The Impact of Digital Inclusive Finance on SME Innovation

Jiahao Wang, Yijia Yao, Heping Ge () and Ji Wang
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Jiahao Wang: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Yijia Yao: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Heping Ge: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Ji Wang: School of Accounting, Nanjing University of Finance and Economics, Nanjing 210023, China

Sustainability, 2025, vol. 17, issue 8, 1-18

Abstract: This study analyzes data from companies listed on the Small and Medium Enterprise Board and the Growth Enterprise Market between 2011 and 2021 to assess the impact of digital inclusive finance on SME innovation. It also explores how this effect varies across different industries. The results indicate a significant positive correlation between the digital inclusive finance index and the SMEs’ innovation output at the 1% significance level. Furthermore, improving the coverage breadth and usage depth of digital inclusive finance is more effective in promoting SME technological innovation than enhancing their digitalization level. Additionally, the heterogeneity analysis underscores its significant impact on driving innovation within the secondary sector. Mechanism testing reveals that digital inclusive finance enhances the innovation ecosystem by reducing financing barriers and improving access to capital. The study recommends accelerating the development of a digital inclusive financial system and optimizing the allocation of financial resources. Furthermore, it emphasizes the need to support digital transformation, foster talent development, and implement targeted industrial policies. These efforts are crucial for unlocking the full innovation potential of SMEs and driving high-quality development.

Keywords: digital inclusive finance; innovation in SMEs; financial constraints; high-quality development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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