The development of digital inclusive finance not only provides strong financial support for the improvement of regional innovation capabilities, but its digital and intelligent management methods also create favorable conditions for the development of regional innovation activities. The main analysis of this article is to explore the specific ways in which the development of digital inclusive finance affects regional innovation capabilities and how its impact will be effective. After sorting out and analyzing relevant research results at home and abroad, this paper clarifies the research ideas and contents. In the empirical part, it selects the panel data of 11 cities in the Pearl River-West River economic belt from 2011 to 2020, and constructs fixed effect models and panel regression models respectively. First, it conducts regression analysis on digital inclusive finance, and verifies the nonlinear relationship between digital inclusive finance and regional innovation capability. The empirical results show that there is an obvious positive correlation between digital inclusive finance and regional innovation capability in the Pearl River-West River economic belt; The digital inclusive finance within the Pearl River-West River economic belt has a single threshold effect in the process of promoting regional innovation and development, and its innovation incentive role is slightly weakened after crossing the single threshold. Finally, this article proposes targeted suggestions based on actual situations.

Ying Wei. The Impact of Inclusive Finance on Regional Innovation Capability: An Empirical Analysis Based on the Pearl River-West River Economic Belt. Academic Journal of Business & Management (2024) Vol. 6, Issue 4: 113-117. https://doi.org/10.25236/AJBM.2024.060418.

[1] Xu Ziyao, Zhang Lisha, Liu Yizhi. Does digital inclusive finance enhance regional innovation capabilities [J]. Financial Science, 2020 (11): 17-28.

[2] Ozili P. K. Impact of digital finance on financial inclusion and stability [J]. Borsa Istanbul Review, 2018, 18 (04): 329-340.

[3] Tang Song, Wu Xuchuan, Zhu Jia. Characteristics and Mechanism Identification of Digital Finance and Enterprise Technology Innovation Structure, and Differences in Effects under Financial Regulation [J]. Management World, 2020, 36 (05): 52-66+9.

[4] Hasan M, Yajuan L, Khan S. Promoting China's inclusive finance through digital financial services [J]. Global Business Review, 2020 (06): 1-23.

[5] Ren Biyun, Liu Jiaxin. Development of Digital Inclusive Finance and Improvement of Regional Innovation Level: An Analysis from the Perspective of Internal Supply and External Demand [J]. Journal of Southwest University for Nationalities (Humanities and Social Sciences Edition), 2021, 42 (02): 99-111.

[6] Zheng Wanteng, Zhao Hongyan, Fan Hong. Research on the Incentive Effect of Digital Finance Development on Regional Innovation [J]. Scientific Research Management, 2021, 42 (04): 138-146.

[7] Li Rongqiang. Research on the Impact of Digital Inclusive Finance Development on Regional Innovation Capacity [D]. Guiyang: Guizhou University of Finance and Economics, 2022.

[8] Zou Huiwen, Huang You. Research on the Role of Digital Inclusive Finance Development on Regional Innovation Efficiency [J]. Finance and Economy, 2021 (01): 48-55.

[9] Li Xibao. Empirical Study on the Impact of Regional Innovation Environment on Innovation Activity Efficiency [J]. Quantitative Economic and Technological Economic Research, 2007 (08): 13-24.