Abstract: The development of digital technology has brought strategic opportunities for the improvement of the enterprises' total factor productivity.The emergence of digital technology such as big data and cloud computing has provided a new power source for the high-quality development of Chinese enterprises.Based on the micro-data sets,this paper empirically studies the mechanisms and impact of digital technology on the total factor productivity of enterprises.The research findings are as follow:(1) The digital technology has a significant contribution to the total factor productivity of enterprises.The integration of different digital technologies has a multiplier effect of 1+1>2 on the total factor productivity of enterprises.The findings remain robust after solving the endogenous problems with IV methods;(2) The structure optimization of innovation elements is a key mechanism for digital technology to enhance enterprises' total factor productivity,specifically in terms of the optimization of R&D personnel structure,the increase of the investment in industry-university-research cooperation and autonomous innovation;(3) The effect of digital technology on total factor productivity of enterprises is heterogeneous in different enterprise sizes and different industries,that is,the effect is more remarkable in medium and large-sized enterprises and service industries.

Key words: digital technology, total factor productivity, the structure optimization of innovation elements, IV methods