Financial Development and Regional Innovation Output Growth: Based on Empirical Analysis of Provincial Panel Data in China

The paper conducts empirical analysis of influence of financial development on regional innovation through establishing effect regression model of panel data based on the economic data from 2003 to 2014 in 31 provinces and cities. Because the financial intermediary and security market are the main source of financial capital required in technical innovation, the paper discusses the influence of financial development on regional innovation output from two angles of financial intermediary development and credit market development, and compares the regional differences of the influence on this basis. The results show that in the nationwide respective, whether the development of financial intermediary or security market has obvious positive influence on the regional innovation output, while the influence degree of the former is larger than the latter. In the regional perspective, the development of security market in the eastern region generates more obvious influence on the regional innovation, and the financial intermediary in central and western region generates more obvious effect in driving the growth of regional innovation output, while the development of security market has no obvious effect in the regional innovation output growth in central and western region.