Energy infrastructure constitutes not merely technical hardware but a fundamental determinant of socioeconomic transformation and industrial evolution. While the engineering attributes of Ultra-High Voltage (UHV) transmission have been extensively documented, its role in shaping corporate behavior and catalyzing industrial upgrading remains underexplored. UHV transmission, operating at direct-current voltages of 800 kV and above or alternating-current voltages of 1000 kV and above, has been systematically deployed across China since 2007 to bridge the structural spatial mismatch between inland energy production centers and coastal consumption hubs. This study investigates the sociotechnical nexus between energy systems and firm-level innovation, employing China's large-scale UHV expansion (2007–2024) as an empirical setting with implications for global energy transition strategies. Integrating energy economics with organizational behavior theory, we adopt a staggered difference-in-differences approach to examine how enhanced energy accessibility influences automation innovation. The findings demonstrate that reliable energy infrastructure functions as a catalyst for intelligent manufacturing, operating primarily through the restructuring of business environments via cost reduction, risk mitigation, and the realization of economies of scale. Importantly, the analysis reveals substantial heterogeneity: policy effects are amplified among state-owned enterprises and regulated industries, reflecting the interplay between institutional arrangements and technology adoption. Furthermore, this study uncovers a significant resource redistribution effect whereby firms in net electricity-importing regions derive disproportionately greater benefits, suggesting that strategic infrastructure deployment can compensate for regional resource disadvantages. By situating these findings within a broader analytical framework, this research offers actionable insights for policymakers seeking to leverage energy infrastructure investments as instruments for advancing industrial modernization and fostering sustainable business practices. • Ultra-High Voltage (UHV) expansion significantly drives corporate automation. • Cost reduction and economies of scale mediate the impact. • Electricity-importing regions benefit more from the grid. • Effects are amplified in SOEs and regulated industries. • Energy infrastructure serves as a tool for industrial upgrading.
Wang et al. (Tue,) studied this question.