The Impact Of Government Intervention And Finance Development On Innovation-driven Efficiency

Rapid emerging of the science and technology industry based on knowledge marks that economic development is gradually changing from traditional factors-driven growth and investment-driven growth to innovation-driven growth. The eighteenth CPC meeting has considered innovation-driven development as national development strategy. As an important economic sector of macro-control, government plays an unignorable role on scientific and technological innovation and the improvement of production efficiency. Government participate in innovation activities contribute to eliminate the market failure and promote scientific and technological development more effectively. Meanwhile, scientific and technology innovation with the characteristics of high input, high risk and high return cannot go without finance. Perfect function, high efficiency and stability of the financial system can guarantee the achievement of scientific & technology innovation. Under this background, this study adopts demonstration and theoretical analysis to look at and appraise the impact of government intervention and finance development on the innovation-driven efficiency. As for the concept, this study clearly illustrates the meaning and characteristics of innovation-driven efficiency and the measurement Formula is deduced. As for theory analysis, this study firstly demonstrate that the government behaviors affect innovation-driven efficiency by three paths of supporting, leading and protection, and finance development influences innovation-driven efficiency from four aspects of financial scale, financial depth, financial deregulation, financial structure. Secondly this paper establishes financial development function with the parameter of the government effect and separate TFP to two parts of the technical development level and the efficiency of resource allocation to analyze synergy effect of government behavior and financial development on innovation-driven efficiency. As for empirical research, this paper establish beyond logarithmic production function with the help of software Frontier 4.1 to calculate TFP and innovation-driven efficiency, then creat comprehensive evaluation index system of government intervention and finance development to synthesize government behavior indices and financial development index. Finally this paper empirically test the conclusion by regression analysis of government intervention finance development and innovation-driven efficiency.