Research On The Mechanism And Effect Of Financial Resources Allocation On Regional Innovation Capability In China

Looking back on the development history of China in the past four decades,the economy has achieved remarkable accomplishment in terms of growth rate,and it can be called the “world miracle”.However,in the current institutional environment,China's achievements have been based on the waste of resources and inefficient output.The relationship between financial resources and innovation capacity is reflected in the non-state-owned economy with strong innovation capability is difficult to obtain financial resources,while the state-owned economy with weaker innovation capability has obtained a large amount of financial resources,which has caused the “paradox” of innovation to become a normal state in the field of financial resource allocation.Obviously,the above-mentioned extensive growth model does not promote the sustainable development of China's economy.Over the long run,it will inhibit the supportive role of financial resources allocation play in enhancing regional innovation capability.To this end,creating a sound institutional environment,and rationally positioning the market and the government's functions,in order to strengthen the support of financial resource allocation to upgrade regional innovation capability,naturally become one of the important contents of the Fifth National Financial Work Conference and innovation-driven development strategy.However,as a transitional economy in China,the overall system is imperfect,and market mechanism and government intervention are ambiguous in the allocation of financial resources.This poses a challenge to whether the allocation of financial resources can promote regional innovation.Therefore,we cannot help but ask: Under the market mechanism,can the allocation of financial resources promote the uplift of regional innovation capability? What kind of system can play an active role in improving it? Are there any factors that affect the above relationship? As opposed to the market mechanism,the government's intervention in the allocation of financial resources not only exists in commercial banks,but also in policy banks.So does government intervention reflect the intention of the government,in other words,whether the above two seemingly homogeneous interventions can move forward the promotion of regional innovation capabilities?The answer to above questions not only need to theoretically explain the mechanism on how financial resource allocation affecting regional innovation capability,but also need to conduct empirical research on the effect of financial resource allocation how to impact regional innovation capability.Obviously,this dissertation has important implications for return of financial sources,reinforcement of financial support for innovation-driven,positioning the government and market functions properly,and the implementation of innovation-driven strategies.Based on the above background,this paper examines the mechanism and effect of the allocation of financial resources on regional innovation capability.It is worth emphasizing that this study draws on the theory of regional economics and new institutional economics,adopts the GIS software commonly used in geography and the structural equation model that is increasingly prevalent in economics for collaborative research,and proposes the research results differentiating from the previous relevant one,and then to provide policy inspirations for finance returning to origin,enforcing financial support for innovation-driven,positioning of government and market functions rationally,and implementation of innovation-driven development strategies,In this way,they have even expanded financial development theory?financial resource theory?regional innovation theory and the empirical research on new institutional economics in China.The first part is introduction.This chapter provides a bird's-eye view of the entire text from a holistic perspective,including the research background,research significance,definition of core concepts,research methodologies,research content framework,and possible innovative perspectives.The second part is the theoretical basis and literature review.The study of this paper is slightly cross-disciplinary in nature.The theoretical basis is based on the theory of financial resources,it also draws on the theory of innovation in regional economics.In the literature review section,this paper examines the impact of financial resources on innovation from the perspectives of financial repression,financial deepening,and financial structure research.Finally,it reviews the literature research.The third part is the measurement and empirical observation of financial resource allocation and regional innovation capability.The content of this chapter concerning the use of scatterplots and geographic information system software to measure the financial resource allocation and regional innovation capabilities under market mechanism and government intervention;through scatterplots the relationship between the above-mentioned financial resource allocation and regional innovation capabilities is preliminary fitted and determined.The fourth part is about the analysis how the mechanism of financial resources allocation impact regional innovation capability.This chapter leverages both pure theoretical deduction and mathematical model derivation to discuss the operating mechanism of the regional innovation capability affected by the allocation of financial resources under the market mechanism and government intervention as well,and proposes the research hypothesis.The fifth part is on the influential effect of the financial resources allocation in the context of the market mechanism on regional innovation capability.This chapter mainly demonstrates the relevant research hypothesis in Chapter 4.Specifically,the following inspection processes are included: Firstly,to test the promotion effect of financial resources allocation in the context of the market mechanism on regional innovation capability;secondly,to test the channel effect and threshold effect of the above-mentioned financial resource allocation on regional innovation capability respectively.The sixth part is the on influential effect of the allocation of financial resources on the regional innovation capability under government intervention.This chapter also mainly demonstrates the relevant research hypothesis in Chapter 4.The main content is: examining the influence of the financial resources allocation of commercial banks and policy banks on the regional innovation capability under the intervention of the government respectively.The seventh part is on the conclusion,further research direction and policy recommendations.This chapter mainly summarizes the research conclusions of the entire dissertation,concludes the issues that needed further to be researched,and provides policy recommendations that can be provided for reference.The possible innovative perspectives in this article are summarized as follows:Firstly,the dissertation takes interdisciplinary research and intimately follows policy trends.In the first place,the article is not only on the basis of theory of finance but also on the theories of regional economics and new institutional economics,which broadens the horizon and depth of the research.In the second place,in addition to the traditional measurement methodologies,the paper also leverages structural equation modeling(SEM),which is increasingly popularized utilized in the social sciences,and GIS(ArcGIS 10.2)in geography to conduct collaborative research.The pioneering in nature of methodologies has broadened the thinking of this paper.Lastly,the paper intimately focuses on the important strategic tasks of the fifth National Financial Working Conference on “returning financial sources,serving the real economy,and strengthening financial support for innovation”.Secondly,the paper has formed a theoretical deduction and mathematical derivation of the mechanism of the impact of financial resource allocation on regional innovation capability.The paper have not only formed the mechanism of the impact of financial resource allocation on regional innovation capability,but also dig the approaches to achieve the above-mentioned impact mechanism,and also considered the impact of institutional environment.At the same time,partial equilibrium analysis to conduct mathematical derivation is utilized.Thirdly,the conclusions of this study are different from the existing literature.The research perspectives of this paper mainly include: In the first place,the impact of the allocation of financial resources in the context of the market mechanism on the regional innovation capability has a significant "U-shaped" feature;In the second place,the financial resources allocation in the context of the market mechanism.through the alleviation government intervention and supporting non-state-owned economic development these two "channel effects" to promote the uplift of regional innovation capability;In the third place,institutional environment plays a significant "threshold effect" in the relationship between financial resources allocation in the context of the market mechanism and regional innovation capability;Fourthly,the allocation of financial resources by different policy banking institutions has a different impact on regional innovation capability,the impact of the allocation of financial resources by Agricultural Development Bank of China and Development Bank of China on regional innovation capability is significantly "U-shaped",while the impact of the allocation of financial resources by Export-Import Bank of China on the regional innovation capability presents a linear relationship.