Effects Of Syndication On The Innovation Of Venture Capitalists’ Portfolio Firms

In today’s world, technological innovation more broadly affects the economic development and people’s lives, and the level of development of science and technology more deeply reflects the comprehensive strength and international competitiveness of the country. It must be recognized that under the new situation, China’s independent innovation capability is not enough and technology system cannot meet with the requirement of international competition. To accelerate the construction of the national innovation system, we must continue to encourage and strengthen the enterprises as the mainstay of technological innovation, and guide human resources, capital, technology and other resources gathering to the enterprise innovation, which is also a necessary requirement to promote industrial upgrading.Venture capital is an important channel of financial inter-mediation for technology companies and innovation activities, and its positive role in the promotion of technological innovation and high-tech industrial development gradually been widely recognized. In recent years, China’s venture capital industry is developing rapidly, as an effective investment strategy, venture capital syndication isincreasingly favored by venture capital institutions. Thus, the research of syndication strategy for technology innovation mechanism has important practical significance. The study selects 2009-2014 listed companies as samples, around syndication, venture capital background and diversity of syndication, exploring the influence of risk investment on the input and output of technology innovations of industries.The study finds that (1) compared to a dependent venture capital investment, venture capital syndication can more promote technical innovation; (2) government-backed venture capital investment alone cannot effectively promote the technological innovation of enterprises, but joint with non-governmental background venture capital, producing the formation of complementary effects, can promote technological innovation; (3) this paper characterize the index of venture capital diversity, which including the scale, investment experience, institutional features of venture capital, the results shows that between the technological innovation and venture capital diversity, there is an "inverted U-shaped" relationship. With increasing degree of diversity, the level of technological innovation will gradually increase, but after the peak, with the degree of diversification continues to increase, the level of technological innovation of enterprises will decline.