Financial Constraints, Government Support And Regional Innovation Capabilitie

Adhering to innovation leading development is an important lever for China to continuously deepen the process of building an innovative country,and enhancing regional innovation capabilities has become a new approach for promoting highquality economic development in various regions.Currently,although significant achievements have been made in China’s regional innovation construction,there are still many weak links.This article aims to study the impact of financial constraints and government support on regional innovation capabilities,and to find a breakthrough for the lack of innovation driving force in the current context.Firstly,research whether alleviating financial constraints can promote the improvement of regional innovation capabilities;The second is to find supporting evidence for government support in promoting innovation capability improvement;Thirdly,investigate whether there is a spatial spillover effect between the two on regional innovation capacity;Fourthly,based on the perspective of regional differences,analyze the actual impact of financial constraints and government support in the three major regions of China on regional innovation capabilities.The fifth is to explore whether alleviating financial constraints can become the main path for government support to affect regional innovation capabilities.On the basis of mechanism analysis,this paper uses the provincial panel data from 2007 to 2019 to build a spatial Durbin model and a mesomeric effect model for empirical testing.Firstly,the spatial Durbin model is used to explore the correlation between financial constraints,government support,and regional innovation capabilities,and to study their spatial spillover effects.Furthermore,regional heterogeneity is discussed in the eastern,central,and western regions.Secondly,in the impact of government support on regional innovation capability,financial constraints are introduced as intermediary variables to verify their impact on the correlation between government support and regional innovation capability.Research has found that:(1)Overall,China’s innovation capacity has a spatial spillover effect,and there is a significant positive spatial autocorrelation in the innovation capacity of 30 provinces and cities in the region;(2)From a regional perspective,financial constraints have a inhibitory effect on the innovation capacity of the local area,but can promote the improvement of innovation capacity in neighboring regions;Increasing local government support is beneficial for improving local innovation capabilities,but it will inhibit the improvement of innovation capabilities in surrounding areas;(3)From the perspective of regional differences,compared with the eastern and central regions,the financial constraints in the western region have a more significant inhibitory effect on the improvement of regional innovation capabilities;Government support will promote the improvement of innovation capabilities in the eastern and central regions,but the western region has not yet formed such a positive promoting effect;(4)Government support can indirectly promote the improvement of regional innovation capabilities by alleviating financial constraints.Finally,based on the research results,this article proposes to enrich and innovate financing channels through financial system reform;Strengthen the government’s leading role and improve the supervision of innovation processes;Strengthen the linkage and coordination between the government and the financial market,and improve financial constraints and difficulties;Promote differentiated regional financial services,with policy bias and emphasis on regional recommendations.