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Digital finance development, intellectual property protection, and regional innovation

Author

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  • Huang, Xiaojing
  • Ma, Lei
  • Li, Rao
  • Mo, Yanke

Abstract

This study utilizes data from 231 prefecture-level cities in China spanning 2013 to 2022 to investigate the impact of digital finance development on regional innovation. The results demonstrate that digital finance significantly fosters regional innovation, with this positive effect being further amplified under stronger intellectual property protection. Among the dimensions of digital finance, the depth of use has the most substantial positive influence on regional innovation, followed by the degree of digitalization, while the breadth of coverage exhibits a comparatively smaller effect. Heterogeneity analysis reveals that the promotional impact of digital finance on regional innovation is more pronounced in eastern and economically advanced cities, and particularly significant in cities with stringent financial regulations. This study enriches understanding of the digital finance–innovation nexus and provides valuable theoretical guidance for policymakers.

Suggested Citation

  • Huang, Xiaojing & Ma, Lei & Li, Rao & Mo, Yanke, 2025. "Digital finance development, intellectual property protection, and regional innovation," Finance Research Letters, Elsevier, vol. 86(PB).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pb:s1544612325014722
    DOI: 10.1016/j.frl.2025.108217
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    References listed on IDEAS

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