Research On The Impact Of Financial Development On Regional Innovation Capability

Along with our country economy into the original model of economic development,the new normal has been unable to continue to support China's sustained economic development,regional innovation has gradually become the core power in the process of economic development,through the "rejuvenating,talent","public business,the new" policy support,the level of China's regional innovation capability has been greatly promoted in recent years.However,as a whole,the regional innovation ability of our country is still low,and there is a big gap between the regional innovation ability in different area.Firstly,the concepts of regional innovation capability and financial development are defined,and the existing literature is summarized as the logical starting point of this paper.Based on the related literature,combined with the characteristics of innovation activities,this paper analyzes the impact mechanism of financial development on regional innovation capability,and establishes three regression equations to measure the impact of financial development on regional innovation capability.Subsequently,the panel data from 1998 to2016 in 30 provinces(municipalities and autonomous regions)are taken research samples.and regression analysis are done by random effects and fixed effects.Based on the regression analysis of the sample data on the national level or the regional level which are the east,the middle and the west regions respectively,we come to he following conclusions.(1)expanding the scale of financial development at the national level,the eastern and central regions plays a significant role in promoting regional innovation capability,but this effect is not obvious in the western region.(2)at the national level and the district to deposit loan ratio as a proxy for financial development to enhance the efficiency of the regional innovation ability did not have a significant role in promoting,but in non state-owned enterprises loans as a proxy for financial development efficiency of regional innovation ability has a significant role in promoting.(3)the role of the changes in the financial development structure at the national level and in each region is not significant to the promotion of regional innovation.However,this paper does not suggest that the capital market does not Influence the promotion of regional innovation capability.(4)overall,the level of financial development in the western region does not play a positive role in promoting the regional innovation capability,indicating that there is a strong regional difference in the impact of financial development on regional innovation capability.Finally,this paper puts forward relevant policy suggestions on the impact of financial development on regional innovation capacity and the differences between regions in the national and regional levels.