An Empirical Analysis Of The Impact Of Financial Agglomeration On Regional Innovation

The Chinese economy has gradually entered the new normalcy of high-quality development.It is imperative to accelerate the pace of setting up an innovative country and improve the level of national independent innovation.Promoting the development of regional innovation is the only way to achieve this strategic goal.Finance is an important manifestation of the country’s competitiveness,and the party and the country attach great importance to its development.At present,financial agglomeration has become an important manifestation of the modern financial industry.It plays an important role in financial development and can provide a strong impetus for social progress.Since 2018,many regions have issued relevant policies to increase financial support for innovation activities.The connection between finance and innovation has become closer and closer.The two have entered a new era of integration and common improvement.This thesis cuts in from the perspective of financial agglomeration,and takes spatial geography into consideration by constructing the Spatial Durbin Model,and on this basis,examines its impact on regional total innovation,substantive innovation,and strategic innovation,which makes the research level richer;at the same time,the partial differential method is used to decompose the spatial effect in the process of empirical analysis,so that the results obtained are more robust.In this paper,the annual data from 31 provincial administrative regions in China from 2006 to 2017 are used as a research sample.The Spatial Durbin Model is used to analyze the direct effect and spatial spillover effect of financial agglomeration on regional innovation.The content of the article is mainly divided into six parts.The first chapter first points out the research background and significance,then sorts out the relevant literature at home and abroad,clarifies your research problems and directions,and finally summarizes the research content of this article,possible innovations and shortcomings office.The second chapter explores the impact of financial agglomeration on regional innovation from a theoretical perspective.The third chapter measures the financial agglomeration and regional innovation,and analyzes its development status in terms of time and space.The fourth chapter at first constructs the Spatial Durbin Model,after this conducts spatial auto-correlation analysis on financial agglomeration and regional innovation,and finally explores the direct impact of financial agglomeration on regional innovation and the effect of spatial spillover.The fifth chapter divides China into different regions and explores whether there is regional heterogeneity in the impact of financial agglomeration on regional innovation.The sixth chapter summarizes the conclusions and puts forward relevant policy recommendations on this basis.This thesis analyzes both theoretically and empirically,and mainly draws the following conclusions:(1)From the theoretical analysis,it can be seen that financial agglomeration not only makes positive impacts on regional innovation through credit constraint mitigation effect,information spillover effect,risk management effect and scale effect impact,and the impact on suppressing it through cost effect and excessive competition effect.(2)The analysis of the current situation shows that,in terms of spatial distribution,financial agglomeration,regional total innovation,substantive innovation and strategic innovation all have apparent spatial agglomeration characteristics and have certain polarization characteristics;and in terms of developmental trends,all four there are showing positive development trend,the growth rate in the eastern region is higher than the mid-west,and there is a lag in the development of regional substantial innovation.(3)The spatial auto-correlation analysis of Moran’s I index shows that financial agglomeration,regional total innovation,substantive innovation and strategic innovation all have significant positive spatial auto-correlation,and the spatial positive correlation of regional substantive innovation is lower than that of strategy Innovation,but its frequency of fluctuation is slightly higher than strategic innovation.(4)Empirical analysis at the national level shows that financial agglomeration has a significant positive direct impact on regional substantive innovation,but the direct impact on regional total innovation and strategic innovation is not obvious;financial agglomeration has a significant positive impact on each innovation,and the effect on regional strategic innovation is the most prominent among them.(5)Analysis of regional heterogeneity in the eastern,central and western regions shows that financial agglomeration has no significant direct impact on the total innovation in the central and western regions,but it has a relatively significant direct suppression on the total innovation in the eastern region;No obvious space overflow effect.Financial agglomeration has no significant direct impact on substantive innovation in the western region,but it has a significant direct promotion effect on substantive innovation in the eastern and central regions,of which the direct promotion effect on the central region is more prominent;Innovation has a significant positive spatial spillover effect,but the spatial spillover effect on substantive innovation in the eastern region is not significant.Financial agglomeration has no significant direct impact on strategic innovation in the central and western regions,but it has a significant direct suppression on strategic innovation in the eastern region;at the same time,it has no significant spatial spillover effect on..strategic innovation in the eastern,central and western regions.(6)Regional heterogeneity analysis of high-low education areas shows that financial agglomeration has a certain direct suppression on total innovation in high education areas,but has a greater positive direct impact on total innovation in low education areas;at the same time,Which has a positive spatial spillover effect on total innovation in both regions and a greater spillover effect on regions with low education levels.Financial agglomeration has a large direct positive impact on substantive innovation in low-education areas;at the same time,it has a positive spatial spillover effect on substantive innovation in both regions,but the significance of the spillover effect on low-education areas is weaker.Financial agglomeration has a significant positive direct impact on strategic innovation in low-education areas,but it has a significant negative direct impact on strategic innovation in high-education areas;at the same time,it has a positive space spillover in both regions impact,but the spillover effect is even greater in areas with low education levels.According to the empirical analysis results,this thesis brings forward the following suggestions for the development of regional innovation in China:Firstly,the government should coordinate the overall situation and promote the construction of multilevel financial centers.Secondly,The financial administration should strengthen supervision and promote the steady development of finance in China.Thirdly,it is necessary for each local government to adapt to local conditions and come into full play to the role of financial agglomeration in promoting regional innovation.Fourthly,local governments should develop in a balanced manner and establish a good soft environment for innovation.