With the progress of a new round of global scientific, technological and industrial revolution, connecting traditional industry with modern technology through the deep integration of the new generation information technology and manufacturing industry, promoting the development of manufacturing industry to digitization, networking and intelligence, and promoting the application of the achievements of the new industrial revolution in the industrial field has become an important way to improve the intelligent level of manufacturing industry and to create new advantages of digital economy of China. In this digital era，information technology and industrial co-coordinated develop .How to achieve transformation and upgrading and new value creation through digital technology is a realistic and urgent problem for enterprises to solve. The emergence of industrial Internet, as an important carrier to promote the optimal allocation of resources and strengthen industrial cooperation and matching, provides a possible path for realizing enterprise digital innovation. #br#This paper takes Chinese manufacturing listed enterprises as the research object, and discusses the effect of the application of IIOT on enterprise innovation under the digital background. Based on the data of A-share listed companies in China's manufacturing industry from 2013 to 2019, this paper empirically tests the impact of Industrial IoT on enterprise digital innovation by using propensity score matching - double difference method.#br#The results show that the application of enterprise Industrial IOT has significantly promoted enterprise digital innovation (=0.5408,p<0.01 for DID). At the same time, based on the promotion of digital innovation process, this paper uses R & D input intensity and invention patent application as proxy dependent variables in the initial stage and output stage of digital innovation respectively, which also confirms the promotion effect of Industrial IOT(R&D =1.0406,p<0.01; patent lag1 =0.1624,p<0.01; patent lag2 =0.2682,p<0.01 for DID), but the coefficients corresponding to the three dependent variables are different. The Industrial IoT can significantly and effectively promote the whole process of enterprise digital innovation, but the impact on innovation input side is greater than that on innovation output side. Further heterogeneity test analysis shows that compared with state-owned enterprises (=0.5326,p<0.01 for DID), the Industrial IoT has a greater impact on private enterprises (=0.5495,p<0.01 for DID). Compared with the low level of market-oriented urban enterprises (=0.4307,p<0.01 for DID), the Industrial IoT has a greater impact on urban enterprises with high marketization level (=0.5638,p<0.01 for DID).#br# This paper provides empirical evidence for China to promote and improve the construction of Industrial IOT platform and give full play to its role in promoting enterprise digital innovation. It constructs a complete theoretical analysis framework for enterprises to carry out digital innovation activities from the perspective of Industrial IOT and ideas for Chinese enterprises to accelerate the realization of digital innovation. At the same time, this study also provides scientific evidence for testing the policy implementation effect of Chinese Industrial IOT. Based on the test of heterogeneity, this study analyzes the advantages and disadvantages of the current Industrial IOT development, and provides important factual basis for business operators and policy makers. It is suggested that enterprises need a digital workplace in the process of realizing digital innovation. In addition to introducing digital technology, they also need to coordinate and cooperate with the external environment and organizations. Enterprises can take the industrial Internet as an important carrier to obtain resources for realizing digital innovation. Moreover, industrial Internet can promote the realization of digital innovation by cultivating the initial conditions of enterprise innovation and optimizing the innovation process. Therefore, managers need to adopt corresponding strategies and management behaviors according to the innovation business stage, give full play to the positive impact of R & D investment, and increase the output of digital innovation activities. In addition to the enterprise's own innovation environment, government departments need to create an institutional environment conducive to enterprise innovation activities. A sound institutional environment can not only enhance the enthusiasm and willingness of enterprise innovation, but also ensure the realization of enterprise business value to a certain extent.#br#
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