Substantive or strategic? Unveiling the green innovation effects of pilot policy promoting the integration of technology and finance

The integration of technology and finance has emerged as a pivotal driver of economic growth and innovation, yet its impact on green innovation remains underexplored. This study examines the effects of China's Pilot Policy Promoting the Integration of Technology and Finance (PITF) on green innovation among listed enterprises, distinguishing between substantive and strategic innovations. Employing a difference-in-differences approach with data from 2007 to 2022, we find that PITF significantly enhances overall and strategic green innovation, while its effect on substantive green innovation is limited. Managerial myopia negatively moderates the policy's impact, whereas corporate social responsibility strengthens it. Our analysis reveals heterogeneous effects across firm types and industries, with non-state-owned enterprises and non-high-tech sectors showing more comprehensive positive responses. These findings contribute to the literature on innovation policy effectiveness and provide insights for policymakers seeking to promote sustainable technological advancement. The study underscores the need for tailored approaches in policy implementation and highlights the importance of addressing managerial short-termism to foster transformative green innovations. Future research could explore the long-term dynamics of these effects and investigate additional factors mediating the relationship between policy interventions and green innovation outcomes.