| At present,China’s small and medium-sized enterprises account for more than 99%of the total number of enterprises,accounting for more than 60%of GDP.They are an important force in China’s economic and social development.Small and medium-sized enterprises(SMEs)have stronger impetus to innovation.Whether SMEs can play the main role of innovation is of great significance in promoting"mass entrepreneurship and innovation" and constructing innovative national strategy.Innovation activities cannot do without financial support,and the innovative vitality of small and medium-sized enterprises due to high uncertainty,high risk,to a greater extent,facing financing difficulties and other problems,restrict the investment in innovation activities,and then have a negative impact on innovation activities.As an equity investment,Angel investment has a crucial part to play in the sustainability of SMEs’ growth potential.It is worth examining whether angel investment can rescue SMEs from their financing woes and thus enhance their ability to innovate.Therefore,according to the 2003-2019 panel data of CSMAR SEMs database,this paper systematically examines the implications of angel investment on the level of innovation in SEMs by constructing the incremental double difference method(did),which can effectively alleviate the endogenous problems.By replacing the explained variables and parallel trend test,the reliability of the results is maintained.Considering the differences in the nature of property rights and the degree of financing constraints faced by enterprises,this paper makes a further heterogeneity analysis,and finally draws the following conclusions:firstly,angel investment can alleviate the financing problems faced by enterprises,make enterprises increase R&D investment,and finally increase the level of innovation.Next,angel investment is more effective in promoting the level of innovation in enterprises with high financing restrictions than in small and medium-sized enterprises with low funding constraints.Finally,angel investment can be more effective in enhancing the level of creativity in non-state enterprises than in small and medium-sized state-owned enterprises.Based on the above findings,In an attempt to facilitate the development of SEMs better,this paper puts forward the following suggestions:At first,the government should support the development of angel investment industry;second,it should improve the financing channels of small and medium-sized enterprises;third,it should pay more attention to non-state-owned enterprises. |
