Zhonghe Wang

The global economy has undergone two significant shifts in recent decades: digitalisation and the green transition. While each has been studied extensively, their intersection remains underexplored. This study reviews metrics for assessing digital and green transformations, both separately and jointly, and identifies key challenges in evaluating their complementarities and trade-offs. By mapping current approaches and offering a comprehensive framework, the paper highlights gaps. The paper proposes a theory-driven metrics framework to support integrated strategies for sustainable innovation and structural transformation toward a green and digital economy.

This study examines whether China’s high-tech enterprise identification policy promotes corporate sustainable innovation. Using panel data from Chinese listed firms on the Shanghai and Shenzhen stock exchanges between 2008 and 2022, we adopt a time-varying difference-in-differences (DID) model to evaluate the policy’s effectiveness and explore its underlying mechanisms. The results reveal that this certification policy significantly facilitates green innovation, and the findings remain robust across various checks, including alternative measurements, placebo tests, propensity score matching DID (PSM-DID), and the exclusion of digital transformation trend and confounding macro-level policies. Mechanism analysis shows that the policy influences green innovation by alleviating financing constraints, increasing access to government subsidies, facilitating the agglomeration of scientific and technological talent, and encouraging greater R&D investment. Heterogeneity analysis further indicates that the policy effect is more pronounced among non-state-owned enterprises, small-scale firms, capital-intensive businesses, those located in high-institutional-quality regions, and firms in China’s eastern provinces. Moreover, the positive impact is strongest for growth-stage firms. The policy has also been found to improve green innovation efficiency. These findings offer empirical insights for optimizing selective industrial policies to enhance sustainable innovation and support China’s dual-carbon goals.