Digital technology risk exposure and corporate key core technology innovation

Abstract Achieving breakthroughs in key core technologies is a strategic necessity for Chinese firms to safeguard national security and gain the initiative in global competition in the digital economy era. Using a sample of Chinese A-share listed firms from 2012 to 2024, this study investigates the impact of digital technology risk exposure ( DTRE ) on corporate key core technology innovation ( KCTI ). We employ a Chinese domestic Large Language Model (LLM) DeepSeek, combining FinBERT to construct firm-level indicators of DTRE . Empirical results show that DTRE significantly suppresses KCTI , and such conclusion remains after a series of robustness tests. We reveal that DTRE acts as a strategic threat, bringing about external information environment deterioration and industry‑research collaboration blockage mechanisms. Further heterogeneity analysis reveals that the suppressive effect of such risk exposure is particularly pronounced among profit-oriented firms, firms with weak industry reputation, and non-state-owned enterprises. Additionally, we conduct a quasi-natural experiment through Data Management Capability Maturity Assessment Model (DCMM) certification in the Chinese context, and find that mature DTRE governance capabilities can significantly promote KCTI .