Innovation drives long-term firm development, but not all innovations create lasting technological impact. This study investigates how financial technology (FinTech) fosters innovation sustainability by employing a fixed-effects Poisson regression framework and using data from non-financial A-share listed companies in China from 2012 to 2020. Innovation sustainability is measured by forward patent citations within a three-year window, capturing the persistence and external impact of innovations. Our results show that regional FinTech development significantly enhances both the quantity and sustainability of firm innovation. Mechanism analysis reveals that FinTech promotes innovation sustainability by alleviating financing constraints, facilitating digital transformation, and optimizing human capital allocation. These findings provide empirical evidence on the role of FinTech in sustaining firms’ technological contributions and offer actionable insights for policymakers and managers aiming to support high-quality, long-term innovation.
Tang et al. (Mon,) studied this question.