Research On The Impact Of Bank Competition On Enterprise Innovation Under The Development Of Digital Finance

Since the reform and opening up,my country has continued the innovationdriven development strategy,and has achieved fruitful results in scientific and technological innovation.However,compared with advanced developed countries,the technology is still lagging behind.Technological innovation depends on enterprise innovation,and enterprise technological innovation is a long-term and high-risk activity,and its continuity needs sufficient funds as a guarantee.The financing constraints of enterprises are an important factor restricting the innovation of small and medium-sized enterprises.Bank loans are an external part of Chinese enterprises.The main source of financing,the development of the banking industry has a role in promoting enterprise innovation,this paper will first study the impact mechanism of bank competition on enterprise innovation.In recent years,the accelerated development of digital finance has also had a huge impact on the supply and demand of funds between enterprises and financial institutions.This paper studies the relationship between bank competition and enterprise innovation under the development of digital finance,and analyzes the impact of digital finance on enterprises from a theoretical level.The impact of innovation and the role of digital finance in positively regulating bank competition and promoting corporate innovation.And with the help of the data of A-share listed companies in Shanghai and Shenzhen stock markets from 2011 to 2020 and the provincial panel data of 31 provinces,it is concluded that:(1)the deepening of bank competition has a significant innovation driving effect on enterprises;(2)Digital finance positively regulates the promotion of bank competition on corporate innovation;(3)Bank competition promotes enterprise innovation and the positive regulatory effect of digital Finance on bank competition promotes enterprise innovation is more significant among central and western regions and state-owned enterprises.Based on this,this paper gives three policy suggestions:(1)From the perspective of the government,the government should encourage banking institutions to provide diversified financing products for corporate innovation and R&D,deepen the market-oriented reform of banks,and promote bank market competition(2)From a perspective,banks should actively promote the in-depth integration and development of banking business innovation and digital finance,steadily promote the development of digital finance and the digital transformation of banks,and expand the breadth and depth of financial resource services;(3)At the enterprise level,enterprises themselves should also raise funds from multiple channels,increase R&D capital investment,actively carry out R&D innovation,and flexibly use internal and external financing to improve their innovation level.