Research On The Relationship Between The Financial Development And The Technology Innovation

Both technology innovation and development are eternal themes.How to build an effective and stable financial system to support technology innovation and the development of modern economy has become an important subject throughout the world. In this paper, the relationship between financial development and technology innovation has been deeply analyzed. There comes a conclusion that modern financial system takes great influence on technology innovation by providing risk management service, paying and saving service, resources allocated service, information service and so on. During the process of promoting the development of Chinese economy and society, we must combine the development of finance with the technology innovation in order to provide more effective support in the product structure, construction of institution and working system. Besides, this paper gives some suggestion about how to build an effective and stable financial system based on the explanation about internal relationship between the finance development and technology innovation.This paper is divided into five parts. The first part is about the theory of technology innovation and the development of the financial system,the shinning part and default of this paper. The second part is mainly about the function system between the finance system and technology innovation. The third part is about the financial and technology innovation situation of our country by applying some practical data. The fourth part is an empirical research based on time series data of our country from 1987 to 2008. The last part is about some conclusion and suggestion of building an efficient financial system.The innovative aspect of this paper is combing the research of development of financial system and technology innovation and putting forward an insight of the process of function system based on the theory of financial development and doing an empirical research.