The Effect Of Venture Capital,Government Funding And Bank Loans On Innovation Activities Of Small And Micro Enterprises

Under the new economic normal,innovation is an important source of power for promoting the sustainable development of the national economy,improving the country's core competitiveness,and promoting the transformation and upgrading of the modern economic system.One of the main tasks of implementing the innovation-driven development strategy in China is to strengthen the main body of innovation,strengthen the main position of the enterprise in innovation,stimulate the innovation vitality of the enterprise,and enhance the innovation capability and core competitiveness of the enterprise.Enterprises are the most important micro-subjects of the country's implementation of innovation-driven development strategies.At present,Chinese enterprises have entered an active period of innovation.China's technological strength and technological innovation level have been greatly enhanced,and technological innovation capabilities have been significantly improved.The main innovation indicators have entered the forefront of the world.The number of applications and authorizations for invention patents in China is already the highest in the world.China's small and micro enterprises(including individual industrial and commercial households)account for more than 94%of the total number of enterprises in the country,and have completed more than 65%of invention patents,more than 75%of technological innovation and more than 80%of new product development.Therefore,small and micro enterprises are important microscopic subjects of innovation in China,and play a very important role in promoting innovation.They are an indispensable driving force for China's implementation of innovation-driven development strategies.Innovative activities have high adjustment costs,and disruption of innovation will bring greater losses to enterprises.Therefore,long-term continuous capital injection is very important for the sustainability of enterprise innovation.Innovation has the characteristics of high risk,high investment,long investment return period and low predictability in the future.Due to information asymmetry and uncertainty,it is difficult for external investors to understand the true value of innovative enterprises,leading to serious external financing constraints for innovation.Due to the opaque financial information and insufficient collateral assets.small and micro enterprises have more prominent information asymmetry problems and higher credit risks.Compared with large and medium-sized enterprises with small financial risks,small and micro enterprises face more serious problems of innovative financing constraints.The implementation of national innovation-driven development strategy,small and micro enterprises as an important innovation subject,need diversified financing channels to play an active financial support role,alleviate the financing constraints of small and micro enterprises,and stimulate the innovation vitality of small and micro enterprises.Innovation activities are a cost-intensive task,and small and micro enterprises have only limited capital flows.Often,internal financing cannot meet the needs of long-term innovation investment.Therefore,external financing channels are important innovative financing channels for small and micro enterprises.The main external financing channels for small and micro enterprises include venture capital,government funding and bank loans.The research on the impact of financing on enterprise innovation has attracted more and more attention from scholars at home and abroad.The current research mainly focuses on the research of large and medium-sized enterprises.It may be due to the low availability of the data of small and micro enterprises,and there is not much research on small and micro enterprises.The organizational characteristics,business status,credit risk,financing needs and financing ability of small and micro enterprises are significantly different from those of large and medium-sized enterprises.The research conclusions on financing for large and medium-sized enterprises may not be suitable for small and micro enterprises.At present,there are few studies on the impact of venture capital,government subsidies and bank loans on the innovation activities of small and micro enterprises.In this context,this paper is based on the relevant theories of financing and innovation,and conducts research at the micro-enterprise level.Using the 2016-2017 China Small and Micro Enterprise Survey data to study the external financing funds obtained by small and micro enterprises from venture capital,government subsidies and bank loans,and the impact on small and micro enterprises' innovation activities.This paper also studies the differential impact of the funds obtained by these three external innovation financing channels on the innovation activities of small and micro enterprises for small and micro enterprises witenvironments h different ownership systems,different industry types,different institutional or different entrepreneurial characteristics.Bank-enterprise relationship can effectively alleviate the problem of information asymmetry between small and micro enterprises and banks.This paper studies the influence of bank-enterprise relationship on the innovation activities of small and micro enterprises and its mechanism.To study the synergistic effect of financing channels,that is,to study the impact of the number of financing channels on the innovation activities of small and micro enterprises;in addition,comparative analysis of the role of various financing channels in promoting the innovation activities of small and micro enterprises.Firstly,the propensity score matching method is used to investigate the impact of venture capital on the innovation activities of small and micro enterprises,and further explore the moderating effects of different enterprise characteristics,entrepreneur characteristics and business operation characteristics on this impact.Through theoretical analysis,hypothesis proposing,model construction and data empirical analysis,the research finds that there are indeed endogenous problems when small and micro enterprises obtain venture capital.The small and micro enterprises that have been selected by venture capital have shown strong innovation ability.If the endogenous problem is not controlled,the significance of the effect of venture capital on the innovation activities of small and micro enterprises will be overestimated.After using the propensity score matching method to control the endogenous problem of small and micro enterprises acquiring venture capital,the paper studies the net effect of venture capital on the innovation activities of small and micro enterprises.The results show that venture capital can really promote the increase of innovation activities of small and micro enterprises.Venture capital has a significant role in promoting the number of patent applications for small and micro enterprises,the number of invention patent applications and the number of utility model patent applications.In addition,the research in this paper also shows that among the private small and micro enterprises,high-tech small and micro enterprises,small and micro enterprises with younger enterprises,small and micro enterprises with younger entrepreneurs,small and micro enterprises with entrepreneurs responsible for management,small and micro enterprises with perfect employee incentives and restraint mechanism,the promotion effect of venture capital on the innovation activities of small and micro enterprises is more significant.The government should introduce relevant policies to encourage the development of venture capital,aiming at guiding and driving the investment of venture capital to