Bridging the digital and green divide: technology convergence and productivity in innovative manufacturing

Digital green technology convergence (DGTC) has emerged as a critical pathway for fostering high-quality productivity and promoting sustainable economic development. This study investigates the impact of DGTC on Chinese manufacturing firms’ total factor productivity (TFP) using a fixed-effects model with patent data from listed firms spanning 2003–2022. We determine that DGTC significantly enhances TFP, and this effect surpasses the combined impact of each technology independently. The effect is stronger for labour-intensive firms and regions with stronger intellectual property protection. Further investigation reveals that improved resource utilisation and management efficiency are mechanisms through which DGTC increased manufacturing firms’ TFP growth. These findings contribute to the academic understanding of DGTC in driving productivity while offering actionable insights for policymakers and industry leaders seeking to design strategies that balance innovation, competitiveness, and sustainability.