Research On The Impact Of Digital Inclusive Finance On Innovation And Entrepreneurship Capability

The "14th Five-Year Plan" clearly states that deepening the financial supply-side structural reform and improving the technological innovation system and mechanism are the important contents of the current reform.Improving the inclusiveness of financial services through digitalization is one of the development goals of deepening the financial supply-side structural reform.Improving the inclusiveness of financial services through digital technology can ease corporate financing constraints,and then promote the improvement of innovation and entrepreneurship capabilities in various regions,which is conducive to improving China’s innovation system and promoting China’s modernization.In this context,this paper first investigates the spatial effects of digital inclusive finance development on regional innovation and entrepreneurship capacity in each province from2011 to 2020 from a regional perspective by constructing a spatial Durbin model,and then uses Hierarchical linear model to clearly distinguish between province-level digital inclusive finance-related factors and individual city factors on urban innovation and entrepreneurship capacity based on the regional innovation and entrepreneurship index data of 323 cities in2020,with the following conclusions.First,the spatial effect impact study shows that digital inclusive finance has a significantly positive direct effect and a negative and insignificant indirect effect on the innovation and entrepreneurship capacity of each province,and overall,the development of digital inclusive finance in the region significantly contributes to the enhancement of innovation and entrepreneurship capacity in the region.Second,the level of digital financial investment services,the level of digital financial credit services,the degree of digitalization of financial inclusion and city-related factors all have significant effects on the innovation and entrepreneurship capacity of cities in each province.Third,the pathways through which digital financial inclusion development at the provincial level acts on urban innovation and entrepreneurship are more complex: in cities with lower levels of digital financial investment services and weaker digitalization of financial inclusion,the higher level of local openness tends to make the city too dependent on foreign trade,resulting in a solidified trade and industrial structure that inhibits the enhancement of urban innovation and entrepreneurship.Under the positive influence of the improved level of digital financial investment services,the innovation and entrepreneurship capacity of economically developed cities is also enhanced;improving the level of digital financial credit services further promotes the development of innovation and entrepreneurship capacity in cities with higher urbanization levels.Finally,based on the theoretical study and empirical model of this paper,we conclude and propose corresponding policy recommendations.