Analysis Of The Relationship Between Financial Development And Technology Innovation In China

The impact of financial development is a core element of the country’s economic development. Technological innovation is the main driving force of economic development. The combination of two elements will substantially increase the transformation rate of scientific and technological achievements and promote economic development Under the constraint of resource scarcity, to realize the sustainable development of economy in our country, we must rely on financial development and technological progress. This paper mainly studied the relationship between financial development and technical innovation. According to previous scholars’ research results, this article generalized the theory of financial development, technological innovation and economic growth. It found financial development through macro-financial services, commercial banking and capital markets to promote technological innovation. The innovative application of technology had also run for the financial development to expand space and reduce cost. The mutual influence of both elements led to the growth of the whole society.This article was divided into five chapters. The first chapter presented the background and significance of this study, as well as the content and methods. The second chapter analyzed the theoretical relationship between financial development and technological innovation based on theoretical research and also deeply analyzed the mechanism of action between the two factors. On the basis of theoretical research, Chapter III selected the appropriate method to study the empirical analysis. This section introduced the principle of empirical methods and tools. And selecting data from2000to2012, this part built the evaluation index system of financial development and technological innovation in the use of catastrophe progression method. The fourth chapter verified Granger causality relationship between financial development and technology innovation on the application of the index system. The fifth chapter analyzed the empirical results of Chapter IV, and made relevant policy recommendations. Finally aiming at the shortcomings of the paper, the article put forward prospect for future research.The innovation point of this essay used the concept of the structure of financial system to study the relationship between financial development and the role of technology innovation. This paper chose more comprehensive evaluation index, and selected the financial related rate, degree of utilization of foreign capital, fund raising, capital scale, equity market financing, corporate debt issuance and circulation of stock market and stock clinch as evaluation index. This article chose the innovation output, innovation investment levels and external environment factors as technological innovation evaluation index. The three indicators were divided into nine secondary indicators. Catastrophe progression method used in this paper to analyze the relationship between financial development and technological innovation. This method was not affected by subjective factors and it can be more scientific evaluation indicators of financial development and technological innovation.The conclusion of this article is that financial development and technology innovation have correlation relationship. As the change of time, this relationship is the positive correlation and the mutual influence between the two is more and more intense. And based on the correlation, this paper put forward the corresponding suggestion in order to make the better development, so as to promote the sustainable economic development of our country.