Study On the Influence Mechanism and Effect of Financial Resource Allocation on Regional Innovation Capacity in China

Reviewing the development of China in the past 40 years, it has made remarkable achievements in economic growth rate, which can be called "world miracle". However, the extensive growth model cannot promote the sustainable development of China's economy. In the long run, it will inhibit the supporting role of financial resource allocation on the improvement of regional innovation capacity. This paper studies the theory of regional economics and new institutional economics, and examines the influence of financial resources on innovation from the perspective of financial inhibition, financial deepening and financial structure. This paper is of great significance for the return of finance to its roots, the strengthening of the support of finance for innovation-driven, the reasonable positioning of the functions of the government and the market, and the implementation of innovation-driven strategy.