Research On The Influence Of Digital Finance On Urban Innovation Level

Against the backdrop of the current global economic downturn,China is in the midst of a critical period of the 14 th Five-Year Plan,and the government has proposed to develop digital finance as one of the key drivers of high-quality economic development.The development of digital finance can improve the universality of financial services,provide financial support and services for urban innovation,promote high-quality urban innovation development,and at the same time diversify the risks in urban innovation activities and optimise the innovation environment.With the continuous development of the digital economy,the impact of digital finance on the level of urban innovation is even more important.The study and exploration of digital finance on the level of urban innovation is of great practical significance,helping to improve the role of digital finance in promoting urban innovation and providing important support for China’s high-quality economic development.This thesis collects prefecture-level city-level panel data from 2011-2020 and examines the impact of digital finance on the level of urban innovation using a dynamic panel model two-step systematic moment estimation method as well as a dynamic threshold regression model,as well as the role of digital finance on the level of urban innovation from the perspective of financing constraints and industrial restructuring,respectively,under the influence of both.In addition,this paper also examines the spatial spillover effect of digital finance on the level of urban innovation using the dynamic SDM(spatial Durbin model).The results show that digital finance can effectively enhance the level of urban innovation and that it is non-linear in nature,with digital finance contributing more to urban innovation at higher levels of digital finance.In addition,the positive impact of digital finance on regional technological innovation has significant spatial characteristics and can be broken down into a direct effect and an indirect effect,specifically a positive effect within the region and a negative spillover effect outside the region.Among them,the direct effect(i.e.positive impact within the region)is more important in the role of digital finance in enhancing the level of regional technological innovation.Finally,three policies are proposed based on the results: firstly,to promote the coordinated development of digital finance between regions.Secondly,to promote the optimisation of the industrial structure of cities and alleviate the impediments of financing constraints.Third,to promote the coordinated development of digital finance between regions.