Abstract: In recent years, the financialization trend of real enterprises has become increasingly prominent, which has a profound impact on the asset allocation decision-making of enterprises, so that the improvement of innovation ability of enterprises is facing new challenges.Based on the perspective of micro enterprises, this paper constructs the evolutionary game theory model to study the process of enterprise financialization and the mechanism of its impact on the innovation ability of enterprises. Based on the data of China′s non-financial A-share listed companies, it uses the fixed effect model and IV-GMM estimation method to test it.The results show that the higher the degree of finance is, the lower the innovation ability is，the impact is different because of the different financing constraints of enterprises,and for enterprises with severe financing constraints, the inhibition effect of financialization on innovation is more significant; for enterprises with loose financing constraints, the restraining effect of financialization on their innovation is relatively weak.Further study finds that the financialization impact on the business performance of business owners has a negative impact, which is not conducive to their long-term growth. Therefore, we should optimize the innovation incentive policies to guide the innovation behavior of enterprises, improve the financial supervision system to prevent systemic financial risks, and ease the financing constraints of enterprises to avoid excessive financing of enterprises.

Key words: financialization of real enterprises, innovation ability of enterprises, evolutionary game, financing constraints