Research On The Impact Of Digital Inclusive Finance On SME Innovation

The transformation of China’s economy from high-speed growth to high-quality development cannot be achieved without innovation as an important driving force.As the most active subject of innovation,small and medium-sized enterprises have made essential contributions to China’s economy and society.However,due to their small asset scale,less mortgageable assets,greater uncertainty in future development and other characteristics,SMEs face serious constraints in financing for a long time.Innovation activities need a large amount of long-term capital support.However,due to the unbalanced allocation of resources in China’s current financial market,SMEs are seriously short of funds available,which inhibits their innovation.The emergence of digital inclusive finance has reduced the problem of information asymmetry of SMEs,provided more sources of funds for SMEs,reduced their capital use costs,and improved their financing efficiency,thus reducing the problem of capital shortage of SMEs and providing a favorable financing environment for SMEs’ innovation.This paper first reviews the relevant theories and contributions related to the innovation of small and medium-sized enterprises,and explores how digital inclusive finance affects the innovation of small and medium-sized enterprises,By analyzing relevant theories and combing relevant literature,it is concluded that "digital inclusive finance can promote SMEs’ innovation,and digital inclusive finance can promote SMEs’ innovation by easing their financing constraints".Secondly,using listed companies on the small and medium-sized board and the GEM board from 2011 to 2020 as research samples,this study empirically tests the impact and pathways of digital inclusive finance on the innovation of small and medium-sized enterprises.It also conducts heterogeneity analysis on small and medium-sized enterprises with different property rights,regions,and financial regulatory intensity to test whether there is heterogeneity in the innovation of small and medium-sized enterprises caused by digital inclusive finance.Finally,according to the research conclusions,the paper puts forward corresponding suggestions to promote the innovation of SMEs from the three levels of government,financial institutions and SMEs.