The Impact Of Joint Venture Capital On Corporate Innovation Capabilities

As an important form of financing,venture capital plays an irreplaceable role in the development of small enterprises,especially innovative enterprises.Syndicated VC is a prevailing form of venture capital at present.Based on the data of Qingke PE Data and China Patent Database,this paper employs several quantitative analysis methods,such as factor analysis,Probit regression and Poisson regression to empirically analyses the role of resource characteristics and resource sharing in the process of choosing partners to syndicate with and then we explore the impact of joint investment,resource heterogeneity and resource sharing on the innovation ability of portfolio enterprises.The results show that when choosing partners,venture capital firms combine their network influence based on resource accumulation,while they focus on similarity advantage in terms of capital scale,investment stage specialty and investment region expertise.As to the relationship between joint venture capital and innovation ability,syndication is indeed more helpful to enhance the innovation ability of the invested enterprises than individual investment.However,the heterogeneity in investment experience,average investment amount in the past and investment professionalism impede this effect.On the contrary,the innovation ability of the invested enterprises is positively correlated with the difference between VCs in term of the degree centrality,betweenness centrality and the level of region and stage expertise.The resource sharing of network influence and capital,network influence and regional investment experience among investors is conducive to the innovation ability.Futhermore,this paper finds that the resource sharing between capital scale and experience in specific stages of investment can increase the tendency of investors to unite but reduce the innovation level of the invested enterprises.Refer to previous studies,this paper argues that the imperfection of China's venture capital market may be the reason for investors to pay more attention to similarity advantage.Information asymmetry and agency cost may cause some resource indicators to have a negative impact on enterprise innovation ability.The seemingly contradictory result of capital and experience in specific stages sharing is due to the insufficient capital scale of some investment institutions who are focusing on seed-stage and start-up-stage.The conclusions of this paper can be a guide for venture capital institutions to choose venture partners and make some complements for theoretical research in related fields.Specifically,this paper deepens related research in three aspects: firstly,through discussing the effect of resource sharing,we develop the research of the selection of partners in syndicate VC;secondly,resource sharing is included in the research of innovative ability of investors,which improves the mechanism between joint investment and enterprise innovative ability;and thirdly,through the study of non-listed companies,this paper avoids the possible survivor bias that may exist in previous studies.