Title: The Optimum Interaction of Financial Development and Technology Innovation:Theory and Experience
Abstract: Financial development promotes technology innovation through the perfection of five functions such as risk management,adoption and transmission of information,incentive supervising and restraining mechanism,mobilizing of saving and creation of credit,convenience of transaction and promotion of specialization.Technology innovation promotes the financial development through enlargement of market demand,increasing of profit space,reducing of transaction cost,optimum of information transmission,improvement of institutional environment.Financial development and technology innovation has an optimum interaction with each other.The paper builds simultaneous equation model according to the principles and indicators of financial development and technology innovation,and further investigates an optimum interaction between financial deepening and technology innovation,financial efficiency and number of patent authorization,financial structure and RD input respectively by using of the annual practical data from 1992-2010 in China.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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