Abstract
Amid the rapid development of the global economy, high-tech industries such as artificial intelligence and big data have increasingly become central drivers of growth, with technological innovation emerging as the core force behind national progress. As the primary platform for capital absorption and resource allocation, the capital market has also become a critical driver of technological innovation. In China, local governments have gradually assumed the role of limited partners in the primary market, significantly impacting innovation-driven enterprises. This paper is aimed to examine the effects of government-led investment on innovative companies. The research focuses on analyzing changes in investment scale, funding sources, and regulatory frameworks in China's primary capital market and explores how these factors influence the development of innovative enterprises. Through an analysis of capital market data and the performance of innovation-driven companies, this study concludes that although government involvement as the primary investor may lead to imbalances in investment distribution, its role in fostering technological innovation, promoting industrial upgrading, and advancing sustainable development is more profound. Therefore, China's capital market must become more flexible and market-oriented to ensure that capital is effectively channeled to projects with the highest innovation potential. As China continues to refine capital market mechanisms, future innovative enterprises will benefit from more efficient resource allocation and increased funding for research and development, allowing them to maintain a leading position in global technological innovation while injecting fresh vitality into economic growth, creating a positive cycle.
Published Version
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