The role of data trading platforms (DTPs) in digital technology innovation: Mechanisms and evidence from China

Data constitute the cornerstone of the digital technology era and the key to driving the paradigm shift of digital technology innovation and improving innovation efficiency. However, this cannot be achieved without an efficient and secure data trading system. To enhance the role of data in digital technology innovation, some prefecture-level cities in China have established data trading platforms(DTPs). Based on data from Chinese listed companies for the period 2010–2023, this paper examined the influence of DTPs on digital technology innovation of companies by applying a time-varying difference-in-differences (DID) model. We find that the number of digital technology innovations of companies increased by 3.1 % in prefecture-level cities with DTPs compared with those without DTPs, validating the extraordinary role of data trading in enhancing the dynamic capabilities of the digital technology innovations of companies. Heterogeneity results reveal that the facilitating function of DTPs in digital technology innovation of companies is strengthened with increased levels of digital infrastructure and digital ecosystems in cities and enhanced with increased levels of data utilization and degrees of intellectual property protection of companies. Mediating mechanism results indicate that facilitating same-industry technology spillover, enhancing cross-industry technology spillover, and boosting innovation breakthrough capability are the main mechanisms through which DTPs affect the digital technology innovation of companies. This study provides insights for policymakers on how to improve digital infrastructure, optimize digital ecosystems, protect data property rights, and support companies in strengthening their data capabilities to effectively enhance the role of DTPs in digital technology innovation.