Abstract: The digital economic policy is an important tool for the government to promote the development of the digital economy and the innovation of manufacturing enterprises. The empirical research based on China's 2012-2018 data shows that the suitable supply of the digital economic policy has significantly promoted the innovation of manufacturing enterprises. After a series of robustness tests, the above conclusions are still valid. The innovation incentive effect of the suitable supply of the digital economy policy is more significant in the samples of high-tech enterprises, enterprises in the central region and non-state-owned enterprises. The results of a mechanism analysis show that the suitable supply of digital economic policy can promote the innovation of manufacturing enterprises through the three paths: promoting the deepening of the division of labor, optimizing the allocation of innovation factors, and promoting the diversified aggregation of the high-end producer service industries. In addition, the suitable supply of digital economic policy has a significant inhibitory effect on corporate tax burdens, indicating that part of the company's new investment in innovation may be derived from the tax reduction effect of the suitable supply of digital economic policy. When the development level of digital economy reaches a certain stage, the innovation incentive effect of the suitable supply of digital economy policy appears, however, the“flooding”type of digital economy policy supply has a restraining effect on the innovation of manufacturing enterprises.

Key words: digital economic policy, corporate innovation, suitable supply