The geography of the fintech industry in China: An analysis of China’s city‐level patenting

This article investigates the geography of the fintech industry in China's cities, which has not been systematically studied. It contributes to the literature on fintech by applying a new theoretical perspective—evolutionary economic geography. Improving on the existing literature on fintech that conducts a relatively general analysis of the role of technology in fintech development, evolutionary economic geography offers a detailed analysis that zooms in on the specific kinds of technology that determine fintech development. Moreover, this article contributes to the literature on evolutionary economic geography by systematically examining the role of market demand in developing a new industry. Based on a unique data set from 2003 to 2019, this article provides a city-level analysis of the fintech industry in China. The results show that the fintech industry tends to develop in cities that have accumulated technologies in the fields of finance, e-commerce, data sciences, and security. Moreover, there is a positive relationship between the development of the fintech industry and the demand for fintech services. Finally, this paper sheds light on the role of a favorable regulatory environment in fintech development.