The impact of fintech on corporate innovation: mediating role of entrepreneurship

Financial technology (fintech) has developed rapidly worldwide in recent years and is deemed an important driver for firms' innovation performance. Understanding the intricate relationship between fintech development and innovation activities is essential for promoting corporate innovation and value creation, particularly in the dynamic landscape of the digital economy. Therefore, this study delves into this significant issue within the specific context of China by employing panel regression techniques to analyze data from both Shanghai and Shenzhen A-share listed companies spanning the period 2011-2021. By doing so, it aims to uncover the underlying mechanisms through which fintech development influences innovation activities. Findings herein reveal a significantly positive impact of fintech on patent output, indicating a strong correlation between fintech development and corporate innovation. Additionally, the study emphasizes the role of fintech in fostering entrepreneurship by alleviating financial constraints that entrepreneurs often face. This in turn leads to a boost in their innovation activities, further highlighting the crucial role of fintech in promoting innovation within the corporate sector. The study also unveils that fintech has a particularly significant impact on innovation within private firms, manufacturing firms, and companies located in both the central and western regions of China. These findings thus suggest that the government should reduce and relax limits to stimulate the advancement and utilization of fintech, while entrepreneurs should make full use of the opportunities created by fintech to finance their innovative activities.