Digital Finance Drives Enterprise Innovation: Challenges and Development Paths

Innovation is the primary driving force for economic development and the key for enterprises to maintain competitive advantages. The development of digital finance contributes to the optimization of financial resource allocation and the structure of financial markets, brings better financial services, and thus drives enterprise innovation. By addressing the challenges of difficult and expensive financing for enterprises, promoting the digital transformation of enterprises, and stimulating the innovative spirit of entrepreneurs, digital finance effectively promotes enterprise innovation. However, digital finance driving enterprise innovation still faces challenges: the development quality of digital finance is not high enough, and the impetus of driving enterprise innovation needs improvement; Risks of digital finance still exist, posing a potential threat to the environment for enterprise innovation; Digital finance may lead to financial mismatch and hinder enterprise innovation. Further, this paper puts forward relevant development suggestions from the level of financial institutions and digital financial platforms, enterprises, and governments, and clarifies the possible development paths of digital finance driving enterprise innovation.