Digital technology serves as a significant catalyst for green innovation (GI), intricately linked with policy guidance and strategic planning. Recently, a notable strategic approach fostering the evolution of digital technology is the establishment of Data Regulatory Bodies (DRBs). Leveraging data from 293 cities between 2010 and 2020, this paper employs a difference-in-differences methodology to investigate the impact of DRB establishment on GI. The results reveal a substantial increase in GI levels following DRB establishment. This enhancement is facilitated by improved administrative efficiency, the cultivation of digital finance, and the advancement of enterprise digitization. Furthermore, the effectiveness of these effects is optimized when DRBs are established through the integration of existing departments’ functions into a new department, particularly in cities with stable power and high marketization levels. These findings provide actionable insights for governmental initiatives aimed at fostering GI.
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