Description:
This paper proposes a new measure of firm digital transformation from the perspective of investment after pointing out the weakness of measures used in previous research. Using the new measure and the panel data of manufacturing listed companies in China during 2009-2020, this paper examines the positive impact of digital transformation on innovation efficiency. The positive impact is significant in technology-intensive and capital-intensive enterprises and those in a low competitive product market. Digital transformation of manufacturing enterprises promotes innovation efficiency by improving the level of internal human resources, reducing the financing cost, and reducing the supply chain concentration