Government Intervention,Digital Inclusive Finance And Innovation Of SMEs

Innovation is the first driving force for economic growth,efficiency,and high-quality development.In recent years,China has continued to promote major development strategies such as innovation-driven development and manufacturing powerhouses,which have made scientific and technological innovation ranks in the forefront of the world.However,compared with developed countries,there are still problems such as weak basic scientific research and lack of original innovation.How to strengthen policy support and encourage scientific research institutions and enterprises to enhance innovation capabilities has become the focus of the current government work.As the main body and important force of R&D and innovation,enterprises,especially large and active small and medium-sized enterprises are generally faced with strong financing constraints due to high debt financing costs,poor risk resistance,high operational risks and lack of collateral.Enterprises’ own funds cannot meet the needs of R&D and innovation,and innovation is suppressed.The emergence and digital application of inclusive finance can use information technology and other means to alleviate the information asymmetry between credit and credit parties,so as to accurately provide appropriate and effective financial products and services for SMEs that have long been excluded,and to open a breakthrough for SMEs to ease the constraints of innovative financing.In addition,in recent years,the state gradually attached importance to and stepped up efforts to promote the development of inclusive finance,and has issued five-year plans,regional pilots,and targeted RRR cut policies to support it,and the policy has achieved remarkable results.So,in the current context,what is the mechanism of action of digital inclusive finance on SME innovation?Does it have a significant effect,and play a positive effect?With the strong support of government policies,will it be possible to give play to policy synergies to incentivize financial institutions to develop digital inclusive financial services,thereby promoting SME innovation?What is the mechanism of action?Are there differences in the impact of different interventions?Therefore,under the background of promoting entrepreneurship and encouraging innovation across the country,discussing and answering the above questions from a theoretical and empirical level is of great theoretical value and practical significance for improving inclusive financial theory,making up for existing research deficiencies,and providing ideas and reference for policy.Based on the theoretical basis and the existing literature,this article uses 509 SME board and GEM listed companies from 2011 to 2017 and their matching digital inclusive finance and government intervention panel data to analyze the mechanism of action and propose research hypotheses and construct corresponding measurement empirical models to demonstrate and analyze research hypotheses.The results show that:(1)At present,China has made significant progress in the development of digital inclusive finance,the availability of funds for SMEs has improved,and the coverage and depth of financial services have been continuously expanded.In addition,as the coverage reaches a certain level,the depth of use has gradually become an important driving force;(2)The digital inclusive financial index and its breadth of coverage,depth of use,and degree of digitization have a significant role in promoting SME innovation;Both direct and indirect government interventions can form synergy with digital inclusive finance,play a synergistic effect,and significantly enhance the innovation incentive role of digital inclusive finance for SMEs.In addition,compared with direct intervention,the effect of indirect government intervention may be better;(4)Direct government intervention has a significant lagging effect on the innovation of SMEs in digital inclusive finance.Finally,the corresponding policy recommendations are proposed:(1)The government actively encourages and guides the development of digital inclusive finance;(2)Financial institutions innovate digital inclusive financial products and services;(3)SMEs actively regulate their own development and enhance their innovation capabilities;(4)Improve relevant regulatory mechanisms and laws and regulations.