Can Technological Innovation and Financial Agglomeration Promote the Growth of Real Economy? Evidence from China

In the backdrop of China’s evolving economic landscape, the real economy confronts a myriad of challenges, both domestically and on the global front. Technological innovation, characterized by its capital intensity and the unpredictable nature of its returns, stands as a pivotal force poised to rejuvenate nascent sectors and overhaul the existing industrial framework. Parallel to this, financial agglomeration emerges with a bifurcated function: it not only directly propels the real economic trajectory but also exerts an indirect influence via the channels of technological advancement. Delving deep into this interplay, our study dissected data collated from 30 major provinces and cities across mainland China, spanning the years 2011 to 2018. We employed the nuanced techniques of fuzzy matter–element analysis combined with the location entropy method. By anchoring our findings on a spatial econometric model, we uncovered the intricate dynamics of how technological ingenuity and financial clustering drive real economic growth, shedding light on the spatial reverberations that ripple across regions. Building on the tangible empirical evidence reflecting the trajectory of technological innovation and financial agglomeration within China, this article distills and presents the salient conclusions drawn from the investigation.