Effect Of Capital Market On Enterprises' Technological Innovation

To enhance the technological strength is a significantly important to increase national competition, in which technological innovation is the key to enhancing the enterprises'competitiveness and is also the foundation of upgrading the national competition. The history of 1990's in the last century witnessed the development of the United States. One of the driving forces was the NASDAQ market in the capital market to promote the blossom of high-tech companies with ever springing up of technological achievements. Thus all these have made it possible to ensure the United States continuing to take the lead in the national science and technology worldwide. Up to now China's capital market has grown up with comparative size and structure through 20 years of development. This thesis focuses on the relationships between China's capital market and its promotive actions on technological innovation. It is just from this exploratory starting point that the author makes further insight into functions and roles of Capital market based on the progress of technological innovation in China. In this thesis the author's views and suggestions are also presented.Firstly, the thesis deals with the relationships between capital market and technological innovation from the point of functions of capital market. The argument is based on the internal logic and promoting mechanism of capital market to technological innovation. The paper analyzes risk-sharing mechanism of capital market to enterprises'technological innovation, information revealing mechanism, incentive and inhibitive mechanism. By D-D reference the model (Diamond and Dybvig,1983 and Diamond,1965), and the use of AK function and two-stage dynamic idea, effect models of multi-channel financing structures are set up.In addition, combined with various models, the thesis makes approaches to the capital supply effect of three typical means of financing, which proves that the market participants'differences in risk preference and fluidity liking will bring about disparity in technological growth of enterprises.Secondly, the Capital market at multi-level serve to build a comprehensive financing platform for enterprises'technology innovation. Judging by the characteristics of the corporations, the amount of financing, financing term, financing cost are variable. However, Capital market can provide financing at multi-level from the main board to the GEM, and to various types of investment and financing, to meet the need of a business from startup to maturity in the various stages.Thirdly, the entrepreneurs are the most important propellants in enterprises' innovation, and entrepreneurs'innovation consciousness more or less is changing. Capital market has an impact on activating the innovative inherency of entrepreneurs and stimulating their innovative spirit. This paper makes study on the reasons for lack of entrepreneurial innovation, the incentives and restraint mechanisms of capital market on entrepreneurs. The study shows that the capital market system and environmental factors play a very important role in the variation of consciousness and intension of entrepreneurial innovation.Fourthly, by means of the ordinary least squares, this study has made empirical tests on contributions of the multi-level Capital market to technological innovation after data processing of time sequence. The empirical tests include those on the positive role of China and the U.S. capital market on promoting technological innovation, the paper has also made analysis of different effect of Capital market of the two countries on technological innovation.In study of U.S. Capital market, comparison is made on NASDAQ market dominated by high technology-based listed companies and NYSE chiefly with listed companies of traditional industrial enterprises, and on the influential difference in the technological innovation. The results have shown that, for the effect of capital market on technological innovation, China's Capital market is stronger than the NYSE but weaker than the NASDAQ market.Finally, according to the study mentioned above, the thesis analyzes the necessities of constructing multi-level Capital market in China, and proposes ways, based on China's specific situations, to construct multi-level Capital market of investment and financing to support for technological innovation. Further still, the thesis deals with the global strategic issues concerning Capital market, technological innovation and the great countries. It is evident that technological innovation is not spontaneous activity separated from the community, but the highly synergistic product of technology, capital and society. In the coming competitive games of great powers, it is absolutely imperative to upgrade the country's level of product technology in order to seize the development opportunities and enhance impact of capital market development on the technological innovation so as to increase the national competition and steadily keep on the development strategies to consolidate the powerful status befitting to China.