The Impact Of Venture Capitalists’ Social Capital On Technological Innovation: Comparative Analysis Of The Effects Of Entrepreneurs’ Social Capital’s Under Different Venture Capital Modes

Technological innovation is an important driving force of economic growth. Our country inserts the technological progress and innovation into the whole development plan to promote the overall progress of social economy. At present, China’s venture capital has gone through a process of rapid development. The venture capital can bring new opportunities and support to the investee firms. The intangible capital of enterprises such as social capital and human capital is getting more and more attention in practice and theoretical study. This paper focus on the relationship between venture capitalists’ social capital, entrepreneur social capital and technical innovation in the venture capital mode, which is relatively less in previous studies.This paper discusses the theories of social capital and technology innovation at first. After that, analyses the mechanism of the impacts of venture capitalists and entrepreneur to technical innovation. Considering of the differences between IVC and CVC, the samples have been divided into two categories—IVC and CVC—to do the empirical tests. The empirical tests on the relationships between venture capitalists’ social capital, entrepreneurs’ social capital and technological innovation have been conducted in different kinds of samples. On the basis of that, the tests of the mediating and moderating effects of entrepreneurs’ social capital have been conducted. Finally this paper puts forward the corresponding countermeasures and suggestions according to the results of the empirical tests.The main conclusions are as follows: Venture capitalists’ social capital has negative significant influence on technology innovation generally, while different types of venture capitalists’ social capital will affect different aspects of technological innovation. The impacts of entrepreneurs’ social capital on technological innovation differ in different kinds of VC modes. Entrepreneurs’ social capital present the negative influence on technology innovation in the samples of IVC. Meanwhile a positively significant influence by some indicators of entrepreneurs’ social capital on technical innovation is showed in the empirical tests of CVC samples. Entrepreneurs’ social capital indeed plays a role of mediator and moderator in the relationship between venture capitalists’ social capital and innovation through different indicators of social capital to the different aspects of innovation, which is only showed in the results of empirical tests on IVC samples.