With the booming development of the digital economy and the maturity of digital technologies such as big data, the application of big data technology in manufacturing enterprises can optimize innovation factor allocation, promote knowledge sharing, empower innovation mode transformation, and enhance technological innovation level. However, there is a relative scarcity of studies focusing on the technological innovation effects of big data technology applications in manufacturing enterprises, and systematic analyses of their underlying mechanisms are even rarer. This paper takes Chinese A-share listed manufacturing companies in Shanghai and Shenzhen from 2013 to 2022 as the research object and explores the impact and mechanism of big data technology application on the technological innovation of manufacturing enterprises from both theoretical and empirical perspectives. The research finds that the level of big data technology application in Chinese manufacturing enterprises shows an upward trend over time, and there are regional differences. The application of big data technology can significantly promote technological innovation in manufacturing enterprises. The application of big data technology promotes technological innovation in manufacturing enterprises by optimizing innovation factor allocation and facilitating knowledge sharing. The promotion effect of the big data technology application on non-green technology innovation in manufacturing enterprises is greater. The promotion effect of the big data technology application on technological innovation is greater in state-owned enterprises and non-heavy pollution enterprises. The promotion effect of big data technology application on technological innovation is more significant in capital-intensive and technology-intensive enterprises. Compared with previous literature, the main marginal contributions of this paper are as follows. Firstly, from the research perspective, the paper analyzes the impact of big data technology applications on technological innovation in manufacturing enterprises from a micro perspective and expands the research on the application of big data technology and technological innovation in manufacturing enterprises. Secondly, from the perspective of theoretical mechanism construction, the paper innovatively explores the mechanism of big data technology application on technological innovation in manufacturing enterprises from two channels of optimizing innovation factors allocation effect and promoting knowledge sharing effect and enriches the theoretical mechanism research on the impact of big data on technological innovation in manufacturing enterprises. Thirdly, from an empirical analysis perspective, using text mining methods to construct enterprise-level big data evaluation indicators, this paper empirically examines the impact and mechanism of big data technology applications on technological innovation in manufacturing enterprises, and further explores the impact of big data technology applications on different types of technological innovation, as well as the heterogeneous effects of big data technology applications on technological innovation caused by differences in enterprise characteristics. This provides practical evidence for proposing corresponding policy recommendations to leverage the innovation promotion effect of big data technology applications in the future. This paper helps clarify the impact mechanism of big data technology application on technological innovation in manufacturing enterprises and provides useful reference and guidance for government departments to formulate policies to leverage the promotion effect of big data technology application on technological innovation in manufacturing enterprises.