Interaction Effects of Digital Platforms and Technological Innovation on China’s Economic Growth: Panel Data Evidence (2013–2023)

This study investigates the interaction effects of digital platforms and technological innovation on economic growth in China, drawing upon innovation diffusion theory (IDT) and system dynamics theory (SDT) as the theoretical foundation. Digital platforms are proxied by electronic payment and e-commerce indicators, while technological innovation is measured through R&D investment. Utilising panel data from 30 Chinese provinces from 2013 to 2023, the analysis applies fixed effects models with robust standard errors to control for unobserved heterogeneity and address heteroskedasticity. The result suggests that digital platforms have a statistically significant and positive effect on economic growth, with a 1% increase in digital platforms activity associated with a 0.0344% rise in economy. Moreover, the interaction between digital platforms and technological innovation further amplifies this effect, contributing an additional 0.0378% increase in economy. This finding highlights the interactive relationship between digital platforms and technological innovation, underscoring the importance of integrated policy frameworks that foster both digital development and technological advancement to sustain economic growth in China. This study is among the first to quantify the interaction between digital platforms and technological innovation in driving provincial economic performance in China, offering novel insights for digital development policy.