Impact Of Guangdong's Financial Support System On Technological Innovation

China's economic development has stepped into a new era,technological innovation is not only an important incentive for transforming the economic growth mode,but also a key support for enhancing the core competitiveness.Each stage of technological innovation requires a large amount of capital investment.The shortage of capital in any stage would seriously hinder the progress of technological innovation,which needs enterprises to finance to meet the capital needs in order to deepen technological innovation.At this time,the importance of external support from the financial market and the government stands out.By formulating relevant policies,they can create a reasonable and efficient financial support system to improve the capacity of technological innovation,thus promoting the economic growth.As the province with the highest economic output in China,Guangdong is not only an economically developed region in China,but also a pilot in using innovation to drive development.Although the overall level of technological innovation in Guangdong is relatively high,but there is a large gap among prefecture-level cities in Guangdong province.Some cities just have very limited innovation achievements each year,which indicates that Guangdong still has large potential in technological innovation.Due to the high investment and high risk of technological innovation,the improvement of technological innovation capacity is strongly related to the local financial support system.Therefore,it is of great practical significance to explore the influence of Guangdong's financial support system on its technological innovation,so as to further improve Guangdong's technological innovation ability and demonstrate its leading role.First of all,this paper elaborates the correlation concepts.Secondly,it analyzes the internal mechanism of financial support system to technological innovation and the spatial effect of financial support system on technological innovation.Theoretically,the financial support system promotes technological innovation and has spatial spillover effect,however the existing research mainly demonstrates the relationship between them at national level,limited studies have been carried out on specific provinces.This paper believes that the development situation of different provinces varies significantly,and the suggestions would be more effective when the study is detailed to the specific province.And Guangdong,as an economically developed area,is more practically valuable to carry out a research.Therefore,this paper conducts a detailed study on the relationship between financial support system and technological innovation in Guangdong,to verify whether the financial support system has a significant role in promoting technological innovation.Based on the theoretical hypothesis that the financial support system of Guangdong will significantly promote technological innovation and its spatial spillover effect,this article collects the panel data of 21 cities in Guangdong Province from 2009 to 2018,and constructs an index to measure the market-oriented financial support system by using principal component analysis,and uses the spatial panel model to study the spatial effect of the financial support system on technology innovation,and DEA-Malmquist index method was used to measure the technology innovation efficiency.The concrete results are as following:(1)Guangdong Province has significant knowledge and technology spillover effect;(2)The politically financial support system of Guangdong Province restrains the technological innovation,which has negative spatial spillover effects;but the market-oriented financial support system in Guangdong promotes the technological innovation,but the spatial spillover effect is not significant;(3)Guangdong Province has a higher overall efficiency of technology innovation,but the productivity of a small number of cities shows a declining tendency.Finally,this paper puts forward some recommendations based on the research results above,so as to stimulates the role of Guangdong's financial support system in promoting technological innovation,thereby improving the level of technological innovation,to achieve sustainable development of the local economy,and acts as the leading role of technological innovation as the economically developed region in China.