Digital technology innovation and common prosperity within enterprises: destruction or creation

The digital economy is seen as an emerging driving force for reducing income inequality and promoting the achievement of the United Nations Sustainable Development Goals. However, existing research presents both positive and negative conclusions, with most focusing on the application of technology while lacking consideration of innovative factors. In light of this, this study utilizes data from Chinese A-share listed companies from 2013 to 2022 to construct an enterprise digital technology innovation index based on digital patent identification, empirically exploring the impact of digital technology innovation on the internal common prosperity effect of enterprises. The research findings indicate that digital technology innovation significantly enhances the share of labor income, positively affecting internal common prosperity within enterprises. This conclusion remains valid after a series of robustness and endogeneity tests. Further analysis reveals that this the positive effect is more pronounced in state-owned enterprises, capital- and technology-intensive enterprises, and those located in regions with a higher degree of marketization. The affecting mechanism is that digital technology innovation improves production efficiency, optimizes labor resource allocation, and weakens managerial power, enabling enterprises to achieve a more equitable distribution of income while realizing high-quality growth. The conclusions of this study not only provide strategic empirical support for enterprises to advance the goal of common prosperity in the digital economy era but also offer a new perspective on the pathways to achieve the SDGs in the context of the digital age.