Intelligent Manufacturing Dynamic Capabilities and Corporate Green Innovation: Empirical Evidence from China

Against the backdrop of accelerating digitalization and intelligent transformation, intelligent manufacturing has emerged as a key driver of green transition in manufacturing. However, evidence on its effects and the mechanisms underlying corporate green innovation remains limited. Using panel data of Chinese A-share manufacturing firms from 2011 to 2023, this study exploits the pilot policy of intelligent manufacturing as a quasi-natural experiment and employs a difference-in-differences (DID) approach. Results indicate that intelligent manufacturing significantly enhances firms’ green innovation, with robust evidence across multiple checks. Mechanism analysis shows that this effect operates through an integrated dynamic capability channel, whereby firms strengthen their adaptive capability, absorptive capability for green knowledge and digital technologies, and innovation capability through technological integration, thereby improving green innovation. Moreover, intellectual property protection strengthens this mechanism by increasing innovation returns and enhancing the capability-to-innovation conversion efficiency. Heterogeneity results suggest stronger effects in non-high-tech firms, non–heavily polluting industries, and technology-intensive firms, reflecting differences in digital readiness and resource reconfiguration capacity. Overall, this study provides causal evidence on the green effects of intelligent manufacturing, clarifies internal mechanisms, and highlights institutional and firm-level heterogeneity, with implications for digital-driven green transformation and policy design.