Study on the effects and mechanisms of rising housing prices on manufacturing technological innovation

Purpose This study examines the impact of housing price increases on manufacturing technological innovation and its mechanisms as well as the changes in this impact under the development of the digital economy. Design/methodology/approach Based on the theory of planned behavior and resource dependence theory, theoretical analysis and hypotheses are proposed. Using provincial panel data from China (2004–2023), fixed effects, mediation and moderation models were employed to empirically test the hypotheses. Findings (1) Inverted U-shaped relationship between rising housing prices and manufacturing technological innovation; (2) Rising housing prices boost both quantity and quality of manufacturing technological innovation; (3) Enterprise innovation capability and willingness are identified as key influencing mechanisms and (4) Digital economy positively moderates the effect of rising housing prices on manufacturing technological innovation. Practical implications This study provides empirical evidence for managing the relationship between housing price increases and real economic development, offering guidance for coordinating real estate and manufacturing sectors and promoting technological innovation and digital transformation in manufacturing. Originality/value First, it examines both the quantity and quality of manufacturing technological innovation, addressing the gap in previous research, which focused mainly on quantity. Second, it analyzes and tests the mechanisms by which housing price increases affect manufacturing innovation from the perspective of firms’ innovation capabilities and willingness. Third, it re-examines the relationship between housing prices and manufacturing innovation in the context of digital economy development by testing the moderating role of digital economy development.