Abstract
Technological innovation is the core power to promote economic growth, and public financial policy plays an important role in stimulating enterprises to carry out technological innovation. The new technological revolution has not only provided opportunities but also posed serious challenges to developing countries. We must adapt to the development trend of the new technological revolution, change the traditional model of economic development, formulate new development strategies, improve existing public policies, constantly raise the level of science and technology, and embark on the road of making China a technologybased country. By analyzing the relationship between technological innovation and public financial policy, this paper draws out the shortcomings of China’s existing fiscal policy in promoting technological innovation, and makes a comparative analysis of the fiscal policy of the United States and draws on its experience, so as to get the technical innovation suggestions under China’s public financial policy.
Highlights
Technological innovation refers to a comprehensive process in which entrepreneurs seize the potential profit opportunities in the market, reorganize production conditions and elements for the purpose of obtaining economic benefits, and constantly launch new products, new processes and new technologies to gain market recognition
From the evolution and development process of economic growth theory, the traditional economic development theory believes that the focus of developing countries' economic development is savings and material capital accumulation
Since technological innovation has the characteristics of publicity, spillover, high risk and uncertainty, it is of great significance for the government to intervene and promote enterprise technological innovation through public financial policy
Summary
Technological innovation refers to a comprehensive process in which entrepreneurs seize the potential profit opportunities in the market, reorganize production conditions and elements for the purpose of obtaining economic benefits, and constantly launch new products, new processes and new technologies to gain market recognition. Since technological innovation has the characteristics of publicity, spillover, high risk and uncertainty, it is of great significance for the government to intervene and promote enterprise technological innovation through public financial policy. Whether the technological innovation results appear in the form of new products, new processes or new organizations, they all contain new knowledge, and the use of new knowledge by others will promote the increase of new knowledge and induce the emergence of new technological innovation From this point of view, technological innovation is public, and its benefits are mainly social benefits, which are far greater than personal benefits. From an economic perspective, for enterprise technological innovation is a kind of high risk spillover, technology innovation resources required to invest more and long time consuming and can not fully conform to the enterprise’s desired outcome. That the government adopts fiscal policy to intervene can make up for the market shortage and effectively promote the development of technological innovation
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
