Abstract:    Strengthening basic research is an urgent requirement for achieving scientific and technological self-reliance and advancement at higher levels. It is the critical method to accelerate China′s transformation into a world-class power in science and technology. The paper analyzed the data from high-tech manufacturing enterprises listed on the Chinese A-share market from 2012 to 2020 and used the multidimensional panel fixed-effect model, a chain mediation model, and other methods to explore the influence and mechanisms of government subsidies and venture capital on the enterprise basic research. The results obtained are as follows: first, receiving government subsidies and venture capital can encourage enterprises to conduct basic research activities; second, venture capital and financing constraints play a chain intermediary role in the impact of government subsidies on the influence of enterprise basic research; third, the high financial leverage of firms hinders the promotion of government subsidies and venture capital on enterprise basic research; and fourth, there is an "inverted U-shaped" relationship between the shareholding ratio of venture capital and enterprise basic research. State-owned venture capital hinders enterprises from conducting basic research. Additionally, government subsidies and venture capital are much more effective in promoting basic research in enterprises that are state-owned, large-scale, having separated posts of CEO and chairman, and operate in highly competitive market environments. This paper will provide reference and inspiration for strengthening enterprises′ basic research and related policy formulation. The study will also provide references and insights for guiding enterprises to increase their investment in basic research and to form a continuous and stable investment mechanism, as well as for the formulation of related policies.

Key words: government subsidy, venture capital, enterprise basic research