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Digital finance and manufacturing innovation: Evidence from R&D investment and patent output in emerging economies

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  • Wenjuan, Zhu

Abstract

In emerging economies, digital finance, as a technology driven innovation in financial services, is an important lever to leverage the growth of the real economy, while manufacturing innovation is the core of industrial upgrading, and its ability determines the level of economic development. This article focuses on the relationship between digital finance and manufacturing innovation, using R&D investment and patent output data from 10 typical manufacturing enterprises in 30 provinces of China from 2015 to 2023 as samples. A panel data model is used to construct a regression model, and the mediating effect is tested to explore the impact path of digital finance on manufacturing innovation. The results indicate that the breadth, depth of use, and degree of digitization of digital finance significantly promote innovation efficiency in the manufacturing industry. Among them, the depth of use has the strongest impact, while technological innovation and resource allocation optimization play a mediating role. Moreover, the higher the level of technological innovation, the stronger the empowering effect of digital finance. This verifies that digital finance can optimize R&D investment allocation, improve the quantity and quality of manufacturing patent output, and provide a basis for policy formulation.

Suggested Citation

  • Wenjuan, Zhu, 2026. "Digital finance and manufacturing innovation: Evidence from R&D investment and patent output in emerging economies," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325025887
    DOI: 10.1016/j.frl.2025.109339
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    References listed on IDEAS

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