Study On The Impact Of Financial Development On Science And Technology Innovation

Technology and science innovation is an important breakthrough when China aims to implement the innovation driven strategy.As the core of resource allocation,finance plays an irreplaceable role in technological innovation by raising funds and managing risk.With the transition and upgrading of China's economy,financial support for science and technology innovation has become the focus of academic research and the government.Therefore,it is of practical and political values to clarify how financial development affects technological innovation and guide finance to promote technological innovation.Based on the study of relevant literature on finance and technological innovation,we analyzed the mechanism of financial support and established a panel data model according to the datas from 2004 to 2015 in 30 provinces.And from the view of different financial industries-the bank industry,securities industry,insurance industry,we distinguished the two dimensions of scientific innovation and technological innovation.The empirical results show that:(1)The impact of government financial support on scientific innovation is remarkable,but the impact on technological innovation is not sure.Research shows that government support has significantly promoted scientific innovation at the national level and sub regional level,especially for the central and western regions.(2)Banking plays a significant role in promoting technological innovation,but it has a weak impact on scientific innovation.In the national panel data model,under the 5% significant level,the impact of banks is greater than that of other industries.(3)The impact of securities industry on technological innovation is related to its own development level,and has no impact on scientific innovation.The more rapidly the securities industry develops,the better benefits on technological innovation it has.(4)The impact of insurances on scientific innovation and technological innovation is not significant.Compared with banking and securities industry,China's insurance industry has not played a proper role in the development of technological innovation.Finally,based on the empirical results,there are some specific methods to promote the financial support of scientific and technological innovation,such as combining the joint force of the banking financial institutions and securities industry,mobilizing the insurance industry,and innovating the political insurance products.