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Government investment in science and technology, digital transformation, and innovation in manufacturing enterprises

Author

Listed:
  • Chen, Biao
  • Lin, Huan
  • Shan, Biaoan
  • Xiao, Yundong

Abstract

This study examines the relationship between government investment in science and technology (S&T), manufacturing enterprises’ innovation, and the moderating effect of digital transformation based on data from China's A-share listed manufacturing enterprises from 2011 to 2022. Findings indicate that government investment in S&T has an inverted U-shaped effect, where digital transformation mitigates the incentive distortion. The conclusions provide a valuable reference for strengthening resource allocation while augmenting enterprise innovation theories. The findings serve as a practical guide for manufacturing enterprises’ innovation in the digital era.

Suggested Citation

  • Chen, Biao & Lin, Huan & Shan, Biaoan & Xiao, Yundong, 2024. "Government investment in science and technology, digital transformation, and innovation in manufacturing enterprises," Finance Research Letters, Elsevier, vol. 69(PB).
    • Handle: RePEc:eee:finlet:v:69:y:2024:i:pb:s154461232401328x
    DOI: 10.1016/j.frl.2024.106299
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    References listed on IDEAS

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    Cited by:

    1. Jinyue Zhang & Zhenglin Sun, 2025. "Mechanisms and spatial spillover effects of science and technology financial ecosystem on carbon emission reduction from multiple perspectives: evidence from China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-19, December.
    2. Peng Shao & Xiaojie Qiu & Xingnan Li, 2025. "Multi-Source Peer Pressure, Digital Transformation and Enterprise Sustainable Innovation," SAGE Open, , vol. 15(3), pages 21582440251, September.

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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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