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How digital firms shape innovation networks: Evidence from corporate patent citations

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  • Su, Zhi
  • Tang, Jiahao
  • Guan, Hongling

Abstract

This study constructs an innovation network based on the 2012–2021 patent registration and citation data of Chinese listed companies. It characterizes the empirical facts of digital firms' empowerment in innovation networks, simulating stress tests to develop paths for node supplementation and link construction within digital firms' empowerment of innovation networks. Furthermore, the Temporal Exponential Random Graph Model (TERGM) is applied to analyze the effects of node and link factors, exploring key directions for strengthening the network. The main conclusion of the study is that digital firms play a dual role as both “hub amplifiers” and “risk diffusers” within innovation networks. While digital firms enhance the efficiency of knowledge flow in innovation networks, attacks on these firms exacerbate network damage. This study helps clearly delineate the role of digital firms as key nodes in innovation networks and addresses the optimization of paths for empowering innovation networks through node supplementation, link construction, and network strengthening, thus providing support for the revision of data asset-related policies in the Company Law.

Suggested Citation

  • Su, Zhi & Tang, Jiahao & Guan, Hongling, 2026. "How digital firms shape innovation networks: Evidence from corporate patent citations," China Economic Review, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:chieco:v:97:y:2026:i:c:s1043951x26000246
    DOI: 10.1016/j.chieco.2026.102674
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