IDEAS home Printed from https://ideas.repec.org/a/bba/j00008/v1y2023i1p31-46d83.html
   My bibliography  Save this article

How does financial development environment affect regional innovation capabilities? New perspectives from digital finance and institutional quality

Author

Listed:
  • Feiling Lu

    (College of Letters & Science-Economics Dept, University of Wisconsin-Madison, Madison, USA)

Abstract

Based on China's 30 provincial panel data from 2006 to 2018, this paper uses the spatial Durbin model to empirically study the influence path and transmission mechanism of financial development on regional technological innovation, and introduce digital finance environment, marketization degree, and government environmental management as an adjustment variable to verify its regulating effect on financial development and regional technological innovation. The study found that the overall promotion of digital finance to local technological innovation is not significant. Besides, the characteristics of ownership discrimination and weak risk appetite in the bank's medium and long-term credit market have led to its failure to promote regional technological innovation. In contrast, the stock market and bond market in direct financing channels have enhanced local innovation capabilities. When the external environmental system is used as the adjustment variable, the results show that an excellent digital finance development, marketization degree, and government environmental management can effectively and positively regulate the effect of financial development and technological innovation.

Suggested Citation

  • Feiling Lu, 2023. "How does financial development environment affect regional innovation capabilities? New perspectives from digital finance and institutional quality," Journal of Information Economics, Anser Press, vol. 1(1), pages 31-46, January.
    • Handle: RePEc:bba:j00008:v:1:y:2023:i:1:p:31-46:d:83
    as

    Download full text from publisher

    File URL: https://www.anserpress.org/journal/jie/1/1/3/pdf
    Download Restriction: no
    File URL: https://www.anserpress.org/journal/jie/1/1/3
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yu Hao & Jingwen Huang & Yunxia Guo & Haitao Wu & Siyu Ren, 2022. "Does the legacy of state planning put pressure on ecological efficiency? Evidence from China," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3100-3121, November.
    2. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    3. Xie, Xuemei & Huo, Jiage & Zou, Hailiang, 2019. "Green process innovation, green product innovation, and corporate financial performance: A content analysis method," Journal of Business Research, Elsevier, vol. 101(C), pages 697-706.
    4. Solomon Tadesse, 2005. "Financial Development and Technology," William Davidson Institute Working Papers Series wp749, William Davidson Institute at the University of Michigan.
    5. Hartmut Hirsch-Kreinsen, 2011. "Financial Market and Technological Innovation," Industry and Innovation, Taylor & Francis Journals, vol. 18(4), pages 351-368.
    6. Wu, Mingran & Zhao, Min & Wu, Zhaodan, 2019. "Evaluation of development level and economic contribution ratio of science and technology innovation in eastern China," Technology in Society, Elsevier, vol. 59(C).
    7. Li, Jie & Wu, Yu & Xiao, Jing Jian, 2020. "The impact of digital finance on household consumption: Evidence from China," Economic Modelling, Elsevier, vol. 86(C), pages 317-326.
    8. Siyu Ren & Zhiyuan Liu & Zhiyuan Liu & Mingyue Du, 2022. "Does the internet development put pressure on energy-saving potential for environmental sustainability? Evidence from China," Journal of Economic Analysis, Anser Press, vol. 1(1), pages 50-65, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaowei Song & Jun Yang, 2024. "Assessing the impact of digitization and servitization of manufacturing firms in the context of carbon emission reduction: Evidence from a microsurvey in China," Energy & Environment, , vol. 35(7), pages 3340-3385, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Wenyue & Sun, Chuanwang, 2024. "Do multinational enterprises’ overseas investment activities promote their green transition performance? Evidence from Chinese listed companies," Structural Change and Economic Dynamics, Elsevier, vol. 71(C), pages 594-608.
    2. Siyu Ren & Mingyue Du, 2024. "Will Green Finance Become a New Driving Force for Environmental Governance in The Post-Covid-19 Era: Evidence from China," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 151-166, March.
    3. Zeng, Juying & Škare, Marinko & Lafont, Juan, 2021. "The co-integration identification of green innovation efficiency in Yangtze River Delta region," Journal of Business Research, Elsevier, vol. 134(C), pages 252-262.
    4. Zijing Cao & Huiming Zhang & Zixuan Hang & Dequn Zhou & Buhang Jing, 2022. "Does the Responsibility System for Environmental Protection Targets Enhance Corporate High-Quality Development in China?," Energies, MDPI, vol. 15(10), pages 1-18, May.
    5. Ma, Xuejiao & Che, Tianqi & Sun, Xiaohua, 2024. "A carbon information disclosure perspective on carbon premium: Evidence from China," Journal of Business Research, Elsevier, vol. 173(C).
    6. Sun, Yanan & You, Xiaotong, 2023. "Do digital inclusive finance, innovation, and entrepreneurship activities stimulate vitality of the urban economy? Empirical evidence from the Yangtze River Delta, China," Technology in Society, Elsevier, vol. 72(C).
    7. Charbel Macdissi & Syoum Negassi, 2002. "International R&D Spillovers: An Empirical Study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(2), pages 77-91.
    8. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    9. Drivas, Kyriakos & Economidou, Claire & Karkalakos, Sotiris & Tsionas, Efthymios G., 2016. "Mobility of knowledge and local innovation activity," European Economic Review, Elsevier, vol. 85(C), pages 39-61.
    10. Lin, Kang & Tian, Kailan & Gao, Xiang & Zhao, Yu & Yang, Cuihong, 2024. "Responses of China's cross-border investors to domestic environmental regulations," Energy Economics, Elsevier, vol. 131(C).
    11. Zhai, Ying & Wang, Wenzhi & Zhou, Liying, 2024. "Green efficiency loss caused by economic growth goals: Evidence from an emerging economy," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 983-995.
    12. David Owyong & Shandre Thangavelu, 2001. "An empirical study on public capital spillovers from the USA to Canada," Applied Economics, Taylor & Francis Journals, vol. 33(11), pages 1493-1499.
    13. Marcel van den Berg & Charles van Marrewijk, 2017. "Imports and productivity: the impact of geography and factor intensity," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(4), pages 425-450, May.
    14. Hui, Peng & Zhao, Hui & Liu, Desheng & Li, Ye, 2023. "How does digital finance affect regional innovation capacity? A spatial econometric analysis," Economic Modelling, Elsevier, vol. 122(C).
    15. Raffaello Bronzini & Paolo Piselli, 2006. "Determinants of long-run regional productivity: the role of R&D, human capital and public infrastructure," Temi di discussione (Economic working papers) 597, Bank of Italy, Economic Research and International Relations Area.
    16. Matthias Firgo & Fabian Gabelberger & Andreas Reinstaller & Yvonne Wolfmayr, 2024. "Assessing Regional Production Potential to Strengthen the Security of Supply in Strategic Products," WIFO Working Papers 670, WIFO.
    17. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 81-105, January.
    18. Huang, Junbing & Hao, Yu & Lei, Hongyan, 2018. "Indigenous versus foreign innovation and energy intensity in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1721-1729.
    19. Xiao, Yao, 2024. "Financial availability and rural household asset allocation," Finance Research Letters, Elsevier, vol. 62(PB).
    20. Kumar, Sanjesh & Singh, Baljeet, 2019. "Barriers to the international diffusion of technological innovations," Economic Modelling, Elsevier, vol. 82(C), pages 74-86.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bba:j00008:v:1:y:2023:i:1:p:31-46:d:83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ramona Wang (email available below). General contact details of provider: https://www.anserpress.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.