Research On The Impact Of External Financing On Innovation Performance Of Information Technology Industry

As a strategic emerging industry that China currently focuses on development,information technology industry has frequent innovation and strong penetration,which plays an incomparable role in enabling traditional industries,realizing industrial digitalization and transformation and upgrading,and realizing high-quality economic development.However,creative activities need heavy investment,and the benefits brought by technological innovation are often not enjoyed by enterprises,which determines that in today’s multi-level capital market financial system,it is quite difficult for information technology industry to spread risks to finance innovative R&D activities.Especially for small and medium-sized private enterprises and enterprises located in relatively backward areas.Under the existing financial system and international background,it is undoubtedly valuable to provide efficient financing channels and lower costs to achieve high-quality innovation and development of information technology industry.This paper aims to study the influence mechanism and approach of different external financing methods on the innovation performance of information technology industry,so as to provide more ideas and reference for the financing channels and financing methods needed by the information technology industry in the rapid innovation and development.Based on relevant theories and development status,this paper studies the mechanism of the impact of debt financing,equity financing and government subsidies on the innovation performance of information technology industry,and then uses empirical analysis method to verify the proposed research hypothesis.In the following part of the empirical study,this paper takes the panel data of153 listed information technology companies in China as the research sample,establishes a double fixed effect model according to the relationship between principal variables,and compares the effect of three external financing methods on innovation performance,and verifies and explains the previous assumptions.In the extended analysis,groups are divided according to the nature of ownership and regional differences to explore the impact of external financing on enterprise innovation performance under the ownership and regional differences.The empirical results show that:(1)three external financing methods,namely debt financing,equity financing and government subsidy,will promote the performance of information technology industry.Among them,government subsidies and equity financing have the most significant impact on it enterprises’ innovation performance,while debt financing has a relatively weak impact.The effect of government subsidy is the largest,followed by debt financing and equity financing.(2)For state-owned enterprises,equity financing has no significant improvement on innovation performance;For private enterprises,debt financing has no significant improvement on innovation performance.(3)Regional differences also affect the impact of external financing on innovation performance: compared with central and western regions,equity financing and government subsidies have a more significant impact on innovation performance in eastern China.In view of the current development status and empirical analysis results of information technology industry in China,this paper gives some suggestions from the macro government and micro enterprises.Macro government level:(1)focus on key areas,pay attention to scientific and technological talents,and vigorously support the development of information technology industry.(2)Coordinated development in accordance with local conditions.(3)Improve the multi-tiered capital market and the mechanism for raising,investing,managing,and withdrawing funds.(4)Strengthening supervision over the use of special funds.At the micro enterprise level:(1)optimize the financing ratio and ensure the special fund.(2)Increase information disclosure and standardize business mode.(3)Build independent brands and build core competitiveness.(4)Cooperate to build an industrial chain.