Reaping Digital Dividends: The Impact of Supply Chain Finance on Corporate Technological Innovation in China

As a new type of financial service, supply chain finance closely relates to the production and innovation behaviors of micro-size enterprises. This research thus explores whether and how supply chain finance affects corporate technological innovation. Using a sample of China's A-share listed companies from 2013 to 2020, the results show that (1) supply chain finance significantly enhances the technological innovation of enterprises; (2) the beneficial effect of supply chain finance on enterprises' cooperative innovation is more pronounced compared to that on independent innovation; (3) mechanism tests find that supply chain finance promotes enterprise innovation by alleviating financing constraints and adjusting supply chain relationships; and (4) this promotion effect is stronger for private enterprises, small-scale enterprises, in west regions, and for regions with a high level of digital financial development. Our empirical results thus enrich the literature, provide insights into the optimization of supply chain finance development, and can help improve the financial regulatory framework.