A Study On The Relationship Among Types Of Innovation, Financing Choice And Alliance Strategy

Many evidences have proved that venture capital industry impulse the development of high-tech firms, and boost national economic development. Although China's high-tech firms began later, these years they developed rapidly. The need of money is one key for these firms. Government have issued many policy in order to make finance institution invest high-tech firms and leaf many types venture capital invest technology firms, these policy include Partnership Enterprise Law of the People's Republic of China, the Growth Enterprise Market, SSE SME Composite and so on.There are many papers about venture capital industry, but few papers pay more attention to which firms are more likely to obtain venture capital and how venture capital influenced these firms. Venture capital is a special investment relative to others traditional investment. According to these special characteristic of venture capital, our study analysis the effect of venture capital on the firms' alliance strategy, and study the relationships among innovation types, financing choice and alliance strategy.First, this paper introduce the question and significance of our paper, we comment on the study on high-tech firms'financing choice and strategy, discuss the shortage of these studies. Then we review the content of venture capital study, include the different types of venture capital, the venture capital's invest tools and contract and so on. Especially we also review the Venture capitalists'non-financial value-added. Then we summarize and discuss the relationships among innovation types, financing choice and alliance strategy, and we establish the first concept model. our paper also discuss the moderator effect among innovation types, financing choice and alliance strategy, and mediating effect among absorbility capacity, venture capital and alliance strategy, and according them we establish the second and the third concept model. Finally we with a survey about Chinese High-tech firms in Shenzhen city and Chongqing city, we test the Hypotheses. The theoretical and practical implication is discussed at the end of the paper.Our paper makes some contributions for theory and practice. These contributions include: by theory analysis and empirical study, According to the study of Chinese high-tech firms, this paper analysis the relationships among innovation type,financing choice and firm's alliance strategy; we also introduce the moderator effect and mediating effect methods to our study, and deeply analysis the effect mechanism among innovation type,financing choice and firm's alliance strategy; Besides, we also review the Venture capitalists'non-financial value-added study between 1986 and 2006, and we set up the class of Venture capitalists'non-financial value-added, this will be important for future study about venture capital. our paper not only make contributions for the theory study, but also have more important practice significance for China's venture capital industry and high-tech industry.