Research On The Influence Of Venture Capital To SME's Technological Innovation

The technological innovation is an important engine to promote social progress.China's economy steps into the "new normal" phase,And China is strengthening supply-side structural reform.The technological innovation is the key to make economy accelerating.and high-quality.When looked at from a global perspective,the venture capital plays an important role on the tide of advanced technology.Venture capital institutions not only provide money to the middle and small-sized enterprises,but also offer value-added services,such as management resource?technological resources?strategic resources and so on.Those promote company's technological innovation.as it were,the Venture capital is closely correlated with technological innovation and the SME.This paper discusses the influence of the venture capital to the SME's technological innovation from theoretical aspect current situation and empirical aspects.in the aspect of theory,we discuss “the corporate financing theory” and the “investment contract theory”,trying to explain why the venture capital is the best way of financing for SME especially High-tech SME.And we also make a point that venture capital institutions could stimulate SME's technological innovation by designing the investment provisions.According to the statistical data,we make a preliminary analysis about the venture capital's positive effects to SME's technological innovation.In the aspect of empirical study,we select 294 companies from innovation layer of NEEQ to make empirical test by MLR Multiple Linear Regression and negative binomial regression.The paper draw the following conclusions.(1)the venture capital has positive influence to the SME's R&D input.(2)the SME with venture capital background has more innovation output(such as Number of inventions and software copyrights).(3)In the companies with venture capital background,the longer investment phase make innovation better.The results prove that the venture capital promote the SME's technological innovation.The venture capital institutions could select excellent SME and provide fund.Then they help these SME make innovation through value-added services.The venture capital institutions focus on the long term performance of SME,so they tend to train the ability of innovation.According to the above analysis,this paper puts forward some suggestions about developing venture capital and improve NEEQ.