Does Government Data Governance Promote Firms’ Technological Catch-Up? Evidence from the Establishment of Big Data Administrations in China

Government data governance has become an important institutional mechanism for reducing information frictions, improving data-resource allocation, and supporting firm innovation in the digital economy. However, whether government data governance can promote firms’ technological catch-up remains insufficiently understood. Based on the quasi-natural experiment of the establishment of Big Data Administrations, this study constructs a multi-period difference-in-differences model to examine the impact of government data governance on firms’ technological catch-up. Using panel data from Chinese A-share listed firms from 2011 to 2021, the DID estimates indicate that the establishment of Big Data Administrations significantly improves firms’ technological catch-up. This estimated effect remains robust across placebo tests, specifications controlling for differential trends associated with pre-treatment city characteristics, and double/debiased machine learning estimation. Mechanism analyses provide evidence consistent with three channels: technology stimulation, digital-ecosystem optimization, and competition strengthening. Heterogeneity analyses further show that the effect is evident among non-state-owned enterprises, firms with higher information asymmetry, and larger firms. Additional spatial analyses suggest that neighboring cities’ data governance capacity does not generate stable positive spillovers; instead, it may be associated with negative spatial externalities, potentially reflecting siphoning or competitive crowding-out pressures. These findings highlight government data governance as an institutional driver of firm technological progress and provide policy implications for improving digital governance capacity, optimizing digital ecosystems, and promoting high-quality development.