Analysis On The Investment Efficiency Of Innovation Fund For Technology Based Firms

As China's economic development enters a transitional period and a tough time,the development of science and technology-based SMEs is increasingly important for China's economic development.However,science and technology SMEs face serious financing difficulties and their development is severely constrained.So,China has set up The Innovation Fund for Technology based firms to provide financial support to promote enterprise and economic development and to promote technological innovation.After more than 10 years of development,the Innovation Fund for Technology based firms has become the most important financing channel for technology-based SMEs together with venture capital funds.It has played an important role in promoting SMEs.The investment efficiency of The Innovation Funds for Technology based Firms has an important influence on the development of technology based SMEs and the development of China's economy.Therefore,it is of great academic and practical significance to explore the investment efficiency of innovation funds.This paper uses the C~2R and BC~2 models in the DEA method to measure the overall efficiency,pure technical efficiency,and scale efficiency of the Innovation Fund for Technology based Firms,and compares the results with venture capital fund investment to display the investment efficiency of The Innovation Fund for Technology based Firms more intuitively.In addition,from the point of view of the operational mechanism,the reasons for the lack of efficiency of the Innovation Fund for Technology based Firms and the difference in efficiency with the venture capital fund are analyzed.This paper draws the following conclusions:(1)The Innovation Fund for Technology based Firms has certain investment efficiency,but the lack of comprehensive efficiency is mainly caused by the inefficiency of purely technical efficiency.Compared with venture investment funds,the investment efficiency is lower.(2)The reasons for the relatively low investment efficiency of the Innovation Fund for Technology based Firms are as follows:single source of funds has public welfare and lack of flexibility;low efficiency of investment methods and exit mechanisms;institutional settings are not scientific;project screening process is not scientific Insufficient supervision;lack of efficient incentives.Based on the above analysis,the paper recommends the following:(1)Optimize the project screening process,optimize the screening criteria for the project,increase the due diligence on the project and the company,and ensure the authenticity and validity of the information obtained;(2)Optimize the funds Investment methods and appropriation process,innovative capital investment methods,and better integration of public welfare and marketability;(3)Improve incentive mechanisms,set more reasonable acceptance evaluation standards for investment companies,set market-oriented indicators,and increase incentives means of investment:For the innovation fund itself,improving the internal incentive mechanism involves associating changes in the personnel of the staff with the appropriate compensation and selection projects and the development performance of the company;(4)Improve supervision,increase the intensity of information disclosure,and improve The frequency of return visits to invested companies and projects will reduce the time interval for segmented investment.