The Impact Of Digital Inclusive Finance On Regional Innovation Levels In The Yellow River Basin

Innovation is the first driving force to achieve high-quality development,and is a strategic support for China’s modernization.Internet,big data and financial services has brought us digital inclusive finance.Digital inclusive finance has wide coverage,low cost and high efficiency,it can strengthen the traditional financial environment and alleviate the financing constraints that may be encountered in the process of innovative activities.So digital inclusive finance can provide chances for the development of regional innovation.The Yellow River Basin straddles the east and west regions of China.It is an ecological protective screen and an important strategic support for China’s regional economic development.However,the innovation capacity of the Yellow River Basin is weak,the sustainability of innovation drive is not strong,and the level of innovation needs to be improved.This paper analyzes the development of digital inclusive finance and regional innovation level in the Yellow River Basin.This paper takes 50 cities in the Yellow River Basin as the research object,and measures the regional innovation level by the number of patents granted,using panel data from 2011 to 2020.The paper explores the effects of digital inclusive finance,breadth of coverage,depth of use,and degree of digitization on the level of regional innovation.The paper also carries out the necessary endogeneity discussions and robustness tests,results prove that the regression results are reliable.In addition,the sample is divided into three regions,upstream,midstream and downstream,based on the location of each city.And then paper investigates whether there is a gap in the effect of digital inclusive finance on regional innovation level among different regions.Finally,a threshold effect model is constructed by selecting threshold variables to explore the possible nonlinear effects between the variables.This paper also uses PVAR model to explore the dynamic relationship between digital financial inclusion and regional innovation level.Based on the study,the article reaches the following conclusions: First,both the level of digital inclusive finance and the level of regional innovation in the Yellow River Basin need to be improved.Second,digital inclusive finance has a significant driving effect on the regional innovation level,the breadth of coverage,depth of use and digitization can significantly enhance the regional innovation level.Third,there are regional differences in the impact of digital inclusive finance on regional innovation levels.The promotion effect of upstream and midstream regions is significant,and the promotion effect of downstream regions is not obvious.Fourth,there is a significant threshold feature for digital inclusive finance and coverage on regional,and the positive impact on regional innovation level is further strengthened when the threshold value is crossed.Finally,the influence of digital inclusion finance on regional innovation level mainly exists in the early stage,and the effect does not change significantly.The development of digital inclusion finance is mainly influenced by itself in the short term,but not by regional innovation level.To promote the development of digital inclusive finance and regional innovation level in the Yellow River Basin,this paper puts forward corresponding suggestions:Firstly,digital inclusive finance policies and innovation support policies should be formulated according to local conditions.Only in this way can make digital finance truly release its advantages and provide a better material basis and comfortable environment for innovative activities.Secondly,financial institutions should continue to improve their financial services.Financial institutions should strengthen financial services and credit support for innovative activities of enterprises and improve the financial infrastructure in remote areas with the help of digital technology.Thirdly,the government needs to increase investment in innovation and attach importance to the cultivation of talents in order to stimulate innovation vitality.