Social Sciences in China (Chinese Edition)

No. 9, 2024

The Role of Finance in Collaborative Innovation Among Chinese Enterprises—A Supply Chain Perspective

(Abstract)

Guo Ye and Yao Ruoqi

Collaborative innovation within supply chains facilitates the transfer and dissemination of specialized and intricate knowledge, achieving a deeper integration of innovation and supply chains. However, traditional financial models have struggled to fully unlock the full innovative potential of enterprises. Supply chain finance, which combines both financing and supply chain management functions, can enhance collaborative innovation among firms. When suppliers possess robust independent innovation capabilities and control key technologies, finance will greatly fuel collaborative innovation. On one hand, suppliers within the core enterprise’s supply chain can leverage the credit of the core entity, alleviating the challenges of insufficient financial support for innovation. On the other hand, supply chain finance reinforces the depth and quality of information exchange within the supply chain, optimizes the allocation of innovation resources, and enhances collaborative innovation among enterprises. This form of collaboration is instrumental in developing the core competitiveness of the supply chain. It also enriches the role of finance in cementing the innovation chain and supporting high-quality development.