Taking listed companies of strategic emerging industries as the research subject, this paper uses KZ
index to measure the degrees of financing constraints and financial intermediary as well as the stock market to represent
the level of financial development. Then empirical models are constructed to analyse whether financial development can
alleviate the financing constraints of R&D investment or not. Finally, the paper further investigates the interaction of
financial development and firm characteristics (including firm size, ownership nature and establishment time) on the impact
of R&D investment. The results show that the degree of financing constraint is negatively correlated with R&D investment.
Both the development of financial intermediary and stock market play an important role in alleviating the R&D financing
constraints, and the development of the stock market can better alleviate the R&D financing constraint. Moreover, the
development of financial intermediary and stock market plays a heterogeneous role among enterprises of different size, nature
and time of establishment. In order to achieve the 13th Five-year Plan target of strategic emerging industries in China,
the government and enterprises need to work together to improve the financial development level and reduce information
asymmetry, so as to expand the investment channels of R&D investment and improve their innovation capability and
competitiveness.
Industrial Agglomeration, Financial Development and Financing Constraints of Small and Medium-sized Enterprises
