Data Factor Marketization and Firms’ Breakthrough Innovation:Evidence from the Establishment of Data Trading Platforms in China

This paper draws on data from Chinese A-share listed companies in Shanghai and Shenzhen from 2009 to 2023 and exploits the quasi-natural experiment of data transaction platform establishments across various cities (including prefecture-level cities and directly governed municipalities) to examine the impact of data factor marketization on firms’ breakthrough innovation. The findings indicate that the marketization of data elements significantly promotes enterprise-level breakthrough innovation by enhancing innovation collaboration among firms, universities, and research institutions, easing financial constraints, and improving the coordination of production factors. These effects are more pronounced in cities with stronger intellectual property protection, those located in the eastern region, and those with relatively limited resource endowments. The positive impact is also more significant for enterprises in the service sector and for start-ups. This study highlights the innovation-enhancing role of data factor marketization and provides empirical support for accelerating the development of policies aimed at fostering data-driven markets.