As an important institutional investor of the enterprise, venture capital has the dual status of shareholders and managers. It not only provides direct financial support for enterprises, but also relies on its accumulated market resources, professional management knowledge, rich investment experience and extensive network connection provides enterprises with comprehensive and diverse value-added services, and uses the relevant investment contract terms to strictly and closely supervise the enterprise′s business decision-making, development strategy and governance mechanism, thus continuously promoting the growth and development of the enterprise. By the end of 2017, the number of venture capital institutions in China had reached 2,296, and the total amount of management capital reached 887.25 billion yuan, up 11.8% and 7.2% respectively compared with 2016. With the increasingly important position of venture capital in the capital markets of various countries, its key role in transforming innovation achievements and cultivating technology enterprises has attracted the attention of many scholars. However, most scholars in the existing literature only discuss the role of venture capital in the enterprise innovation output. Few scholars pay attention to the differential impact of venture capital on the different originality and technological innovation output of enterprises. Moreover, when studying the relationship between venture capital and enterprise innovation output, few scholars consider the regulatory role of regional institutional environment. However, whether venture capital has the same impact on different types of innovation output? Is the effect of venture capital on different types of innovation output affected by the regional institutional environment? Besides, if the venture capital has an impact on enterprise innovation ability, can it improve the business performance of enterprise innovation output? And is this promotion different depending on the regional institutional environment?
   Based on this, this paper uses 153 enterprises listed on the China′s GEM in 2010-2016 as the research object, examines the relationship between venture capital and different types of enterprise innovation output, also the influence of regional institutional environment on the relationship between them. On this basis, it further analyzes the impact of venture capital on the business performance of enterprise innovation output and the adjustment role of regional institutional environment.
   The research finds that: (1) The impact of venture capital support on different originality levels and technological content innovation output is different, which is reflected in the fact that venture capital has a restraining effect on the invention patent output, but it can greatly promote the non-invention patent output of the enterprise. At this stage, China′s venture capital industry development presents an irrational state; (2) Higher level of market-oriented development, perfect intellectual property protection system, and higher level of openness can carry out certain screening and discrimination of the value-added effect of venture capital on innovation output, correct the negative impact of venture capital on enterprise′s invention patent output, and improve the quality of enterprise′s innovation output; (3) Venture capital support can improve the business performance of the enterprise invention patent output, then make the invention patent output improve the future financial performance to a greater extent, and has no significant impact on the business performance of the non-invention patent output. However, with the continuous development and improvement of the regional institutional environment, the support of venture capital can improve greatly the business performance of the enterprise′s invention patent output and non-invention patent output. Since venture capital may prefer enterprises with strong ability in technological innovation, this paper may have endogenous problems caused by sample self-selection. For this purpose, we further use the propensity score matching method (PSM) to correct the sample selection bias problem. Regression tests were performed again on the basis of retaining 563 sample enterprises with successful matching, and the results were consistent with the previous ones. At the same time, this paper also changes the measurement of regional institutional environmental level. If the marketization level of the enterprise is higher than the median level of marketization level of all enterprises, Marketdum is taken as 1, otherwise it is taken as 0, in the same way, the dummy variable IPPdum of regional intellectual property protection degree and the dummy variable Opendum of opening level are generated. The regression results show that they are basically consistent with the previous ones, indicating that the conclusions of this study are still stable.
    Compared with previous studies, this paper hopes to contribute in the following aspects: First, the existing literature only unilaterally explores the impact of venture capital on the innovation output of enterprises, and does not distinguish the quality and type of innovation output. This paper divides innovation output into invention patent and non-invention patent according to the degree of originality and technical content of innovation output, and analyzes the differentiated influence of venture capital on different types of innovation output of enterprises. Secondly, when analyzing the impact of venture capital on the innovation output of enterprises, few scholars have considered the regional institutional environmental factors. This paper discusses the adjustment effect the regional institutional environment from the perspectives of regional marketization, intellectual property protection and opening to the outside world on the relationship between venture capital and enterprise innovation output, further reveals that the regional institutional environment can correct the innovative irrational behavior of venture capital, and analyzes the role of regional institutional environment in enterprise innovation more comprehensively and deeply than the existing literature. Thirdly, it further explores the impact of venture capital on the performance of enterprise innovation output, whether venture capital can enhance the improvement effect of innovation output on the enterprise financial performance and whether there is a difference in the adjustment effect in regions with different institutional environment. This is also the content that is rarely involved in existing research at home and abroad. The results of this paper not only help to reveal the irrational behavior of venture capital on the innovation of enterprises, but also provide useful ideas for the government to formulate more targeted policies to give full play to the innovative value-added role of venture capital, so as to improve the quality of enterprise innovation output and business performance of innovation output.