Abstract: In the context of digital government construction, the improvement of government transparency can have an important impact on firms' innovation input decisions. The impact of government transparency on corporate innovation and its mechanism are studied using the sub-government transparency index of the Academy of Social Sciences and the innovation investment data of listed companies in different provinces. The results show that local government transparency has a positive effect on firms' innovation investment, and government transparency can promote firms' innovation investment through the channel of promoting regional marketization level. Heterogeneity analysis shows that the impact of government transparency on enterprise innovation is more significant among non-politically connected enterprises and private enterprises; the impact of government transparency on enterprise innovation is more significant in regions with higher level of Internet development and better rule of law environment. Local governments should continue to promote the construction of transparent government and pay attention to the improvement of business environment and other soft power, so as to stimulate the intrinsic development vitality of enterprises to promote regional economic development.

Key words: government transparency, enterprise innovation, digital government construction, regional marketization level