Green Finance, International Technology Spillover and Green Technology Innovation: A New Perspective of Regional Innovation Capability

Pengfei Cheng, Xiaofeng Wang (), Baekryul Choi () and Xingang Huan
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Pengfei Cheng: Department of International Trade, Jeonbuk National University, Jeonju 54896, Republic of Korea
Xiaofeng Wang: Agricultural Economics, Jeonbuk National University, Jeonju 54896, Republic of Korea
Baekryul Choi: Department of International Trade, Jeonbuk National University, Jeonju 54896, Republic of Korea
Xingang Huan: Grain Economics Research Center, School of Economics and Trade, Henan University of Technology, Zhengzhou 450001, China

Sustainability, 2023, vol. 15, issue 2, 1-16

Abstract: Regional green technological progress is an important driver of regional green technology innovations. To explore in depth the impact of green finance and international technology spillover on regional green technology innovation, this study incorporates green finance, international technology spillover, and green technology innovation into the same analytical framework. In addition, based on a new perspective of regional innovation capabilities, this study analyzes the impact of green finance and international green technology spillovers on green technology innovation. The data were collected in 30 Chinese provinces from 2003 to 2019 and analyzed by a panel fixed-effects model. The interaction between green finance, international technology spillover, and regional innovation capability was investigated to understand the impact of each interaction on green technology innovation. Second, regional innovation capability was used as an intermediary variable to identify its underlying mechanism. Finally, the spatial spillover effect of green technology innovation was analyzed using the spatial Durbin model. We found that: (1) green finance, import trade, outward foreign direct investment (OFDI), and regional innovation capability can promote regional green technology innovation, while inward foreign direct investment (IFDI) has an inhibitory effect on the innovation; (2) the interaction of green finance, international technology spillovers, and regional innovation capacity positively impacts green technology innovation; (3) green finance and international technology spillovers can promote green technology innovation by promoting regional innovation capabilities; (4) and green technology innovations have spatial spillover effects, and innovations in one region can promote the growth of green technologies in adjacent regions. This study provides a reference not only for China but also for other developing countries to promote green technology advancement and achieve sustainable development goals.

Keywords: green finance; technology spillovers; green technology innovation; regional innovation capability; intermediary effect; spatial spillover effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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