Legal System and Policy of Science and Technology

The Impact of the "Broadband China" Pilot Policy on Enterprise Green Innovation: The Mediating Effects of Digital Finance and Digital Transformation

  • Xiao Renqiao ,
  • Cui Qi ,
  • Qian Li
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  • (School of Business Administration, Anhui University of Finance and Economics, Bengbu 233030, China)

Received date: 2023-07-31

  Revised date: 2023-11-28

  Online published: 2024-09-10

Abstract

Green development is the fundamental way to implement the concept of a community with a shared future for mankind and achieve the goals of "carbon peak" and "carbon neutrality". Furthermore, green innovation is a powerful driving force for green and high-quality development, and enterprises are an important subject of green innovation. Therefore, in order to continuously promote green development of economy and society and achieve the "dual carbon" goal , it is particularly important to explore new paths for green innovation in enterprises.#br#At the same time, the government attaches great importance to the coordination of green and digital development in its economy and society. Emerging digital technologies represented by the Internet, 5G technology and big data have been playing a key role in enabling innovation and driving high-quality economic development. In this context, the "Broadband China" pilot policy was proposed in 2013 and committed to building a well-connected network across China. As a result, the construction and application level of network infrastructure have significantly improved, which is beneficial for enterprises to obtain technical information and strengthen technical connections between enterprises.Then, how will the "Broadband China" pilot policy, by enhancing the level of network infrastructure construction, impact green innovation for enterprises?The answer to this question not only helps to uncover the mechanism behind the pilot policies empowering green innovation in enterprises but also provides relevant policy recommendations for the new generation of information infrastructure construction, thereby helping to achieve the "doble carbon" goal.#br#Drawing on the green development background and resource-based theory, this paper takes the pilot policy of "Broadband China" as a quasi-natural experiment to test its impact and mechanism on green innovation. The empirical test is made based on the data of 2 037 A-share listed companies from 2011 to 2021 and the DID model. The results indicate that, firstly, enterprise green innovation has been significantly promoted by the pilot policy of "Broadband China", and this conclusion remains valid after a series of robustness tests such as the placebo test and the PSM-DID test. Secondly, the influence of the "Broadband China" pilot policy on enterprise green innovation is characterized by heterogeneity of ownership, industry, and urban environmental regulation level. The pilot policy gives a more significant boost to SOEs which have heavily polluted industries and companies in cities with low environmental regulation. Thirdly, the mechanism test shows that the pilot policy of "Broadband China" mainly promotes green innovation of enterprises by improving the level of urban digital finance and promoting the digital transformation of enterprises, which is specifically reflected in improving the depth and coverage of urban digital finance and the resource input and attention of enterprises in digital transformation. By contrast, digital finance plays the strongest mediating role, followed by digital transformation. Further analysis shows that the spillover effect of the "Broadband China" pilot policy is significant, specifically manifested as the spillover of green innovation from the headquarters of listed companies to their subsidiaries and the spillover of green innovation between enterprises in neighboring cities.#br#On the basis of the research results, this paper puts forward some suggestions. Firstly, the pilot areas should summarize the construction experience and further promote the deep integration of network infrastructure with new generation information technologies; Non-pilot areas should formulate relevant policies, allocate special funds for network infrastructure renovation and upgrading, and narrow the gap with the construction of network infrastructure in pilot areas. Secondly, the government should formulate relevant incentive and regulatory policies tailored to local conditions, encourage heavily polluting enterprises to use digital technology for production process innovation, process innovation, material innovation to reduce their own pollutant emissions, and urge state-owned enterprises to play a leading role in green innovation. Lastly, the government should further improve the digital infrastructure of cities, promote financial institutions and enterprises to transform using digital technology, and better leverage the role of digitalization in promoting green innovation.#br#

Cite this article

Xiao Renqiao , Cui Qi , Qian Li . The Impact of the "Broadband China" Pilot Policy on Enterprise Green Innovation: The Mediating Effects of Digital Finance and Digital Transformation[J]. Science & Technology Progress and Policy, 2024 , 41(17) : 117 -126 . DOI: 10.6049/kjjbydc.H202307194

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