Research On The Relationship Among Economic Policy Uncertainty,Financing Constraints And Enterprise Innovation Persistence

With the comprehensive promotion of "Made in China 2025" and the continuous upgrading of manufacturing industry,technological innovation in manufacturing industry has become an inevitable choice.According to ?the National Strategic Emerging Industries Development Plan? issued by the State Council,the added value of China's strategic emerging industries' accounted for about 15% of GDP in 2020.Among the strategic emerging industries,the pillar industry is the high-tech manufacturing industry.Therefore,in the future,the development opportunity of China's manufacturing industry is high-tech manufacturing industry.Only if enterprises carry out sustained technological innovation,can they change from passive competition to active development.For Chinese manufacturing enterprises,the adjustment cost of innovation activities is relatively high.Sudden interruption often brings large sunk costs and huge economic losses to enterprises,so it is very important for enterprises to maintain the sustainability of innovation.In the process of technological innovation,financing constraints restrict the innovation activities of enterprises.The difficulty of financing and the increasing pressure of labor cost further increase the comprehensive cost of enterprises,which further enlarges the predicament of funds needed for the enterprises.In addition,in recent years,the domestic economic policy environment is very unstable,and the uncertainty of economic policy will have a far-reaching impact on the financing and innovation activities of manufacturing enterprises.This paper constructs a dynamic probit model to measure the persistence of enterprise innovation.Based on the financial data of listed manufacturing companies in China from 2007 to 2016,this paper studies the dynamic impact mechanism of financing constraints on enterprise innovation under the uncertainty of economic policy.Through descriptive statistics and empirical tests,it is found that the innovation persistence of listed manufacturing companies in China exists firstly.The innovation persistence of listed manufacturing companies changes in the opposite direction when they are subject to financing constraints.Financing constraints will significantly inhibit the innovation persistence of listed manufacturing companies in China,and they are most prominent in the extreme cases of the most severe and the least financing constraints.Economic policy uncertainty itself has a negative impact on innovation persistence of enterprises.However,considering the interaction between economic policy uncertainty and financing constraints,the former can bring opportunities for enterprises to choose when they are financing outside.It can give enterprises more financing opportunities,weaken the inhibition of financing constraints on innovation persistence,and consider the heterogeneity of Chinese manufacturing enterprises.Finally,according to the research results,this paper provides policy recommendations to solve the financing constraints of manufacturing enterprises.At the end of the paper,it illustrates the limitations of this study and prospects for the future research of enterprise innovation persistence.