An Empirical Research On The Impact Of Financial Development On Technical Innovation

The development of science and technology is rapidly changingeconomy, society and people’s lives in today’s world. The rise of thetechnological innovation theory further stimulate innovation tide surgingworldwide. Strengthen the scientific and technological innovation,improve the level of economic and social competitiveness has beenelevated to by the countries and regions, a major development strategy.With Comrade Hu Jintao as general secretary of the CPC CentralCommittee attaches great importance to innovation, a major strategicdecision of building an innovative country in2006.Finance is the core of modern economy, but also to promotetechnological innovation an integral variable, the combination oftechnology and finance to promote the continuous development ofeconomic and social engine. China in recent years continue to deepenfinancial reform, financial sector role in promoting China’s economic andsocial development support increasingly significant, relevant departmentshave also launched a special series of financial support policies andpreferential measures to promote China’s technological innovationbusiness, technology and financial The combination of China has madegreat progress. Carried out jointly by the Ministry of Science andTechnology and other five ministries in2010to promote technical andfinancial integration of the pilot work, its purpose is to further promotethe combination of technological and financial, to speed up thetransformation of technological achievements, nurturing the developmentof strategic new industries, support and lead our country economicdevelopment patterns. However, innovative financing is difficult,inefficient innovation has always existed, and led to the widespreadconcern of the researchers. Although there have been some scholars onthis issue were a series of studies and has made some important findingsabout the financial development of the impact of technological innovationis not rich, however, the literature did not get unanimous conclusion, and therefore still necessary to continue to strengthen study.Is the most important innovation in China’s enterprises the maintechnological innovation of the industrial enterprises accounted for thevast majority of corporate innovation, industrial innovation capacity ofenterprises is the key to enhancing our level of technological innovation.In view of this, the paper first in-depth analysis of financial mechanismsto promote technological innovation, on this basis of Griliches-Jaffeknowledge production function for the analytical framework for theestablishment of the panel data model, and use relevant data of the2005-2009medium-sized industrial enterprises in China The modelestimates that a more precise analysis of the impact of financialdevelopment on technological innovation. Finally, based on the results ofthe above analysis, this paper put forward suggestions to optimize thetechnological innovation system of financial support.