In the context of Chinese-style modernization, how to play the role of science and technology innovation as the core driving force of modernization has become a key issue. This paper takes listed companies in China from 2011 to 2021 as the research sample to explore the role of differentiation strategy in technological innovation. It is found that there is a significant positive correlation between the intensity of enterprise differentiation strategy and technological innovation, and this effect is mainly realized through the construction of dynamic network capability and the introduction of digital transformation mechanism. In addition, environmental uncertainty negatively moderates the impact of differentiation strategy on firms' technological innovation. It is found that the effect of differentiation strategy in improving the innovation quality of enterprises is relatively limited, especially in the evaluation criteria of innovation quality such as high-quality patent index, the performance of which is relatively weak. The findings provide substantial theoretical support and guidance for optimizing dynamic network capabilities, deepening digital transformation, and overcoming technological barriers to achieve the objective of meeting the requirements of Chinese-style modernization.