The Impact Of Venture Capital Characteristics On The Innovation Of Listed Companies On GEM

Since entering the new century,new changes have taken place in the global development pattern.In the overall national strength competition,the strategic status of the science and technology innovation has remained at a high level,and the scientific and technological strength has become an important embodiment and requirement for ensuring the status of great powers.Nowadays,the major countries in the world are trying to find breakthroughs in technological innovation under a new round of accelerated scientific and technological development.For example,China launched Made in China 2025,the United States launched the Advanced Manufacturing Partnership plan(AMP)and National Network of Manufacturing Innovation plan(NNMI)for the Industrial Internet;Germany released the “Industry 4.0” strategy;and the European Union implemented the “Europe 2020 Strategy”.At present,our country is moving from a large manufacturing country to a modernized country.Therefore,we must attach importance to scientific and technological progress and technological innovation.As the costs of labor,resources,and environmental protection continue to rise,the factor cost advantage is no longer obvious.Therefore,the previous extensive mode of economic development must be changed.At the same time,the economic development of our country has entered New Normal,and various deep-level contradictions have become prominent.Whether the strategic restructuring of the economic structure can be successfully completed,a fundamental transformation in the development approach can be achieved,structural reforms on the supply side can be promoted,to cope with the challenge of the aging of the population,and the strategy of rural revitalization can be implemented,the middle income trap can be leapfroged.All these urgently require technological innovation to provide strong support.As the main body of technological innovation,it is one of the problems that how to ease the financing constraints of start-up enterprises and small and medium-sized enterprises and keep the innovation vitality of enterprises at present.As a new type of investment and financing channel,venture capital has its own characteristics to alleviate the financing constraints of the enterprise.At the same time,foreign scholars have also explained from the perspective of theoretical analysis and empirical test that venture capital has a certain influence on enterprise innovation.At present,China's venture capital is rapidly developing in terms of number of institutions,investment,and scale.In this context,it has certain practical significance to study the impact of venture investment on the innovation of the enterprises in China,which will accelerate the construction of the innovative society in China.Under this background,studying the impact of venture capital on innovation in China has certain practical significance for accelerating the construction of an innovative society in China.This paper sorts out the research results on the impact of venture capital on corporate innovation at home and abroad,and puts forward its own research hypothesis on the basis of theoretical analysis.All the companies listed on the GEM from 2009 to 2015 are used as research samples,using the unbalanced panel data,using the difference-in-differences model,conducted an empirical study of the impact of venture capital on corporate innovation.Next,it further studied the effects of venture capital on the background,joint investment,and shareholding time of several heterogeneous features on corporate innovation.The research conclusions show that:(1)There is a significant positive correlation between venture investment support and the number of patent applications of GEM companies,indicating that venture capital support can significantly promote technological innovation of enterprises,which is reflected in the significant increase in the number of patent applications.This conclusion is consistent with the conclusions of most scholars.(2)According to the study of the heterogeneous characteristics of venture capital in different fund backgrounds,the stateowned and foreign-funded background venture investments is positively correlated with the number of patent applications of the GEM,but not significant,which is inconsistent with the expectation;private-equity venture capital is positively correlated with the number of enterprise patent applications,which can significantly improve the innovation of enterprises.(3)Compared with individual venture investment,syndicate venture capital investment can significantly promote enterprise innovation by jointly investing in the same enterprise.(4)The longer the venture capital holdings,the more patent applications the company has,and the company has stronger innovation ability and innovation results.Finally,on the basis of the results of the study,relevant policy recommendations are put forward for venture capital institutions,companies and governments.Venture capital institutions should lengthen the duration of shareholding,choose joint investment methods and multi-channel exit methods,and cultivate risk investment professionals.Enterprises should cultivate their own innovation capabilities and make full use of the advantages of venture capital resources.The government should strive to create a healthy investment environment,a stable financial market,a sound legal system,and a perfect market system of venture capital for venture investment,provide smooth,effective,multi-level exit channels for venture capital,to promote the healthy development of the venture capital industry.In addition,we can refer to the advanced experience of countries such as Britain and the United States,allowing pension funds to participate in venture capital in a certain proportion.Which not only widens the sources of venture capital raising funds,but also further widens the investment model for pension funds in China.The main innovation points of this paper are as follows:(1)Most of the companies listed on the GEM are start-up companies,small and medium enterprises and high-tech companies.These enterprises represent high-growth,high-tech emerging industries,which is one of the important forces to promote the construction of an innovative society.Compared with the Main-Board Market,the market requirement for the GEM is relatively low.In order to realize exit as soon as possible,venture capital companies often give priority to assisting the listed companies to list on the GEM.Therefore,GEM have a large proportion of the listed companies with the venture capital background.Most of the predecessors' researches were concentrated on the main board,small and medium-sized boards,and there were few researches on the GEM.In addition,compared with previous studies,the data are updated.(2)The heterogeneity of venture capital investment has different impacts and methods on technological innovation.Considering the heterogeneity,it will provide a better guidance for the company to choose the venture capital and improve the innovation of the enterprise.(3)Because VC-backed enterprises and non VC-backed enterprises may have systemic differences in VC entry before and after,there is a bidirectional cause and effect between VC and enterprise innovation.Therefore,this paper will use difference-in-differences model for empirical verification and use Propensity Score Matching(PSM)method for robustness test.