Effectof Sci-Tech Finance Promoting Technological Innovation

Eighteen report clearly presented that by the implementation of innovative development strategies, we should improve the level of scientific research and conversion capabilities, and seize the high ground of technology development strategy, emphasizing technological innovation and strategic support to improve the social productive forces and overall national strength, and it must be placed at the core of the overall national development location. Science and technology enterprises, as an important carrier of technological innovation, play a pivotal role in enhancing a country’s economic and social development. Due to the lack of effective science and technology enterprise it guarantee the existence of a number of factors and uncertainties series of risk determines the technological innovation environment science and technology enterprises in technological innovation process to obtain external financing difficulties, it is difficult to meet the financial needs of large funding gap.At this time, the emergence of the financial system of science and technology consist of the financial intermediaries and the financial markets provide external support for science and technology enterprises, to provide financing for high-tech enterprises, to spread the risk, so you can rely on science and technology enterprises to acquire exogenous financing technology innovation Fund. The financial system of science and technology makes science and technology enterprises bring excess profits access to technology innovation, and the capital value has been reflected. But a lot of technological imperfections still exist in the financial system, forming a certain obstacles when we carry out technical innovation activities. So, how to build a reasonable and effective technology financial system to promote technological innovation is the problem that the academic has been exploring. Research on the financial role in promoting technological innovation of science and technology, the lack of technology to explore the existence of the financial system, and propose appropriate measures to improve on the allocation of financial resources to enhance the technological capabilities and promote technological innovation and science and technology enterprises in order to continue to provide for the country’s economic growth power, which has important practical significance.This paper is divided into two parts: the first part is the analysis of science and technology to achieve the financial mechanism to promote technological innovation, which is the theoretical basis of the whole paper. The theoretical analysis of the financial, technological and financial systems technology concepts were defined, and summed up the technology finance three characteristics: financing, targeted and income uncertainty. These three characteristics of science and technology laid the appropriate foundation for the four internal mechanism of the later financial promotion of technological innovation.In empirical terms, the paper selected following data during 1993 – 2012 in "China Statistical Yearbook of Science and Technology" : "Patent application for authorization of Jiangsu Province(PATENT)"; "The amount of technology market traded contract of Jiangsu Province(DEAL1)"; " The number of technology market traded contract of Jiangsu Province(DEAL2)"; "The total number of papers in Jiangsu Province included in foreign main search tools(PAPER)" and "the high-tech industry output(OUTPUT)" announced on statistical technological Bulletin of Jiangsu Province. These five indicators considered as indicators of technological innovation. Select long-term loans of financial institutions in Jiangsu Province, the financing amount of corporate securities market and the amount of Local government funding as Sci-Tech financial system index. In this paper, the empirical analysis rounds, in view of the large amount of technological innovation indicators, the analysis would be very prolix. First, we select two representative indicators of technological innovation through principal component analysis. And then we use vector auto regression model to analyze during technology innovation, which role Sci-Tech finance play in. The empirical conclusion provides practical guidance in perfecting Jiangsu Science and Technology of the financial system and promoting the technological innovation. In addition,based on Romer endogenous growth model, we added a fourth division- the financial sector, obtaining that science and technology enterprises technological innovation efficiency would increased with the increased proportion of investment funds in the conversion of idle funds to finance of the technological innovation, confirmed the promotion of technological innovation and technology finance for later analysis provides a theoretical basis.In order to give full play to the role of science and technology financial body in the process of technological innovation, Jiangsu Science and Technology for financial support for technological innovation status and empirical conclusions reflected in the financial system’s technological deficiencies, the last part of the article is to propose appropriate measures for problems in Sci-Tech financial system.