Abstract: AS a new means of financing, relationship between venture capital and innovation investment in enterprises has been thought to be controversial. On the basis of 10488 samples of Chinese listed firms,this paper analyzes the impact of venture capital on innovation investment from the perspectives of property right and institutional environment adopting the tobit regression model and negative binomial regression model. The results show that venture capital has a significantly positive impact on innovation investment in the listed enterprises,especially the non-state-owned ones and those in the regions with more favorable institutional environment. Further research also reveals that venture capital can promote innovation output by virtue of more innovation investment, which can be of great value to understand the role of venture capital in improving financial service system, promoting capital market development and bettering national innovation system.

Key words:  venture capital, innovation investment, property right, institutional environment, innovation output