Research On The Impact Of China's Financial Development On Technological Innovation

Technological innovation is crucial to the economic development of a country.Technological innovation can achieve rapid economic development of the country.For the period when China is facing the problem of middle-income traps that may occur during the economic transformation stage,the role of technological innovation is especially important.Technological innovation is a long and high capital and manpower investment process,and the financing function of the financial system can solve the financing constraints of technological innovation.The information transmission function can help investors identify the information of technological innovation projects and help to decentralize innovation risk.Therefore,it is of great theoretical and practical significance to study the impact of China's financial development on technological innovation and provide scientific countermeasures for China's financial support technology innovation.First of all,this paper combs the research of scholars at home and abroad from three aspects;financial development structure and technological innovation,financial development function and technological innovation,and empirical research on financial development and technological innovation.It is found that the overall research focuses on theoretical research and time series research.Research conducted from the perspective of spatial measurement is relatively rare.Secondly,this paper defines the concept of financial development and technology innovation,by analyzing the financial development theory,theory of technology innovation and the financial development of the mechanism of action of technology innovation for this paper provide theoretical basis for the empirical analysis,and the current situation of the financial development of our country basic description on the current situation and development of technological innovation.The financial development is divided into three aspects:financial scale,financial efficiency and financial structure.Using the panel data of China's inter-provincial financial development and technological innovation level from 2007 to 2017,the spatial Dubin model is constructed for empirical analysis.The empirical results show that China's financial development can promote the improvement of technological innovation level,among which the expansion of financial scale and the improvement of financial efficiency have a greater role in technological innovation,while the financial structure has a weak and insignificant role in promoting technological innovation,and both the financial development efficiency and structure have regional spillover effects.Combined with the empirical results,China should vigorously promote the soundness and perfection of the funetion of the financial system.And China should make foll use of the policy financial leverage effect and build a multi-level capital market to optimize the financial structure.