Research examines digital innovation impacts of minimum wage increases in labor-intensive firms, suggesting policy implications.
Minimum wages standards for low‐income groups may encourage firms to adopt low‐skilled labor‐saving measures, generating spillover effects on digital innovation. This paper examines how minimum wages can influence firms' digital innovation through the substitution of high‐skilled labor for low‐skilled labor and the substitution of labor by intelligent capital. Following an increase in minimum wages, the number of patents related to enterprises' digital innovation increased. Minimum wage standards encouraged the upgrading of labor skills within enterprises, and accelerated the construction of automated and intelligent systems, leading to the substitution of low‐skilled labor by high‐skilled labor and intelligent capital. The effects of minimum wages on enterprises' digital innovation were mainly observed in labor‐intensive enterprises, non‐state‐owned enterprises, enterprises located in the eastern region, and those with relaxed financing constraints. This study provides insights into the factors influencing enterprises' digital innovation and can inform policies to encourage enterprises to achieve digital transformation.
No takes yet. Share an insight, caveat, or question.
Bian et al. (2026) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: