Venture Capital And Enterprise Innovation

In recent years,the economic development of China has entered a new normal from “factor-driven” to“innovation-driven”.New policies such as “innovation-driven development strategy”,“mass entrepreneurship,and mass innovation” have been continuously introduced at the national level,highlighting that the party and the government attaches great importance to innovation.As a special kind of financial capital,venture capital,although started late in China,has shown a vigorous development trend in terms of fund raising and total investment in the venture capital market.The promulgation of "Several Opinions of the State Council on Promoting the Sustainable and Healthy Development of Venture Capital" in 2016 reflects the full affirmation of the Party Central Committee and the State Council on the status of venture capital to promote mass entrepreneurship and innovation.To increase support for SME innovation,in addition to direct support through subsidies or tax cuts,the government has also introduced a series of measures to encourage and develop venture capital,hoping to use its advantages in financing,intelligence and resource networks.Support the innovation activities of small and medium-sized enterprises through the market mechanism,and build a technology innovation system with the enterprise as the main body and the market as the guidance.So does venture capital really play a role in promoting corporate innovation? The answer to this question is very meaningful.In the process of sorting out the past research results,this paper found that the relationship between venture capital and enterprise innovation has not yet reached a consensus in the academic community,and the analysis of the specific impact mechanism is not yet in-depth.This article uses the companies listed on GEM from 2009 to 2015 as samples,selects the innovation data and financial data from the three years before the listing to the year after the listing,and on the basis of verifying the relationship between the two,focuses on the analysis of the impact mechanism.With the propensity score matching method,this paper pairs companies with venture capital and companies without venture capital,and controls the impact of endogenous issues through the construction of counterfactual samples.Then,through the double-difference model,analyze the impact of venture capital on the total amount of patents and invention patent applications of start-up companies.The empirical results show that the impact of venture capital oncorporate innovation is positive.Further,this paper divides whether the invested company belongs to the high-tech industry from the perspective of industry heterogeneity,and finds that venture capital has a stronger influence on the innovation ability of high-tech enterprises than non-high-tech enterprises.This paper discusses the theoretical and empirical aspects of the impact mechanism of venture capital on enterprise innovation.First of all,in terms of theory,the theoretical foundations of venture capital influencing enterprise innovation include certification supervision theory,principal-agent theory,and resource-based theory.On the basis of theoretical analysis,this paper divides the specific mechanism of venture capital influencing enterprise innovation into two directions.The first is the internal mechanism,which is mainly reflected in the fact that venture capital stocks directly bring funds to enterprises and ease the financing pressure;the second is the external mechanism,which mainly focuses on value-added services,including venture capital introducing high-quality talents to the enterprise,exporting industry experience and resources and participating in the management of invested companies,etc.Furthermore,in empirical terms,this paper selects two dummy variables of directors and venture capital industry experience to verify the impact mechanism,and found that in the sample with venture capital participation,the coefficients of both variables are significantly positive,confirming the positive effects of dispatched directors and venture capital industry experience on corporate innovation.Finally,this article puts forward corresponding policy recommendations from the perspectives of the government,the invested company and venture capital,and makes a prospect for future research.The research conclusion of this article enriches the research on the relationship between the two,and also provides practical guidance for the country to establish and improve the financial system,use the capital market to promote innovative development strategies and high-quality economic development.