Abstract This study examines how corporate social responsibility (CSR), measured through ESG performance, shapes innovation in China’s technology industry. The study uses a panel data regression model with firm, year, and industry-fixed effects, based on 22,963 firm–year observations from 1530 Chinese A-share high-tech firms during 2009–2023. Data were gathered from Chinese technology companies to examine the relationship between CSR/ESG performance and innovation indicators, including patent output and R&D intensity. The findings show that higher ESG performance is linked with stronger innovation outcomes. Specifically, a one-point increase in ESG score is associated with a significant rise in patent output ( β = 0.1062, p < 0.01) and R&D intensity ( β = 0.0019, p < 0.01). Results further suggest that CSR is positively associated with innovation performance, and environmental CSR appears to have the strongest effect on patent output among the ESG dimensions. Moreover, larger organizations obtain greater innovation advantages from CSR engagement. Using stakeholder theory, the Resource-Based View (RBV), and dynamic capabilities as theoretical foundations, the paper shows that long-term investments in CSR can support innovation performance. This study contributes to CSR–innovation research by providing longitudinal evidence from China’s technology industry and demonstrating that CSR/ESG engagement supports both innovation output and innovation input.
Islam et al. (Sat,) studied this question.