Research On The Impact Of Digital Inclusive Finance On Regional Innovation In China

Regional innovation is an important driving force for China’s economic development.It is not only an important component of local productivity development,but also a fundamental driving force for promoting China’s economic development.Innovation will play a crucial role in achieving China’s two centennial goals and in the process of modernization,and innovation must remain at the core of all fields and processes of modernization.Under the triple pressure of supply shock,demand contraction,and weakening expectations in China’s economy,it is crucial to promote regional innovation capabilities and stimulate innovation potential due to the economic downturn.With the global penetration of the Internet,the rapid development of digital inclusive finance has shown enormous development opportunities in China,making up for the shortcomings of traditional financing methods,and can better enhance the regional technological innovation capacity.In this context,how to use the first-mover advantage of digital inclusive finance to promote regional innovation capabilities has important practical and theoretical significance.Based on the above background,the author conducted an in-depth analysis of whether digital inclusive finance can promote the development of regional innovation and how to use the first-mover advantage of digital inclusive finance to promote regional innovation capabilities.This article discusses from five aspects.The first part is an introduction.Firstly,the background,theoretical and practical significance of the topic are described,and then the existing literature on the research topic is summarized and commented theoretically.Further analysis is conducted on this basis.The second part is the concept definition and theoretical analysis.It mainly defines the concepts of digital inclusive finance and regional innovation,and elaborates on the theoretical basis of the article,as well as the direct and indirect mechanisms of digital inclusive finance affecting regional innovation.The third part is the current situation analysis.The main task is to conduct a descriptive analysis of the current situation of digital inclusive finance and regional innovation in China,including a comprehensive discussion of the development status and trends of digital inclusive finance,as well as the regional innovation environment and development status quo of regional innovation,laying a realistic foundation for empirical testing in the following article.The fourth part is empirical analysis.Based on the previous analysis,using panel data from 30 provinces(municipalities,autonomous regions)in China from 2011 to 2020,a two-way fixed effect model is used to empirically analyze the direct impact of the overall index of digital inclusive finance and various dimensional indicators on regional innovation and development,and an intermediate effect model is established to empirically analyze the impact mechanism of digital inclusive finance on regional innovation and development in China,Finally,a robustness test is performed.The fifth part is the research conclusions and policy recommendations of this article.Through empirical analysis,it is found that digital inclusive finance plays an important role in regional innovation and development.Through in-depth analysis of various aspects of digital inclusive finance,it is concluded that the coverage and application depth of digital inclusive finance have a significant promoting effect on the level of regional innovation and development,Moreover,the use of the estimated coefficients of the depth index has a more significant impact on the level of regional innovation development than the estimated coefficients of the coverage index and the degree of digitization index,and the promotion effect is more obvious.However,the effect of the degree of digitization on regional innovation development is not obvious.Based on the empirical results of the intermediary effect model,it is concluded that digital inclusive finance can expand educational opportunities by improving the level of higher education,indirectly promoting the improvement of regional innovation level;Digital inclusive finance can also indirectly improve the level of regional innovation by strengthening infrastructure construction.Finally,the robustness of the conclusion is verified through variable tail reduction and variable substitution.Based on this,this article gives several suggestions: First,gradually form a diversified perspective of the financial system,and comprehensively integrate the main body of digital financial services.Secondly,improve the scope and promotion of digital inclusive finance knowledge,learn from foreign successful experiences,and comprehensively promote the rapid development of digital inclusive finance.Third,fully recognize the spatial differences in the role of digital inclusive finance in regional innovation,achieve coordinated development between regions,and achieve synergy between regional inclusive finance and regional innovation.Fourth,on the premise of making full use of the advantages of new technologies,we should improve the management level of digital inclusive finance,and make full use of the advantages of new technologies while better preventing possible crises.