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Media environment, venture capital, and technological innovation: Evidence from China

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  • Yongyuan Ma
  • Ao Shen
  • Qingyuan Zhu
  • Peng Wang

Abstract

Informed by institutional embeddedness perspective, we examine how media environment as an informal institutional arrangement shapes technological innovation. Through an empirical examination of the panel data of 30 Chinese provinces from 2009 to 2019, we document a positive relationship between media environment and venture capital (VC). Our results also indicate VC positively affects technological innovation and media environment influences technological innovation through VC. Besides, we find subnational institutional development serves as a facilitator, while subnational state‐owned economy development is a burden, in influencing the positive linkage between VC and technological innovation. Finally, we provide valuable insights for technological innovation.

Suggested Citation

  • Yongyuan Ma & Ao Shen & Qingyuan Zhu & Peng Wang, 2022. "Media environment, venture capital, and technological innovation: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1734-1747, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:1734-1747
    DOI: 10.1002/mde.3483
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