Research On The Impact Of Land Illegality On Regional Innovation Capacity

Innovation is the very important key to the economic development and the strategic point for building a modernized economy.Under the “new normal” economy,innovation has become a significant driving force for China's economic development.As an important part of the implementation of the national innovation-driven development strategy,regional innovation is of special significance for achieving coordinated development,interconnected growth and overcoming the “middle-income trap”.In this critical period,it is of great help to recognize the current innovation situation and clarify the impacts of regional innovation to improve regional innovation ability,so as to realize high-quality transformation of national economy driven by innovation.There are many factors influencing regional innovation,such as institutional environment and government behavior.Land finance has greatly promoted the development of China's economy and exerted an important influence on regional innovation,but a series of negative effects caused by it cannot be ignored.Land violation,as a serious and persistent disease,has a negative impact on regional development.With the development of urbanization and the growing contradiction between supply and demand of land,land law violations happen from time to time,greatly weakening the land regulation and control policy of the central government.And it has become a serious problem,needed to be effective solved.Therefore,this paper focuses on the impact of land law violation on regional innovation capacity and tries to make a deeper exploration.First of all,this paper analyzes the illegal situation of land since 1999,and explains the current situation of regional innovation ability.In recent years,the number of cases and areas involved in land law violations has declined,and the improvement in the eastern and central regions is significantly better than that in the western region.Regional innovation has also achieved rapid development since 2006,but there are significant differences in regional innovation capacity.Secondly,on the basis of untangling the relevant research at home and abroad,this paper analyzes the mechanism of the impact of land law violations on regional innovation capability.Using the provincial panel data of 1999-2016,the number of areas involved in land law violations in each province this year is taken as the explanatory variable,and the number of patent authorizations in each province is taken as the explanatory variable.The negative effect of land law violation on regional innovation capability is tested from the empirical perspective effect.The empirical result shows that the land law violations have a significant negative impact on regional innovation ability.At the same time,this paper uses the rising rate of housing prices,R&D expenditure of industrial enterprises above designated size and marketization index to test the mechanism of the negative impact.The results show that land violations do have a negative impact on regional innovation ability through the following three channels:(1)land law violations drive the local economic development and promote the urbanization process,causing the rise of land price and leading to the rapid rise of house price.The rise of house price makes enterprises invest limited resources in the real estate industry,which leads to the lack of innovation investment;(2)the land law violations cause the local financing platform to occupy the loan resources,which leads to the difficulty of enterprise financing.As a result,enterprises do not have enough funds to invest in R&D,which leads to the lack of innovation ability.Furthermore,it affects regional innovation capacity;(3)land law violations hinder the process of legalization and distort the market mechanism,which has a negative impact on the regional institutional environment and has a negative effect on the regional innovation capacity.In terms of the explanation of the negative impact of land law violations on regional innovation capacity,the squeezing effect of land law violations on enterprise R&D investment is the strongest,followed by the effect of promoting the rise of housing prices,and the negative effect on regional institutional environment is the smallest.Finally,through the replacement of land law violations' index and regional innovation ability index,this paper finds that land ilegal and regional innovation ability are still significantly negatively correlated,which further verifies the robustness of the conclusion.This paper studies from the perspective of land law violations,which provides a new perspective for improving regional innovation ability under the background of innovation driven development.Under the financial system with GDP growth as the main assessment mode,it is difficult to completely avoid ilegal land activities.Therefore,it is necessary to gradually reform the relevant incentive system,reduce the negative effects of land violations on regional innovation capacity as much as possible,and urge local governments to pay more attention to the long-term development potential of the region,rather than the short-term economic benefits,so as to create a good innovation system environment for local enterprises and improve regional innovation capacity,and finally achieve the long-term good development of the region.At the same time,the local government should try its best to control the house price at a reasonable level,so as to avoid over investment in the real estate industry.This is of great practical significance to the current situation that under the pressure of economic transformation,the demographic dividend is disappearing and the resource constraints are tightening.Each region needs to further explore the development mode,cultivate new kinetic energy,and find multiple innovation impetus to achieve its own coordinated and substantial development.