Driving Innovation Through Trade: The Impact of the China–Europe Railway Express

With the deep implementation of the Belt and Road Initiative, China has integrated globalization with unprecedented depth and breadth, significantly impacting trade patterns and corporate innovation in countries along the route. This study explores the impact of international trade on corporate innovation, mainly through the specific trade channel of the China–Europe Railway Express. Employing a quasinatural experimental methodology, this paper analyzes microlevel corporate data to investigate how the operation of the China–Europe Railway Express enhances technological progress and innovation capabilities by reducing transportation costs and improving trade accessibility. The findings indicate that the operation of the China–Europe Railway Express significantly boosts the innovation levels of companies engaged in international trade, especially those with limited financial resources but potential for international competition. The primary contribution of this study lies in revealing the impact mechanisms of specific trade channels under the Belt and Road Initiative on corporate innovation, thereby filling gaps in existing research and providing new empirical evidence for policy formulation. This study also has important policy implications, suggesting that policymakers should strengthen the strategic layout and efficiency of the China–Europe Railway Express network, increase support for high-value innovation and SMEs, promote knowledge exchange, and deepen global value chain integration to foster the sustainable development of corporate innovation and international trade.