The Impact Of Venture Capital On The GEM Listed Company's Technology Innovation

In recent years,China's venture capital(VC)industry has developed rapidly,and the whole society technological innovation activities has yielded substantial results.However,there is still no agreement amongst researchers as to whether VC has a positive impact on technology innovation.Meanwhile,the Growth Enterprises Market(GEM)who is specially designed to support the development of growth enterprises and provide exit channel for the VC,is frequently creates the venture capital myth,no matter how it performs.Venture capital as one of the key investors in the Chinese GEM market,if their primary purpose is to get quick gains,can they still spur technology innovation? Hence,researching and answering these questions will deepen the understanding of the relationship between venture capital and technological innovation,and also provide a reference for the reform of China's GEM listing and delisting system.The aim of this study is to find out whether VC affect firm's innovation.In order to study this problem more deeply,this paper divides the technological innovation process into three stages: technological innovation input,technological innovation knowledge output and technological innovation performance.On the basis of combing the research results of venture capital and technological innovation both at home and abroad,we put forward the hypothesis,establishes the cross-sectional regression model and the negative binomial regression model,and using the sample of listed manufacturing firms in GEM from 2009 to 2016,tests the impact of VC on the technology innovation.Research and analysis showed that the GEM boarded manufacturing industry enterprise's technology innovation with VC has positive influence on R&D input,and the higher engagement of VC made the R&D input become higher.But the influence to the output and benefit of the technology innovation were not significant.Further research showed that,the number of VC has a significant positive impact on the input,output and performance of technological innovation,while foreign-backed VC has a positive relation but not significant.Due to the choose of the Pre-IPO data,the results indicated that the promotion effect of VC is limited,when VC investing firm at the Pre-IPO stage.Based on the results,this paper puts forward some policy suggestions to further improve the role of venture capital in promoting technological innovation.