Digitalization of the Business Environment and Innovation Efficiency of Chinese ICT Firms

Abstract

This study investigates how the digital business environment affects firms' innovation input variables. It was discovered that digitization leads to ongoing corporate environment optimization, which improves the effectiveness of innovation. One of the institutional environment factors, digitalization, increases the redundancy of government subsidies on businesses' investments in innovation. It also helps to eliminate duplication in innovation investment through the financial environment and the protection of legal rights. With increasing marketization in the informal institutional framework, the degree of R&D investment redundancy lowers while R&D human resource investment redundancy grows. Digitization not only lowers the grade of innovation, but it also has a negative association with the duplicate nature of commercial R&D investments. The authors' research combines institutional environment theory and digital development to establish a new empirical foundation for corporate development in order to boost innovation efficiency.

Unlocking the Potential of Chinese Urban Innovation: The Role of Support Policies for New R&D Institutions from an Innovation Chain Management Perspective

“…Thus, amidst the prevailing wave of digitization, policies supporting new R&D institutions stimulate and back enterprises to engage in innovative activities in a myriad of ways, thereby invigorating corporate innovation in cities. Subsequently, these policies render positive contributions to amplifying the innovation caliber of cities (Ding et al, 2023). Consequently, this paper posits:…”

Digital economy and urban innovation level: A quasi-natural experiment from the strategy of “Digital China”

“…Control variables. We refer to the relevant literature (Liu et al 2022;Ding et al 2023) and select four types of control variables affecting urban innovation: first, the variables reflecting the level of economic development and fiscal capacity, including the gross domestic product (GDP), the general budgetary revenue (finr), the general budgetary expenditure (fine), and the proportion of the value added of the secondary industry to GDP (SGDP); second, the variables reflecting the level of investment, with the gross regional product (GDP), the local fiscal revenue (finr), local financial general budget expenditure (fine), and the proportion of value added of the secondary industry to GDP (industry); third, variables reflecting the level of investment with the amount of investment in fixed assets (invest) and the amount of foreign investment actually used (fdi); fourth, variables reflecting the population with the total number of people at the end of the year (pop); and fifth, variables reflecting the science and technology investment in the city with the city-level science and technology expenditure (tec) selected. All of the above variables are in logarithmic form except for the share of secondary industry.…”

Inverted U-shaped relationship between non-labor income and labor hours, with wage rates as the threshold variable

“…Workers should receive appropriate wages based on their actual contributions to retain talent. The lack of high-end talent and inefficient corporate management are identified as significant barriers hindering industry innovation (Ding et al, 2023). Attention to employee well-being is emphasized (Zhong et al, 2021).…”