How China’s urban innovation system promotes green finance via FinTech: a connectivity view

Abstract

This research focuses on the connectivity perspective of China’s urban innovation system (UIS), and deeply analyzes how UIS can promote the development of green finance (GF) through FinTech. FinTech is examined as a key example of the coevolution of technological and financial innovations, while GF serves as a critical mechanism for achieving inclusive growth. A qualitative study was first conducted to pre-test the assumptions, and then a quantitative study was carried out based on secondary data of 285 Chinese cities. The findings demonstrate that UIS positively influences FinTech development. Furthermore, the results confirm both the mediating role of FinTech and the moderating effect of NIS pilot policy on the relationship between FinTech and GF. Our analysis also highlights regional disparities in the impact of UIS on GF. Theoretically, this research expands the NIS paradigm by identifying UIS as a crucial subsystem within the broader NIS framework, one that drives GF through the synergy of technological and financial innovations. From a practical perspective, our research, with its focus on China, provides valuable policy recommendations for efforts to balance regional connectivity across countries.