Research On The Influence Of Financial Development On Technological Innovation

General secretary Xi Jinping once said at the National Conference on science and technology innovation:"Science and technology prospered,but the nation prospered." The report of the 19th National Congress of the Communist Party of China also mentions the need to accelerate the establishment of a country of technological innovation,constantly improve the development of the innovation system,and strengthen the strength of technological innovation.Finance plays an important role in the process of technological innovation.Since the 18th National Congress of the Communist Party of China,China's financial system reform has been continuously promoted,and the financial system has been gradually improved.The 19th National Congress of the Communist Party of China also pointed out that we should deepen the reform of the financial system,increase the proportion of direct financing,and establish a multi-level capital market.At present,China's financial openness to the outside world continues to expand,and the restrictions on foreign investment into China's financial industry have been greatly relaxed.China's financial development has entered a new stage.In this context,this paper studies the impact of financial development on technological innovation.This paper reviews and summarizes the relevant studies of the past scholars from three aspects:financial development,technological innovation and the impact of financial development on technological innovation.It is found that since the openness up of China's financial sector has been at a low level for a long time,scholars in the past seldom consider financial openness when studying the impact of financial development on technological innovation.Therefore,this paper takes financial openness to evaluate financial development.After that,using panel data of 31 provinces and autonomous regions from 2007 to 2017,this paper obtains the dynamic response results of technological innovation to financial scale,financial structure and financial openness through the establishment of PVAR model,analyzing the dynamic impact of financial development on technological innovation,and then analyzes the impact of financial development on technological innovation in the eastern,central and western regions of China by using spatial econometric model.Conclusions are as followsFirstly,from the perspective of the response of technological innovation to financial development,financial scale and financial structure plays the role of first restraining and then promoting technological innovation.Financial openness have always played an important role in promoting technological innovation,and the short-term impact is larger,and the long-term impact is gradually weakenedSecondly,from the perspective of the spatial effect and regional difference of the impact of financial development on technological innovation,in the eastern region,financial scale has no significant impact on local technological innovation,but has a positive spatial spillover effect on neighboring areas.Financial structure has a restraining effect on local technological innovation,but has no significant effect on neighboring areas.Financial openness promotes local technological innovation and has positive spatial spillover effect on neighboring areas.In the central region,financial scale can promote local technological innovation,but has no significant impact on neighboring areas.The financial structure can promote the local technological innovation,has a restraining effect on neighboring areas,and the overall performance is inhibition.Financial openness promotes local technological innovation and has positive spatial spillover effect on neighboring areas.In the western region,financial scale has no significant impact on local technological innovation,but has a positive spatial spillover effect on neighboring areas.Financial structure and financial opening have no significant impact on local and neighboring technological innovation.