The Effect Of Of Financial Agglomeration On The Efficiency Of Technological Innovation

Technological innovation is a stable source of economic growth,especially crucial for China’s high-quality development.However,the development of technology-based industries requires high investment and is full of risks and practical problems.Therefore,exploring the influencing factors of technological innovation and ways to improve efficiency is crucial.As a fundamental engine,finance plays an important role in industrial upgrading,high-quality economic development,and technological innovation.Guangdong Province has always maintained a leading position in innovation capabilities and financial development in China.Therefore,studying the impact of financial agglomeration in Guangdong Province on regional innovation efficiency has important theoretical and practical value for China’s high-quality development.This paper aims to study the impact of financial agglomeration on regional innovation efficiency.In theory,it not only analyzes the overall impact mechanism of financial agglomeration on innovation efficiency but also starts from four aspects of banking,insurance,securities,and venture capital industries to study the specific impact of the agglomeration of the four major financial industries on regional innovation efficiency.In empirical analysis,this paper selects data from 21prefecture-level cities in Guangdong Province from 2010 to 2019.It constructs financial agglomeration indicators from three dimensions: financial scale,financial depth,and financial density,and measures the agglomeration degree of the banking,insurance,securities,and venture capital industries using the location entropy formula.It also measures regional innovation efficiency using the SBM super-efficiency model and analyzes it by establishing a time-individual fixed panel multiple regression model and a system GMM model.Through empirical research,the following conclusions are drawn:(1)The level of financial agglomeration in the 21prefecture-level cities in Guangdong Province shows significant regional differences,which can be divided into three tiers: the first tier is Shenzhen and Guangzhou,which belong to the central area of financial agglomeration;the second tier is Zhuhai,Foshan,Dongguan,and Zhongshan,which belong to the areas with relatively concentrated financial agglomeration;the third tier is the other 15 cities,which belong to the areas with relatively low financial agglomeration.(2)There are significant regional differences in innovation efficiency among the 21prefecture-level cities in Guangdong Province,with Shenzhen,Huizhou,and Guangzhou having higher innovation efficiency,while Yunfu,Shaoguan,and Maoming having lower innovation efficiency.(3)Financial agglomeration in Guangdong Province has a significant promoting effect on regional innovation efficiency,and the impact of financial agglomeration on innovation efficiency in high-tech industries exhibits significant industry heterogeneity.Specifically,the agglomeration of Guangdong’s banking,securities,and venture capital industries has a significant promoting effect on regional innovation efficiency,while the agglomeration of the insurance industry has no significant impact on regional innovation efficiency.(4)Institutional quality affects the impact of financial agglomeration on innovation efficiency.The better the institutional quality environment,the stronger the positive impact of financial agglomeration on innovation efficiency.