Regional Financial Development And Enterprise Technology Innovation

Technological innovation is an important guarantee for a country’s sustained economic growth and competitive advantage(Solow,1957).As the main body of technological innovation,enterprises play a vital role in the process of industrial transformation and the development of innovative economy in our country.It can be seen from this that only by effectively promoting enterprises to carry out technological innovation activities,can we guarantee the industrial transformation and sustainable economic growth of our country.In the process of technological innovation,enterprises are affected by many kinds of input factors,and capital is the most decisive input factor,mainly from internal cash flow and external financing funds.As a net capital demander,enterprises are difficult to sustainably rely on their own capital to carry out technological innovation activities.The difficulty of obtaining external financing funds largely determines the success of technological innovation.Financial system,as a financing channel for enterprises to obtain external financing,plays a vital role in technological innovation activities of enterprises.However,whether China’s current financial system matches the urgent need to advocate technological innovation,in particular,whether China’s stock market development can promote technological innovation of enterprises,how different is the impact of commercial banks on technological innovation,and what is the internal mechanism to promote technological innovation of enterprises.These problems still need to be explored and solved.This paper intends to study from the perspective of regional financial development in China.Starting with the above problems,the author makes a tentative study and analysis.Firstly,this paper defines the relevant concepts and research scope,and summarizes the existing research literature at home and abroad from the perspective of theoretical research and empirical research.Compared with the abundant and comprehensive empirical research literature abroad,the existing research in China is relatively few,and there are several shortcomings: first,the lack of specific financial arrangements on the impact of technological innovation;second,the selection of technological innovation indicators in micro-level research in recent two years is relatively single;third,when selecting enterprise samples,too much attention is paid to high-tech enterprises,while ignoring the large number of existing systems in China.Fourth,lack of analysis and Discussion on the mechanism and channel of financial development affecting technological innovation of enterprises.Firstly,due to the high risk of technological innovation activities,information asymmetry exists between financial institutions and enterprises.This paper discusses the behavior choice of commercial banks in overcoming information asymmetry and the information processing advantages of stock market in the process of technological innovation,and then clarifies the mechanism of technological innovation of enterprises by commercial banks and stock market: first,this paper analyses the behavior choice of commercial banks in the face of adverse selection and moral hazard.Because of the high risk of technological innovation activities,banks will require enterprises to provide mortgage guarantees,and technological innovation enterprises often lack fixed assets that can be used for mortgage guarantees,so banks will inevitably reduce or not provide funds.Second,this paper elaborates the information processing advantages of stock market in the process of technological innovation of enterprises.Different from the collective collection of information of commercial banks,the decentralized collection of stock market is more conducive to technological innovation of enterprises.In the stock market,capital providers can carry out investment actions according to their own information.Private information of each participant can be fed back to the price and used to transmit and integrate the price,thus pricing the assets in a reasonable and timely manner.The effectiveness of this information display provides a guarantee for the financing of technological innovation of enterprises.Secondly,following the scientific,simple,effective and implementable principles,based on the above theoretical analysis,this paper focuses on empirical research,using quantitative analysis methods.This paper uses the data of provincial banks,stock markets and R&D investment of 2358 listed companies from 2008 to 2017 to study whether regional banks and stock markets can promote technological innovation of enterprises;and draws on the research methods of Rajan and Zingales(1998),introduces the index of industry external dependence,and forms regional commercial banks and industry external financing dependence multiplier,regional stock markets and industries.External financing relies on transfer items,exploring the internal mechanism of commercial banks and stock markets to promote technological innovation of enterprises.Finally,according to the previous theoretical and empirical research results,that is,China’s commercial banks can not promote enterprise technology innovation investment,and the stock market can effectively ease the constraints of enterprise financing and promote enterprise technology innovation investment,put forward countermeasures and suggestions to promote China’s enterprises to carry out technology innovation activities.