Finance for Science and Technology: From Innovation to Entrepreneurship and Industrial Transformation

In the transition towards knowledge-based economies, the role of finance in fostering technological innovation is becoming increasingly critical. Finance for Science and Technology (FST) is instrumental in bridging the gap between research and technological innovations. Recent studies emphasize that targeted financial support for technology-driven sectors accelerates the commercialization of scientific discoveries, thereby driving economic growth and societal progress. This integration of finance and technology has been pivotal in transforming industries and shaping modern economic strategies, particularly in emerging fields such as green technology and digital transformation [1].

The effective integration of financial resources with technological innovation enables the successful commercialization of scientific advancements. Strategic financial decisions within technological sectors influence environmental and social governance practices, emphasizing the importance of FST in modern economic strategies. Continuous capital flow into technological innovation supports high-tech industries and promotes the transition of innovations from the research phase to market-ready products [2].

For example, in China, the development of FST has evolved significantly, moving from administrative financial allocations in the 1980s to a more sophisticated and integrated system today. This evolution has allowed for the creation of advanced technological hubs in areas such as artificial intelligence, robotics, and quantum information. These advancements underscore the importance of sustained financial investment in fostering technological breakthroughs that drive both economic growth and societal progress [3].

FST plays a critical role in accelerating industrial transformation and upgrading by supporting enterprises deeply rooted in technological innovation. This support is particularly crucial for high-risk, high-growth sectors that traditional financing often overlooks. The application of real-time processing systems and the Internet of Things (IoT) in industry development showcases how FST facilitates the adoption of advanced technologies that drive industrial transformation [4].

Additionally, the impact of digital finance on entrepreneurship in less developed regions demonstrates how FST can spur economic development by empowering entrepreneurs in hightech industries [5]. These developments are vital for achieving high-quality economic growth and sustaining long-term industrial competitiveness. For instance, FST has been instrumental in the development of new industries like hydrogen energy and intelligent connected vehicles, which are key to the industrial transformation of economies aiming for high-value production and innovationdriven growth.

The evolution of financial products and services is another significant aspect of FST. The incorporation of advanced technologies, such as big data analytics and artificial intelligence, into financial services has led to the creation of innovative financial products that better meet the needs of technology-driven industries [6]. The influence of digital finance on green technology innovation provides insights into the transformative power of FST in promoting sustainable development.

Moreover, the integration of digital finance with environmental regulation has been shown to drive green technology innovation, further underscoring the critical role of FST in the modern financial ecosystem. This evolution is not just about creating new products but also about transforming the financial infrastructure to better support technological advancements (Figure 1). For instance, the role of financial technologies in enhancing the efficiency and effectiveness of financial services has been critical in supporting the digital transformation of both enterprises and financial institutions [7].

Figure 1:Virtuous cycle of “Technology-Industry-Finance.

The integration of financial resources with technological innovation is essential for the continued growth and development of modern economies. FST not only supports the commercialization of new technologies but also drives industrial transformation and enhances the financial sector’s capacity to support innovation. As the global economy becomes increasingly reliant on technology, the role of FST will continue to grow in importance, providing the necessary capital to fuel future

Looking forward, the future trajectory of FST will likely involve deeper integration with emerging technologies and more targeted financial policies aimed at fostering innovation in critical areas such as green technology and digital transformation [8]. By continuing to evolve and adapt, FST will remain a cornerstone of economic development and technological progress in the coming decades.

1. Wang Z (2024) Science and Technology Finance Policy and Corporate Investment Efficiency-- A Quasi-Natural Experiment Based on Pilot Policies for Integrating Technology with Financer. Highlights in Business, Economics and Management.
2. Men Y (2024) Combining Financial Models with Industry 5.0 and Intelligent Automation: Financial Methods Feedback Technological Innovation. Advances in Economics, Management and Political Sciences.
3. Yan G, Chen Y (2023) The impact of financial development on industrial upgrading based on the analysis of intermediation effect and threshold effect. Sustainability 15(10): 8364-8364.
4. Zhang Y (2020) The Effect of Sci-Tech Finance Investment on Innovation of TMT Industry: An Empirical Research Based Panel Date Model. In: Li M, Dresner M, Zhang R, Hua G, Shang X (Eds.), IEIS2019. Springer, Singapore.
5. Zhu Y (2023) The Digital Transformation of Enterprise Accounting: Big Data, AI and Financial Sharing. Advances in Economics, Management and Political Sciences.
6. Ma J, Wang R (2023) RPA financial robot boosts the digital and intelligent transformation of enterprise finance. 2023 International Conference on Distributed Computing and Electrical Circuits and Electronics (ICDCECE). Ballar, India, pp. 1-7.
7. Hu W (2024) Research on the impact of technology finance on the manufacturing industry in the Yangtze River Delta region. Highlights in Business, Economics and Management 11(2): 294-301.
8. Yang F, Masron TA (2023) Does financial inclusion moderate the effect of digital transformation on banks’ performance in China? Cogent Economics & Finance 11(2): 2267270.