The Impact Of Venture Capital On Enterprise Technology Innovation

The prosperity of US venture capital brought the rapid growth of high-tech enterprises and more innovations.Similarly China's venture capital is also rising rapidly this century and attracts all sorts of participants.So is it likely to bring an outbreak of the number of innovative enterprises in China as well? Are there any differences among venture capital with various characteristics on the impact of enterprise technology innovation?Research on the mechanism of enterprise innovation affected by venture capital is helpful to enhance the competitiveness of Chinese enterprises,enrich the investment experience of venture capital and supervise more effectively by the government and so on.At present,the main opinion of venture capital and innovation is the incentive effect,but there are still no conclusive views due to sample differences etc.And "screening" and "coaching" effect are also discussed.Research of venture capital's influence on innovation appears relatively late,and studies concerned VC's backgrounds prefer to dividing the institutions into foreign and local backgrounds or doing separate research on a single background,let alone those about entrance time.Besides,the indicators of innovation used in home research are also too simple.Therefore,this paper starts from analyzing VC's impact on enterprise technology innovation,and then puts forward four main assumptions around the impact of VC's characteristics like institutional background,investment experience and entrance time.Refer to the literature,the paper uses the latest data of the GEM listed companies(to Dec.31,2016)to do empirical analysis and comparisons through descriptive statistics,t test and multiple linear regression analysis.On the one hand,research about the influence of venture capital's characteristics on innovation are enriched,on the other hand it is the first time that R&D strength is used as an input index while trademarks and patents are used as innovation output indicators simultaneously on enterprise level,which can better reflect the commercialization of innovation.The results show: 1.Venture has a positive impact on R&D input and trademarks,but patents are not.2.The government-backed and foreign venture capital has a significant positive impact on the innovation of enterprises,while those of private,corporate and mixed background are not.The four backgrounds and mixed background have significant positive effects on the trademarks output.3.Investment experience has a significant negative impact to innovation output while no significant influence on innovation input.4.The timing of entry has no significant impact on innovation input or patents output,but positively influences the trademarks output in early,development and profit periods.However,the manufacturing sample shows that the impact of early entry of venture capital on input and expansion entry on patents are both positive.Compared with the previous studies,the venture capital of government background has probably increased concentration on enterprise innovation in recent years,and the best time of entry has also shifted from early stage to a later stage.Finally,this paper suggests enterprises choose a mixed investment with government and overseas background,institutions enter firms during expansion stage,and the government establish more government guidance funds and provide a good investment environment to encourage other backgrounds VC to invest in more innovative industries.In this way China's innovation and its input-output transformation efficiency can be enhanced.