The Performance Of SME Technology Innovation Indirect Funding Of Chinese Government

China has started a dual transformation stage since 1978. One is the transformation from planned economic system to market economic system, and the other is economic development transformation towards industrial society①.. Until today, the task of dual transformation has not been completed yet, and the reform and development are comprehensively deepened and both are at a new stage. The system transformation is the key point of dual transformation, and it is reflected as comprehensive government transformation function at this stage, so that the market can play a leading role in the economic society. The independent innovation and continuous improvements in competitiveness of enterprises are the key points for development transformation, but the technological innovation vitality to motivate the enterprises, especially to motivate the small and medium-sized enterprises, is the most favorable guarantee for the national economy development and social stability and harmony. For the Chinese government’s indirect subsidization for technological innovation of small and medium-sized enterprises in this paper, not only the government capacity should be improved, but also the technological innovation value of small and medium-sized enterprises should be identified. The paper analyzes the performance by using the logical framework of classical policy evaluation theory (three-circle theory) of public policy management, i.e., analysis the value, capacity and support conditions of indirect government subsidization for the small and medium-sized enterprises, and the performance model is built hereby, and the model is verified by the data of provinces where the 16 pilot regions determined by Ministry of Science and Technology and "one bank and three commissions" are located in 2011 as panel data.The first point of the three-circle theory is to analyze the public value judgment of policies. The most important public value of the technological innovation subsidizing policies of small and medium-sized enterprises is that the technological innovation can promote the whole social development, which is the power and cause of the sustainable growth of national economy. Compared with large enterprises, the small and medium-sized enterprises will avoid technological path dependence and can often develop multi-angle and multi-level innovation. However, "market failure" exists in the technological innovation behaviors of small and medium-sized enterprises. Firstly, "market failure" exists in the technological innovation input, because the technological innovation has positive external effects, which is a quasi-public product and leads a insufficient technological innovation investment of enterprises. Secondly, "information failure" exists in the technological innovation financing. Because of imperfect information, "credit rationing" usually exists in the technological innovation financing of small and medium-sized enterprises. Thirdly, "imperfectness" exists in the market structure of technological innovation. As the technological innovation is affected by market concentration, enterprise scale, entry and exit barriers and others, the perfect competition and perfect monopoly market structure are both adverse to the occurrence of technological innovation activities, but the effective and competitive market structure is favorable to technological innovation. Therefore, the government actions shall be intervened in the technological innovation of small and medium-sized enterprises to remedy the "shortages" of market.The second point of the three-circle theory is to analyze the government capacity. Both the neoclassical economics and evolutionary economics provide theoretical supports for government intervening in the technological innovation of small and medium-sized enterprises. That how and what the government takes interventional mechanisms reflects the capacity of the government. This paper analyzes in two aspects.Firstly, it is from the view of the growth of small and medium-sized enterprises. The enterprise, an independent organization, just likes a biological organism and is affected by many internal and external factors from its existence to decline and fall. This paper makes an analysis on different affects of direct government subsidization, indirect government subsidization and mixed government subsidization on life cycle curves of small and medium-sized enterprises. The indirect government subsidization policies are by national credit. When the entrepreneurial risk investment mechanism and commercial bank supervision mechanism play a role, it not only resolves the fund bottleneck problems in each stage of technological innovation of small and medium-sized enterprises, but also develops the entrepreneurial risk investment mechanism and bank supervision mechanism and enhances the value of small and medium-sized enterprises in risk diversification, information transmission mechanism and corporate governance.Secondly, it is from the view of effectiveness of government support manners. There are three ways for government to subsidize the technological innovation of small and medium-sized enterprises. Firstly, the government does not provide subsidization at all; secondly, the government unconditionally provides subsidization; thirdly, the government selects a preferential support between above two situations. The first way is a complete market behavior, so we will not discuss. For the last two situations, this paper discusses the effectiveness of government subsidizing the technological innovation behaviors of small and medium-sized enterprises based on the government intervention theories, government subsidization principles and effects of