Research on the Impact of Digital Inclusive Finance on Green Innovation of SMEs

Green innovation is an effective driving force for high-quality development in the new era. As a new financial service model, digital inclusive finance provides a new way to solve the financing dilemma of green innovation. In order to investigate the impact of digital financial inclusion on the green innovation of small and medium-sized enterprises (SMEs), based on the panel data of SMEs in China from 2011 to 2021, this paper empirically tested the influence and mechanism of the two by using the panel fixed effect model and threshold regression model. The findings demonstrate that digital inclusive finance is effective in promoting the green innovation of SMEs and alleviates their financing constraints. The digitization level of digital inclusive finance also has a significant positive and non-linear effect of increasing "marginal effect" on the green innovation of SMEs. Notably, it has a greater significant role in driving green innovation for non-state-owned enterprises, enterprises located in the central and western regions, and SMEs with dispersed equity. Consequently, several policy implications are derived from these findings, which can provide a sustained impetus to help SMEs carry out green innovation activities and also provide a scientific basis for governments to improve digital financial inclusion policies and achieve economic equity.