This paper aims to examine the multifaceted impact of China’s belt and road initiative (BRI) on firm innovation. It investigates how enhanced connectivity, economic cooperation and improved resource access under BRI contribute to the innovation capacity of businesses.
Taking firms engaged in the BRI framework as the research object, the study uses an empirical analysis to assess the influence of BRI on firm innovation. The analysis focuses on two channels through which BRI operates: optimizing the financing environment and enhancing human capital.
The empirical results reveal that BRI significantly promotes firm innovation. It suggests that BRI-driven policies effectively alleviate financial constraints and facilitate access to new markets and resources, thereby spurring innovation in technology, products and services.
This study contributes to the literature on international cooperation and firm innovation by providing novel empirical evidence on the role of BRI in advancing firm innovation. The findings offer valuable insights for policymakers seeking to stimulate innovation through global economic initiatives.
