Bizhe Wang, Shuke Zhao
We extend the classic resource misallocation model of Hsieh and Klenow (2009) (HK model). Using data from listed Chinese companies and the IncoPat patent database from 2015 to 2020, we empirically studied the impact of digital transformation on the misallocation of innovation resources in manufacturing enterprises from a market equilibrium perspective. We conclude that digital transformation of enterprises significantly reduces the misallocation of innovation resources in manufacturing enterprises. The results of the heterogeneity test indicate that the impact of digital transformation on the misallocation of innovation resources is greater in competitive and growing industries.