Does the development of digital technology contribute to the innovation performance of China's high-tech industry？

Using the regional panel data of China's high-tech industry (HTI) from 2004 to 2016, this study investigates the main effect, regulatory effect, and intermediary effect of digital technology development (GTD) on the innovation performance (IP) of China's HTI through the spatial econometric model, intermediary effect model, and panel threshold model. The findings revealed that the IP of China's HTI has a global positive spatial correlation. The GTD exerts an apparent promoting effect on the IP of China's HTI, but it has a negative spatial spillover effect on the IP of China's HTI. From the effect decomposition of the SAR model, in terms of direct effect, market integration and economic policy uncertainty (EPU) play a significant positive regulatory role between the GTD and IP of China's HTI, and R&D investment (RDI) and technology diffusion play an intermediary role. In terms of the indirect effects, market integration and EPU play a negative regulatory role between the GTD and IP of China's HTI, and RDI and technology diffusion play a masking role. The panel threshold test shows that taking the GTD and RDI as threshold variables, when the GTD and RDI are appropriate, could significantly promote the IP of China's HTI. As a result, this study asserts that the government departments should promote the development and application of digital technology, augment supporting rules and regulations and alleviate the “polarization effect” due to digital technology to promote the innovation and development of China's HTI.