Digital technology drives global industrial transformation. The synchronized development of organizational digital transformation and innovation systems is pivotal in corporate strategy and governmental governance. The dynamic interaction mechanisms among digital economy, government innovation policy, and regional innovation capacity remain insufficiently explored. This study employs panel data from 15 prefecture-level cities within the Yangtze River Delta urban agglomeration, spanning the years 2012 to 2020, and uses the panel vector autoregression (PVAR) model to investigate the interrelationships among the digital economy, government innovation preferences (the government’s supportive attitude and policy inclination towards innovative activities in the fields of science and technology as well as economic development), and regional innovation capacity. This research emphasizes the impact of the digital economy on regional innovation capacity and the influence of government innovation preferences on regional innovation capacity. The findings indicate that both the digital economy and government innovation preferences significantly enhance technological and product innovation, with this effect being particularly pronounced in the initial stages but diminishing over time. The three dimensions of the digital economy exert varying effects on technological and product innovation. Specifically, digital application has the most substantial impact on technological innovation, whereas infrastructure has a more pronounced effect on product innovation. Overall, the influence of government innovation preferences on technological and product innovation is less significant than that of the digital economy. The intensity of government innovation preferences has a greater impact than does the structure of government innovation preferences; however, in the long term, the structure of government innovation preferences can exert a more stable and sustainable influence. This study offers policy implications for constructing an innovation ecosystem driven by the synergy between government and market forces, particularly in optimizing data governance systems and planning sustainable transformation pathways, which hold practical value.

Exploratory innovation plays a crucial role in the high-quality and sustainable development of organizations, but how enterprises engage in exploratory innovation within volatility, uncertainty, complexity, and ambiguity (VUCA) contexts remains unclear. Drawing on strategy choice theory and continuous innovation theory, this study explores the positive effects of technological capability on exploratory innovation via entrepreneurial orientation while considering environmental uncertainty as a moderating variable to elucidate the internal logic of continuous innovation within organizations. We conducted a large-scale survey of 313 Chinese firms and found the following: (1) technological capability has a significant positive impact on exploratory innovation; (2) entrepreneurial orientation plays a partial mediating role between technological capability and exploratory innovation; and (3) environmental uncertainty exerts a differential moderating influence within this mediating framework: technological uncertainty enhances the positive effect of technological capability on entrepreneurial orientation, whereas demand uncertainty intensifies the supportive effect of entrepreneurial orientation on exploratory innovation. This study reveals the internal mechanism by which technological capabilities drive exploratory innovation through entrepreneurial orientation under environmental uncertainty, providing theoretical support for enterprises to deepen their technological capability and pursue exploratory innovation and sustainable development.