Abstract:With the rapid development of digital technology, improving innovation ability with the help of digital technology is a key concern for enterprises. Taking Chinese Shanghai and Shenzhen A-share listed companies in the manufacturing industry as the research object from 2009 to 2021, we establish a multiple regression model to analyze the impact of digital transformation on the innovation performance of enterprises, and further classify the innovation performance of enterprises into invention patent granted, utility model patent granted, and design patent granted, to explore what kind of difficulty of innovation will be affected by digital transformation, and, at the same time, to analyze the mediating roles played by the external transaction costs and internal control quality in it. The results show that: digital transformation is conducive to promoting enterprises' innovation performance and has a significant impact on invention patent granted, utility model patent granted and design patent granted; external transaction costs and internal control quality play a partially mediating role between enterprises' digital transformation and innovation performance and its subdimensions; and digital transformation of technology-intensive enterprises has a more significant impact on enterprises' innovation performance, invention patent granted and design patent granted. Therefore, it is recommended that enterprises actively promote the in-depth integration of digital technology with their internal business and optimize the way they operate in order to better carry out their innovation activities.