The geography of fintech: technology, markets and regional specialization across 258 European regions

Purpose This study examines the generation of fintech technology and market activities across European regions, drawing on the evolutionary economic geography literature. It aims to assess the role of path dependence and knowledge recombination in fostering regional development and fintech opportunities. Design/methodology/approach We compile a novel dataset approximating fintech-related technological and market activities, covering 21 European countries and 258 NUTS-2 regions over the period 1996–2020. Using these data, we analyze the relationships between related technologies and fintech development. Findings Consistent with prior literature, we find that related technologies promote the development of fintech technologies. In addition, the study reveals that regions with high intensity in fintech technologies are more likely to exhibit strong fintech market activities. Originality/value This research provides novel empirical evidence linking fintech technological intensity with fintech market activity across European regions, thereby advancing understanding of the regional drivers of fintech development and informing innovation policy. Further, it supports smart specialization strategies, highlighting the importance of leveraging existing endowments for generating fintech comparative advantages. Finally, it underscores the need for policy interventions that build on existing technological advantages in the regions to support the sustainable development of the fintech sectors through investment and cross-regional cooperation.