Manufacturig Financialization,Government Gubsidy And Technological Innovation

As a manufacturing country,China has more low-end manufacturing enterprises compared with high-end innovative manufacturing enterprises.In addition,the weakening of labor,production and other advantages has further reduced the profitability of manufacturing.Under the influence of market forces,manufacturing companies have participated in financial investment in order to obtain excess profits,and the trend of financialization has become increasingly apparent.Under this trend,the main way for manufacturing companies to obtain profits is financial asset returns rather than their main business.However,as the main implementer of China's technological innovation,manufacturing is the key to improve China's comprehensive competitiveness.The trend of financialization of manufacturing will inevitably affect the long-term innovation investment.Throughout the economic development history of developed countries such as Europe and the United States,excessive financialization of manufacturing enterprises will inevitably erode the foundation of the real economy and damage its healthy development.In addition,the allocation of financial assets of manufacturing companies is not only affected by market forces,but also affected by the government's "visible hand".As an important means for the government to regulate macroeconomic,differeant degrees of government subsidies will change the financial asset selection behavior of enterprises,and ultimately affect the innovation of them.Therefore,exploring the impact of manufacturing financialization on technological innovation and the role of government subsidies in regulating the relationship between the two,and then proposing corresponding countermeasures are really important for building a sound and orderly financial system.They can also help the government to adjust the quantity of subsidy,standardize corporate asset allocation behaviors and stimulate corporate innovation vitality.Aiming at the deepening of the manufacturing financialization and the weak technological innovation capability in China,based on a review of relevant domestic and foreign literature and a combination of current data,this thesis conducts a series of empirical studies and finally provides corresponding countermeasures and suggestions to the country,government,and enterprises.This thesis selects A-share manufacturing listed companies' annual data during 2012-2018,exploring the impact of manufacturing financialization on technological innovation by constructing a static model.In addition,we use comparative analysis methods to divide enterprises into state-owned enterprises and non-state-owned enterprises,strategic emerging enterprises and non-strategic emerging enterprises to explore the differences in different property rights and different industries.Furthermore,we use a threshold panel analysis method.Government subsidy is used as a threshold variable to explore the differences in the impact of manufacturing financialization on technological innovation in different government subsidy ranges,and to clarify the role of government subsidies in regulating the relationship between the two.In the end,this thesis confirms the robustness of the research results by means of endogenous test and transformation measurement index.Study found that:(1)Manufacturing companies' financial asset allocation is motivated by "arbitrage" effect,and financialization of manufacturing industries will inhibit technological innovation.In addition,the arbitrage motive of enterprises holding investment real estate is stronger than other financial assets,and the inhibitory effect on technological innovation is more obvious.(2)The above results are heterogeneous among enterprises with different property rights and different industries.The impact of financialization of strategic emerging enterprises and state-owned manufacturing enterprises on technological innovation is not significant,and the financialization of non-strategic emerging enterprises and non-state-owned manufacturing enterprises has a stronger inhibitory effect on technological innovation.(3)Government subsidies can regulate the impact of manufacturing finance on technological innovation.When government subsidies is low,manufacturing financialization further strengthens the suppressive effect of manufacturing financialization on technological innovation;when government subsidies is in the middle of range,manufacturing financialization has a weaken effect on technological innovation;when government subsidies is high,the financialization of the manufacturing industry has no significant impact on technological innovation.Based on the above research conclusions,this thesis puts forward corresponding countermeasures from three aspects:the state,the government,and the enterprise.(1)National level:adhere to the innovation-driven strategy and deepen the reform of the financial system.(2)Government level:improve policy flexibility and pertinence,and stimulate corporate innovation.(3)Enterprise level:Improve the corporate governance structure and cultivate new kinetic energy for innovation and development.