Research On The Effect Of China's Finance Policy For Science And Technology Under Innovation Driven Development Strategy

Research on the Effect of China's Finance Policy for Science and Technology under Innovation Driven Development StrategyIn the seventh meeting of central financial work leading group in 2014,President Xi Jinping proposed that the implementation of innovation driven development strategy should focus on scientific and technological innovation,and make independent innovation to be the prime power of building an innovative country.And with the issue of related documents,such as “The Notice On The Determination Of The First Batch Of Pilot Areas Of Promoting The Combination Of Technology And Finance”,“Several Opinions On Accelerating The Combination Of Technology And Finance ” and etc.,the state pays more attention to the impetus role of Sci-Tech Finance to technological innovation.Sci-Tech finance,also called finance policy for science and technology,is the general term of a series of policies and institutions,which specify how to use finance to push the technological innovation and high-tech transformation.Nowadays,due to their small size and high risk,technology enterprises have difficulties in financing.Hence,the research on the finance policy for science and technology has significance for both the practical and theoretical sides.Based on the relevant research of domestic and foreign scholars,this paper mainly studies the impact of China's finance policy for science and technology and capital investment on technological innovation from two aspects,government orientation and market orientation.First,in the analysis of the current situation,the investment is increasing from both the government side and market side,but there is a big gap between different regions.In the next part,this paper analyzes the policy input and capital input.Based on differences-in-differences model,we find out that,on the whole,the effect of the policy is not obvious,but only in terms of east region,due to its better economic environment and policy environment of the eastern region than other regions,the investment policy for the eastern region promotion effect is significant.Thirdly,the panel analysis of different types of enterprises in different regions shows that,enterprises have varied characteristics for both of different regions and different types.Specially,market oriented science and technology financial investment in the eastern and central regions enterprises and state-owned enterprises are effective,and the government oriented financial investment in science and technology funds displays effect for the foreign firms in the western regions.Consider the above results,the increases in fiscal investment in science and technology and in construction of the platforms for innovations are suggesting for the government-oriented side,and the enrichment of technological loan means and capital market is recommended for the market-oriented side.