Analysis reveals digital trade boosts innovation in corporate digital technology, suggesting pathways through financing and talent.
Key Points
Digital trade significantly enhances corporate innovation in digital technology, particularly for nonstate-owned firms.
Results indicate that enhanced technology absorptive capacity and alleviated financing constraints are pivotal for this impact.
The analysis employs a multi-period difference-in-differences model to assess innovations in corporations related to digital trade.
Findings highlight how regions with advanced digital infrastructure can bolster the innovations of low-pollution and less digitally transformed corporations.