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Financial spillovers in SME clusters: How inter-firm credit drives collaborative innovation

Author

Listed:
  • Zhao, Boyu
  • Yu, Conglei
  • Wang, Lingli
  • Zhao, Feng

Abstract

This paper aims to reveal the financial spillovers in small and medium-sized enterprises (SMEs) clusters. Based on evidence from Chinese SMEs over the period of 2015 to 2024, this study shows that inter-firm credit significantly improves collaborative innovation performance. The relationship is more significant for firms in regions with less developed capital markets. Further analysis shows that revenue volatility and financial constraints are the core economic channels behind this link. Our conclusions remain robust after dealing with various sensitivity and endogeneity issues. Overall, this paper greatly enriches the financial literature on financial spillovers and innovation.

Suggested Citation

  • Zhao, Boyu & Yu, Conglei & Wang, Lingli & Zhao, Feng, 2025. "Financial spillovers in SME clusters: How inter-firm credit drives collaborative innovation," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325009870
    DOI: 10.1016/j.frl.2025.107729
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    References listed on IDEAS

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