The Impact Of Financial Agglomeration On Regional Innovation Ability Under The Background Of Local Government Competition

Science and technology innovation is an important support for our social development and the enhancement of overall national strength.At present,our country is in an important stage of upgrading industrial structure,innovative development is the first driving force in the process of the second industry to the third industry."Accelerating the construction of an innovationoriented country" has become an important platform for our development at this stage.The relationship between finance and science and technology is very close.Financial resources have always been regarded as the core elements of scientific and technological innovation.As a highlevel industrial agglomeration,financial agglomeration is an inevitable trend of contemporary economic development.It is conducive to resource integration,improving production efficiency,and has a certain positive impact on scientific and technological innovation.In the process of financial industry clustering,we should not ignore the guiding role of local governments while paying attention to the regulating role of the market.The reality shows that the agglomeration of financial industry and the improvement of regional innovation ability are closely related to the influence of local government’s competitive behavior.Based on the background of local government competition,this paper studies and analyzes how the agglomeration of financial factors affects regional innovation ability,hoping to provide theoretical support and practical proof for the efficient allocation of financial resources and the construction of innovation-friendly environment in China.Based on the review of existing literature and theories,firstly this paper analyzes and expounds on the mechanism of financial agglomeration’s influence on regional innovation ability under the background of local government competition,and puts forward four hypotheses.Secondly,the paper determines the measurement criteria of financial agglomeration and regional innovation ability and analyzes their status from the perspective of time and space.Then,taking the panel data of 31 provinces in China from 2000 to 2020 as research samples,this paper establishes a spatial econometric model to analyze the actual effect of financial agglomeration on regional innovation ability and its spatial spillover effect and further explores the regulatory mechanism of government economic competition and government innovation competition in this process.The main conclusions are as follows:(1)During the sample observation period,the financial agglomeration has an "inverted U-shaped"nonlinear effect on regional innovation capability,and the spatial spillover effect exists.(2)The results of the two groups of heterogeneity analysis show that the empirical test results of the eastern economically developed regions are similar to the results of the national regression,showing an "inverted U-shaped" nonlinear influence.The direct influence of financial agglomeration on regional innovation capability in the central and western regions shows a positive promoting effect.The direct effect of financial agglomeration on regional innovation capacity in high human capital areas is significantly positive,while the direct effect on regional innovation capacity in low human capital areas is not significant.(3)Government economic competition negatively moderates the innovation and development effect of financial agglomeration.If the government increases the intensity of economic competition,part of the positive innovation effect of financial agglomeration will be weakened.The effect of government innovation competition is opposite,that is,it plays a positive regulating effect.The conclusions of this paper enrich the theoretical and empirical research on local government competition,financial agglomeration and regional innovation ability.Based on the research results,countermeasures and suggestions such as optimizing the distribution of financial resources according to local conditions,creating a good environment for scientific research and innovation and strengthening the guiding function of local governments are put forward for reference.