How Does Virtual Agglomeration Affect Corporate Green Technology Innovation? Evidence from Chinese A-Share Listed Firms

Virtual agglomeration expands firms’ external knowledge and resource connections through digital networks, while its innovation benefits depend on firm capabilities and local industrial conditions. Using Chinese A-share listed firms from 2004 to 2022, this study examines urban virtual agglomeration and corporate green technology innovation. The baseline sample comprises 22,588 firm–year observations from 2693 firms. Virtual agglomeration is positively associated with independent green invention patent applications. The results link virtual agglomeration to collaborative green innovation and improved resource allocation. Responses are stronger in high-technology industries and non-state-owned firms and increase as the signed SA index rises. Further analysis shows that the positive relationship weakens as geographic agglomeration rises, consistent with diminishing additional benefits from digital connections. The statistical significance of the main and interaction results is conditional on industry–year resampling. The findings suggest combining improved external digital connections with stronger local capacity to absorb and apply knowledge.