The digital transformation of entity enterprises not only unleashes the digital productivity within the enterprise, advancing the digitalization of the industry, but also helps integrate innovative resources and accelerate the innovation process. Based on the data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2020, this paper empirically tested the impact of the enhancement of enterprise digitalization level on enterprise innovation. The research results show that the enhancement of enterprise digitalization level significantly and positively affects enterprise innovation, and there is a lag in the increase of innovation output brought by the enhancement of digitalization level. And this promotion effect is heterogeneous among enterprises of different sizes, different property rights and different regions, with large-scale enterprises, non-state enterprises and enterprises in the eastern region showing more significant innovation growth in the digitization process. Based on this, it is of necissity to further promote the improvement of relevant digitization policies to encourage enterprises to accelerate the digitization process, formulate differentiated encouragement and support policies according to heterogeneous enterprises and enhance the establishment of relevant supporting policy systems.