A Study On The Effect Of Finacial Agglomeration And Financial Development On Enterprises’ Techonology Innovation

Currently, the sustainable growth problems of China’s economy highlights increasingly, only change the present pattern of extensive growth to achieve future growth. Technology innovation is the core momentum to maintain a long-term economic growth.However, technology innovation is a process. Its research and development and the subsequent transformation as well as the formation of real productivity, are a complicated and risky process, which need a developed financial system to support. Though China’s financial system has been formed a certain scale, as tools to implement national policy for a long time, the resources of financial sector are often inclined to the industries and projects of the government and state-owned departments. Many companies are facing severe financing constraints, their technology research and development, innovation and transformation are often unsustainable. So the technology innovation of the enterprises is restricted by financial development in our country, it significantly reduced its positive impact on economic growth. On the other hand, with the development of economic globalization, the flow of capital accelerates on a global scale and financial institutions agglomerate into some central cities, so as to form financial centers. In our country, the enterprises in financial center areas own the strong ability of technology innovation, its promotion effect on the regional economy is much larger than other regions. Therefore, the purpose of this dissertation is to study the relationship between financial agglomeration, financial development and technology innovation of the enterprises. The study provides a theoretical basis and empirical evidence support for how to bring finance into full play the role of technology innovation and increasing the ability and potential of the economic long-term development.The full-text consists of six parts. The first chapter is introduction, which puts forward the problems. The second chapter reviews the theories of financial agglomeration, financial development and technology innovation, and summarizes the related research literatures. The third chapter is theoretical framework and research hypothesis. Through the way of practical observation and logical reasoning to construct theoretical framework of the study, to explore the mechanism of financial agglomeration affect financial development, financial development affect enterprise technology innovation and the regulatory effect on financial development in the process of FDI technology spillover effect. On this basis, the paper put forward the research hypothesis. The fourth chapter is the research method and experimental design, and to measure the relevant variables. The fifth chapter is the empirical analysis and discussion. Apply the hierarchical linear model (HLM) with China’s real data to examine the hypotheses, then analyze and discuss the hierarchical regression results and the relevant relationship between the variables. Finally, it presents the research conclusions and policy implications.The measures of financial development and technological innovation are from the macro and the micro level respectively, and across the level, to research the effect of financial development on enterprise technology innovation. The main findings are as follows:(1) the financial agglomeration index, financial development index and enterprise technology innovation index exists visible difference in the regions. The financial agglomeration degree in eastern part (bank industry agglomeration, the securities industry agglomeration and the insurance industry agglomeration) is higher than in the central and western regions. Its financial marketization and financial competition is higher too. And the level of enterprise technology innovation also ranks high in the country.(2) The bank industry agglomeration and the securities industry agglomeration have significant positive influence on financial marketization; the bank industry agglomeration and the insurance industry agglomeration show significant positive influence on financial competition. Financial agglomeration plays a mediation role in the financial development process. Financial marketization and financial competition promote the enterprises’ technology innovation. Financial development has positive significant impact on the technology spillover of FDI. That means financial agglomeration raises the level of regional financial development, and then promotes enterprises’ technology innovation in the region. Therefore, the research hypothesis are confirmed.The dissertation researches the relationship among financial agglomeration, financial development and enterprise technology innovation from the theoretical and empirical points of view, and gets some valuable finding, which helps deeply understand the mechanism of finance affect enterprise technology innovation, enriches and expands the existing theoretical and empirical literatures. At the same time, according to the research conclusions, we obtain some corresponding policy implications:planning scientificaly for financial centers’development, improving the level of financial supervision, promoting marketization reform of interest rate, strengthening innovation ability of financial institutions, establishing a multi-level capital market, and strengthening the construction of risk investment system, etc. It has certain reference value for the government to make new financial policies for promoting technology innovation.