The deep integration of technology and finance is the driving force behind innovation driven development. As a link between capital and innovation, the construction of a technology finance system is related to the achievement of China's goal of high-level technological self-reliance and self-improvement. It is urgent to cultivate a financial ecosystem that matches the innovation driven development strategy with systematic thinking, and promote a virtuous cycle of "technology industry finance". China's technology finance service system has initially established a diversified pattern of policy support, market operation, and regulatory guidance, and the development ecology of technology finance is accelerating and optimizing. In this process, a new round of technological revolution represented by artificial intelligence has reconstructed the operational logic and value creation mode of the financial industry through technological empowerment, forming a "technology empowerment efficiency improvement ecological optimization" chain for the development of technology finance. From the perspective of banking practice, artificial intelligence models have widely promoted the transformation of financial services from "experience driven" to "data-driven". For example, China Construction Bank's "Tianyan" intelligent risk control system covers 98% of the bank's retail credit business, and the credit card fraud loss rate has decreased by 52% year-on-year, confirming the optimization and upgrading of traditional financial risk pricing models by intelligent risk control. In terms of market size, the asset management scale of intelligent investment advisory in China will exceed 19 billion yuan by 2024. It is expected that by the end of the 15th Five Year Plan period, the coverage of personalized asset allocation plans will continue to increase, reflecting the continuous improvement of the matching degree between financial services and innovation needs. From the perspective of the capital market, the effect of technology empowerment is equally significant. The securities industry regulatory model jointly released by the Shenzhen Stock Exchange and Huawei has improved the quality of information disclosure and audit efficiency, effectively cracked the problem of information asymmetry in the capital market through technological means, and made capital pricing more in line with the true value of technology enterprises. These practical explorations not only enrich the application scenarios of technology finance, but also highlight the development path of collaborative innovation between technology and institutions. At the same time, it should be noted that there is a mismatch between the operational logic of the traditional financial system and the inherent characteristics of technological innovation. Technology based enterprises generally have the characteristics of light assets, high risks, and long cycles, while the traditional financial risk control model relies on tangible asset collateral. This supply-demand mismatch leads to low financing availability for enterprises, forming a contradiction between strong innovation demand and weak financial supply. In addition, the lack of risk sharing mechanisms and differentiated risk pricing tools have also to some extent suppressed the enthusiasm of financial capital to enter the field of technological innovation. The Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese path to modernization proposed to "build a scientific and technological financial system compatible with scientific and technological innovation", which provides a direction for the high-quality development of scientific and technological finance. In the current and future period, to solve the difficulties in the development of technology finance, it is necessary to take institutional innovation as the core, improve collaborative mechanisms, and build a financial service system that covers the entire life cycle of technology enterprises, so that financial resources can truly flow to the places where innovation is most needed. Firstly, establish a multi-level financing service system. Innovate intellectual property financing models, establish a national level intellectual property evaluation center and develop unified patent value evaluation standards, implement a whitelist system for intellectual property pledge financing, and provide interest rate discounts and risk compensation to selected enterprises. Establish a technology enterprise information sharing platform based on the national government service platform, and use big data and artificial intelligence technology to dynamically update and accurately depict the credit profile of enterprises. Develop specialized institutions for technology credit, encourage commercial banks to establish technology branches, and implement differentiated assessment mechanisms. Improve the technology insurance system and establish a mechanism for linking insurance funds with technology projects. Secondly, deepen the comprehensive reform of capital market investment and financing. On the financing side, refine the positioning of multi-level capital markets, for example, clarify that the Science and Technology Innovation Board focuses on hard technology enterprises, and strengthen the identification of hard technology attributes from aspects such as R&D investment proportion and independent controllability of core technologies; Optimize the listing review mechanism; Smooth the exit channels for private equity funds. On the investment side, expand the scale of long-term capital entering the market, increase the upper limit of the proportion of insurance funds investing in science and technology innovation board stocks, and increase the proportion of pension funds entering the market; Optimize tax incentive mechanisms, extend the tax exemption period for investment income such as social security funds, and implement deferred taxation for personal pension account investments in stocks and funds; Encourage long-term capital to continue entering the market. Once again, establish a sound risk mitigation system. Innovate risk pricing tools, develop credit risk mitigation certificates for technology enterprises, and allow financial institutions to use non standardized assets such as technology enterprise equity and intellectual property as collateral. It can be jointly funded by the central and local finances, and social capital participation is encouraged to establish and expand a risk compensation fund pool for financing technology-based enterprises, clarifying the scope, standards, and procedures of compensation. Establish a long-term capital market risk compensation fund to provide temporary liquidity support for short-term large losses caused by severe market fluctuations, reduce the performance evaluation pressure on fund managers, and guide the market to focus on long-term value investments in technology-based enterprises. Optimizing the development ecology of technology finance is a systematic project that requires policy guidance, market operation, regulatory protection, and coordinated efforts. Only by continuously breaking down development barriers through institutional innovation, empowering services with technology to improve quality and efficiency, and promoting the concentration of financial resources towards the forefront of innovation, can we inject lasting financial momentum into tackling key core technologies and achieving high-level technological self-reliance, and solidify the foundation of innovation for high-quality economic development. Author: Tian Xuan (Dean of the National Institute of Finance at Tsinghua University and Vice Dean of the Wudaokou School of Finance)