Research On The Influence Mechanism Of Venture Capital On Corporation Innovation Performance

Since the 21st century,China’s venture capital industry has entered a period of rapid development.At the same time,as China continues to promote supply-side reform,the market demand has changed and become more and more demanding.In order to meet this part of upgrade demand,the enterprise’s innovation level also gets along with the enhancement.Therefore,in a word,venture capital and enterprise innovation in China present a coupling relationship.In order to give full play to the role of venture capital in promoting the innovation of Chinese enterprises and to develop them healthily for a long time,China has introduced a series of supporting regulatory measures and laws and regulations,and successfully launched the Science and Technology Innovation Board in 2019,for the venture capital can better promote the development of these innovative characteristics of the enterprise provides a channel.In the context of the external trade war,the call for enterprise innovation is growing,and the importance of innovation is increasing,and innovation has become one of the important indicators to judge the Comprehensive National Power.As a newly developed financing way in the middle of the 20th century,venture capital itself has the nature of innovation.The study of innovation in society and enterprise plays a key role in ensuring the outcome of supply-side reform and promoting the economic transformation,so it is very important to analyze the mechanism of venture capital and enterprise innovation performance.On the basis of the existing literature on the relationship between venture capital and enterprise innovation,and from the point of view of venture capital’s pursuit of exit rate and the coupling relationship between venture capital and enterprise innovation,this paper analyzes the relationship between venture capital and enterprise innovation,this paper analyzes the influence mechanism of venture capital on the innovation output of enterprises,and puts forward some policy suggestions on how to promote the innovation ability of enterprises in China from three aspects of supervision department,venture capital Organization and invested enterprises.Based on the existing literature,this paper puts forward the hypothesis that the impact of venture capital on enterprise innovation has an inverted u-shaped graphic relationship through theoretical analysis,and on this basis,reducing the impact of Knowledge Lag on empirical results through unique data processing methods across disciplines,futher analysis is made of the moderating effect of the life cycle of the firm,the firm’s ability to absorb knowledge,and the investment depth of venture capital firms on the inverted U relationship and the role of R&D investment in the process.In order to test the hypothesis,this paper uses the data of listed companies with venture capital in China from 2021 to 2021,and measures the innovation output of enterprises with patent quantity and patent quality respectively,the fixed effect model and negative binomial regression model are used to study the impact of venture capital on firm’s innovation output.After the empirical analysis,through the UTSET test,endogenous test and stability test to test the empirical results,further ensure the accuracy of the empirical.Combined with regression analysis and empirical test,the conclusions are summarized as follows:(1)There is an inverted u-shaped relationship between venture capital and innovation output performance.When the investment frequency is higher than this value,it shows the inhibition effect;(2)The different life cycle of the firm will have some influence on the above results,however,the inverted u-shaped graph relation still holds,the right side of the extreme value of the start-up is more positive than that of the growth and stable enterprises,the start-up enterprises have better plasticity and the effect of accepting venture capital is better(3)The knowledge absorptive capacity of the firm has a significant positive effect on the inverted u-shaped graphic relationship between venture capital and firm’s innovation output,but the regulation effect of venture capital investment depth is not obvious;(4)R&D Investment plays a part of the role of intermediary variables in the process of the impact of venture capital institutions on the innovation output of the invested enterprises.In other words,the impact of venture capital on enterprise innovation is partly a direct impact on the innovation level of enterprises,and partly by increasing the R&D investment of enterprises,impact on firms’ ability to absorb knowledge from outside and on the innovation output of deferred years.