Abstract:Effectively leveraging digital transformation to promote integrated innovation across upstream, midstream, and downstream segments of the industrial chain, thereby achieving the integration of innovation resources and value co-creation, which has become a critical issue in fostering new quality productive forces. Grounded in dynamic capability theory, this study employs a sample of A-share listed firms in China from 2000 to 2023 to investigate the mechanisms through which digital transformation influences firms’ integrated innovation. The findings reveal an inverted U-shaped relationship between digital transformation and integrated innovation. Moreover, economic policy uncertainty and market concentration negatively moderate this inverted U-shaped relationship. Further analysis indicates that digital transformation facilitates integrated innovation by reducing firms’ R&D manipulation and enhancing resource flexibility. This study provides both theoretical and practical implications for enterprises to scientifically plan digital transformation pathways and optimize innovation ecosystems during the 15th Five-Year Plan period.