The Impact Of Capital Market On Technological Innovation

After forty years of reform and opening-up,China's economy has experienced sustained high growth momentum for a long time with creation of the growth miracle,but also accumulated a number of structural contradictions of an unsustainable growth mode,excess of production capacity,and so forth,which makes China's economy face the pressure of transition.Our country put forward the innovation driven development strategy in the new era,aiming at promoting the economic health of sustainable development to realize the change from elements-driven to innovation-driven by adjusting the economy structure and correction distorted allocation of elements,the transformation from traditional industry to modern industry through industrial transformation and upgrading and the transformation from government regulation to market mechanism through reform of the system,.The 13 th five-year plan also points out that China must adhere to innovation,coordination,green,open and shared development concepts with innovation being put at the core of development.Therefore,comprehensive promotion of system innovation,technological innovation and cultural innovation is the key driving force for China's economic development.Technological innovation cannot be separated from financial support or talent investment.Enterprises are the main body of technological innovation.It is of great significance to ensure that innovative enterprises have great financing environment and reduce the financing cost of enterprises.Capital market is the main channel to raise funds and building the perfect capital market system can make enterprise produce elements to increase effects tend to improve the effect and innovation,which will help technology innovation of enterprise.At the same time,it is contributing to the stability and development of the national financial market by constructing the capital market system which satisfies the financing needs of enterprises at all levels.Therefore,the study of the impact of the capital market system on enterprise technological innovation has the characteristics of the Times and the practical significance.At first,on the basis of the domestic and foreign existing literature,this article makes more reasonable definition of the scope of the capital market in the research on technological innovation in our country,which including direct financing and indirect financing of capital market system.It also summarizes the innovation theory and the development of China's capital market system to expand the capital market influence on technology innovation to four aspects of capital support,management support,manpower support and value finding.Secondly,the paper did an empirical research on the impact of China's capital market on technological innovation.It selected eight indicator variables of patent grant,securitisation rate,turnover rate,mid-term and long-term bank loans,risk investment,R&D personnel of full-time equivalent,the intensity of R&D expense and government fiscal expense based on panel data of 31 provinces from 2000 to 2015.In order to verify the direct effect of the capital market system on the enterprise technology innovation,the paper also used system GMM method to estimate the dynamic panel date model to do empirical test on capital markets-technology innovation model on the basis of implementing stability test.Thirdly,the paper conducted empirical research on the indirect effect of capital market on technological innovation by decomposing the effect of capital markets on technology innovation is into elements increasing effect and innovation tend effect,on which basis,the empirical test was carried out to verify if capital market could promote the human capital,the capital influence on technology innovation and creation of innovation tendency to improve effect to affect the technological innovation.Finally,on the basis of literature review,theoretical model extension and empirical research,this paper summarizes the research work and conclusions and puts forward suggestions about policy.It is expected that the research of this paper will provide meaningful contribution to the development of China's capital market and the practice of technological innovation.