The Research On The Effect Of Venture Capital’s Impact On The R&D Investment In Entrepreneurial Enterprise

Numerous studies show that increased R&D investment will help to improve businessperformance. However, there’s no unified conclusion toward the effect of venture capital’simpact on the R&D investment in entrepreneurial enterprise. After entrepreneurial enterprise gotventure capital, will they be affected by there management to increase R&D investment? Afterthe entrepreneurial enterprise successfully listed, even after the exit of venture capital institutions,will they keep a high level of R&D investment? This paper discussed these questions throughtheoretical analysis and empirical analysis.In the theoretical analysis, I used production function, endogenous growth theory, businessgrowth theory as the theoretical basis of this paper. In the empirical analysis, I chose the data ofGEM from2009to2013, chose whether there’s VC background and VC holdings as theindependent variables, chose asset-liability ratio, the proportion of managerial ownership, salesmargins, the industry as a control variables, and made the listing year as0to control the years. Imade a regression analysis based on the data of the2nd year after listing, the3th years after thelisting, and the average level of three years after the listing. The analysis results suggested thatthere is no correlation between if there’s VC background and the R&D investment level, butthere’s a significant positive correlation between the VC holdings and the R&D investment levelat10%level. Then this paper summarized the conclusions and did some analysis. After that, thispaper made some suggestions in terms of country, entrepreneurial enterprises and investors. Atlast, this paper pointed out the inadequacies of the study.