Research On The Influence Mechanism Of The Development Level Of Digital Inclusion Finance On Technological Innovation Of Small And Medium-sized Enterprises

In recent years,the growth rate of the economy has slowed down.President Xi Jinping said," To achieve prosperity and rejuvenation,China must dedicate itself to advancing science and technology,and become a major world center for science and innovation." Science and technology are the primary productive forces.Thus,vigorously enhancing innovation is a necessary condition for further high-quality economic development.In terms of technological innovation,SME Development Promotion Center has found that about two-thirds of China’s new inventions are made by SMEs,which shows that SMEs are one of the important subjects of innovation.Although there are mounts of relevant policies supporting the technological innovation of SMEs,SMEs also have difficulties in sustainable innovation investment.SMEs is lacking funding for innovation because of insufficient endowment and the Financial discrimination in traditional Finance.The emergence of digital technologies has reshaped almost all industries.In this situation,the product of the usage of digital technologies in the Financial field is digital inclusive Finance,also known as digital Finance.It complements traditional Finance and provides more effective solutions in the Financing for SMEs.Digital Finance can alleviate the difficulty of SMEs’ external Financing,so it is worth studying whether digital Finance has practical significance for SMEs’ technological innovation.Also,as digital Finance is emerging under loose Financial supervision in recent years,it is debatable whether digital Finance can also perform positive effect under supervision.Therefore,based on the existing research,this paper uses the data of SMEs listed in Shenzhen Stock Exchange from 2011 to 2020 to study the impact of digital Finance on technological innovation of SMEs and analyze the mediating effect of information asymmetry and internal control and the impact of Financial supervision.The results show that:(1)There is a significant positive correlation between digital Finance and technological innovation of SMEs.It means that the higher the level of development of digital Finance is,the more facilitating effect it is for SMEs’innovation;(2)Information asymmetry and internal control have significant partial mediating effects on the relationship between digital Finance and technological innovation.In other words,digital Finance promotes technological innovation investment by alleviating information asymmetry and influencing the quality of internal control of SMEs;(3)The supervision of digital Finance can help digital Finance better play a driving role in technological innovation of SMEs;(4)Different levels of Financial supervision have different impacts on the benefits of digital Finance on technological innovation of SMEs:loose but effective Financial supervision can ensure that digital Finance still plays a positive role in promoting technological innovation;strict Financial regulation will inhibit the positive effect of digital Finance.On the basis of empirical research,this paper further puts forward relevant policy implications for promoting the healthy development of digital Finance and the technological innovation of SMEs.Firstly,it is to narrow the gap in the development level of digital Finance in different regions and enhance the radiation function of digital Finance.Then,the government can build an effective digital Financial supervision system with appropriate supervision intensity.Finally,we need to know the needs of enterprises and effectively support small and medium-sized enterprises to innovate.