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Digital inclusive finance and digital innovation in private enterprises

Author

Listed:
  • Wang, Xue
  • Wang, Hui
  • Song, Lulu
  • Zhang, Feiteng

Abstract

This paper empirically examines the impact and mechanisms of digital inclusive finance on the digital innovation in private enterprises. The results indicate that digital inclusive finance significantly improves the digital innovation of private enterprises, and the IT background of executives can strengthen the role of digital inclusive finance in driving digital innovation of private enterprises. The mechanism test shows that digital inclusive finance promotes digital innovation through alleviating resource constraints and promoting industrial upgrading. Heterogeneity analysis reveals that the promotion effect is more pronounced in technology-intensive industries, in regions with low traditional financial development and strong industrial policy support. These findings serve as a valuable supplement to research on the driving forces of digital innovation and provide a reference for exploring the reform direction of financial services targeting the real economy.

Suggested Citation

  • Wang, Xue & Wang, Hui & Song, Lulu & Zhang, Feiteng, 2025. "Digital inclusive finance and digital innovation in private enterprises," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025001534
    DOI: 10.1016/j.iref.2025.103990
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    Keywords

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    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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