Regional Financial Development And Technological Innovation

Since the implementation of the reform and opening up policy,China's economic development level has been rapidly improved,and the economy has jumped to the second place in the world.However,With the scale of China's economy continuous improvement,the extensive economic growth that relied on substantial investment in physical capital and the use of cheap labor has been difficult to continue.China is facing increasingly serious resource constraints and problems such as the increase in labor costs,which have forced China to change its original economic development model and seek new economic growth drivers.As the core driving force of a country's economic development,technological innovation is a key factor in China's transformation of its economic development model.Therefore,only by continuously improving China's technological innovation capability can we achieve the continuous growth of our economy.In the current international environment of trade protectionism and trade wars initiated by the United States,China urgently needs to continuously improve its core technological innovation capabilities and build its core leadership capabilities and competitiveness.Only in this way can we better protect the legitimate rights and interests of the country from infringement and achieve the strength of the country.This paper analyzes and summarizes relevant research literatures,and uses the economic data of 30 provinces in China from 2000 to 2015 as research samples to conduct empirical research.This paper first studies the correlation between regional financial development and technological innovation,and secondly studies the role of intellectual property protection as a regulatory variable in regulating the relationship between regional financial development and technological innovation.This paper measures financial development from the perspectives of banks and stock markets,and measures technological innovation from three perspectives: R&D investment,patent application and patent authorization.Considering the difference in risk and future benefits of technological innovations with different technical content,this paper divides them into three types,namely high-level technological innovation,medium-level technological innovation and low-level technological innovation,to further carry out empirical research.The following research conclusions were obtained through empirical tests:(1)There is a significant positive correlation between bank development and technological innovation measured by R&D investment,patent application and patent authorization.This shows that in terms of the impact on technological innovation,banks' functions in providing funds,reducing risks and accessing information can have a beneficial effect.Further empirical research found that the correlation between bank development and different levels of technological innovation is significant positive,indicating that although different levels of technological innovation vary greatly in terms of risks and benefits,bank development have the same effect.(2)There is a significant positive correlation between stock market development and technological innovations measured by R&D investment,patent application and patent authorization.It shows that the impact of the stock market on providing direct financing,diversifying risks and information disclosure systems can have a positive and beneficial impact on technological innovation.There is a significant positive correlation between the development of the stock market and high-level and medium-level technological innovations,but the correlation between stock market development and low-level technological innovations is not significant,indicating that the development of the stock market is more beneficial to the improvement of higher-level technological innovation.(3)There is a significant positive correlation between the interaction of intellectual property protection and bank development and technological innovation measured by R&D investment,patent application and patent authorization,indicating that intellectual property protection has a positive regulatory effect and helps to strengthen the relationship between bank development and technological innovation.At the same time,there is a significant positive correlation between the interaction term and different levels of technological innovation,indicating that intellectual property protection also has a positive regulatory effect.Under the strong level of intellectual property protection,bank development will have a stronger role in promoting high-level,medium-level and low-level technological innovations.(4)There is a significant positive correlation between the interaction of intellectual property protection and stock market development and technological innovations measured by R&D investment,patent application and patent authorization,indicating that intellectual property protection has a positive regulatory effect and helps to strengthen the relationship between stock market development and technological innovation.The interaction term has a significant positive correlation with high-level and medium-level technological innovations,indicating that intellectual property protection has a positive regulatory effect and strengthens the effect of the stock market.The correlation between the interaction and low-level technological innovation is not significant,indicating that intellectual property protection has not produced significant regulatory effects,and the effects of the stock market have not been affected.The research conclusions of this paper expand the current research perspective,and also meet the theme of the innovationdriven development strategy proposed by China.