The Mechanism Of Financial Development On Independent Innovation

Development of financial systems inevitably penetrate into the process of independent innovation. Improve the technological innovation capability is not only a response to the current unstable emergency international economic situation, but also the transformation of the mode of economic growth in China's internal needs.China needs to independent innovation as growth driving force, in the process of the transformation of economic growth, improve the quality of economic growth so as to realize the sustainable development of the economy. The key to enhance the capability of independent innovation is increase R & D investment, impacting the financial development. By input-output analysis framework, "There are three aspects by financial development impact independent innovation:first, The interaction between financial deepening and R & D intensity are mutual influence; second, The interaction between independent innovation output and financial development measured by FIR and capital loan-to-deposit ratio; third, The interaction among digestion and absorption level?financial development?independent innovation.digestion and absorption capacity come from FDI Technology Spillover, improve the region independent innovation capability. Above describing China's financial development impacting independent innovation, three facts constitute a logical starting point and the subject of this paper.From independent innovation input perspective. We analyze the mechanism of Financial development impact R & D intensity based on existing research results. Than, R&D intensity measure innovation independent, and the index of the financial institutions lending flows to non-state-owned enterprises of the amount to GDP measure financial development, using panel VAR mode make empirical test showed a lag 2 financial development significant promote R&D intensity.From independent innovation output perspective. First, we build theoretical model combining financial development and independent innovation production function, the model characterize the effect of financial development of independent innovation output. second, we design financial structure indicators?financial government credit intervention indicators?financial regulation indicators and financial openness indicators to measure the regional financial development, use system GMM empirical method analysis impact of financial development to independent innovation output, and make financial development DUMMY variable to mdependent innovation production model to make comparative study among regions. Empirical studies showed. (1) Financial development significant advanced eastern?central and western areas technological innovation, and promote capacity among areas significant difference, Financial structure significantly enhanced technological innovation in the eastern and western regions; (2) Government credit interventions improve technological innovation, especially eastern and western regions', while Overall level of technological innovation of the central region is not a significant negative impact on central region; (3) there are significant impact on financial regulation to regional technological innovation, the extent of the financial regulatory significantly improve the level of technological innovation of the eastern region, and inhibit western region'; (4)The level of region openness promote technological innovation of the three regions, especially in western region There is a significant difference impact on financial development to R & D capital stock and human capital stock.How to enhance independent innovation level through digestion and absorption in certain c financial development? First, building the model combines financial development, digestion and absorption, independent innovation, analyze the relationship among these and lead to propositions. Second, using provincial panel data for empirical analysis. It's showed:Financial development and FDI has significant role in promoting R&D investment. FDI increasing not only R&D investment but also China's scientific and technological private investment. While, financial development limited influence of FDI to R&D investment, resulting in the situation can be attributed to:(1) At present, China's low financial development level and financial system efficiency, both lags behind the introduction of the scale of FDI, resulting distortions in the credit structure, the loan funds set to invest in state-owned enterprises, making the more difficult non-state-owned enterprises funding from die formal financial markets; (2) FDI in R&D investment behavior through financial markets to produce, the degree of financial development reaches a certain level, the requirements of the "threshold effect" whereby the degree of financial development, financial development above the threshold FDI inflows will promote the regional scientific and technological increase in R & D investment, while financial development below the threshold FDI inflows will inhibit the increase in science and technology R & D investment in the region. There are significant regional differences of financial development and FDI impact R&D investment, significantly less than the impact of financial development on the eastern part of the Midwest, because eastern" financial development higher than other, most of the provinces has crossed the threshold of FDI play an active role, with the FDI absorption overflow, and a good basis for independent innovation FDI inflows gradually promote to improve the formation of the market mechanism to speed up the process of market-oriented, the level of financial development is the gradual accumulation of human capital, the role of science and technology R&D investment has become increasingly evident.Last, making the compare analysis the current development status of China and similar countries. First, establishing a theoretical analysis model of how technological innovation and financial development create continued momentum of economic growth, then using cross-country data by successful economies and unsuccessful economies,empirical study the performance characteristics and differences of technological innovation and financial development across the middle-income stage, and compared with the situation in China, Showed that, key factor to technological innovation-driven economies drive from factor accumulation are technological innovation and financial development, while Economies of China and unsuccessful' economic growth more dependent on knowledge of the cutting edge of technology diffusion, and successful addition to the previous need to rely on the capability of independent innovation, economies success is driven from the factor accumulation transferred to the key factors driving technological innovation. Using quintile mode Metrology and Inspection influence on financial development and technological innovation in economic growth, according to measurement results, we divided technological innovation into technological innovation diffusion of knowledge, knowledge utilization, independent innovation three stages, the technological innovation role in the different stages of economic development stages. Knowledge diffusion and knowledge utilization driving the unsuccessful status economic growth, independent innovation play significant positive role in success economic growth process.This paper reviews the positive and negative effect of the financial development on independent innovation through the above four study. Our conclusion is that, financial development has played a catalytic role on innovation, but the role in promoting the existence of regional differences and threshold effect. In the future, contributing to the need to further strengthen the supporting role of financial development in independent innovation deepen the reform of the financial system financial and capital market-oriented role, optimizing the financial system and then fully extend and enhance the independent innovation of financial support.