Can The Guiding Fund Impact Regional Technological Innovation?

The 19th Plenary Session of the Chinese Communist Party made it clear that"innovation is the primary motivation for development and the strategic support for building a modern economic system." As an important part of innovation,technological innovation plays an important role in promoting development.With the continuous development of the world economy,more and more countries choose to promote technological innovation through the development of a guiding fund policy so as to achieve technological innovation-driven development.In recent years,the Chinese government has successively promulgated a series of laws and regulations to solve the market failure problem of China's venture capital market so as to develop the technological innovation and achieve the steady and rapid economic development.Based on the relevant research and the development of China's Guiding Funds,this paper analyzes the relationship between Guiding Funds and technological innovation through the theories of institutional economics and political economy.In addition,based on panel data of 287 cities in China during 2011-2015,this essay empirically tests the direction and mechanism of China's guiding funds on technological innovation by using econometric methods.The results show that:on the one hand,guiding funds as a special form of venture capital can indeed promote the level of technological innovation directly.On the other hand,as a means of government intervention,the Guiding Fund can effectively solve the market failure in the venture capital market and promote the level of regional technological innovation through its "leverage effect" and "guiding effect."The main contents of the article are as follows:First,the main purpose of this paper.The second is mainly literature review and basic theoretical analysis,laying the foundation for the subsequent empirical analysis.Third,using data for empirical analysis and drawing conclusions and suggestions on the basis of this.