Effect Of Sci-Tech Finance On Technological Innovation Of Industries

From last century, technological innovation can promote economical growth has been demonstrated by theoretical research. In recent years, developed countries have invested a lot of manpower and material resources into high-tech sectors and launched a fierce competition related with technological innovation. But, as the main resource of technological innovation, high-tech industries often face financial bottlenecks because of the high investment, high risk of the R&D activities and information asymmetry. This phenomenon is detrimental to the development of technology and economy for a country. However, sci-tech finance can effectively support the R&D activities of high-tech industries. Doing research about the effect of sci-tech finance on technological innovation of high-tech industries is meaningful.In the part of theoretical analysis, this paper makes the microscopic analysis of the support mechanism of financial system on technological innovation and acquirement of technological innovation for financial support in different stages. In the part of descriptive analysis, this paper elaborates the current situation of technological innovation of China’s high-tech industries and sci-tech financial system through exposing rich charts. At the same time, this paper also analyses the existing deficiencies. In the part of empirical research, this paper uses a theoretical model framework which includes corporate, government, financial institutions and capital markets to research the effect of sci-tech finance on technological innovation in different stages. This paper also uses this theoretical model framework to analyze investment performance of public sci-tech finance and market sci-tech finance. The paper selects panel data of24provinces、municipalities and autonomous regions from2000to2008as the sample, uses R&D internal expenditures(RDEX)、 number of the patents granted(PAT) and the output value of new products(NEPR)、turnover of technical market(TECM) and export sales revenue of new products(NEEX) to measure the situation of three stages ("input"."output"、"marketization of R&D fruits"), uses profits(PRO) and tax(TAX) to measure the investment performance of market sci-tech finance and public sci-tech finance, uses input of high-tech industries(BUSN)、input of government and relevant departments(GOV)、loan of science and technology(FIIN) and capital market of science and technology(CAPM) to measure the level of sci-tech financial system, uses input of manpower(LAB)、foreign investment(FORIN)、input of purchasing and upgrading technology(TECUP)、level of market competition(MCOM) and the scale of corporation(SCALE) as control variables.There are two main research conclusions of this paper. First, bodies of sci-tech financial system make different effect on technological innovation in different stages, and for now, China’s sci-tech financial system is still inadequate. BUSN can significantly promote technological innovation in the stage of "input" and "output"; GOV can significantly promote technological innovation in the stage of "input"; FIIN can significantly promote technological innovation in the stage of "input", but it restrains technological innovation in the stage of "output"; CAPM restrains technological innovation to some extent. Second, the investment performance of bodies of China’s sci-tech financial system is not satisfactory. BUSN, GOV, FIIN and CAPM cannot significantly promote the growth of profits and tax.