Fintech capability and diffusion-weighted technology-market networks

Using patent assignments and licenses across 279 Chinese cities from 2011 to 2023, this study examines how city level fintech capability is associated with diffusion relevant intercity technology market connectivity. A diffusion screened patent transfer network is constructed to capture arm’s length exchanges followed by observable post transfer use, while fintech capability is measured by a city year Fintech Development Index, FDI C, based on fintech patenting, digital finance penetration, and local financial sector capacity. Panel specifications with city and year fixed effects and city specific trends show that higher FDI C is positively associated with network centrality, partner breadth, and diffusion weighted link intensity. Estimates on a defensive placebo network are economically close to zero, suggesting that the pattern is concentrated in diffusion screened exchanges rather than overall transaction activity. Spatial and dynamic analyses further indicate neighboring and medium run associations. Mechanism oriented specifications show that the FDI C coefficients decline after adding proxies for transferee citations, technological proximity, and inventor inflows. The findings are interpreted as conditional associations rather than structural causal effects, with implications for technology market governance and diffusion based measurement

China · Payment · FinTech, Crowdfunding, Digital Finance · Innovation Diffusion and Forecasting · Intellectual Property and Patents