Rewrite How do Taoist thoughts influence big data technological innovation? Empirical evidence from China as a headline for a science magazine post, using no more than 8 words

The previous section demonstrated that Taoist thoughts positively influence digital finance and the digital economy. This study utilises the methodologies of Chen et al. (2022a) and Wen and Ye (2014) to establish the following equations for the mechanism test:

M_it represents the intermediary variables in this model: DEFN and DECO.

Regarding the level of DEFN, this study draws upon the methodologies of Ma and Hu (2022) and uses the Peking University Digital Inclusive Finance Composite Index as a proxy variable. To ensure dimensional consistency, DEFN is calculated by dividing the Peking University Digital Inclusive Finance Composite Index by 100.

Regarding the development of DECO, we established an indicator system called the City Digital Economy Development Index System (Table 5). The procedure is as follows: we collect data from various cities through the State Administration for Market Supervision and Administration. Subsequently, we employ factor analysis to calculate each city’s digital economy development index score, scoreo. Then, DECO is calculated as a proxy variable for the digital economy development using the natural logarithm of 1 plus scoreo.

The test procedure is as follows: First, Eq. (2) is estimated. The significant coefficient, β₁, for the proliferation of Taoist thoughts, (TAO_i) indicates that Taoist thoughts have a profound impact on big data technological innovation. We can conduct a subsequent analysis; otherwise, it creates a masking effect. Second, Eq. (3) is used to observe the influence of Taoist thoughts on the intermediary variables. Third, Eq. (4) provides the estimated significant coefficients, \(\gamma\) in Eq. (3) and δ in Eq. (4), indicating that an intermediary effect exists. Fourth, the mediation effect must be determined, using the Sobel test, if either \(\gamma\) in Eq. (3) or δ in Eq. (4) is significant.

X in Eqs. (2) and (4) is the same as in Eq. (1). X₁ in Eq. (3) is another variable that affects the mediating variables. Given the close similarity between digital economic innovation and digital financial innovation, this study reviews existing literature (Bian et al., 2019) and controls for key factors, including economic development, technology expenditure, financial development, industrial structure, FDI, and human capital.

The impact of digital finance

Panel A of Table 6 reports the results obtained from using DEFN as the intermediary variable and estimating Eqs. (2–4) in Columns (1)–(3). The findings reveal that Taoist thoughts can enhance digital finance, thereby promoting big data technological innovations and establishing H2.

As for the estimation of Eq. (3), based on the reasons stated in section ‘Endogenous treatment’, it is challenging to find a two-way causality between digital finance and Taoist thoughts. Similarly, the estimation of Eq. (3) may lead to the endogenous proliferation of Taoist thoughts (TAO) due to measurement errors or unobservable factors. Column (4) in Panel A of Table 6 shows the results obtained by using ivTAO as the instrumental variable and re-estimating Eq. (3), using IV. Column (3) in Panel A of Table 6 indicates that digital finance promotes big data technological innovation. However, big data technological innovation serves as a technical driver of digital finance and also promotes its development. Thus, big data technological innovation and digital finance are mutually causal, rendering DEFN endogenous. The results presented in Column (5) in panel A of Table 6 are obtained using ivDEFN, derived in the same manner as ivTAO, as the instrumental variable. Both ivTAO and IV are used to re-estimate Eq. (4). This outcome shows that the digital finance effect exists without endogeneity, confirming that H2 is both reasonable and robust.

rDTCH is used as the dependent variable, and Eqs. (2–4) are re-estimated according to the methodology described above. The results are presented in Panel B of Table 6. When rTAO is used as an independent variable, the results are shown in panel C of Table 6. Both Panels B and C indicate that Taoist thoughts can promote the development of digital finance, which, in turn, promotes big data technological innovation. Therefore, H2 is both reasonable and robust.

The impact of the digital economy

Referring to 6.1, we re-estimated Eqs. (2–4) with the DECO as the intermediary variable and the results are shown in Table 7. All results in Table 7 indicate that H3 is reasonable and robust.