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Harnessing digital transformation for green innovation in energy transition: a study on R&D investments and spatial spillover in China

Author

Listed:
  • Yang Liu

    (Kunming University)

  • Jing Cheng

    (Yunnan Agricultural University)

  • Jingjing Dai

    (Kunming University)

Abstract

This study investigates the impact of digital transformation on green innovation in China’s manufacturing sector—a leading energy-consuming industry, using panel data and employing a two-way fixed-effects model alongside a spatial Durbin model. The findings reveal a significant positive relationship between digitalization and green innovation in energy transition, most notably in eastern China and regions with advanced digital infrastructure. This relationship is further characterized by increased R&D investment, driven by the efficient allocation of digital resources. A key discovery is the presence of significant spatial spillovers, indicating that digital advancements in one region positively influence green innovation in neighboring areas. These insights underscore the importance of region-specific development strategies and research incentives to harness digital transformation as a catalyst for green technology innovation. This analysis provides a deeper understanding of the regional interconnections between digitalization and innovation, offering valuable policy guidance for sustainable development.

Suggested Citation

  • Yang Liu & Jing Cheng & Jingjing Dai, 2024. "Harnessing digital transformation for green innovation in energy transition: a study on R&D investments and spatial spillover in China," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-30, February.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:1:d:10.1007_s10644-024-09610-3
    DOI: 10.1007/s10644-024-09610-3
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    More about this item

    Keywords

    Green innovation; Green manufacturing; Green spatial spillover effects; R&D investment; Digital transformation;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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