| A proper system is the basic prerequisite for making a country rich.Practically speaking,as a basic economic system arrangement,a financial system that aims to transfer capital from households or companies with surplus funds to individuals or companies that lack funds but can make efficient investments is considered the core of the market economy(or "Brain"),plays an indispensable coordination function.Therefore,having a smoothly functioning financial system and directing capital to its most effective areas should be a key part of a country’s economic development and prosperity.Among the many theoretical analyses on the influence of finance on the economy,the most concerned point should be the relationship between finance(development)and innovation.This theoretical tradition can be traced back to Schumpeter’s theory.In Schumpeter’s view,the modern market economy is a process of creative destruction,and innovation and finance(based on entrepreneurship)are two most important elements for realizing this process,and finance is the most important institutional guarantee for the realization of innovation.The impact of financial systems with different structures on innovation will vary with the changes in economic growth stages,and this is precisely what the existing literature does not cover.The financial system is not universal.Only by establishing a suitable financial system based on the economic stage can it be beneficial to innovation and development.Throughout the full text,Chapters 4 to 7 are the core of this article,discussing the relationship between financial structure and national innovation,industry innovation,corporate innovation,covering empirical evidence from three levels of country,industry,and company:As the level of economic development increases,economic driving factor and economic growth will also change.When the level of economic development is low,the economic growth rate is faster,and the economic performance is driven by technology follow-up and investment;when the level of economic development is high,the economic growth rate is slower,and the economic performance is driven by technology leading and innovation.We can’t help asking whether finance has the same effect on innovation at different stages of economic growth? If they are different,how should we optimize the financial structure to promote innovation? Chapter 4 uses the macro data of 56 countries(or regions)from 1996 to2015,and uses a panel model to study whether the market-led financial structure after the economy crosses the high income wall more significantly promotes national innovation.The empirical results show that compared with the high-speed growth stage,the financial structure has a greater and more significant impact on national(or regional)innovation in the normalized growth stage of high income.There are three influence mechanisms that will cause the heterogeneity of the role of the financial structure at different stages.The first mechanism,a market-led financial structure can pool social funds to provide financing to the most productive enterprises,and thereby promote innovation.The second mechanism is that at a stage when capital is relatively scarce,banks can promote innovation by maximizing investment channels.The third mechanism is that the market-led financial structure weakens the barriers of bank inefficiency to innovation through the competitive role of the financial market.In addition to the heterogeneity of per capita income,this paper also studies the influence of country characteristics on the relationship between financial structure and innovation.In economies with a low degree of monetization and a small proportion of service industries,especially high-income economies,market-led financial structures can promote innovation more significantly.In economies with poor institutional quality,especially high-income economies,market-led financial structures can promote innovation more significantly.Next,this article focuses on the impact of the economic cycle on the relationship between financial structure and innovation.A market-led financial structure can promote innovation in normal times,but it cannot promote innovation in times of crisis.The economy faces the impact of the economic cycle,and different policies will produce different effects.Among them,the government’s consumption policy will not affect the relationship between financial structure and innovation during normal periods and crisis periods.The regulatory effect of monetary policy is more complicated.Monetary policy will not linearly adjust the relationship between financial structure and innovation in normal times.During the crisis,monetary policy hindered the promotion of innovation by the market-led financial structure,especially in low-income economies.The role of financial structure in promoting innovation is significant in countries with traditional tightening monetary policies during normal times,but not significant in countries with traditional loose monetary policies during normal times.During the crisis,the financial structure played an insignificant role in promoting innovation in countries with traditional loose monetary policies and traditional countries with tight monetary policies.Among them,the role of financial structure in promoting innovation in traditional countries with loose monetary policies was smaller and less significant.For economies with loose monetary policies during normal periods,monetary policy will not affect the relationship between financial structure and innovation.In economies with tighter monetary policies during normal periods,loose monetary policies can significantly enhance the role of market-led financial structures in promoting innovation.In economies with loose monetary policies during the crisis,loose monetary policies can significantly hinder the role of market-led financial structures in promoting innovation.In an economy with tighter monetary policy during the crisis,monetary policy will not affect the relationship between financial structure and innovation.Chapter 5 is a companion chapter to Chapter 4.Chapter 4 finds empirical evidence of different impacts of financial structure on national innovation in different economic growth stages at the national(or regional)level.Chapter 5 finds empirical evidences about different impacts of financial structure on national innovation in different human capital period at the industry level.The research in Chapter 5 is to strengthen and expand the conclusion of Chapter 4.Chapter 5 clarifies the theoretical impact mechanism from the perspectives of optimal financial structure determination theory