The Effect of Digitization on Enterprise Innovation

DOI

10.2991/978-94-6463-042-8_27How to use a DOI?

Keywords

Digital transformation; Enterprise technology innovation; Cost expansion multiple

Abstract

This paper mainly studies the impact of enterprise digital transformation on technological innovation. Based on the whole industry data of A-share listed enterprises, the paper analyzes the text of enterprise annual report and extracts digital keywords to construct core explanatory variables, and takes cost expansion multiple as an intermediary variable to explain the mechanism between digitalization and enterprise technological innovation. The regression results show that: first, the digital transformation has a significant inverted U-shaped impact on the quantity and quality of technological innovation input and innovation output. Second, before the inflection point, the marginal benefit of digitalization is greater than the marginal cost, and the technological innovation of enterprises is promoted under the effect of economies of scale. After the inflection point, the marginal benefit of digitalization is less than the marginal cost, and the effect of diseconomies of scale makes the marginal input and output of technological innovation of enterprises decrease. Thirdly, a large number of samples are located before the inflection point where the marginal utility of the digitalization level is zero, which indicates that the vast majority of Enterprises in China are still in an uphill phase in the promotion of digital transformation. Fourthly, the empirical results show that the impact of enterprise digitization level on technological innovation has a positive decreasing effect over time, which can be regarded as a long-term impact on enterprise fixed assets in the depreciation process.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xiaolong Han
PY  - 2022
DA  - 2022/12/29
TI  - The Effect of Digitization on Enterprise Innovation
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 175
EP  - 184
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_27
DO  - 10.2991/978-94-6463-042-8_27
ID  - Han2022
ER  -