Abstract:    Government venture capital funds are important tools for China to improve the innovation of the financing market. They differ from independent venture capital funds regarding investment objectives, resource planning capabilities, performance appraisal systems, and decision-making mechanisms. Then, how do the government venture capital funds affect corporate innovation? Clarifying this issue from an empirical perspective is helpful in further developing the unique advantages of government venture capital funds in allocating innovation resources. Taking 522 listed enterprises as research samples, this paper used the multi-stage DID model to conduct empirical research. The results showed that, compared with the investment only by the government venture capital funds or the independent venture capital fund, the joint investment of the two types of funds can promote the increase of the R&D expenditure of the enterprises, the cooperation between the research institutes and the invested enterprises, and then promote the innovation performance of the enterprises. This is because the resource organization advantage of the government venture capital funds and the resource supply advantage of the independent venture capital fund are complementary, creating a more powerful innovation promotion effect. The research results of this paper can provide indirect supporting evidence for China′s innovation practice of building a new nationwide system.

Key words: government venture capital funds, corporate innovation, venture capital investment, industry-university-research collaboration