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Digital transformation, productive services agglomeration and innovation performance.

Yingying Ding1, Ziyi Shi2, Ruichao Xi3

  • 1Center for Agricultural-Sage Culture Studies, Weifang University of Science and Technology, Weifang, Shandong, 262700, China.

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|February 9, 2024
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Summary
This summary is machine-generated.

Digital transformation significantly boosts innovation performance in China. However, the impact is non-linear, with productive service industry agglomeration acting as a crucial threshold, amplifying digital transformation

Keywords:
Digital transformationDynamic threshold modelInnovation performanceMachine learningProductive services agglomeration

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Area of Science:

  • Economics
  • Innovation Studies
  • Regional Science

Background:

  • Sustainable development relies on continuous innovation.
  • Digital transformation is a key driver of the current innovation revolution.
  • Understanding the interplay between digital transformation and innovation performance is crucial for economic growth.

Purpose of the Study:

  • To verify the impact of digital transformation on innovation performance in China.
  • To explore the moderating and threshold effects of productive service industry agglomeration.
  • To provide policy insights for regional digital development and industrial layout.

Main Methods:

  • Utilized machine learning and text analysis to create a regional digital transformation index.
  • Applied econometric methods to analyze data from 30 Chinese provinces (2012-2022).
  • Incorporated Solow growth model and agglomeration economics theory.

Main Results:

  • China's digital transformation index shows an increasing trend, but regional disparities (digital divide) exist.
  • Digital transformation has a significant positive effect on innovation performance.
  • Productive service industry agglomeration exhibits a threshold effect, enhancing the innovation impact of digital transformation beyond certain levels.

Conclusions:

  • Digital transformation is a vital engine for enhancing innovation performance.
  • Agglomeration in productive service industries plays a critical role in maximizing the benefits of digital transformation.
  • Policy interventions should address the digital divide and optimize industrial agglomeration for balanced regional development and innovation-driven growth.