Abstract:     The National Industrial Investment Fund is an important policy tool to promote the innovation of integrated circuit firms. Based on the policy practice of the National Integrated Circuit Industry Investment Fund, this paper used China′s Shanghai and Shenzhen A-share listed IC enterprises from 2009 to 2021 as research samples and adopted the staggered difference-in-difference model to analyze the innovation incentive effect and supervision mechanism of the National Integrated Circuit Industry Investment Fund. The research showed that, the National Integrated Circuit Industry Investment Fund can significantly stimulate the innovation activities of the IC firms, and mainly stimulate the substantial innovation output of the invested firms. The mechanism analysis showed that the National Integrated Circuit Industry Investment Fund alleviates the financing constraints of the IC firms through three channels: improving the maturity structure of corporate debt, improving the commercial credit of enterprises and attracting investors′ attention, thus encouraging the IC firms to innovate. Meanwhile, the National Integrated Circuit Industry Investment Fund restrains the short-termism and self-serving behaviors of the management, so as to promote the firm innovation by supervising the opportunistic behavior of the management. The impact of these two mechanisms will play a differentiated role depending on the level of internal control and institutional investor research respectively. This paper has certain policy implications for further expanding the support of the National Integrated Circuit Industry Investment Fund, strengthening its innovation supervision mechanism for the invested firms and optimizing the investment direction of the National Integrated Circuit Industry Investment Fund.

Key words: national industrial investment fund, integrated circuit, innovation incentive, financing constraint, supervision mechanism