Rural revitalization is a strategic initiative in China aimed at addressing disparities between urban and rural areas by enhancing agriculture, rural livelihoods, and infrastructure. Technological innovation serves as a cornerstone of this effort. This study investigates the threshold effects of four key external factors—openness to the outside world, per capita economic development, educational input, and government investment—on the impact of technological innovation in driving rural revitalization across China. A panel threshold regression model was applied to examine data from 2015 to 2021 across various Chinese provinces. Regional analysis was conducted to explore the differential impact of these factors in the eastern, central, and western regions of China. The findings reveal that educational input significantly enhances the impact of technological innovation, showing a strong threshold effect. Openness to the outside world, per capita economic development, and government investment exhibit dual threshold effects, demonstrating their complex influence. The eastern and central regions benefit more significantly from technological innovation than the western regions due to external factors’ varying levels. Technological innovation’s role in rural revitalization is highly dependent on regional contexts and threshold characteristics of external factors. Policymakers must consider these nuances to formulate effective strategies for rural development. This study uniquely categorizes external factors based on their threshold effects, integrates regional disparity analysis, and applies a robust panel threshold model to identify nuanced relationships. The insights provide a novel framework for optimizing technological innovation environments to achieve sustainable rural development in China.
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