Research On The Impact Of Digital Inclusive Finance On Small And Micro Enterprise Innovation

The Communist Party of China and the state have always attached great importance to research on innovation.China has achieved remarkable advancements in innovation since the establishment of New China,particularly after the implementation of reform and opening up.Innovation has become the first competitiveness and productive force.As the most numerous and most active market entities,small and micro enterprises play an irreplaceable role in promoting innovation.But for a long time,problems such as the excessively high financing cost and unstable capital source have hindered the sustainable development of small and micro enterprises.As the economy shifts to a new stage of high-quality development,the booming development of digital inclusive finance has improved the availability of finance for small and micro enterprises,boosted their confidence in innovation and enhanced their initiative in innovation.On the one hand,digital inclusive finance can reduce the information asymmetry and principal-agent problems that small and micro enterprises may face in the financing process,reduce the transaction cost,and significantly ease the financing constraints of small and micro enterprises.On the other hand,digital financial inclusion can reduce the financing costs of enterprises,indirectly improve household wealth,and have a positive impact on small and micro enterprise innovation.Based on small and micro enterprises,this paper explores the changes of enterprises’participation in innovation activities and R&D investment under the promotion of digital inclusive finance.From the perspective of digital inclusive finance,it gives policy suggestions on improving enterprises’ innovation ability.To be specific,first of all,this paper conducts a theoretical analysis of the internal mechanism of digital inclusive finance on enterprise innovation activities,building upon the existing literature review.Secondly,this paper matched the data of digital inclusion Finance at the provincial level with the data of China Household Finance Survey(CHFS)of Southwestern University of Finance and Economics in 2015 and 2017,and adopted the fixed-effect method.The influence and mechanism of digital inclusive finance on innovation of small and micro enterprises are investigated.The empirical results show that digital inclusive finance plays a strong role in promoting the innovation activities of small and micro enterprises.At the same time,this paper finds that digital financial inclusion can inject new impetus into enterprise innovation mainly by easing credit constraints and improving household wealth.Finally,this paper discusses the heterogeneity of digital inclusive finance on innovation of small and micro enterprises when the degree of marketization and the level of traditional finance are different,and gives corresponding policy suggestions after sorting out the conclusions of this paper.