On The Impact Of Private Equity Fund On Technological Innovation Of Enterprises

On the 18th and 19th National Congress of the CPC,the importance of innovation to the overall national strength and economic development of the country is clearly emphasized,and those that are truly innovative are Chinese Enterprises.Therefore,whether or not the enterprises are able to innovate,or whether the enterprises are acitviely engaged in technological innovation,is the most important part of the implementation of the macro strategy.In enterprise innovation,the first problem to solve is the funds.In recent years,many small and medium sized enterprises have sprung up in China,and these enterprises are still in a state of rapid development.In this state,the strengths of the enterprises are not strong,so it is unrealistic to provide financial support for technological innovation through the inadequacy of the owned capital of the enerprises,and it is also difficult to raise funds through bank credit.Therefore,most small and medium innovation enterprises choose private equity financing to provide funds for technological innovation.First of all,this paper analyzes the mechanism of private equity investment,which influences the technological innovation of enterprises through the function of improving the supply of funds and improving the efficiency of innovation.The function of innovative fund supply can be divided into investment lever function and risk sharing function.Risk sharing function can not only share risks for investors,improve profits,but also reduce the risk of technological innovation,reduce the cost of technological innovation,and increase the motivation of technological innovation.The investment leverage function means that an enterprise can help to satisfy its own capital needs by setting up investment companies and leveraging large funds with small funds.The function of improving innovation efficiency is divided into value-added service function and resource collection function.The function of value-added service is to provide enterprises with other services besides funds,which can promote the technological innovation of enterprises directly or indirectly after the private equity investment fund intervened in the enterprise.The function of resource collection is that the private equity investment fund,as an institution that participates in the project,can bridge the enterprise in the aspects of talent,information and equipment,and reduce the capital and time cost of the technological innovation of the enterprise.The possible innovation of this paper is that those previous literature study the private equity fund into the large category of venture capital,but in this paper,private equity investment funds are screened for an independent research,and a more detailed conclusion has been found.Secondly,this paper uses different econometric models for different explanatory variables to enhance the rigour of the thesis.