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Effects of Sci-Tech Innovation and Financial Capital Integration based on SVAR Model

Volume 14, Number 12, December 2018, pp. 3159-3166
DOI: 10.23940/ijpe.18.12.p25.31593166

Ruiya He

School of Economics and Management, Shijiazhuang Tiedao University, Shijiazhuang, 050043, China

(Submitted on September 20, 2018; Revised on October 17, 2018; Accepted on November 19, 2018)


Science technology innovation (sci-tech innovation) is significant for economy growth under innovation-driven development, and financial capital is an essential factor to provide cash for innovation. Thus, it is necessary to measure the combination of sci-tech innovation and financial capital. To solve this problem, this paper provided a structure vector auto-regressive model for measuring the effects of sci-tech innovation and financial capital. The five variation components considered were the amounts of direct financing, indirect financing, technical turnovers, sales revenue of products that are adopted new technology, and high-tech product exports. The results indicated that the scale of direct and indirect financing and sci-tech innovation are positively related; both have a significant role in promoting sci-tech innovation; the two complementary financing modes supporting sci-tech innovation are stronger than the alternative; both direct and indirect financing have a positive effect in the long run, and they mainly impact the technology diffusion in the short term; innovation is characterized by time lag; and the response for indirect financing is greater than that for direct financing. Meanwhile, indirect financing has more explanatory power on output growth error.


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