The Impact Of China’s Real Estate Prices On Urban Innovation

Urban innovation is one of the important indicators to measure urban development,and it has played a powerful role in promoting the city’s economy and development.In recent years,the sustained and rapid rise of real estate prices in China has caused some new problems in social development."High housing prices" have become an important factor affecting urban innovation and development.The real estate market and real estate companies are inseparable from the support of the financial market,and most of the funds come from the financial market.With my country’s gradual opening up to the outside world,financial marketization continues to deepen reforms.In order for cities to continue to innovate and develop rapidly,in different financial market environments,how real estate prices will affect the city’s innovation power needs to be in-depth Research.We first combed the financial marketization theory,real estate economic theory,and innovation theory,and then studied the related operating mechanism,combined with the research of domestic and foreign scholars,collected the dynamic panel data of 69 large and medium cities in my country from 2001 to 2019,with financial marketization as the threshold variable,a threshold model of the impact of real estate prices on urban innovation power was constructed to explore whether there is an optimal financial marketization interval under different financial marketization environments And the corresponding reasonable housing price range is most conducive to the development of urban innovation.Then,a regression analysis of the threshold of heterogeneity was carried out on the eastern,central and western cities,respectively,to explore the financial market environment that is most conducive to the development of innovative power in the eastern,central and western cities and the corresponding housing price range.The main conclusion of the paper is that there is the best financial marketization interval.When financial marketization is in the range of 5.81 to 9.98,and housing prices are also in the corresponding housing price range,then housing prices have the best positive effect on urban innovation.Under such conditions,innovative companies can better raise enough funds for research and development through the financial market,thereby promoting the continuous improvement of urban innovation.At the same time,we also conclude that the most appropriate thresholds for financial marketization in eastern,central and western cities are different.Due to the high level of economic and financial development in the east,the threshold is the smallest,and housing prices in eastern cities have the greatest positive effect on innovation.Yes,the threshold and positive effects of the middle sector are close to the national level,and the threshold of the western sector is the largest but the positive effects are the smallest.Therefore,the policy recommendations of this article are: local governments should formulate appropriate policies to regulate the local financial marketization environment,and at the same time restrain the excessively rapid rise in housing prices,so that financial marketization and housing prices are coordinated with each other,so that they are in the best range.Best to promote the continuous improvement of urban innovation.