Abstract:Under the background of innovation-driven and digital economy development, this paper focuses on the internal relationship between the digital economy and green technology innovation. Using panel data of 280 prefecture-level cities in China from 2011 to 2019, this paper studies the influence and mechanism of the digital economy on green technology innovation through the fixed-effect model, mediating effect model. We find that the digital economy can directly promote the progress of green technology innovation capability and indirectly improve green technology innovation ability through transformation and upgrading the factor-intensive and pollution-intensive manufacturing sector. This conclusion is still valid after endogeneity and robustness tests. We also find that the heterogeneous effect of the digital economy on green technology innovation across regions. The impacts on the eastern regions are significantly greater than those in the central and western regions. In addition, cities with advanced digital economy and green technology innovation play a much greater role in promoting digital economy and green technology innovation than backward cities. Our study provides policy implications on coordinating and promoting the development of regional green innovation and narrowing the gap of regional green innovation.