Abstract:Based on the analysis of financing constraints, the function of different financial institutions and the futures of R D activities(basic research, applied research and experimental development), the impacting mechanism between financial development and R D activities is explained in this article. Combining with the results of the panel models, we get the conclusion: the promoting impact of commercial bank on R D activities(from basic research to experimental development) is enhancing in turn and the promoting impact of stock market is receding in turn. It reflects that the risk preference of them is different. Compared with the stock market, the commercial bank tends to choose to invest in the R D activity which is near the market and less risky. On account of the situation that the R D investment structure of China is unreasonable, the key to realizing the organic combination of science and technology and finance, increasing the proportion of basic research, is to improve the domestic financial market, optimize the financial structure and enhance the allocation efficiency of R D funds.