Digital finance and performance in innovation: Evidence from universities

This study evaluated 72 universities' performance innovation during 2011 to 2019 of panel data, using the data envelopment analysis-Malmquist method. The study used benchmark regression to analyse the relationship between digital finance and the universities' innovation performance. The aim was to improve innovation performance and promote national innovation across countries. According to the results of the empirical analysis, digital finance positively affects innovation performance. That finding was confirmed through advanced robustness test evaluation, such as limited information maximum likelihood, two-stage least squares, and interactive fixed effects. Moreover, based on information theory, the digital finance influence mechanism improves credit demand and financial efficiency. Additionally, innovation performance survived spatial overflow effects. Lastly, the paper concludes with some implications for improving digital financial coverage and constructing innovation networks among universities.