Study On Financial Support For Science And Technology Innovation In China

With the advent of the knowledge economy and the acceleration of the economic globalization process, international competition is becoming increasingly fierce. Scientific and technological innovation (hereafter referred to as S&T innovation) has become the preferred path of many countries to improve comprehensive national power and core competitiveness. The Chinese government established a development strategy of the innovation-oriented country in 2006. However, to build an innovation-oriented country is a complex system engineering and requires system and mechanism beneficial to innovation. The key is to establish a fully functioning and efficient financial system. By providing funds, risk management, incentive constraints, price discovery and other services, financial system promotes S&T innovation.In recent years, China's related government department has made a series of financial policies and measures promoting S&T innovation. At the same time, the combination of technology and finance has made considerable progress. However, Scientific and Technological Enterprise is still perplexed by some problems such as difficulty in financing and low efficiency of innovation. Therefore, the author has interpreted deeply that how finance system supports S&T innovation, summarized the foreign experience of finance system supporting for S&T innovation, explored the current situation of China's finance system supporting for S&T innovation, revealed the restrictive factors of China's finance system supporting for S&T innovation, made an empirical analysis between China's financial support and S&T innovation, and put forward some suggestions about optimizing the finance system supporting for S&T innovation in China. The rest of the paper is structured as follows.In Chapter One, we demonstrated the background and significance of this paper, summarized the related literature and point out their shortcomings. At last, we presented framework and methods of the paper.In Chapter Two, from the perspective of evolution, we elaborately described the innovation theory and financial development theory, and summarized some enlightenment for this research.In Chapter Three, using deductive reasoning method, we demonstrated in detail the capital formation mechanism, risk diversification mechanism, information revelation mechanism and sound incentive constraint mechanism. By these mechanisms, finance system boosts S&T innovation.In Chapter Four, with the comparison analysis method, we summarized the experiences of finance system promoting S&T innovation in United States, Japan and South Korea and received some useful enlightenment.In Chapter Five, using statistical interpretation method and normative analysis respectively, we accurately described the current situation and revealed restrictive factors of China's finance system supporting for S&T innovation, which provides guidance that how China's finance system supports S&T innovation.In Chapter Six, based on the measurement of China's scientific and technological innovation, we established a VAR model about financial support and S&T innovation, then made co-integration test, Granger causality test, impulse response function analysis and variance decomposition, and interpreted these empirical results.In Chapter Seven, through deductive reasoning and countermeasure research, we presented some suggestions about optimizing China's finance system supporting for scientific and technological innovation.Finally, we summarized the main conclusions and proposed the further research fields.