Multi-level Capital Market And Technological Innovation

Technological innovation is a long process with uncertainty and high risk for enterprises, which need a lot of capital. In China, Endogenous capital of medium and small enterprises cannot satisfy technological innovation, so external capital resources from multilevel capital market could solve the money problem. However, relatively immature multilevel capital market cannot help enterprises a lot.In recently years, the competition of technological innovation is fierce around the world. German advanced Industry 4.0, which focus on Smart Factory, EU brought out Innovation European Establishment conception, the States introduced Internet Plant conception, and other countries also are planning innovation blueprints. Since the 18 th National People’s Congress, China Government announced to support multi-level capital market for medium and small firms’ innovation. Based on multilevel capital market development and technological innovation theories at home and aboard, the paper made a comparison of China and developed countries on multilevel capital market and technological innovation current situation, studies the influence of multi-level capital market on technological innovation. Except Main Board Market, Small and Medium Board Market and Second-board Market, New Three Board has been gradually active in enterprises. Based on Reality, this paper analyzed how New Three Board works on small and medium high-tech enterprises. Lastly this paper made accommodations on how to develop multilevel innovation to improve technological innovation.Firstly, this paper defined the conception of multi-level capital market and technological innovation by theory analysis, and analyzed their relationship. Then compared China and developed countries on such topic by statistical description. Thirdly,this paper analyzed empirically the relationship between multi-level capital market and technological innovation. Lastly, the paper states multi-level capital market structure,weakness and future prospect and some positive ideas.Because small and medium board market was established in 2004,the empirical analysis used cross-sectional regression to study multilevel market and technological innovation of 31 provinces from 2004-2013.As multi-level capital market development is policy-oriented and complicated, it need more information, especially about data, to studyintensively.