The Scale and Innovation Effects of Sci-Tech Finance Pilot Policy from the Perspective of Sustainable Development

To advance breakthroughs in core technologies and foster the growth of technology-based enterprises, China has introduced the Sci-Tech Finance Pilot Policy with the aim of promoting sci-tech enterprise development through optimized financial resource allocation. Based on a sample of technology-based firms listed on China’s SME Board and ChiNext Board from 2009 to 2023, this study empirically examines the relationships between the Sci-Tech Finance Pilot Policy, scale expansion, and technological innovation using a multi-period Difference-in-Differences (DID) model. The key findings reveal that, first, the Sci-Tech Finance Pilot Policy simultaneously promotes corporate scale expansion and technological innovation, generating both scale and innovation effects; second, it generates scale and innovation effects by optimizing financial resource allocation, while scale expansion further induces additional innovation effects. Third, heterogeneity analysis reveals that the innovation effect of the Sci-Tech Finance Pilot Policy is stronger, and the scale effect is weaker when the technology-based enterprise is privately owned, possesses a solid R&D foundation, or operates in a favorable external innovation environment. The findings of this study demonstrate that technology finance policy promotes high-quality development through the synergy between scale and innovation, providing policy implications for developing countries in implementing the United Nations Sustainable Development Goals.