Digital Finance Empowering Enterprise Innovation: A Multi-Case Study based on Heterogeneity of Financing Constraints and Differences in Intermediary Strength

Abstract

With the development of science and technology, digital finance is playing an increasingly important role in promoting economic growth and innovation. However, previous studies have primarily focused on its role in reducing financing costs and expanding financing channels, while overlooking its potential impact on alleviating financing constraints and fostering enterprise innovation. This paper aims to fill this gap by empirically analyzing the relationship between digital finance, financing constraints, and enterprise innovation using data from enterprises of different sizes. By employing econometric methods and multi-dimensional indicators of digital finance, this study investigates whether digital finance can effectively ease financing constraints and subsequently stimulate innovation activities. Furthermore, it explores whether the mediating effect of financing constraints varies significantly among enterprises of different scales, such as small, medium, and large firms. The findings are expected to reveal that digital finance plays a more pronounced role in promoting innovation for small and medium-sized enterprises (SMEs), which typically face higher financing barriers. The study contributes to the understanding of the heterogeneous effects of digital finance and provides policy implications for optimizing the digital financial environment to support innovation-driven development across enterprises of varying sizes.