Abstract: R&D investment operated by research and development stakeholders will inevitably result in a certain degree of technical spillover effect. In terms of economic externality and based on Almeida Model, the paper analyzes the inter-industry technology spillover′s influence on financial constraint from the perspective of economic externality, which is based on panel data of China′s manufacturing listed companies from 2010 to 2015. The empirical results show that the higher degree of R&D spillover, the higher trend that enterprises accumulate cash with internal cash flow, with the performance of cash - cash flow sensitivity enhancement and financial constraint aggravation; the less assets, the stronger positive impact that R&D spillover would have on financial constraint. The above conclusions provide the policy basis for the government to give appropriate compensation to the enterprises that produce externalities.

Key words: financial constraint, the cash-cash flow sensitivity, inter-industry technology spillover, economic externality