A Study On The Impact Of Venture Capital On Green Innovation In Chinese Firms

Under the current context of high-quality development in China,technological and managerial improvements are crucial to promote high-quality development.Green innovation is a type of innovation that is environmentally oriented and can help produce more environmentally friendly and energy-efficient products,reduce resource consumption and pollution emissions,improve overall production efficiency,and achieve high-quality development.However,green enterprise innovation is characterized by high risk,uncertainty,vigorous guidance,emphasis on knowledge capital,and collaboration,which requires the role of venture capital to drive technological innovation,structural aid optimization,cultivate dynamic engines,and empower industrial upgrading.This article is mainly based on China’s venture capital data and listed company data from 2010 to 2020,analyzing in detail the impact of venture capital on green enterprise innovation in China.Our study finds that:venture capital participation has a significant enhancing effect on corporate green innovation.The mechanism analysis shows that financing constraints,management experience,and reputation effect are the main ways venture capital influences corporate green innovation.Meanwhile,further analysis shows that venture capital participation significantly affects the enhancement of enterprise utility model green patents compared with other types of patents.Venture capital can not only provide long-term financial support for the development of enterprises,but also rely on their own experience and resources to continuously provide corresponding assistance for enterprise innovation and development.For the invested enterprises,venture capital can first alleviate the financing constraints faced by the development of the enterprise,and at the same time,the advanced management team brings advanced management experience to the enterprise,which plays an important role in promoting the further development of the enterprise.Compared with venture capital with state-owned capital background,venture capital with non-state-owned capital background has a more prominent role in promoting corporate green innovation.Compared to state-owned enterprises in listed companies,venture capital has a more significant role in promoting green innovation in non-state-owned enterprises in listed companies.The findings of this thesis provide references for further improving the regulatory policy of venture capital,improving the level of venture capital participation,and increasing the policy inclination for green innovation of enterprises.