innovation of small and micro enterprises,and exerting the role of venture capital in fostering innovative small and micro enterprises.Secondly,this paper uses the propensity score matching method to examine the impact of government subsidies and government support project funds on the innovation activities of small and micro enterprises.The study found that small and micro enterprises have endogenous problems in obtaining government subsidies,that is,the government will give priority to subsidizing small and micro enterprises with strong innovation capabilities.Neglecting this endogenous problem will lead to an overestimation of the innovation effect of micro-enterprise government funding.After using the propensity score matching method to control the endogenous problems of small and micro enterprises receiving government funding,the study found that government funding can still significantly promote the innovation activities of small and micro enterprises.Government funding has significantly promoted the innovation income of small and micro enterprises,the number of patent applications,the number of invention patent applications and the number of utility model patent applications.In addition,compared with state-owned small and micro enterprises,government subsidies promote the innovation activities of private small and micro enterprises more significantly.Compared with non-high-tech enterprises,the government's contribution to the promotion of high-tech small and micro enterprises' innovation activities is more significant.The more times that small and micro enterprises obtain government funding for project funds,the more innovative income,number of patent applications,number of invention patent applications and number of utility model patent applications of small and micro enterprises have increased significantly.Therefore,government subsidies can significantly promote the innovation capability of small and micro enterprises.Government departments can give more subsidies to small and micro enterprises through government subsidies or government support fund projects,and intensify innovation support for private small and micro enterprises and high-tech small and micro enterprises to encourage small and micro enterprises to innovate.Thirdly,this paper examines the impact of bank loans on small and micro enterprises' innovation activities,the impact of bank-enterprise relationships on small and micro enterprises' access to bank loans,and the impact and mechanism of bank-enterprise relationships on small and micro enterprises' innovation activities.The study found that the increase in the size of bank loans and the growth of bank loan maturities can significantly promote the increase of innovation investment(R&D investment)and innovation output(innovative income,number of patent applications and number of invention patent applications)for small and micro enterprises.Bank-enterprise relations can promote small and micro enterprises to obtain larger and longer-term bank loans.The scale of the relationship between banks and enterprises and the length of the relationship between banks and enterprises can significantly promote the increase of innovation activities of small and micro enterprises.In areas with better institutional environment,the relationship between banks and enterprises has a greater role in promoting the increase of innovation output of small and micro enterprises.In areas with poor institutional environment,the relationship between banks and enterprises has a greater role in promoting the innovation investment of small and micro enterprises.In addition,bank loans have a mediating effect on the innovation effect of bank-enterprise relations.Bank loans can partially or completely mediate the role of bank-enterprise relations in promoting the innovation investment and innovation output of small and micro enterprises.Bank loans are the most important form of financing for small and micro enterprises.Bank-enterprise lending technology is of great significance for small and micro enterprises to obtain more bank loans and longer term bank loans,and bank loans can promote small and micro enterprises innovation.Small and micro enterprises should maintain a long-term relationship between banks and enterprises with an appropriate number of banks.The government should focus on creating a good institutional environment,providing a better financing environment for small and micro enterprises,and promoting small and micro enterprises to obtain more and longer term.Bank loans,in turn,promote small and micro enterprises innovation.Finally,this paper examines the synergistic effect of financing channels,namely the relationship between the number of financing channels and the innovation activities of small and micro enterprises.The study finds that the more financing channels,the more innovative activities of small and micro enterprises,which indicates that there is a synergy between the various financing channels for small and micro enterprises.This paper also compares and analyzes the role of various financing channels in promoting small and micro enterprises' innovation activities.The empirical results show that government subsidies have the greatest promotion effect on small and micro enterprises' innovation activities,followed by venture capital,while the promotion effect of bank loans for small and micro enterprises' innovation activities is minimal.If government funding is separately examined from government subsidies and government support project funds,research shows that government support project funds have the greatest promotion effect on small and micro enterprises' innovation activities,followed by venture capital,government subsidies,and the promotion of bank loans micro-enterprise innovation activities is still the smallest.The government should encourage the development of multi-level capital markets and provide more financing channels for small and micro enterprises.The government should provide more policy funding support to small and micro enterprises;small and micro enterprises should broaden financing channels and obtain financing from more financing channels.Small and micro enterprises are important micro-innovation subjects in China's implementation of innovation-driven development strategy.It is of great significance to study the impact of financing on innovation activities of small and micro enterprises.The research in this paper enriches the research on the micro level of enterprise innovation,expands the theoretical research on the relationship between financing and innovation,and expands the literature on the influencing factors of enterprise innovation activities.This paper studies the impact of financing on small and micro enterprises' innovation activities,which helps to better use financing methods to improve the innovation ability of small and micro enterprises.Combining with China's institutional background and using relational financing as a starting point,this paper examines the impact and mechanism of bank-enterprise relations on small and micro enterprise bank loans and innovation activities,which enriches enterprises in transition economies to ease financing constraints and promote enterprise innovation through alternative mechanisms.At the same time,it also enriches the relevant literature on the economic consequences of the relationship between banks and enterprises.It has enriched the research on the synergy effect of financing channels and the effectiveness of various financing channels.The conclusions of this paper provide a theoretical basis for the relevant government departments to formulate policies and measures to stimulate the innovation vitality of small and micro enterprises and promote the innovation activities of small and micro enterprises,and have important policy implications.