Harnessing digital transformation for green innovation in energy transition: a study on R&D investments and spatial spillover in China

This study investigates the impact of digital transformation on green innovation in China’s manufacturing sector—a leading energy-consuming industry, using panel data and employing a two-way fixed-effects model alongside a spatial Durbin model. The findings reveal a significant positive relationship between digitalization and green innovation in energy transition, most notably in eastern China and regions with advanced digital infrastructure. This relationship is further characterized by increased R&D investment, driven by the efficient allocation of digital resources. A key discovery is the presence of significant spatial spillovers, indicating that digital advancements in one region positively influence green innovation in neighboring areas. These insights underscore the importance of region-specific development strategies and research incentives to harness digital transformation as a catalyst for green technology innovation. This analysis provides a deeper understanding of the regional interconnections between digitalization and innovation, offering valuable policy guidance for sustainable development.