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The impact of science and technology finance policy tools on regional technological innovation

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  • Wang, Xiaona
  • Cao, Yu

Abstract

Based on policy instrument theory and human capital theory, this paper systematically examines the impact mechanism of science and technology finance policy instruments on regional technological innovation using panel data from Chinese prefecture-level cities from 2008 to 2023, employing a multi-period Difference-in-Differences (DID) model. The empirical results show that: firstly, science and technology finance policies significantly enhance regional technological investment levels; secondly, human capital plays a partially mediating role between policies and technological innovation; thirdly, policy effects exhibit significant regional heterogeneity, with the most pronounced impact observed in the western region due to its low base of technological investment and strong resource scarcity.

Suggested Citation

  • Wang, Xiaona & Cao, Yu, 2026. "The impact of science and technology finance policy tools on regional technological innovation," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s1544612325022470
    DOI: 10.1016/j.frl.2025.108994
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    References listed on IDEAS

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