Amid　the　expanding　digital　economy　and　the　progression　of　Industry　4.0　initiatives,　both　industry　professionals　and　academic　researchers　are　increasingly　focused　on　unraveling　the　mechanisms　by　which　manufacturing　digitalization　drives　technological　innovation.　Build　upon　the　resource-based　view　and　dynamic　capability　theory,　this　study　develops　a　theoretical　framework　and　proposes　research　hypotheses　to　investigate　how　manufacturing　digitalization　and　dynamic　capabilities　influence　technological　innovation,　with　particular　attention　to　product　and　process　innovation.　Analyzing　survey　data　from　276　manufacturing　firms　located　in　the　first　national-level　pilot　cities　for　digital　transformation　in　China,　structural　equation　modeling　results　reveal　that:　(1)　digitalization　within　manufacturing　firms　can　significantly　promote　both　product　and　process　innovation;　(2)　dynamic　capabilities　play　a　mediating　role　in　linking　manufacturing　digitalization　with　technological　innovation.　Specifically,　dynamic　capabilities　partially　mediate　the　relationship　between　manufacturing　digitalization　and　process　innovation,　and　serve　as　a　full　mediator　in　its　impact　on　product　innovation.　These　findings　provide　theoretical　insights　and　practical　implications,　helping　manufacturing　firms　better　recognize　the　strategic　value　of　digitalization　and　dynamic　capabilities　in　enhancing　technological　innovation　through　digital　transformation.　©　2025　The　Authors