Protection of the Rights and Interests of SMEs and Innovation
Technological innovation is the core driving force behind the development of new productive forces.This paper examines how legislative regulation of payments on public account affects the liquidity improvement of small and medium-sized enterprises(SMEs)and their innovation activities.The findings indicate that,compared to non-governmental indebted enterprises,the innovation activities of governmental indebted enterprises significantly increased following the implementation of the SME Promotion Law.Easing liquidity constraints and improving labour incomes are potential mechanisms fostering innovation activities.A closer examination reveals that the increase in innovation activities is most evident in regions with inclusive financial underdevelopment,limited access to credit and a strong presence of high-tech industries.Finally,legislation driving innovation activities to regulate payments on public account has a positive impact on both total factor productivity and the market value of enterprises.This study provides evidence of how government-backed clients influence corporate innovation activities through the accelerated payment channel,providing insights into the role of legal advancements in stimulating innovation and thus promoting high-quality growth.
protection of the rights and interests of SMEspayments on public accountliquidity constraintsinnovative activities