and development economics,and uses the manufacturing industry data of 59 countries or regions from 1996 to 2015 through a panel data model to study whether market-led financial structure more significantly promote national innovation after the economic leaping over the high income wall? The empirical test found that: the role of financial structure in promoting innovation is heterogeneous.In the stage of rapid economic growth,bank-led financial structure is conducive to innovation,but in the stage of economic normalization,market-led financial structure significantly promotes industry innovation.From the perspective of human capital channels,the human capital accumulation related to innovation in the stage of rapid economic growth originates from the transfer of rural surplus labor to urban areas,while the accumulation of human capital related to innovation in the period of normal economic growth originates from high-tech talents.Specifically,during the period of rapid economic growth,the bank-led financial system enhanced the role of urbanization in promoting innovation;while in the period of normal economic growth,the market-led financial system enhanced the role of urbanization in promoting innovation.During the period of rapid economic growth,the national education level(regardless of the financial structure)has no significant impact on innovation,while in the period of normal economic growth,the market-led financial structure enhances the impact of higher education levels in promoting innovation.From the perspective of R&D expenditure channels,there are two reasons for the changes in the impact of finance on innovation.In the period of rapid economic growth,the bank-led financial system has enhanced the role of R&D expenditure in promoting innovation;in the period of normalized economic growth,market-led the financial structure has enhanced the role of R&D expenditure in promoting innovation.The research in Chapters 4 and 5 found that financial structure has different effects on national innovation at different stages of economic growth.So,can we explain the relationship between financial structure and innovation based on industry characteristics?Chapter 6 takes the data of listed companies from 2006 to 2016 as the original sample to study industry innovation in various provinces,and uses the panel data model to study the relationship between financial structure and industry innovation.The sixth chapter has successively studied the targeted promotion of the financial structure on the innovation activities of external financing dependent industries,high-tech industries and emerging industries(growth-stage industries).Our research found that,first of all,the market-led financial system promotes industry innovation by alleviating external financing constraints.Among them,in the stage of rapid growth,the market-led financial structure has a lesser role in promoting innovation in industries that rely on external financing;in the stage of the new normal,the market-led financial structure has a greater role in promoting innovation in industries that rely on external financing.Second,the market-led financial system has targeted innovation activities in high-tech industries.Whether it is the stage of rapid growth or the stage of the new normal,the market-led financial system can effectively promote innovative activities in high-tech industries.Then,in the stage of rapid growth,the market-led financial structure failed to specifically promote the innovative output of emerging industries(growth-stage industries);however,in the stage of the new normal,the market-led financial structure can specifically promote emerging industries(growth-stage industries)innovation output.Finally,the financial structure promotes innovation through external financing-dependent channels and high-tech channels,and industry innovations in external financing-dependent industries and high-tech industries perform better in the new normal phase than in the high-speed growth phase.Therefore,compared with the rapid growth stage,the financial structure can better promote industry innovation in the new normal stage.In order to better promote industry innovation,we should develop the financial system according to local conditions,give full attention to the development of the stock market,and create an environment suitable for the development of the financial market.At present,my country’s economy has shifted from high-speed growth to medium-high-speed growth,and innovation to lead economic growth has been established as a national policy.During the period of rapid growth,the bank-led financial structure played an important role in raising funds and servicing the financing needs of technology imitating(or following).However,after entering the new normal,technological innovation(or leading)puts forward a new demand to the market-led financial structure,and then the relationship between financial structure and corporate innovation has also undergone major changes.Chapter 7 uses the A-share data of listed companies and uses the systematic GMM model.Based on the perspective of the economic growth stage,it is found that the market-led financial structure in the new normal can more effectively promote company-level innovation than the rapid growth stage.The impact mechanism of corporate innovation lies in the fact that banks maximize investment in related companies hinder innovation,financial market optimizes capital allocation to promote innovation,and financial market competition with banks promotes innovation;market-led financial structure in the new normal stage has more effectively promoted corporate innovation activities in low-tangible assets industries,research and development industries,and manufacturing industries.Financial structure can influence innovation through the micro-channel of financing structure,and cash holdings play an intermediary role in the relationship between financing structure and company innovation.Therefore,the development of the stock market is of great significance for optimizing capital allocation and promoting innovation drive.Based on the above research,we make policy recommendations from three levels.First,at the national level,the government must vigorously develop the stock market.Then,at the regional level,the government must choose an appropriate financial structure based on the stage of economic growth.Finally,at the institutional level,the government should pay attention to two points: First,punish corruption and purify the financial ecology;second,the financial system can be developed first. |
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