Financial Development Supports Empirical Research On Technological Innovation In Enterprises

With the development of global knowledge economy.innovation and technological progress has become the necessary strategic measures to achieve the economy structure transformation and upgrading.Enterprises listed on the growth enterprise market(GEM) is the main active part of technological innovation.Its innovation activities play a significant role in optimizing the structure of economic growth.grabbing the commanding heights of science and technological industries,as well as enhancing national comprehensive competitiveness.Technological innovation has high risk and need a large amount of capital.Innovation companies face serious financing constrains,which hold back the enterprise innovation ability.Financial development has made some efforts in supporting the technological innovation,but turn out to be ineffective.During the particular period of economy slowdown and financial market volatility,there are new requirements and challenges towards financial development in supporting enterprise innovation.This paper tries to explore the financial development in supporting enterprise technological innovation from the perspective of financing constraint,focusing on the alleviation effects varies different enterprises and financing constraint problems at different phases of technological innovation.Namely examine the mechanism of financial development to technological innovation from the view of firm characteristics and innovation phases.Making a literature review of domestic and overseas,this article find that there lacks quantitative research on financial development mitigating financial constrain.Besides,the conclusion on the ease of financial constrain impacts innovation is inconsistent.Firstly,this paper deeply analyzes the the mechanism of financial development to technological innovation,Secondly, revealing the present situation of innovative financing and the effect of financial development on enterprise technological innovation,Finally,doing empirical research on differences of financial development in alleviating financing constraints with regard to enterprise characteristics by using the sample of high-tech enterprises listed on GEM from 2008 to 2013.And building the financing constraint index to test the financing constraint impacts on technological innovation at different phases.The results show that:(1) banking growth and GEM development did not significantly reduce financing constraint of high-tech enterprises,and even has certain inhibition.The negative effect is greater for larger companies; (2) the development of risk investment in a certain extent can ease financing constraint, especially for younger enterprises; (3) mitigation of financing constraint has promoted enterprises' technological innovation, thus increased the intensity of R&D investment and patent application. The effect is more remarkable on the second phase of technological innovation-patent application.This research enriches the empirical studies of financial development and enterprise technological innovation, and clarifies the mechanism of financial development affect enterprise technological innovation.Moreover,this article provides a new perspective of financial development influences technological innovation from firm characteristics and innovation phases.Therefore,making a complement of related research on finance and technology. Based on the conclusions, this paper provides the feasible references for enterprises to broaden their financing channels, financial system to improve financial functions,and government ought to make efforts to support the enterprise technological innovation. provides the feasible reference.