The influence of venture capital on Beijing's technological innovation capacity

Nowadays in the age of knowledge economy, technological innovation, converting ideas into innovative products and technology strengths into competitive advantages, has become the core during enterprise development. As an innovative financial tool, venture capital, integrating financing and investment, capital supply and management services supply, focusing on the high-tech fields which contain high risk as well as high yield, is the incubator of high-tech enterprises. Beijing, with the capital effect, has become the top pick for domestic and foreign investment, and the center of private equity investment. In theory, venture capital promotes the technological innovation of enterprises in Beijing from all aspects, while in practice, the effect is not significant. On the basis of carefully combing related literatures, this paper expounds the venture capital mechanism systematically first, then describes and analyzes the investment environment of Beijing, exploring the environmental effect on risk investment, and the adverse effects of enterprise age and scale on venture capital investment function. Thirdly, this article uses 129 listed companies based in Beijing as research objects, carries on the empirical analysis from input and output aspects of technological innovation. The conclusions are: the investment environment of Beijing is in the first echelon; Increase venture capital amount did not significantly affect the enterprise innovation output, but the value-added services show positive effect, far beyond the influence of pure capital; The most significant factor affecting innovation is R&D investment; In addition, enterprise age and enterprise scale are inversely proportional to venture capital effectiveness. Finally in this paper, based on the analysis of research results, relevant countermeasures and suggestions are put forward.