Abstract

Finance is playing an increasingly important role in the process of implementing innovation-driven strategy and building an innovation-oriented country.In recent years，the relevant state ministries have issued a series of policies and measures to promote the integration of technology and finance in order to guide the allocation of financial resources to the field of technological innovation so that the financial development will become a technological innovation trigger，engine valve and accelerator.Financial development includes two dimensions of gross growth and structural optimization.Comparing with the rapid expansion of the financial gross and scale，the adjustment and optimization of financial structure obviously lag behind.This phenomenon leads to the need for China to speed up the financial structural reform objectively.At the same time，as the financial system is an important variable in the economic development，the influence of it's design and evolution on financial structure and technological innovation can't be ignored.Therefore，this study which examines the financial structure optimization and financial system reform from the perspective of technological innovation has not only prominent theoretical value but also strong policy guiding significance.

The main content of this paper includes three tips.Firstly，through the discussion on the mechanism of the theoretical relationship between financial tools innovation and technology innovation，this paper has deeply analyzed the mechanism of how bank financing and capital market financing act on technology innovation，and has given answer to a question of common concern，that is，bank financing can also play a positive role in some certain stages of technological innovation life cycle to a certain type of technological innovation.It lays the theoretical foundation for the subsequent research.Secondly，by using the methods and theories of economic growth，innovation，financial development，institutional economics，new structure economics and evolutionary economics，this paper has analyzed the mechanism and influencing factors of financial structure evolution，the effect of financial structure differences on technological innovation path and the assimilation between technological innovation mode change and financial structure evolution，and has put forward the optimal financial structure to promote technological innovation.Thirdly，by introducing an important variable，financial system，which impacts on the financial structure，this paper has analyzed the coevolution of financial system and financial structure，implemented an empirical analysis on Chinese financial repression and raised the relevant theoretical hypothesis.Then the measurement model was proposed and the indexes were extracted by principal component analysis.The model was tested by means of measurement.Finally，this paper proposes some policy recommendations to optimize the financial structure and reform the financial system.

This paper mainly draws the following conclusions.

1.Considered from the whole process of technological innovation，certain financial instruments are only suitable for certain innovation stages.Capital finance is applied to the stage of the research and development of the technology innovation，and bank finance is applied to the stage of technological innovation industrialization.In the process of promoting the innovation，the above two have comparative advantages and play the same important role.

2.The relationship between financial structure and technological innovation model is co-evolutionary.On one hand，the financial structure will affect the mode of technological innovation.Generally speaking，the financial structure with capital finance as the main is mainly conducive to original innovation，while the financial structure with lending finance as the main mostly tends to support the imitation innovation.On the other hand，the change of technological innovation model also influences the evolution of financial structure.Because the new imitation countries are approaching the advanced countries in terms of technology，the imitation space tends to be further narrowed，which drives the former to shift their technology development strategy from imitation innovation to independent innovation.Hence，their proportion of financial capital will gradually increase，leading to the phenomenon of global financial structure assimilation.With the deepening of the financial system reform，the financial structure of our country presents the characteristics of the gradual convergence with the major countries.

3.The banks and the government's “double leading” characteristics in Chinese financial structure will restrain technological innovation to some extent，thus causing the deviation from the optimal financial structure.The effect of China's financial development on technological innovation is not significant due to the lack of allocation of resources and the low degree of marketization of the financial system which is the “financial suppression” phenomenon.In the case of financial repression，the interest rate can not fully and accurately reflect the relative relationship between supply and demand of funds as a widespread interest rate control in the credit market，resulting in the parallel appearance of the excess demand “surplus” and the financial gap “shortage”.At the same time due to the existence of information asymmetry to reduce the supply of funds，the financing of science and technology enterprises is increasingly difficult and costly.

4.The arrangements of financial system turn out to be an important variable affecting the financial structure.Severe financial control can lead to distortion of financial structure，and deviation from the optimal equilibrium point.Under these conditions，the financial control should be moderately loosed to promote the optimization of financial structure，and finally become a powerful driving force for technological innovation.

5.From the point of view of the empirical results，there does exist the phenomenon of inhibition in the financial structure of our country on technological innovation.Financial structure's functions like penetration，support，influence and promotion on technology innovation need to be further strengthened.The financial system has conduction effect on the financial structure，especially to our country in the stage of “emerging and transition”.Compared to indirect finance，direct finance have more functions on technology innovation in China.Therefore，it is shown that multi-level capital market should be developed quickly and gradual realization of the transition from bank dominated financial structure to market dominated financial structure should be achieved.

The innovation points of this study are as follows：

1.Different from the existing studies，which mainly focus on the financial structure affecting technological innovation by one-way perspective，this study presents the two-way coevolution of the financial structure and the mode of technological innovation.That is，not only does the financial structure affect the mode of technological innovation，but also the change of technological innovation mode influences the evolution of financial structure.Because the new imitation countries are approaching the advanced countries by technological imitation，the imitation space tends to be limited，which makes the post development countries to shift their technology development strategy from technological imitation to independent innovation.At that time，their proportion of financial capital will gradually increase，leading to the financial structure convergence between the post development countries and the advanced countries.This study will help to deepen the systematic understanding of the technology innovation strategy in the post development countries.

2.Covering the lack of simple description of the relationship between financial structure and technology innovation in the previous literatures，this study introduces the financial system variable，puts the coevolution of the financial structure and technological innovation in the background of financial system reform，expands the research thoughts from the traditional “financial structure-technology innovation” to the new “financial system-financial structure-technology innovation”，and draws the new conclusion that the moderate loose of financial control could promote the optimization of financial structure so as to become a powerful driving force to promote technology innovation.This study complies with the background of macro system and the requirement of system transition in transition economies，helps us accurately grasp the system transition requirements for technological innovation matching with financial structure，so as to enhance the theoretical and practical value in research conclusions and policy suggestions.

3.Basing on the evolution analytical paradigm，the study puts forward that the optimal financial structure to promote the technological innovation is the most suitable financial structure to adapt to the different nature and different development stages of the technological innovation，and this structure is also in constant change in the dynamic evolution and optimization.This new paradigm avoids to simply judge the superior between these two financial structures in promoting technological innovation，analyses from the perspective of the “optimal financial structure” which is actually the developing “suitable financial structure”，contributes to profoundly reveal the nature of coevolution and the rule of dynamic development between technological innovation and financial structure during the building innovation-oriented country and the implement of innovation driven strategy，expands the depth and breadth of the evolution of financial structure under the current structured change on the side of supply.

Keywords：Technological Innovation，Financial Structure，Technology Catching up，Convergence of Financial Structure，Financial System