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Digital economy, technological innovation, and sustainable development

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  • Wei-wei He
  • Shao-ling He
  • Hai-lan Hou

Abstract

This paper examines the impact of the digital economy on sustainable development, using panel data from cities at the prefecture level and above in China from 2011 to 2019. The results indicate: (1) The digital economy is conducive to boosting growth, increasing employment, reducing energy consumption, and cutting emissions, thereby promoting sustainable development. These findings prove robust. (2) Mechanism test outcomes reveal that, from the perspective of technological innovation, the digital economy can promote sustainable development through increasing R&D input and enhancing innovation output. (3) An extended analysis of the risk of a digital "divide" demonstrates that "dividend" of the digital economy is primarily manifests in spurring economic growth, enhancing energy efficiency, and strengthening environmental protection in lagging regions, while the digital "divide" effect is manifested in the stronger employment stimulating effect of developed regions versus backward areas. The results of this study not only enrich the relevant research system, but also provide empirical evidence to support accelerating digital transformation, strengthening technological innovation governance, and advancing sustainable development.

Suggested Citation

  • Wei-wei He & Shao-ling He & Hai-lan Hou, 2024. "Digital economy, technological innovation, and sustainable development," PLOS ONE, Public Library of Science, vol. 19(7), pages 1-24, July.
    • Handle: RePEc:plo:pone00:0305520
    DOI: 10.1371/journal.pone.0305520
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    1. Sun, Huaping & Edziah, Bless Kofi & Kporsu, Anthony Kwaku & Sarkodie, Samuel Asumadu & Taghizadeh-Hesary, Farhad, 2021. "Energy efficiency: The role of technological innovation and knowledge spillover," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. Bogliacino, Francesco & Pianta, Mario, 2010. "Innovation and Employment: a Reinvestigation using Revised Pavitt classes," Research Policy, Elsevier, vol. 39(6), pages 799-809, July.
    3. Lisi Tan & Zhuodong Yang & Muhammad Irfan & Chante Jian Ding & Mingjun Hu & Jin Hu, 2024. "Toward low‐carbon sustainable development: Exploring the impact of digital economy development and industrial restructuring," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2159-2172, March.
    4. Hasan, Iftekhar & Tucci, Christopher L., 2010. "The innovation-economic growth nexus: Global evidence," Research Policy, Elsevier, vol. 39(10), pages 1264-1276, December.
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