Study On The Effect Of China's Banking Market Structure On The Enterprise Technology Innovation

After 30 years of reform,the financial system in China has achieved remarkable results.So bank market structure has also changed,such as the increase of amount of small and medium-sized banks,the enhancement of domestic banking market competition level and the change of financial resources distribution.On the other hand,with the deepening of economic reforms,our country's economy becomes new normal.According to the new economic growth theory,technological progress is the source of economic growth and relies on enterprise' R&D capital investment.However,compared with developed countries,our country enterprise's R&D input intensity is low.Because financing constraints is the main difficult problem which enterprise engaged in technical innovation.There are "ownership discrimination" and"scale discrimination"about our country banks lending to the private,small and medium-sized enterprise.Financing constraints and the sensitivity of the external financing environment by different types of enterprise' R&D is bound to have significant difference.To build an innovative country,we must solve the problem of financing constraints faced by enterprise' technology innovation.In theory aspect,this article first analyzes the banking market structure,enterprise technology innovation and mechanism of them and draw a competitive conclusion that banking market structure promotes enterprise technolgy innovation by alleviating financing constraints.In terms of the status quo,the paper adopts CR and HHI index to analyze the current situation of the Chinese banking market structure and draws that China's banking competition degree is gradually enhanced.Then by analyzing the input and output of our country enterprise technological innovation,financing channel and efficiency and draws that subjectivity of China's private enterprises,small and medium-sized enterprise technology innovation enhanced gradually,but still faces major financing constraints.In the final,the paper analyses the bank market structure supports the status of enterprise technology innovation,it is concluded that the bank making loans to small and medium-sized enterprises and private enterprises has increased,but compared with large enterprises,the loan amount of them is still lower than large enterprises.In the empirical aspect,the paper selects PR model to measure the bank market structure in our country and use the fixed effects model to demonstrate if the changes of the Chinese banking market structure contributes to our country enterprise'technology innovation.It studies that first,a competitive banking market structure is beneficial to alleviate the financing constraints of enterprise,thus promoting enterprise technology innovation.Second,assets for the promotion of enterprise technology innovation mainly comes from small and medium-sized enterprises and private enterprises.Third,a competitive banking market structure is conducive to ease the financing constraints of small and medium-sized enterprises and privat enterprises,which benefits the technology innovation of small and medium-sized enterprises and private enterprises.For large enterprises,it has no significant role in promoting the technological innovation of state-owned enterprises.Last,it summarizes the above empirical results,and to provide reasonable suggestions to optimize the China's reform of bank market structure and enterprise technology innovation.