Firms' Export and Technological Innovation Decision from the Perspective of Financial Constrains: Evidence from Manufacturing Firms of Fujian Province

Abstract

From the perspective of financial constraints, this article analysize the technological innovation decision of Fujian Province empirically using 2005-2007 micro firm data of the province under the formal and informal financing channels. We analyzed the influence of export trade, financial constraints on technology innovation. More important,the interaction between them. The results show that the financial constraints restrain the export of firms,thus affect the innovation decision, but the influence is quite different according to the different financing channels. Under the banks and other formal financing channels, the lower financial constraints of export firms, the stronger of its innovation propensity. But under the informal financing channels, trade credit has no significant effect on firms' innovation decision-making, nor affect firms' innovation through export mechanism.