unconditional subsidization of government as well as preferential support mechanisms of government. The scholars make lots of empirical research on direct government subsidization effects and find that, the direct subsidization has "incentive" effect and "extrusion" effect, and some scholars think that it appears inverted U-shaped relationship with the increase of subsidy. Except for the doubts on the effects of direct government subsidization, the insufficient value judgment capacities which are difficult to remedy also exist in direct government subsidization for the technological innovation of small and medium-sized enterprises.However, the indirect government subsidization for small and medium-sized enterprises can exactly develop the value judgment capacities of the market on technological innovation. We find that the effectiveness of indirect government subsidization mainly depends on that whether the government can design a set of system arrangement and transaction rules of incentive compatibility after a further analysis. When the government indirectly subsidizes the technological innovation projects of small and medium-sized enterprises, the stake among the government, financial intermediaries and small and medium-sized enterprises must be considered simultaneously. Its core is to formulate effective incentive systems for financial intermediaries, supervision mechanisms for financial intermediaries and small and medium-sized enterprises and others with information constraints, and propose information coordination mechanisms of government based on network governance.Thirdly, the three-circle theory is the support conditions. The stakeholders are widely involved in government subsidization for technological innovation policies of small and medium-sized enterprises, including small and medium-sized enterprises, financial intermediaries, scientific research institutes, colleges, public and others. Some of them may support the policies and others may not. It is related to the background of one nation or society. The market maturity degree, financial development levels, innovation capital abundance degree, innovation element agglomeration and others will affect the behaviors of stakeholders. While the public resource and organizational capacity conditions are limited, there will be different interest appeals by different types and different levels of crowds. The government can win all aspects of supports in case of dealing with the contradiction of interest relationship well. If not, it will be opposed and crisis may occur which will affect the social stability. That should be strongly alerted by the government decisions. The paper analyzes the influence of market maturity degree, financial development levels, innovation element agglomeration, intellectual property protection and technological spillovers on technological innovation of small and medium-sized enterprises. We find that higher market maturity degree, better financial structures and more agglomerated innovation elements are beneficial to the technological innovation of small and medium-sized enterprises, and these become important support conditions affecting the indirect government subsidization for the technological innovation performance of small and medium-sized enterprises. However, the protection policies of intellectual property and the degree of technological spillover present a non-linear relationship with the technological innovation of small and medium-sized enterprises.Based on the analysis of above three aspects, this paper builds a performance evaluation model for indirect government subsidization for technological innovation of small and medium-sized enterprises, proposes an evaluation index system, selects fixed effect models for matching by using the 2009-2013 panel data of 14 provinces in China for the model by means of single factor models and comprehensive evaluation models, discovers the prominent positive correlation among indirect government subsidization policy performance and government capacity, enterprise technological innovation value, marketization degree and innovation capital aggregation degree, and proposes relevant policies and suggestions.Chapter 1 in the paper makes a literature review on the indirect government subsidization for technological innovation performance researches of small and medium-sized enterprises, and proposes the research thought, research content and innovation points. Chapter 2 applies three-circle theory to firstly determine the focuses of indirect government subsidization for the technological innovation behaviors of small and medium-sized enterprises. It proposes that the "V+C+S" intersected by capacity circle, value circle and support circle is the "indirect subsidization area". According to the development and improvement of government capacities, gradually perfect the relevant mechanisms and support conditions, and strive to achieve the goals of "V+C". Chapter 3 and Chapter 4 respectively analyze the action principles, operation mechanisms and various influences on the technological innovation of small and medium-sized enterprises by various subsidization policies from the growth aspect of small and medium-sized enterprises and effectiveness aspect of government subsidization policies. Chapter 5 analyzes the support conditions one by one. Chapter 6 proposes the performance evaluation models of indirect government subsidization for technological innovation of small and medium-sized enterprises, and conducts an inspection by 2009-2013 data of provinces where the pilot regions combined with science, technology and finance are located and promoted by China, and proposes relevant policy suggestions on indirect subsidization policies of the Chinese government. Chapter 7 is summary and prospect.