Data Element Marketization and the Shift in Green Innovation: From Symbolic to Substantive

Promoting substantive green innovation is critical for sustainable economic growth. However, the “double externality” of environmental protection often incentivizes firms to prioritize symbolic innovation for image management over high-quality substantive innovation. This paper investigates whether Data Element Marketization (DEM) can correct this distortion and optimize the structure of corporate green innovation. Treating the establishment of data trading platforms as a quasi-natural experiment, this study employs a staggered difference-in-differences (DID) design using a sample of Chinese A-share listed companies from 2009 to 2023. By differentiating between substantive and symbolic innovation, the research rigorously tests the impact of DEM. The empirical results demonstrate that DEM significantly promotes substantive green innovation while having a limited and statistically insignificant impact on symbolic innovation. Mechanism analysis reveals that DEM drives this shift by reducing information asymmetry, alleviating financing constraints and enhancing management efficiency. Furthermore, heterogeneity analysis indicates that the positive effect is more pronounced in high-tech industries, firms with lower environmental awareness, and regions with under-developed digital finance. This study contributes to the literature by uncovering the unique role of DEM in enterprise green innovation. The findings suggest that policymakers should integrate DEM into environmental governance frameworks to encourage firms to move from symbolic to substantive environmental advancements.