Science and Technology Financial Policies and Enterprise Digital Technology Innovation

Xuefeng Shao, Kang Xi and Zijing Chen

Finance Research Letters, 2025, vol. 83, issue C

Abstract: As an important part of science and technology innovation, digital technology innovation profoundly impacts economic structure transformation and industrial upgrading. However, few systematic and in-depth analyses have been conducted regarding the specific mechanisms through which science and technology financial policies (STFP) impact digital technology innovation. This study uses panel data of Chinese listed companies from 2005 to 2023 and a difference-in-differences approach to assess the impact of STFP on enterprise digital technology innovation. The results show that STFP significantly promote enterprise digital technology innovation by increasing the share of patient capital. A heterogeneity analysis further reveals that the facilitating effect of STFP is more obvious for enterprises with lower financing constraints and higher degrees of financialization. This study’s results provide empirical support for applying STFP to promote enterprise digital technology innovation in China. These findings have great theoretical and practical significance for promoting financial innovation development in China.

Keywords: Digital technology innovation; Technology financial policies; Patient capital; Difference-in-differences (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325009055

DOI: 10.1016/j.frl.2025.107646

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