Abstract:     Solving effectively the difficulties in intellectual property collateralized financing is of paramount significance for providing financial support to the technological innovation of small and medium-sized enterprises (SMEs) and nurturing specialized and new enterprises (SNEs). To this end, based on the theories of financing constraints and asymmetric information, this paper explored the effects, underlying mechanisms and conditions of patent pledge in fostering enterprise technological innovation. Drawing on panel data of enterprise patent pledge and technological innovation at the prefecture-level from 2006 to 2018, and using a two-way fixed effects model and instrumental variable method, we empirically investigated the effects of patent pledge on enterprise technological innovation. The results showed that patent pledge significantly promotes enterprise technological innovation, and this positive effect was primarily manifested among non-listed enterprises. The mechanism tests revealed that patent pledge can leverage the collateral value of patents, easing enterprise financing constraints. Simultaneously, patent collateral facilitates the mutual conversion of collateral value and information value, forming a two-way signaling mechanism, both of which are conducive to promoting technological innovation. Under conditions of greater tradability in the patent market and stronger intellectual property protection, the positive effect of patent collateral on enterprise technological innovation becomes more pronounced. This paper has not only enriched the study on the mechanism of patent pledge promoting innovation from the perspective of two-way signaling incentive, but also provided policy insights for unblocking bottlenecks in the financial services chain and exploring pathways for financial empowerment of SNEs to achieve high-quality development.

Key words: patent pledge, technological innovation, financing constraint, twoway signaling mechanism