Science and technology insurance and regional innovation: evidence from provincial panel data in China

This study examines the relationship between science and technology insurance (S&T insurance) and regional innovation from a macro innovation input-output perspective. Based on provincial panel data from 2010–2019, the impact of S&T insurance on regional innovation is examined using a dynamic panel regression model. The results indicate that S&T insurance has a significant promotion effect on innovation inputs with a lagged effect but a negative effect on innovation outputs. Further, there is regional and subject heterogeneity in the role of S&T insurance. S&T insurance has a significant effect on innovation input in the central and eastern regions, but not in the western regions; S&T insurance has a significant effect on innovation in enterprises, but not on non-enterprise organisations. This study also examines whether there is a spillover effect of S&T insurance on regional innovation. The results show a spillover effect on innovation inputs but no spillover effect on innovation outputs. Finally, the authors suggest promoting the development of the S&T insurance market to improve regional innovation capacity.