Rethinking the Development of Science and Technology Finance in China

Abstract

Technological innovation and financial development are mutually reinforcing.The financial system alleviates the financing constraints faced by technological innovation by providing services such as information incentives, risk management, and intertemporal resource allocation. This paper first reviews the interactive relationship between technological progress and financial innovation during the three industrial revolutions, clarifying the connotation and functional positioning of science and technology finance. Subsequently, by analyzing the structural characteristics of China’s financial system, it points out the limitations of the government-dominated credit system and bank-dominated financing structure in supporting technological innovation. Finally, it proposes policy recommendations for improving China’s science and technology finance system, including unblocking the circulation bottlenecks between science, technology, and finance, enriching the ecosystem of science and technology finance supply, and establishing a national-level science and technology finance support institution.