IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v67y2024ipas1544612324008341.html
   My bibliography  Save this article

The effect of state-owned venture capital on enterprise innovation: Evidence from China

Author

Listed:
  • Yu, Chenyang
  • Wang, Mengke
  • Fu, Changluan
  • Song, Jinbo

Abstract

Venture capital (VC) funded by state-owned enterprises constitutes a significant component of China's state-owned capital (SOC) investment. This paper empirically investigates the impact of state-owned venture capital (SOVC) on enterprise innovation and identifies that SOVC exerts a more pronounced influence on enhancing enterprise innovation capability. SOVC facilitates the enhancement of enterprise innovation capability by alleviating financial constraints, fostering joint investments, and attracting technical talents. This paper not only aids in identifying effective approaches to advance SOC reform but also contributes to enhancing enterprise innovation capability through the utilization of SOC.

Suggested Citation

  • Yu, Chenyang & Wang, