The Research On Sci-Tech Finance Co-agglomeration

The science and technology is the primary productive force,finance is the core of modern economy.The combination of science&technology(herein after as Sci-Tech)and finance,plays a positive role in promoting the development of independent innovation,cultivating Sci-Tech enterprises.To promote the combination of science and technology is the major strategic deployment of the CPC central committee and the state council,is the major way to deepen the reform of the Sci-Tech system and to realize the innovation-driven development.The 18th CPPCC report puts forward the strategy of "innovation-driven" development.The core of building an innovative country is to enhance the independent innovation ability as the base point of the development of science and technology so as to promote the leap-forward development of science and technology.Sci-Tech innovation needs the support of financial innovation,and vice versa,the stable development of financial industry also needs the support of Sci-Tech innovation and emerging industries.The combination of Sci-Tech and finance plays a decisive role to promote regional economic growth.The research on the corelations between Sci-Tech and finance is born and develops under such background.The current studies mainly focus on the meanings of Sci-Tech and finance,their mechanism innovations and the effects they have on each other.Seldom have research been done in the perspective of the co-agglomeration of the two.Besides,most of the existing study on the financial system and Sci-Tech industry are qualitative or semi-quantitative.The lack of scientific and rigorous reasoning process leaves a vacuum in the construction of financial evaluation system of Sci-Tech research.The purpose of this study is to focus on the factual basis of the current practices of Sci-Tech Finance,and to deeply analyze mechanisms of co-agglomeration of Sci-Tech Finance.It also attempts to apply the data of China's 31 provinces,cities and autonomous regions from 2004 to 2012 in empirical test:on the one hand,to explore the factors affecting the development of financial industry and Sci-Tech industry;on the other hand,the paper studies the degree of effect the coordinated development of regional financial and technology has on the development of related industries.The innovation of this paper is,for the first time,with the aid of analysis framework of new economic geography,from the viewpoint of industrial agglomeration,to study the coordination of the financial industry and technology industry;and to construct an index system of Sci-Tech Finance co-agglomeration evaluation system as the evaluation system of the combination of finance and Sci-Tech industries.The research methods of the paper include theoretical analysis and empirical analysis.The paper attempts to explore the financial industry and science and technology industry co-agglomeration through literature review,mechanism analysis,index measurement and empirical analysis.In the theoretical analysis,the paper draws lessons from the classic vertical correlation model of the new economic geography,and tries to apply the mathematical model to deduce the Sci-Tech Finance.And on this basis,combining with the reality,from the four perspectives of the industry associations,knowledge spillover,spatial interaction and mechanisms to explain analysis system factors.And comprehensive conjecture is proposed and verified.In the empirical analysis,the study collects 2004-2012 panel data of 31 provinces,cities and autonomous regions in China.The paper first uses the spatial error model to analyze the factors affecting Sci-Tech Finance co-agglomeration,proving the theoretical model aforementioned;Secondly,the paper constructs an index system of the relations between Sci-Tech Finance co-agglomeration and local economic growth,and applies grey correlation model to prove the linkage effects of the two;lastly,the paper tackles the effects the co-agglomeration has on sci-tech industries and the financial industry by econometric regression.The results show that:(1)The forward-backward linkages of the Sci-Tech industry and the financial industry,knowledge spillover,spacial interaction and government policy have a positive effect on the Sci-Tech Finance co-agglomeration,but in various degrees,with government policy having the biggest effect.(2)Banking industry-sci-tech industry co-agglomeration index sees the highest linkage with local economic growth,insurance industry—sci-tech industry co-agglomeration index comes the second,and other financial industries-sci-tech industry co-agglomeration index comes the third.Securities industry-sci-tech industry co-agglomeration index is the least linked with local economic growth.(3)The Sci-Tech Finance co-agglomeration will promote the development of sci-tech industry and the financial industry significantly;1.0%increase of the Sci-Tech Finance co-agglomeration index will lead to 3.3%increase in the added value of the technology industry per capita,and 1.8%increase in the added value of the financial industry per capita.The paper is based on the spatial economic geography research paradigm and tries to understand Sci-Tech Finance from the perspective of co-agglomeration of financial industries and sci-tech industries.The empirical analysis of different parts of the data also provides a useful supplement to research on the relationship between science and technology and finance,and can also be used financial advice to guide the current practice of science and technology.With all that being said,there still are certain limitations to this study,and research will continue in future studies.