As main innovation entities, firms cannot be separated from technological interaction with other firms in carrying out their technological innovation, and are more deeply influenced by the technology spillover effect. Based on data of 3737 Shanghai and Shenzhen A-share listed firms in China from 2010 to 2021, a panel model was constructed to analyze the impact of inter-firm technology spillovers and technological innovation outputs of technology spillover-receiving firms, and to examine the moderating effects of digital technology application and market competition on the relationship between them, as well as their joint moderating effect. The results show that inter-firm technology spillovers contribute to improving the technological innovation outputs of spillover-receiving firms. Both digital technology application and market competition exert a positive moderating effect on this relationship. Additionally, the moderating effect of digital technology application also depends on the market competition. In a further analysis, the positive effect of inter-firm technology spillovers on the technological innovation outputs of spillover-receiving firms is found to be more pronounced among state-owned enterprises, high-tech industries, regions with high levels of economic development, and inter-competitive firms. It findings provide micro-level evidence for explaining the relationship between inter-firm technology spillovers and technological innovation outputs of spillover-receiving firms, and provide practical implications for the governments and firms.