Academic journal article Canadian Social Science

The Analysis of Government's Role in the Development of Scientific and Technological Finance: Illustrated by the Case of Liaoning Province

Academic journal article Canadian Social Science

The Analysis of Government's Role in the Development of Scientific and Technological Finance: Illustrated by the Case of Liaoning Province

Article excerpt

Abstract

The development of sci-tech finance is largely dependent on the participation and support of the government, for it effectively supplements the insufficient by the invisible hand which includes the externalities of science and technology innovation and financial market failure, etc. Thereby, the government plays a Leading role in the process of enterprise independent innovation. The government's effects are composed of policies support, investment guide, market system construction and perfect the related law. At this stage, the government should play an important role in innovating the way of fiscal expenditure on science and technology and perfecting implementation of the preferential tax policy.

Key words: Science and technology finance; Government effect; Externalities; Market failure

The sci-tech finance is a series of systematic, innovative arrangements of financial instruments, financial system, financial policy and financial services, which can encourage the development of science and technology, achievements transformation and development of High and new technology industry. It is a system formed by the government, enterprise , market, social intermediary agencies and other main body which Provide the financial resources to the activities of science and technology innovation and their actions and activities in the process of financing for the Science and technology innovation. It is an important part of the national science and technology innovation system and financial system. As regard to the development of the sci-tech finance, the participation and support of the government is very important. Through the function of the "visible hand", the government, as an important subject for the input of external environment, can effectively deal with some questions of the externalities of innovation, financial market failure, etc. So, the government plays a guiding role in the process of enterprise independent innovation.

1. THE NECESSITY OF GOVERNMENT SUPPORT IN THE DEVELOPMENT OF THE SCI-TECH FINANCE

The government should play a role of support in the scitech finance, the main reasons are as follows:

First of all, to some extent, the government can compensate for the externalities of independent innovation. The externalities of independent innovation are that the enterprise innovation activities can have an economic impact on the external economy. It is the "spillover effect" of the other enterprises on science and technology innovation, which will give the external enterprise the additional revenues of innovation. It is the main reason that some technology has the property of public goods in the independent innovation process. Once the enterprise's innovation activities achieve success, other firms will try to get information about the enterprise innovation, and as far as possible application to the company's production and operation activities, which make the innovated enterprise bear the entire risk, but enjoy partly benefits. Obviously, the benefits spillover of autonomous innovation will reduce the enthusiasm of enterprises for independent innovation. Owing to the characteristics of innovation, it is necessary that the government gives support and encouragement to the enterprise. Through a variety of laws and regulations, the government can build a legal environment of fair competition for the enterprise, especially strengthen protection from the enterprise for independent innovation products and intellectual property rights. In addition, the government can also enhance the support for self-directed innovation by some measures such as a variety of fiscal policy, preferential tax policy, government procurement, which are aim to reduce the influence of return spillover as much as possible, and to improve the enthusiasm of enterprises for independent innovation.

The second, the government deals with the problem of the independent innovation of the financial market failure. …

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