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

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.

KEYWORDS:

• Fintech
• research and development
• innovation management
• competitive advantage
• sustainable development
• Chinese companies

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was founded by the National Social Science Foundation of China (Grants Number 21BGL183), Fundamental Research Funds for the Central Universities (Grant Number SK2022130) and Soft Science Research Project of Shaanxi Province of China: 2024ZC-YBXM-019).

Notes on contributors

Lemuel Kenneth David

Lemuel Kenneth David is a PhD candidate at the School of Management, Xi'an Jiaotong University, His research interests include ESG, Accounting, financial technology, innovation management, and sustainable growth in emerging markets.

Jianling Wang

Jianling Wang is a Professor in the Department of Accounting and Finance at Xi'an Jiaotong University.

Victor David

Dr. Victor David is an Environmental Engineer at the Minnesota Pollution Control Agency (MPCA). With a PhD in Environmental Engineering, his expertise lies in environmental sustainability, pollution control, and the intersection of technology and environmental science.

Meiling Luo 罗美铃

Meiling Luo 罗美铃 is an Associate Professor in the Department of Mathematics and Statistics at Chongqing Technology and Business University. Her research focuses on statistical methods in finance, data analysis, and the application of mathematics in solving real-world problems.

Vanessa Angel

Dr. Vanessa Angel is a Professor in the Department of Accounting at West Chester University. Her research interests include accounting information systems, financial reporting, and the impact of technology on accounting practices. She has a strong background in both academic research and industry practice.