Empirical Research Of Financial Development On Technology Innovation

The research report of the World Bank in2011shows that the contribution aboutlong-term economic growth mainly achieved through technical progress,the level offinancial development has become an important evaluation criterion which can evaluatethe technological innovation capability of a country or region in the internationalcommunity.But technological innovation is a complex and long development cycleactivities,so it’s necessary to work together with the system especially financialsystem.Among them,the implementation mechanism performance of Financialdevelopment promotes technological innovation is capital formation mechanism,information reveal the mechanism, risk management mechanism, incentive and restraintmechanisms.In recent years, the financial system is continuously reforming inShaanxi,financial sector has become more and more important role for promotingeconomic and social development in Shaanxi Province,and relevant departments havealso implemented a number of measures to promote the career of Shaanxi ProvinceTechnology Innovation,such as financial support policy, overall the combination oftechnology and finance has made great progress. Data, this article selects in shaanxiprovince from1991to2011by calculating the sample period years financial related rateand Malmuquist productivity model based on DEA to measure technological progressindex, the relationship between financial development and technology innovation forempirical testing. Results showed that the shaanxi financial development level andtechnical innovation ability, there is no Granger causality does not implement aswestern markets both benign interaction relations, the development of finance itselfdoes not constitute the necessary basic conditions, technology innovation anddevelopment of financial development on penetration, influence and driving force oftechnological innovation needs to be strengthened. Finally, based on the aboveempirical results and in the financial system and economic growth mode transformationstage background to co-ordinate Shaanxi science and technology resources, this paperproposed suggestions to build a perfect, stable and secure financial support system.