Research On Financial Investment In S&T And Regional Innovation Performance Of Local Government In China

The report of the 19 th CPC National Congress proposed that innovation is the primary driving force for the development and the strategic support for the construction of a modern economic system.The national “13th Five-Year Plan” also focuses on the implementation of innovation-driven development strategies as the primary task.In China,because the government has mastered most of the society's investable resources,the government's decision-making has a very important guiding role in the allocation and orientation of resources.In the construction of regional innovation systems,local governments are the implementers of most policies and actions.The investment in science and technology has an increasingly important influence on regional innovation performance.Taking local government as the research object,on the one hand,it is due to the outstanding role of local government in the construction of regional innovation system.On the other hand,regional differences have become an unavoidable realistic problem in the study of China's innovation policy.Firstly,based on the perspective of innovation policy tools,this paper divides the policy tools into the supply-side policy tools,the environmental-side policy tools,and the demand-side policy tools according to the mechanism of different policy tools on innovation activities,which corresponding to three kind of local government financial investment in science and technology,the investment of science and technology funds,tax incentives,and government procurement.According to data analysis,in recent years,China's financial investment in science and technology continues to expand,S&T investment in different regions have differences,the factors that affect local government financial S&T investment attributed to the level of industrial development and technology concentration.Therefore,30 provinces across the country can be divided into four areas: high level of industrial development and high degree of technological clustering,high level of industrial development but poor technology foundation,low level of industrial development but high degree of technological clustering,and low level of industrial development and technology concentration.In order to further analyze the differences in regional innovation performance under different financial science and technology inputs,this paper selects panel data from 30 provinces in China during 2009-2015,and uses Stata 15 software to do the empirical analysis.The logarithmic Cobb-Douglas production function was used to study the effect of the three input methods on regional innovation.The study found that:(1)Investment in science and technology,government procurement,and tax incentives have a significant positive impact on regional knowledge innovation performance and regional technology innovation performance.(2)The areas with high level of industrial development and high concentration of science and technology should pay more attention to the balanced development of scientific and technological input methods,attach importance to the use of policy tools on the demand side,increase the scale of government procurement,optimize the tax incentives for science and technology,and broaden taxation coverage.(3)In areas where the industrial development level is high but the technology base is poor,government procurement has a significant role in promoting knowledge innovation performance and technological innovation performance.The government should standardize the government procurement process and expand the scale of innovative technology procurement in government procurement.(4)In the areas where the level of industrial development is low but the technology base is high and the areas with lower levels in both two factors,investment of science and technology plays a positive role in the knowledge innovation.In terms of technological innovation,the positive impact of tax incentives is more obvious.To sum up,this paper proposes corresponding policy recommendations to provide decision-making basis for governments in different regions,and make them to formulate and select corresponding financial science and technology input policies.