Influence of venture capital background on firms&rsquo;technological innovation

Gou Yannan; Dong Jing

Science Research Management ›› 2014, Vol. 35 ›› Issue (2) : 35-42.

Influence of venture capital background on firms’technological innovation

Gou Yannan¹, Dong Jing²

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Abstract

Venture capital is a very important channel for technological firms and innovation activities to get finance. Through an empirical study on firms listed on the Small and Medium Enterprise Board in China, this paper finds that, seen either from R&D investment orfrom number of patents, the firms with venture capitaloutperform significantly the firms without venture capital in technological innovation. Further regression analysisfinds that, for difference on capital background and experience background, venture capitals have different influence on firms'technological innovation. The government-backed venture capital participation, the corporate-backed venture capital participation, and the participation of venture capital with mixed capital backgrounds have negative correlations with firms' R&D investment. The more experiences the venture capitals have, the more positive their influence on firms' R&D investment.

Key words

venture capital / capital background / experience background / technological innovation

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Gou Yannan, Dong Jing. Influence of venture capital background on firms’technological innovation[J]. Science Research Management. 2014, 35(2): 35-42

References

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