When digital meets green: How technological convergence drives eco-innovation in Chinese firms

Abstract

The convergence of digital and green technologies (DGT) is emerging as a key driver of low-carbon transformation, yet its effects on eco-innovation remain understudied. Using matched micro-enterprise data and highly granular patent data from 2010 to 2023, we employ co-classification analysis to identify firm-level DGT convergence behaviors. Our findings reveal that DGT convergence significantly improves both the quantity and quality of firm eco-innovation by strengthening technology absorption capacity, expanding knowledge breadth, and facilitating technological spillovers. Furthermore, stricter intellectual property protection amplifies this positive effect. The analysis further shows that DGT convergence achieves its greatest impact through AI-green integration, while also being pivotal for advancing energy-saving/emission-reduction technologies and for diversifying and specializing the eco-innovation portfolio. Our study, from a technological convergence perspective, provides managerial implications for fostering digital-green convergence in eco-innovation.