Research On The Impact Of Digital Economy On Enterprise Innovation Capability

China’s economic development is still in an important period of strategic transformation,and the digital economy is an important engine to promote the highquality development of the national economy.Since 2012,the state has issued a series of industrial policies related to digital economy,emphasizing the combination of industrialization and digitalization to release the dividend of digital economy.The Party’s "Fourteenth Five Year Plan" and the Outline of the 2035 Long term Goals further clarify the important role of digital economy in the development of China’s national economy in the new era.At present,facing the external pressure of the global economic situation and the impact of the COVID-19,the digital economy has grown against the trend,effectively easing the downward pressure on the macroeconomy.Objectively,the digital economy has become an important growth pole of China’s national economy.Innovation is an important way for a country to achieve economic growth and development.China has always attached importance to the important role of innovation in the national economy and proposed an innovation driven development strategy."Entering the forefront of innovative countries and significantly improving innovation capability" has become one of the main goals of economic and social development during the "14th Five Year Plan" period.Therefore,this paper empirically analyzes the relationship between China’s digital economy development and enterprise innovation capability.As the formulation of digital economy is relatively new,there are few such studies in general,and most of them use provincial panel data with a short window period for spatial econometric analysis.Its disadvantage lies in that the short window period often cannot completely cover all stages of China’s digital economy development,which leads to certain limitations in the conclusion.In addition,the empirical research based on provincial panel data has limited practical significance.In this paper,we use eight years of city level panel data to study this.Based on innovation theory and existing literature research,this paper analyzes the impact of digital economy development on enterprise innovation and specific mechanisms.At the same time,the paper empirically tested the impact of digital economy development on enterprise innovation by constructing eight year panel data at prefecture level and city level from 2011 to 2018.The conclusions are:(1)The improvement of the development level of digital economy has a significant role in promoting the innovation ability of enterprises.Based on the level of prefecture level cities,the empirical regression results show that the average innovation output of enterprises in prefecture level cities will increase by 0.6% for every 1 unit increase in the indexing level of the comprehensive development of digital economy in prefecture level cities.(2)The impact of digital economy development on enterprise innovation is realized by easing financing constraints and optimizing human capital structure.(3)The impact of digital economy development on enterprise innovation is persistent,and there is enterprise and regional heterogeneity.The promotion effect of digital economy is more significant in the eastern region,and enterprises with larger scale and higher asset liability ratio can enjoy the dividend of digital economy.Finally,based on the empirical conclusions,this paper puts forward policy recommendations: first,continue to vigorously develop the digital economy and promote the industrial digital transformation of enterprises;second,encourage industry leading enterprises to take the lead in innovation while helping emerging industries;third,focus on improving the overall development level and industrial application level of the digital economy in the central and western regions.At the same time,comparing the conclusions of the provincial level empirical research with the conclusions of this paper,not only confirms the reliability of the conclusions of this paper,but also further proves the rationality of China’s digital economy policy.