Data Empowers Innovation: Government Data Openness and Firms' Knowledge Breadth

ABSTRACT This study examines the effect of government public data open platforms on firms' knowledge breadth. Using data of Chinese listed firms from 2007 to 2022, the analysis finds that government data openness significantly improves firms' knowledge breadth of innovation. The results indicate that these positive effects are driven by alleviating firms' information asymmetry, increasing talent accessibility, and improving management efficiency. Another finding is that firms located in a city with high administrative levels, SOEs, and firms with low digitalization levels have more apparent innovation improvement effects. Furthermore, the effect of government data openness on knowledge breadth is enhanced not only by the overall quality of government data openness but also by the quality of open data, open platforms, and policy safeguards.