Financial Mismatch And Corporate Technical Innovation

Manufacturing is the main body of the real economy and is the main driving force for economic growth in China.Technological innovation is the fundamental driving force for the transformation,upgrading,and leaping development of the manufacturing industry during the transition period.The key factor of technological innovation is the input of factors.As a special social resource,finance itself is also a means of resource allocation.It plays a crucial role in the supply of factors for technological innovation of enterprises.In China,the current manufacturing industry urgently needs to seek transformation and upgrading through innovation.Under the condition that the financial system is not yet mature,it is of great significance to understand the impact of financial mismatch on the innovation of manufacturing companies.This article theoretically discusses the relationship between financial resource allocation and enterprise technology innovation.Based on this,the paper establish a vendor innovation model with financial mismatch.And in the premise of the special institutional system in China,the impact of government intervention cannot be ignored.Thus we also introduce government subsidies and administrative interventions into the model for research.The result shows that the mismatch of financial resources inhibits the innovation of manufacturing enterprises.While the impact of government intervention is complex and depends on the direct effect of government intervention on the firm and its indirect effect on the firm through the allocation of financial resources,both of which are often counterproductive.That is to say,financial misallocation would weaken the impact of government intervention on business innovation.This paper uses the micro-data of listed manufacturing companies from 2010 to 2016 to test and verify the above conclusions,also we find that non-state-owned enterprises and technology-intensive industries have a higher intensity of research and development.Finally,by combining the current situation of China's financial resources mismatch and manufacturing technology innovation as well as the research results,this paper points out that establish market-based,government-assisted financial resources allocation mechanism,vigorously develop small and medium-sized financial institutions and establish a multi-level financial services market,optimize financial subsidies,reduce administrative barriers to entry,and increase the allocation of financial resources and government subsidies to technology-intensive industries and private enterprises,and reform competitive state-owned enterprise industry will help promote corporate innovation.