Impacts of financial agglomeration on technological innovation: a spatial and nonlinear perspective.

High-quality development is the inevitable choice for overcoming structural problems and resource bottlenecks and achieving sustainable development after more than three decades of rapid growth in China. Finance-driven technological innovation is an effective way to realise high-quality development. Working with a data set that includes 41 cities in China's Yangtze River Delta, we used a panel threshold model and the spatial Durbin model to empirically analyse the impact of financial agglomeration on technological innovation. Our results indicate that the promoting effect of financial agglomeration on technological innovation increases with an improvement in the financial agglomeration level. Financial agglomeration has an inverted U-shaped spatial spillover effect on technological innovation. That is, moderate financial agglomeration will promote technological innovation in their neighbourhood, while excessive financial agglomeration will inhibit it. The government should fully utilise the radiating and dispersing functions of financial and innovation centres to rationally allocate resources and narrow gaps between regions. [ABSTRACT FROM AUTHOR]