Financial Pressure And Regional Innovation

At present,China's economic development model has been transformed from a catch-up model to an innovation-driven model.Local governments are the main force in the implementation of innovation-driven strategy and play an important role in the process of cultivating and improving regional innovation capacity.Under the state of financial pressure,the behavior of local government will obviously affect the improvement of regional innovation ability.Under the background of fiscal decentralization,local government constantly turned over to the "financial",and"governance" is growing,the local government is facing a certain financial pressure,at the same time,local governments in the face of "political tournament" competitive pressure,the local government will by adjusting the local financial expenditure structure as well as intervention credit resources to ease the financial pressure.Therefore,on the basis of theoretical analysis,this paper first used the sample data of prefecture-level cities from 2002 to 2015 to measure the financial pressure of local governments by the ratio of budgetary fiscal expenditure to fiscal revenue,and used the fixed panel effect regression method to empirically investigate the impact of financial pressure on regional innovation ability.This paper further considers the possible endogenous problems of financial pressure indicators and the possible impact of the financial crisis in 2008 and the reform of domestic and foreign enterprises after 2008.Based on the panel data of prefecture-level cities from 2002 to 2007,this paper tries to use the abolition of agricultural tax in 2005 as a quasi-experiment to study the influence of financial pressure of prefecture-level city governments on regional innovation ability,and analyzes its mechanism.Results show that the fiscal pressure inhibition of regional innovation ability raise,from the point of mechanism,on the one hand,the local government fiscal pressure shock,can lead to negative preference of local government in technology spending,leads to lack of support for innovation,thus affecting regional innovation level,on the other hand,local governments will intervene in the financial credit resources,market distortions caused by capital elements,and lead to innovation capital inputs,which affect the level of regional innovation.In addition,this paper also conducted a series of robustness tests to demonstrate the core conclusions,such as regionalization,replacement of financial pressure impact indicators,etc.,and the results were very robust.