Research On The Impact Of Financial Investment And Technological Innovation On High Quality Economic Development

Given the fierce economic competition in today’s world,improving the quality of the economy has become an inevitable and essential choice for China’s economic development.Science and technology innovation,as a powerful driving force,plays a crucial role in promoting economic growth and development,has brought a lot of new dynamism to promote quality economic development.However,there are still many problems.On the one hand,China’s science and technology innovation is more imported from abroad,but less independent innovation,lack of basic,original;on the other hand,science and technology innovation itself has a long investment cycle,risky and other characteristics,It is difficult to break through the bottleneck in S&T innovation by relying entirely on businesses themselves,which is why S&T innovation needs government support.As one of the main channels for the government to play its role,financial investment can impact the development of the regional economy in numerous ways.In this new era,financial investment will certainly have an impact on the level of quality economic development,but the magnitude of the impact needs to be further verified.To this end,this paper provides an empirical analysis of the correlation between the degree of scientific and technological innovation and the fiscal contribution to the high-quality development of the regional economy.First,based on the existing literature,this paper develops a scoring framework for S&T innovation and economic quality development indicators respectively and assesses the level of S&T innovation and economic quality development in 30 provinces between 2010 and 2020.Subsequently,a spatial econometric model was constructed based on the measured indices of various variables,and regional panel countries were selected to conduct an empirical analysis of the influence of S&T innovation and financial investment on the quality of the regional economy and the spillover effects of spatial development,while examining the spatial correlation of each factor.Finally,a panel-threshold model was introduced to investigate the non-linear impact of S&T innovation on the economy’s quality,considering different levels of fiscal inputs.The study’s findings are as follows.(1)China’s regional development is extremely uneven,with higher development levels in the eastern regions and lower levels in the central and western regions.(2)Both S&T innovation and fiscal investment can contribute significantly to the development of a quality economy,and the synergy between S&T innovation and fiscal investment can also contribute significantly to the development of a quality economy.This indicates that there is a certain link between science and technology innovation and fiscal investment in influencing economic quality development,and the combined effect of these two factors on economic quality is better than the combined effect of both factors on economic quality the two alone on economic quality development.(3)The positive spatial spillover effect of innovation and financial investment in science and technology on high-quality economic development implies that the development of a region’s economy is not only influenced by its own performance but also by the performance of neighboring regions.S&T innovation has a negligible impact on the economic development of neighbouring regions,while financial investment has a negative impact on the quality of economic development of neighbouring regions.(4)The tax threshold has a dual impact on the quality of economic development associated with scientific and technological innovation.When the fiscal contribution falls between 0.150 and 0.309,S&T innovation plays a more important role in promoting quality economic development.