Big data and regional digital innovation: evidence from China

We investigate the causal effect of big data on regional digital innovation by using the staggered difference-in-differences method based on panel data from 281 cities in China between 2011 and 2019. We find that big data positively affects regional digital innovation, especially in eastern China, regions with low economic policy uncertainty, high online attention, and strong legal environment. This innovation-promoting effect is achieved through enriching market opportunities and agglomerating production factors. This paper provides new empirical evidence that big data promotes digital innovation.