Research On The Interactive Relationship Between Technological Innovation And Financial Development In Henan Province

Technological innovation can effectively promote financial development,and financial development provides important financial support for scientific and technological innovation.Accurately identifying the relationship between the two can provide an experience for boosting technological innovation and financial development.This paper takes Henan Province as the research object and examines the interactive relationship between technological innovation and financial development.From a theoretical perspective,technological innovation will affect financial development through a variety of mechanisms,including improving the efficiency of the financial industry,affecting the financial structure through the market demand structure,reducing the transaction costs of the financial market,promoting the improvement of the financial market system environment.Financial development will affect technological innovation through mechanisms such as financing support,risk diversification,incentives and constraints,and information disclosure.An analysis of the status quo of technological innovation and financial development in Henan Province found that Henan Province has a good technological innovation environment.The government's financial support for scientific and technological innovation continues to increase.R&D funds and personnel input have shown a rapid upward trend.Patent applications have steadily increased.The number of licenses and the number of valid patents have all increased significantly,and the turnover of the technology market has increased year by year.Henan Province has initially formed a banking,securities,insurance,futures,trust and other multi-industry development,complete function,stable operation of the financial system.The time series data model and panel vector autoregressive model were used to empirically test the relationship between the technological innovation and financial development.The research shows that the relationship between technological innovation and financial development is related to the measurement of technological innovation and different sectors of the financial industry.There are significant differences in the impact of technological innovation output on the development of the financial industry,so as the impact of technological innovation on different sectors of the financial industry.In addition,the impact of the development of the financial industry on the input and output of technological innovation is different,and the impact of different financial sectors on technological innovation is also has a difference.Overall,technological innovation has a long-term impact on the development of the banking and insurance industries,and the impact on the securities industry is mainly concentrated in the short-term;the development of the banking and insurance industries has a long-term impact on technological innovation,and the impact of the development of the securities industry on technological innovation is mainly reflected in short term.