The Effects of the Sci-Tech Finance Policy on Urban Green Technology Innovation: Evidence from 283 Cities in China

To balance economic development with environmental sustainability and address the challenges posed by the new wave of technological innovation, China has focused on leveraging the synergistic effects of technology and finance. This approach aims to promote urban green technology innovation (UGTI), which is critical in achieving innovation-driven, high-quality development. This study draws on two phases of China’s “Promoting the Integration of Technology and Finance Pilot” policy, implemented in 2011 and 2016. It utilizes data from 283 cities from 2007 to 2021 and employs a multiple-period difference-in-differences (DID) model to examine the effect, mechanisms, and heterogeneity of science and technology (sci-tech) finance policies on UGTI. The results indicate that (1) sci-tech finance policies significantly foster UGTI. (2) The mechanism analysis reveals that sci-tech finance policies stimulate UGTI by enhancing the agglomeration of scientific and technological talent and factor allocation. (3) The heterogeneity analysis shows that sci-tech finance policies have a considerably greater effect on UGTI in eastern and non-resource-based cities than in western and resource-based cities. Furthermore, strengthening intellectual property protection, advancing digitalization, and implementing suitable financial regulations amplify the green innovation effects of the sci-tech finance policies.