Nonlinear Influence of Financial Technology on Regional Innovation Capability: Based on the Threshold Effect Analysis of Human Capital

Wei Han, Ping Wang, Yushi Jiang and Hao Han
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Wei Han: School of Humanities and Law, Henan Agricultural University, Zhengzhou 450046, China
Ping Wang: School of Economics and Management, Weifang University of Science and Technology, Weifang 262700, China
Yushi Jiang: School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China
Hao Han: School of Foreign Languages, Zhengzhou Business University, Gongyi 451200, China

Sustainability, 2022, vol. 14, issue 2, 1-16

Abstract: According to the data of financial technology and high-tech innovation level of 17 cities in the pilot area of China Independent Innovation Demonstration Zone (Shandong Province) from 2007 to 2017, and taking human capital as the threshold variable, this paper empirically analyzes the nonlinear influence of financial technology development on regional innovation capability under different absorptive capacity by constructing a panel threshold regression model. The results show that: (1) Taking human capital endowment as the threshold variable, the influence mechanism of financial technology development on regional innovation capability has an inverted S-shaped double threshold effect, that is, the driving effect of financial technology development on regional innovation capability has the “optimal range” of human capital absorption capability; (2) When the endowment of human capital is less than the first threshold, there is a significant negative relationship between financial technology and regional innovation capability, and in this case, financial technology development cannot promote the improvement of regional innovation capability; (3) When the human capital endowment crosses the first threshold, there is a significant positive relationship between the development of financial science and technology and the regional innovation capability, which indicates that only when the human capital endowment can better realize R&D learning, digestion and absorption can the development of financial science and technology achieve collaborative innovation and enhance the regional innovation capability; (4) After the endowment of human capital crosses the second threshold, although there is still a positive relationship between the development of financial technology and regional innovation capability, the driving effect of financial technology has a diminishing marginal effect, which shows that the scale of technology and finance should match with human capital, and unlimited expansion of human capital investment will also lead to the imbalance of the allocation of innovation elements and reduce the efficiency of regional innovation. Based on the empirical analysis results, the paper finally puts forward policy suggestions from the aspects of differentiated development strategy, innovative talent incentive policy, and the construction of financial technology leading center.

Keywords: financial technology; regional innovation capability; human capital; threshold effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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