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The impact of digital product imports on innovation: Evidence from listed manufacturing companies in China

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  • Huihui Qian
  • Haiyun Liu

Abstract

Against the backdrop of technological dependence and a technology embargo, this study investigates the impact of digital product imports on firm innovation in China's manufacturing sector. Using data from Chinese listed manufacturing firms, we find that digital product imports significantly enhance both the quality and quantity of firms’ patent output. Our analysis shows that digital product imports promote innovation by supporting digital transformation, lowering internal costs, and improving the efficiency of information exchange between firms, rather than via technology spillovers. This finding diverges from previous research on imported products and innovation, underscoring the distinctive intelligence-driven and information-rich characteristics of digital products. Furthermore, heterogeneity analyses reveal that the innovation-enhancing effect of digital product imports is more pronounced in firms with higher human capital, lower productivity, greater labor intensity, and non-state ownership. These findings provide valuable insights for policymakers in developing countries aiming to promote innovation through digital trade.

Suggested Citation

  • Huihui Qian & Haiyun Liu, 2026. "The impact of digital product imports on innovation: Evidence from listed manufacturing companies in China," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 35(5), pages 1055-1081, July.
    • Handle: RePEc:taf:jitecd:v:35:y:2026:i:5:p:1055-1081
    DOI: 10.1080/09638199.2026.2666231
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