Research on the Impact of Digital Inclusive Finance on Enterprise Innovation: An Analysis Based on the Moderating Role of Institutional Environment

Abstract

This paper explores the impact of digital inclusive finance on corporate innovation. Using benchmark regression analysis, the study finds that digital inclusive finance significantly enhances corporate innovation, as evidenced by increased patent applications by firms. Robustness checks further corroborate this finding, demonstrating that the positive effect of digital inclusive finance is consistent across various innovation metrics. Additionally, the analysis of the moderating effects of the institutional environment reveals that the degree of marketization significantly amplifies the positive impact of digital inclusive finance on corporate innovation. In regions with a higher level of marketization, the effect of digital inclusive finance on corporate innovation is notably more pronounced. The paper also presents several policy recommendations, including promoting digital inclusive finance, optimizing the institutional environment, enhancing financial technology applications, supporting innovation in small and medium-sized enterprises, and strengthening innovation resource allocation. These measures are proposed to more effectively leverage the role of digital inclusive finance in fostering corporate innovation.