Research Of The Effect Of Venture Capital’s Impact On Technological Innovation

Innovation is an important factor to enhance the competitiveness of enterprises, but also an important driving force to promote sustainable development of the country. Venture capital (VC) as a special form of capital has a close relationship with the technological innovation, and has important role on the emergence, development and success of the technological innovation.To study the effect of venture capital on technological innovation we mainly use theoretical and empirical methods. In the theoretical aspect, we analyze the characteristics and operation process of venture capital and technological innovation firstly, and we consider there is a complementary relationship between them; Secondly, we analyze the specific processes to further understand the relationship between them; At last, we get the role of venture capital in the process of technological innovation, and summarize three specific functions:capital, management and environment.In the empirical aspect, we analyze the macro and micro data respectively. In the macro empirical aspect, we select 15 provinces from 2009 to 2012 as the research object, respectively use accepted and granted patents as a measure of technological innovation, and use the panel data model to study the impact on the technological innovation from the total VC, early VC and late VC. The results show that the first-lagged total VC has a significant impact on technological innovation, the early investment have more significant effect than the late. In the micro empirical aspect, we select 272 enterprises which are supported with VC and IPO in GEM and SME board of Shenzhen during January 1,2010 to July 10,2015, and get the data of granted patents> applied patents and R&D from the enterprise prospectus and the SooPat, and get the VC data from the Wind database, then analyze it using multiple linear regression method. The results show that the total VC and the stockholding time have a significant positive effect on technological innovation, and the early VC is better than the late.In addition, considering the enterprises VC selects may initially have strong innovation ability, we analyze the 184 VC backed enterprises and 332 no-VC enterprises by using the Propensity Score Matching method. The results show that after eliminating the sample selection bias, VC backed enterprises’technological innovation is better than no-VC backed enterprises. And according to the matched samples, we also give a regression analysis to further prove that the VC can promote the technological innovation of enterprise.