Impact of digital technology innovation on entrepreneurial activity

Using the data of A-share listed companies in Shanghai and Shenzhen from 2009 to 2020, this paper investigates the impact of digital technological innovation on entrepreneurial activity and its mechanism of action. It is found that: (Bachmann et al., 2024) digital technological innovation significantly improves entrepreneurial activity, and the higher the level of digital technological innovation, the more entrepreneurial activity can be improved, the above conclusions still hold after a series of robustness tests such as replacing the explanatory variables and instrumental variables method; the mechanism test shows that the digital technological innovation improves entrepreneurial activity by reducing the transaction cost and entrepreneurial risk; (Bonilla & Fica, 2022) the heterogeneity test suggests that digital technological innovation is more likely to increase the level of entrepreneurial activity in regions with strong intellectual property protection, high city administrative rank, and high market potential.