Research On The Financial Incentive Mechanism Of Innovation Driving Economic Growth

Innovation is an important driving force for economic growth,and financial incentive mechanisms play an important role in it.However,how exactly does innovation promote economic growth,and what role does financial incentive mechanism play in it?The conclusion is not yet settled.Technological innovation will lead to capital demand,and capital demand is affected by macro-financial incentives.What role does the macro-financial incentive mechanism play in the process of satisfying the capital demand caused by technological innovation?This is the main question answered in this article.The capital demand caused by technological innovation itself belongs to the problem of capital demand required for individual technological innovation at the micro level,and the capital demand caused by innovation brought about by macro financial incentives,what is studied is a macro-financial incentive that affects micro-technological innovation.The problem of capital demand is a process from macro to micro.Generally speaking,innovative financial incentive mechanisms can be divided into macro-financial incentive mechanisms and micro-financial incentive mechanisms.There are more researches on micro-financial incentive mechanisms,but less analysis from macro-financial incentive mechanisms.To this end,this article studies the role of macro financial incentives in the process of technological innovation driving economic growth.The main research contents are as follows:First,it studies the impact of the matching degree of "financial incentive mechanism-technical level" on economic growth,and analyzes the impact of the degree of matching between the macro-financial incentive mechanism and the national technological development level on economic growth.Specifically select the world’s 23-year multi-country data set to build a "financial incentive mechanism-technical level" matching degree,and study its impact on economic growth.At the same time,the mediating effect model and the moderating effect model of innovation-driven economic growth under the financial incentive mechanism are constructed to study the mediating effect and moderating effect.Secondly,analyze the effect of the combination of macro-financial incentive policies on innovation-driven economic growth.Select a sample of major countries in the world,and divide the major countries in the world into high-income countries and low-and middle-income countries according to the annual per capita GDP standard of 10,000 US dollars.According to the comparison of the annual national total factor productivity and the average national total factor productivity,the countries are divided For innovative countries and non-innovative countries,we will examine the impact of the combination of macro-financial incentive policies on the quality of technological innovation and economic growth in different types of countries from the perspectives of overall countries and heterogeneous countries.Thirdly,study the law that technological innovation has on economic growth and the role of macro-financial incentive mechanism in it.Select 23 years of data from major countries or regions in the world,and use least squares(OLS),instrumental variable two-stage least squares(2SLS),limited information maximum likelihood method(LIML),which is less sensitive to weak instrumental variables,The more efficient generalized moment estimation method(GMM)and iterative generalized moment estimation method(iterative GMM)for heteroscedasticity respectively estimate the model,and test its possible financial incentive mechanism and heterogeneity.The research results show that:(1)The higher the matching degree of "financial incentive mechanism-technical level",the more conducive to economic growth.However,this kind of growth effect has time-phase characteristics.It was significant and positive before the international financial crisis in 2008,and its effect was not significant after the international financial crisis.It is further found that the mediation effect is positive,and the mediation effect is negative.(2)The effectiveness of the macro financial incentive policy depends on the macro financial incentive policy portfolio itself,but the determining factor to a greater extent is the development and technological innovation level of the country that uses the macro financial incentive policy portfolio.For middle-and high-income countries or innovative countries,half or more of the 8 combinations of financial incentive policy combinations can effectively promote the technological innovation level and economic growth quality of middle-and high-income countries and innovative countries;for low-and middle-income countries For non-innovative countries,most of the financial incentive policy combinations are ineffective or harmful.At this time,only the financial incentive policy combination that implements high interest rates,high exchange rates and loose monetary policies at the same time is beneficial to the quality of economic growth and technological innovation in non-innovative countries.As the level increases,other financial incentive policy combinations are ineffective or harmful.(3)Technological innovation drives economic growth in accordance with the "U"-shaped law,and financial incentive mechanisms play a leverage role and amplify this effect.Compared with the existing research,this paper has the following marginal contributions:(1)Based on the endogenous growth theory,capital is regarded as an exogenous variable and technological progress is an endogenous variable.Financial incentive mechanism is added to the growth equation,and the matching degree of "financial incentive mechanism-technical level" is studied through model derivation.Impact on economic growth.Based on the research of Ye Dezhu et al.(2019),the index of the matching degree of "financial incentive mechanism-technical level" was constructed,which provided experience from countries around the world for studying the impact of innovation-driven financial incentive mechanisms for economic growth;The financial crisis is the time node.The contribution factors of the economic growth effect before and after the financial crisis are decomposed,and the difference in the contribution of the "financial incentive mechanism-technical level" matching degree before and after the financial crisis to economic growth is found and the reasons are explained;The indirect and regulatory effects of innovation-driven economic growth under the incentive mechanism.It is found that the indirect effects of innovation-driven economic growth are partially indirect effects,while the regulatory effects are shown as "crowding out effects",and the reasons are mainly related to the"inputs-output" of innovation of the characteristics;the financial freedom in the"World Freedom Index" is used to describe the financial incentive mechanism,and the overall freedom index and currency freedom index are used as instrumental variables.There is a certain innovation in the selection of indicators and the use of data;(2)Studying the effects of different combinations of macro-financial incentive policies,and classifying their effects,came to the conclusion of the differential effects of macro-financial incentive policies in heterogeneous countries,and concluded that the policy effects of macro-financial incentive policies were divided by The specific combination of financial incentive policies is more dependent on the nature of the country implementing financial incentive policies,and there is a certain degree of innovation in viewpoints;(3)On the basis of the theory of endogenous growth,construct the "U"-shaped law of innovation-driven economic growth,and explore the role of macro-financial incentive mechanisms in it.Through the empirical evidence from the panel data model from the world,we examine this Whether the law is supported by empirical evidence and verified the role of financial incentive mechanism in it.