Core Insights - The central financial work conference in late October 2023 emphasized the importance of developing technology finance as a key strategy for financial institutions to promote the "technology-industry-finance" new triangular cycle [1] - Technology finance is crucial for financial institutions to achieve business transformation during the high-quality development phase [1] Summary by Sections Technology Innovation Stages - Technology innovation can be divided into two phases and six stages: "innovation generation" and "innovation diffusion," which include scientific research, concept validation, product maturation, industry introduction, industry growth, and industry maturity [2][3] - The "innovation generation" phase focuses on discovering new theories and developing new products, characterized by long investment cycles and uncertain outputs [1][2] - The "innovation diffusion" phase involves the introduction, growth, and maturity of industries, with shorter validation cycles and more predictable risks and returns [1][2] Funding Chain Matching - The funding chain must be clarified to match the innovation chain effectively, with different funding sources for research departments and enterprise sectors [9] - Research departments primarily rely on public budget allocations, while enterprises can access both internal and external financing [9][11] - The concept validation stage often faces funding shortages, leading to an "innovation valley of death," where many potentially viable research outcomes fail to transition into products [12][13] Funding Sources by Stages - In the scientific research stage, funding primarily comes from government budgets and large technology enterprises, with a total R&D expenditure of 33,357.1 billion yuan in 2023 [11] - The concept validation stage requires policy-based financial support to address the funding gap, as traditional funding sources do not adequately cover the unique risks involved [12][13] - The product maturation stage sees participation from large tech firms and startups, with suitable funding sources including policy-based finance and early-stage equity investments [14][15] - The industry introduction stage relies on commercial finance, including equity investments and bank loans, to support new product sales and market entry [17] - The industry growth stage benefits from commercial finance, with a focus on growth equity investments and bank loans to support expanding enterprises [18] - The industry maturity stage has abundant funding options, including IPOs and various debt financing tools, as the market stabilizes [19][20] Recommendations for Improvement - To enhance the technology finance system, it is recommended to increase fiscal support for scientific research, establish a national concept validation mechanism, and promote innovative procurement practices [23][24] - Encouraging government-led funds to invest in emerging industries and providing differentiated risk-sharing policies for small tech enterprises can facilitate industry transitions [24][25] - Optimizing the capital market and ensuring diverse exit channels will support the sustainable growth of technology enterprises in the maturity phase [25]