Green Finance and Regional Technological Innovation in China: The Mediating Role of R&D Investment

Ading Li (), Adul Supanut () and Jianxu Liu
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Ading Li: Faculty of Economics, Srinakharinwirot University, Bangkok 10110, Thailand
Adul Supanut: Faculty of Economics, Srinakharinwirot University, Bangkok 10110, Thailand
Jianxu Liu: School of Economics, Shandong University of Finance and Economics, Jinan 250000, China

IJFS, 2025, vol. 13, issue 2, 1-26

Abstract: In light of global initiatives aimed at promoting sustainability and low-carbon growth, this research investigates how green finance affects regional technological innovation in China, specifically highlighting the mediating effect of R&D investment. Utilizing panel data from 30 provinces in China from 2008 to 2021, we apply fixed-effects and mediation models to explore these relationships. The results indicate a strong positive link between green finance and regional technological innovation, with R&D investment acting as a partial mediator. Furthermore, the capabilities for regional innovation and entrepreneurship enhance the influence of green finance on R&D investment. However, in areas with greater innovation and entrepreneurship capabilities, the additional effect of R&D investment tends to decrease. Based on these results, the study proposes targeted policy recommendations, including enhancing green finance policies, improving financial institution services, promoting enterprise-led R&D activities, and fostering regional collaboration to achieve balanced innovation development. These insights provide both theoretical and practical significance for leveraging green finance to advance sustainable innovation.

Keywords: green finance; regional technological innovation; fixed effects; mediating effects; R&D investment (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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