Study On The Co-evolution Of Technological Progress And Financial Structure Theoretical And Empirical Evidence

From the historical facts of national economic development, the technologicalprogress and financial structures are evolutionary in nature, both embedded in a dy-namic system of co-evolution. However, the existing mainstream literatures ignoredtheir co-evolutionary properties and evolutionary economics literatures are also failedto put them into a co-evolutionary analyzed framwork.In practice, the policy makershave ignored the importance of the co-development of technological progress and fi-nancial structure. For instance, the Internet bubble in2000and the outbreaking ofglobal financial crisis in2008have shown that even in the United States which havehighest level of technology and the most developed financial market can be also suf-fered serious imbalance problem of technological progress and financial structure.InChina, the government is still dominated the financial system of science and technol-ogy and put the finance position into a service role to focus on resolving financingproblems which ignored the objective law of development of the financial system andthe importance of coordinated development between technological progress and fi-nancial structure, thus, lead to imbalance of the marke financing structure especiallyin the financing of highly innovative SMEs, the "Macmillan Gap" is very promi-nent.Therefore, under the complex international background of rapid development ofknowledge Economy and the global financial crisis, our systematic study on co-evolutionary relationship between technological progress and financial structure un-doubtedly has important theoretical and practical significance.Co-evolution refers to two or more subjects that continuing evolved and interact-ed with each other by their evolutionary behavior and evolutionary path at a particulartime and space context.The evolutionary performance of spatial dimension of techno-logical progress demonstrated the scale effect in micro-enterprise level, the agglomer-ation effect and multiplier effect on industry level and the effects of cyclical fluctua-tions at the macro level through technical-economic paradigm shift. The evolution-ary performance of time dimension of technological progress are expressed by metab-olism and life cycle progress.The evolutionary characteristic of financial structure oftime dimension displayed the shift of dominant mode,that is " The early stages of physical currency transactions→The bank-credit money creation stage→financialmarkets dominant stage of non-monetary financial instruments expansion." The evo-lutionary characteristic of spatial dimension showed financial institutions becomingabundant and diversified and their function gradually improved and multivari-ate.Therefore, the technical progress and financial structure have obvious evolutionarycharacteristics, so we can incorporate them into a framework of co-evolution analysisto examine their interaction and co-evolution.Co-evolutionary mechanism of techno-logical progress and financial structure including two interrelated aspects, one is tech-nological progress how to Impact on financial structure, the other is the opposite.Theformer include financing mechanisms, risk diversification mechanism and reviewmechanism of finance.The latter include supply mechanism of financial technology,creation mechanism of financial needs and return mechanism of financial invest-ment.Technological progress and financial structure are tightly connected together byco-evolutionary mechanism and displayed many typical evolutionary characteristicsincluding such as open-ended and self-adaptive, two-way causal relationship, positivefeedback, nonlinearity and complexity and so on. Therefore, we can take "technologi-cal progress-the financial structure" as a complex evolutionary system and use mod-ern scientific theory and complex adaptive system theory to explore their co-evolutionary law. We learn from "complex system coordination degree model" ofsynergetics and construct a Collaborative Degree Model(CDM) of complex systemsof "technological progress—financial strucure"which taking evolutionary progress ofthe two subsystems of technological progress and the financial structure into accountand providing measure of co-evolutionary degress of complex system.We investigated the co-evolutionary situation of technological progres and finan-cial structure of the United States, Japan, and China systematically. Conclusionsshowed that co-evolutionary degree of complex system of technological progres andfinancial structrue is fluctuating severely along with the economic cycle.When theeconomy is in a boom phase of rapid development, technological advances and finan-cial structure showing a good collaborative development, when the economy is in re-cession or unstable phase, collaborative degree of technological progress and financialstructures will fluctuate,which provides an empirical evidence for the paradigm shfitof "technology-economy" what Perez(2002) had been put forward when she studiedthe evolutionary relationship between technology revolution and financial capital. In-stability, dynamic and complex nature are the important features in the co- evolutionary progress of technological progress and the financial structure, to keep theinteractive spiral positive feedback mechanism and structural balance are the premiseof technological progress and financial structure achieving sound collaborative de-velopment. By contrast, china has experienced rapid economic growth since the re-form and opening, in this rising period,although technological progress and indirectfinancial subsystem has formed a mutual promotional mechanism, the co-evolutionarydegree is small. And moreover, the co-evolutionary degree of technological progressand direct financial subsystem is fluctuating severely and even negative in some years,which indicate well-coordinated development mechanism has not formed yet betweentechnological progress and direct financial subsystem.If we put the co-evolution of technological progress and financial structure into alevel of the industry, their co-evolution will show a phenomenon which called symbi-otic evolution of high-tech industry and financial industry. And then we construct asymbiotic evolutionary LOGISTIC model of financial industry and high-tech industrytake empirical test on their symbiotic evolutioary relationship by using time-series da-ta of China from1995to2012. Conclusions showed that symbiotic evolutionary pro-cess of financial industry and high-tech industrial can be accurately described bySegmented Time Superimposed Logistic Symbiotic Evolutionary Model in China andit’s symbiotic mode is asymmetric mutualism evolutionary mode and has not realizedthe most stable and efficient symmetric mutualism evolution which has the greatestsymbiotic energy.Therefore, in order to promote long-term healthy collaborative development oftechnological progress and financial structure in China, we proposed some sugges-tions such as to improve a comprehensive financial institutions service system, to im-prove diversified capital market system,to improve institutional support system, toestablish a scientific public finance investment performance evaluation system and atechnological innovation resource sharing platform and so on.