Abstract
This paper is to explore the impact of entrepreneurial psychological capital and capital heterogeneity on venture capital behavior, and further analyze the effect of venture capital on the innovation activities of enterprises. Based on the existing research results, this paper proposed hypotheses on the relationship between venture capital and technological innovation. According to the data samples of growth enterprises market (GEM) listed companies from 2010 to 2016, the main research variables were defined and a theoretical analysis model was constructed. The theory and empirical research clarify the relationship between venture capital and technological innovation. (1) According to the regression results of venture capital participation as well as innovation input and innovation output, the regression coefficients of venture capital participation are 0.609 and 0.203, which are significant at the levels of 10 and 1%, respectively. It indicates that venture capital participation has a positive impact on the innovation input and output of enterprises. (2) The coefficient of venture capital participation is positive, and the coefficient of is significantly negative. Therefore, the degree of product market competition has a significant moderating effect on the relationship between venture capital participation and technological innovation. Venture capital provides funding support for technological innovation in startups. At the same time, because it holds a certain percentage of shares, it participates in enterprise innovation activities and provides guidance for companies to maintain profitable growth, thereby improving their innovation awareness and level. This research makes up for the shortcomings of the previous research model that uses a single dimension to measure technological innovation. As a result, this study comprehensively investigates the impact of venture capital on the innovation input and output of enterprises, enhancing the integrity and reliability of previous research conclusions.
Highlights
In recent years, with the rapid development of China’s economy, enterprise innovation driven by innovative entrepreneurial activities has played an important role in economic and social development (Jiang et al, 2019)
The proportion of venture capital holdings is 4.403%, of which the highest proportion of venture capital holdings is as high as 80.2%, indicating that among growth enterprises market (GEM) listed companies, venture capital occupies a certain proportion of ownership
It can be seen that the intensity of research and development (R&D) investment, the number of patent applications, and the proportion of venture capital holdings are significantly positively correlated at the 1% level
Summary
With the rapid development of China’s economy, enterprise innovation driven by innovative entrepreneurial activities has played an important role in economic and social development (Jiang et al, 2019). In the era of innovation as the main theme, innovation is a key factor for an enterprise to maintain its competitive advantage and promote long-term development. The survey found that more than 85% of a country’s economic growth comes from technological innovation. It is evident that technological innovation is essential to promote economic growth (Newth, 2016). As the foundation of China’s national economy, the manufacturing industry is the key supporting force to promote scientific and technological progress, and it is the main direction for technological innovation (Sun et al, 2016). To strengthen the strategic plan for enterprise innovation, it is necessary to firmly put innovation at the core of the overall development, apply more innovative technologies, maximize economic benefits, and improve the market competitiveness of enterprises (Florida and Mellander, 2016)
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