Digital technology and collaborative innovation: empirical evidence from China

Cross-boundary collaboration has emerged as a strategic imperative for enterprises seeking to overcome resource constraints and sustain competitive advantage. This study investigates how digital technology drives collaborative innovation from a transaction cost perspective. Using textual analysis of annual reports from Chinese A-share listed companies (2017–2021), we find that corporate digitalisation significantly promotes collaborative innovation. Mechanism analysis reveals that reduced information asymmetry acts as a critical partial mediator. Specifically, digital transformation serves as an informal governance mechanism that attracts analyst coverage and enhances transparency, thereby lowering the search and monitoring costs associated with external cooperation. Furthermore, heterogeneity analysis uncovers a distinct ownership asymmetry: the innovation-enhancing effect is highly significant for non-state-owned enterprises (non-SOEs) but statistically insignificant for state-owned enterprises (SOEs). This suggests that institutional rigidities constrain the conversion of digital inputs into collaborative outcomes in the state sector. These findings provide robust empirical evidence on the micro-transmission mechanisms of digital transformation, offering strategic insights for policymakers and corporate managers.