Fintech Policy and the Rise of Green Technological Inventions

ABSTRACT Technological transformation can enhance enterprises' green invention by promoting knowledge spillovers, alleviating financial constraints, and supporting innovative business models. Within this framework, our study investigates the effect of technological infrastructure construction on green technology invention, using the ‘Fintech China’ pilot policy as a quasi‐natural experiment and employing a staggered difference‐in‐differences model. Utilizing firm level panel data from 285 Chinese cities spanning 2010–2020, the empirical analysis demonstrates that technological infrastructure promotes green technology invention in the ‘Fintech China’ adopted cities. Results further indicate that traditional infrastructure modes positively influence green technological invention within these designated cities. Mediation analysis suggests that firms experiencing enhanced digitization, reduced financial constraints, and improved governance stimulate green technological invention. Moreover, these effects are more pronounced among firms in high‐grade and eastern cities and non‐state enterprises. These findings offer valuable insights for policymakers seeking to promote green innovation through targeted investments in technological infrastructure.