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Spatial Network Analysis on the Coupling Coordination of Digital Finance and Technological Innovation

Author

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  • Jiayi Li

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Shujun Ye

    (School of Economics and Management, Beijing Jiaotong University, Beijing 100044, China)

  • Shujuan Wang

    (China Center for Information Industry Development, Beijing 100080, China)

Abstract

For sustainable economic development, it is extremely important to understand how digital finance and technological innovation are coupled and how the spatial coupling network is connected. Based on panel data collected from 31 Chinese provinces between 2011 and 2020, this paper calculates the technological innovation index using the entropy method, and adopts the coupling coordination model to measure the coupling coordination degree of digital finance and technological innovation. Furthermore, this paper utilizes the improved gravity model to determine the spatial correlation matrix and uses the social network analysis (SNA) method to investigate the spatial spillover characteristics of the coupling network. The results demonstrate the following: (1) While the index of digital finance and technological innovation rose and digital finance developed rapidly, the level of technological innovation remained low. (2) There was an improvement in the degree of coupling coordination between digital finance and technological innovation, which was higher in the eastern region and lower in the west. (3) The overall network density and the number of associations increased; meanwhile, the network hierarchy and network efficiency declined, indicating that the spatial structure was strengthened. (4) The centrality of some developed eastern regions, such as Beijing, Shanghai, and Zhejiang, was greater than that of some underdeveloped areas in the midwest and northeast regions. (5) The coupling coordination network can be classified into four types: the “main inflow plate” mainly includes underdeveloped regions in the midwest areas; the “main outflow plate” and “bidirectional spillover plate” primarily include the developed eastern areas; and the “agent plate” mainly includes the central provinces. This research provides a foundation for enhancing the cross-regional coupling coordinated development of digital finance and technological innovation.

Suggested Citation

  • Jiayi Li & Shujun Ye & Shujuan Wang, 2023. "Spatial Network Analysis on the Coupling Coordination of Digital Finance and Technological Innovation," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6354-:d:1118198
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    1. Li, Jiayi & Ye, Shujun & Zhang, Yujin, 2023. "How digital finance promotes technological innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).

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