficiency and quality. Heterogeneity analysis shows that DT has a positive effect on GI for both large firms and small and medium-sized enterprises (SMEs), but the effect is greater for SMEs. Relative to enterprises that have received governmental incentive-based industrial policies, the effect is smaller in the enterprises that have no incentive-based industrial policies and are subjected to command-based environmental regulations. As the level of industry competition increases from low to high, the impact of DT on GI will grow. However, when the level of industry competition becomes excessively high, the impact will decrease. DT positively affects enterprises’ GI behaviors by facilitating the cultivation of human capital, improving the allocation of innovation resources, and increasing the level of cooperative green innovation.