Can overseas R&D promote digital innovation? The mechanism of dual innovation networks

This study examines how overseas R&D affects firms’ digital innovation from a dual-network perspective, including organizational networks and knowledge networks. Using Chinese A-share listed firms from 2010 to 2022, we identify digital innovation from digital technology patent applications based on the Key Digital Technology Patent Classification System ( 2023 ) issued by the China National Intellectual Property Administration (CNIPA). Based on a staggered difference-in-differences (DID) framework, we find that overseas R&D significantly increases firms’ digital innovation, and the effect remains robust across a series of validity and robustness checks. The effect is stronger for breakthrough digital innovation, firms in digital industries, state-owned firms, and firms located in developing and growth-stage urban agglomerations. Mechanism tests indicate that overseas R&D strengthens firms’ positions in global innovation networks by increasing network centrality and structural-hole positions. It also improves firms’ knowledge combination and coordination capabilities, which helps them absorb and recombine external digital knowledge. These findings provide firm-level evidence on how overseas R&D engagement contributes to digital innovation and offer implications for firms and policymakers seeking to promote technological upgrading through international knowledge sourcing.