The Active Effect Of Financial Development On Technology Innovation

With the development of social economy, technology innovation turns to be the key factor of enterprise development and economic growth. Since Schumpeter emphasized the importance of finance support to innovation in "Theory of Economic development", more and more theory about financial development and technology innovation came up. According to the theory of financial development, the financial system can promote technology innovation by offering payment service, saving service, resource allocation service, risk management service, providing information and supervision service to enterprises and individuals. China's economy has developed so fast after Reform and Opening. But if we look back to the path, we will find that the success comes from extensive way that a large amount of input and wastage with relative small output. However, as a developing country with many people and limited resource, China should not go on developing in such cost way. As a result, the government puts forward innovation stratagem, in order to enhance technology innovation ability, mend upgrade pace of industry, finally change the way of development. Under this economic background, the research on the active effect of financial development on technology innovation is significant, which is useful for financial system to fasten the step of reformation of financial system, improve the financing environment, and giver better service to technology innovation and economic development.The main contents of this paper are as follows:First, we review the theory and empirical research of financial development promotes technique innovation, illuminate the necessary of the research and introduce the frame.Second, we analyze the promotion mechanism, mode of technology innovation and financial system, and the impact between different modes of financial system and technology innovation. Third, we describe the state of China financial system and technology, and analyze the impact of financial system on technology innovation. Then, we build a panel data model based on Multivariate Driving Theory of technology innovation. By model building and regression test, it is seen that financial development can promote technology innovation in some aspect, and the efficiency of the promotion increased. Conclusions as that:The scale of financial system has significant positive effects to technology innovation, while the structure and active degree have not. The increased efficiency of the promotion mainly comes from the technical progress of financial system, whose management and scale efficiency are decreased in the same time.Finally, this paper put forward some suggestions on the development of financial system.