Taking Shanghai and Shenzhen A-share listed companies from 2011 to 2020 as a sample, this empirical study analyzes the influence of information transparency on enterprise innovation. It is found that information transparency can promote enterprise innovation by improving internal control, and the higher the level of digital finance of the region where the enterprise is located is, the more noticeable the effect of information transparency on improving the level of internal control is, and accordingly the stronger the promoting effect on technological innovation is. Further research shows that information transparency promotes substantive innovation in both state-owned and non-state-owned enterprises. Compared with state-owned enterprises, information transparency plays a more significant role in promoting strategic innovation in non-state-owned enterprises. Hence, enterprises should strive to improve the transparency of financial information, which also requires strict supervision by regulatory authorities. As for the government, they need to work harder improve digital finance in terms of its coverage rate and its value in use.