A Study On Influence Of Financial Service Sector Openness On Manufacturing Enterprise Technology Innovation

Technological innovation is a powerful guarantee for the core competence of modern enterprises.As the main part of market economy,in the fast changing business environment,technological innovation is an effective means for enterprises to take the initiative and keep their competitiveness when facing the cruel market competition.The development of enterprise's technological innovation activities can not be separated from the support of funds,human capital and other resources,after openness,the financial services sector can provide support for enterprise technology innovation by providing quality financial services and external financing convenience,although the financial services sector openness is increasing,but still faces a lot of restrictions.It is necessary and meaningful to pay attention to the influence of the financial services sector openness on the enterprises technological innovation activities and to clarify the relationship between the two.Based on the combination of theoretical analysis and empirical analysis,this paper focuses on manufacturing enterprises and systematically studies the relationship between the financial services sector openness and technological innovation.Through theoretical analysis,we firstly review the conduction mechanism of the effect of financial services sector openness on technological innovation in manufacturing enterprises:firstly,as one of the intermediate inputs to the manufacturing industry,the introduction of advanced open service providers would reduce the production cost and ensure the enterprise innovation investment;secondly,competition among the financial services sector has improved the financing environment of domestic enterprises and reduced the cost of capital using,so as to promote the manufacturing enterprise technological innovation activities.On the basis of theoretical analysis,this paper use the World Bank Micro-Enterprise Survey Database,Service Trade Restrictions Database(STRI)and the World Development Indicators Database(WDI),using linear regression,quantile regression and instrumental variable regression estimation method,we analyse the influence of the financial services sector openness on the manufacturing enterprise technology innovation activities.The research shows that the opening of financial services sector promotes technological innovation in manufacturing enterprises,and this promotion exists among firms with different technological innovation intensity.Considering the characteristics of the industry,we found that the innovation activities of enterprises with high external dependence financing are influenced futher by the financial services sector openness,further opening on the financial services sector will better promote the innovation activities of enterprises.