Fintech as a catalyst for innovation and sustainable growth: analyzing the dynamics of R&D Investment in China

Abstract

ABSTRACT This comprehensive analysis explores the pivotal role of financial technology (fintech) investments in enhancing Research and Development (R&D) within China's rapidly evolving corporate landscape. Drawing on an extensive dataset covering 3,335 listed Chinese companies from 2012 to 2019, the study employs a multifaceted methodological approach, including panel data analysis, cluster analysis, and predictive modelling, to dissect the interplay between fintech investments and R&D activities. Our findings illuminate a robust positive correlation between fintech investments and the intensification of R&D endeavours, underscoring the instrumental role of fintech in propelling innovation and fortifying competitive edges. Through cluster analysis, the research identifies distinct patterns of R&D and fintech investment, spotlighting fintech's critical function as an innovation accelerator, notably among startups and technologically advanced enterprises. Predictive modelling forecasts a sustained uptrend in R&D investments, propelled by fintech advancements, suggesting a trend towards more profound business strategy integration. Moreover, the study delves into the environmental and societal ramifications of fintech-enhanced R&D, offering valuable perspectives on sustainable development and formulating policy recommendations to facilitate inclusive economic growth. This investigation significantly enriches the R&D management discourse, highlighting fintech's strategic importance in spurring innovation and tackling socio-economic challenges in the Chinese corporate sector.