The Analysis Of The Effects Of Financial Misallocation On Enterprise Technological Innovation

Technological innovation and progress is of great significance to national social economy,which is not only the fundamental impetus of enterprises' development,but also is the motive force source of one country's economic development.Technological innovation have become the oriented of national industrial structure transformation to enhance international competitiveness at macro level.And at the micro level,technological progress can enable enterprises to better develop and make stand out from the competition.Technological innovation needs the support of resources.With the on-going of time,the quality of education in China has been improved a lot;financial resource has become a massive issue.Through analyzing financial market structures and the process of financial resource allocation in China,it finds that misallocation of resources caused by factor markets' distortion has become a major hindrance to enterprise innovation.Thus,how to grasps the relationship between the misallocation of financial resource and technological innovation theoretically and correct misallocation are the key to realize the strategy of innovation-driven development.Based on the above,this paper builds a theoretical model of misallocated resources to analyze theoretical effects of the financial resource misallocation on technological innovation and summarize the impacting mechanism.Using panel data of Chinese provinces and municipalities from 2006 to 2015,this paper calculates financial misallocation index and conducts an empirical research from two aspects,which is general panel model and spatial panel model.The result expresses,provincial financial misallocation significantly inhibit enterprise innovation,which means the greater the degree of financial misallocation and the stronger the inhibition.Besides,it is also observed that financial misallocation is with the character of spatial spillover that the greater the degree of financial misallocation in the adjacent regions and the stronger the inhibition.And at the end of this thesis,put forward the policy recommendations on the improvement of financial misallocation and the development of enterprise innovation based on the reasons of causing and the understanding of the relationship between financial misallocation and technological innovation.