International Journal of Accounting Research

Digital Finance's Impact on Regional Innovation Capacity

Marie Radiguet^* Department of Economics and Finance, Nantes University, Nantes, France
^*Correspondence: Marie Radiguet, Department of Economics and Finance, Nantes University, Nantes, France, Email:

Received: 27-Jan-2023, Manuscript No. IJAR-23-20139; Editor assigned: 30-Jan-2023, Pre QC No. IJAR-23-20139 (PQ); Reviewed: 17-Feb-2023, QC No. IJAR-23-20139; Revised: 24-Feb-2023, Manuscript No. IJAR-23-20139 (R); Published: 02-Mar-2023, DOI: 10.35248/2472-114X.23.11.313

Description

However, there is a lack of solid theoretical justification for how digital finance influences regional innovation. Digital finance is a new paradigm of financial services that affects social development. This research examines the effect of digital financing on local innovation capacity using panel data for 31 Chinese provinces. They discover that regional capacity can be improved by digital financing. Additional research reveals that provinces with a higher share of the tertiary sector in the overall GDP and less market expansion are more positively impacted by digital financing on regional innovation capacity. Even after taking into account the spatial role of surrounding provinces' innovation capacities, digital finance still has a considerable impact on regional innovation ability. These findings call for additional research into how digital finance might be used to increase regional innovation capacity in a unique market or geographic setting.

The Standing Committee of the Political Bureau of the CPC Central Committee proposed in Early 2020 to expedite the building of new infrastructure, including 5G networks and services, and to keep firmly embracing the concept of modern development. This tax policies proposal offers significant historical potential for the advancement of digital finance. Innovation is a key driver of development in the new development model and is at the centre of development, whose constant rise requires the assistance of financial resources. However because of technical advancement, certain economic operations have high risk, have extended cycles, and are uncertain. Moreover, weak regional innovation consciousness and weak independent innovation consciousness. How to address the regional innovation activity funding channels and finance scale lag problem is particularly crucial given the region's overall innovation ability, excessive reliance on technology introduction, and lack of vigour and vitality in regional innovation. This report analyzes whether digital finance might boost regional innovation levels in light of the current expanding trend of digital finance, takes into account the pertinent incentive framework and influencing variables, and comes to a conclusion. The following characteristics of this essay mostly reflect its innovation: First, unlike earlier research that examined how traditional financial structures, such capital markets and commercial banks, affect technology innovation.

A financial model for digital finance that investigates the impact of financial development on regional innovation and validates the potential trajectory of how digital finance might affect regional innovation, serving as a data augmentation for the growth of high-quality digital finance in China divides the existing characteristics of China's digital finance into east-west dimensions and discovers a novel approach, which is quite innovative; Third, the identification of internal and external elements that have an impact on digital finance and the expansion of the literature in this area provide some motivation for future research. Ability for regional innovation and the influence of regional innovation on financial development. Following a review of the literature, we conclude that more research is needed to fully understand how regional innovation is supported by digital finance. Regional innovation can be indirectly stimulated by a number of factors in addition to being directly supported by digital finance. In light of this, we examine the impact that digital finance indirectly plays in regional innovation through both internal and external factors as well as the incentive effect it has on regional innovation itself.