Digital innovation and green productivity gap

Despite rapid progress in green innovation, the limited conversion of technological achievements into productivity gains has resulted in a persistent green productivity gap. this study investigates how digital innovation contributes to narrowing this gap by promoting the effective transformation of green innovation into sustainable economic performance. Based on panel data for 287 Chinese cities from 2009 to 2022, this study explores the mechanisms, moderating factors, and regional variations that shape this relationship. Empirical evidence demonstrates that digital innovation significantly reduces the green productivity gap by improving energy efficiency, optimizing industrial structures, and strengthening environmental regulation. The impact is stronger in inland regions, smaller cities, and central China. Furthermore, private ownership structures and targeted R&D investments further amplify the effect of digital innovation. Policy implications emphasize region-specific strategies for digital-green integration and sustainable productivity transformation.