The impact of digital government on corporate green innovation: Evidence from China

Governmental digital transformation is a critical visible manifestation of the digital economy. It plays a crucial role in driving green innovation and encouraging enterprise development. This study examined the impact of digital government (DG) initiatives on corporate green innovation (GI) among key stakeholders in China's economy-non-state-owned enterprises, technology-intensive firms, and high-tech companies. This study analyzed panel data from listed companies in China between 2009 and 2020. The findings indicate that establishing DG has effectively stimulated the impetus for GI among these enterprises, particularly in driving advancements within highly digitized enterprises. This underscores the positive impact of DG construction during China's initial stage of digital economic development. The digitization of government operations lessens the tax load on local businesses. It also notably enhances the business environment within these enterprises. Moreover, it mitigates information disparities between the government and businesses while actively fostering green innovation in enterprises. However, political connections can reduce this impact. The findings of this study illustrate significant policy implications for local governments to benefit from the strategic opportunities provided by digital technology while strengthening the foundational support for the green innovation of enterprises.