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Green-digital synergistic transformation on manufacturing firms' innovation: Evidence from China

Author

Listed:
  • Xu, Yang
  • Zhai, Chenchen
  • Wu, Fuxiang

Abstract

Digitalization acts as an accelerator for green development, while green transformation provides broader application scenarios for digital technologies. As the integration of green and digital transformations deepens, the impact of green-digital synergistic transformation on manufacturing firms' innovation remains unclear. Drawing on the dual pilot policies of Low-Carbon Cities and Broadband China, this study uses manufacturing firms data from 2008 to 2023 to examine the effects of green-digital synergistic transformation on innovation. Compared with single transition, green-digital synergistic transformation has stronger impact on innovation. Mechanism analysis reveals that green-digital synergistic transformation fosters innovation by enhancing knowledge diversity and alleviating resource misallocation. Moreover, the positive effects are more pronounced for non-state-owned firms, capital- and technology-intensive industries, regions with higher levels of marketization, and firms that adopt a“green-first, digital-later”transformation path. This study provides important insights for promoting the integrated development of green and digital transformations and supporting innovation.

Suggested Citation

  • Xu, Yang & Zhai, Chenchen & Wu, Fuxiang, 2026. "Green-digital synergistic transformation on manufacturing firms' innovation: Evidence from China," Economic Modelling, Elsevier, vol. 159(C).
    • Handle: RePEc:eee:ecmode:v:159:y:2026:i:c:s0264999326001112
    DOI: 10.1016/j.econmod.2026.107582
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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