Research On Threshold Effect Of Financial Development Of Technological Innovation In China

Finance is the core of the economy and also plays a very important role in many factors affecting technological innovation.Schumpeter,the pioneer of innovation theory,once pointed out that in innovation activities,the role of the financial system is crucial.Finance promotes technological progress and then has a positive impact on economic growth.Financial intermediary is very important in the process of technological innovation of a country's enterprises.In order to cooperate with the successful implementation of innovation-driven strategy in China,this paper explores how finance should develop to promote innovation to the greatest extent.Firstly,this paper introduces the writing background of the article.Under the new normal economic situation,China puts forward the strategy of innovation-driven.However,there are huge differences in the level of innovation among provinces and municipalities in China,which requires that China's financial development should develop in the direction of maximizing innovation.After reviewing the relevant literature at home and abroad,it is found that most of the studies focus on the impact of Finance on innovation at the national level.In terms of theoretical research,this paper summarizes the concepts of financial development and innovation,introduces the relevant theories of financial development and innovation,further explores the impact of financing constraints and different financial structures on technological innovation,further combs the specific connotation of financial development and the main ways in which financial development may promote innovation,and introduces the threshold effect of financial development,which is analyzed from three perspectives.The formation principle of financial threshold effect in the impact of financial development on innovation.Then this paper explores the current situation of China's financial development and innovation,finds and analyses the threshold effect of financial development scale and the threshold effect of financial development efficiency in the technological innovation of provinces and municipalities in China.Although China's financial development and innovation show an upward trend on the whole,this paper argues that the threshold effect of financial development scale and the threshold effect of financial development efficiency have caused China's provinces and municipalities.There are great differences in technological innovation,especially in the southeastern coastal provinces and cities.Their innovation and financial development are very high,but the central and western regions are relatively poor,and their financial ability to promote innovation is also very limited.Next,this paper establishes the threshold model of financial development based on Hansen's threshold model,and tests the unit root of the selected data.After the unit root test passes,the threshold effect test is carried out.The single threshold effect exists in the impact of the scale of post-development cash financing on innovation,and the double threshold effect exists in the impact of financial development efficiency on innovation.The threshold value of financial development scale and efficiency is obtained by calculating the value.Finally,the parameters of the model are estimated and the robustness test is carried out.Based on the current situation analysis and empirical analysis of China's financial development and innovation,this paper argues that there are great differences in China's financial development,the impact of China's financial development efficiency on innovation has a double threshold effect,and the impact of financial development scale on innovation has a single threshold effect.The policy recommendations mainly focus on measures to narrow the financial development disparity and improve the scale and efficiency of financial development.