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How does computing infrastructure deployment drive corporate digital technology innovation?

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  • Jiang, Hui

Abstract

We examine how computing infrastructure deployment drives corporate digital technology innovation using Internet Data Center (IDC) operating licenses and financial data from Chinese A-share listed companies during 2017–2022. Our findings demonstrate that computing center deployment significantly enhances corporate digital technology patent output, establishing computing power as a critical innovation driver. Mechanism analysis reveals computing power operates through dual channels: technological empowerment via enhanced AI application capabilities and resource activation through improved data processing and analysis capabilities. These computing-driven innovations translate into substantial economic value, improving total factor productivity and strengthening supply chain resilience. By incorporating computing power into innovation theory, this study advances understanding of digital infrastructure’s microeconomic effects and provides insights for computing resource allocation and industrial policy formulation.

Suggested Citation

  • Jiang, Hui, 2025. "How does computing infrastructure deployment drive corporate digital technology innovation?," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325019130
    DOI: 10.1016/j.frl.2025.108659
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    Keywords

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    JEL classification:

    • 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
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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