Abstract: Chinese enterprises are faced with the realistic dilemma of the coexistence between the rapid development of digital service trade and the“one high and two low”innovation level. Using the digital service trade network to break through the dilemma of enterprise innovation and development is an important strategic support for the transformation of China’s economic development mode in the new development stage. By including multiple heterogeneity in the theoretical framework and using social network analysis method, this paper measures the centrality, connection strength and structural hole index of Chinese enterprises in the digital service trade network; then it empirically tests the impact of the embeddedness of digital service trade network on the innovation level of Chinese enterprises. The findings show that digital service trade network embedding has a significant promoting effect on the innovation level of enterprises, but its promoting effect is significantly different due to the existence of the heterogeneity of enterprises. The embedding of digital service trade network acts on enterprise innovation through“trade scale effect”, “cost saving effect”and“technology absorption capacity effect”. The results of enterprise survival analysis show that digital service trade network embedding can help reduce the innovation termination risk rate of enterprises. Based on the above conclusions, it is proposed to actively promote the integration of enterprises into the global digital service trade network, rationally arrange the position of enterprises in the network, and turn from “passive embedding”to“active utilization”, so as to promote the high-quality development of innovation.

Key words: digital service trade network, corporate innovation level, survival analysis model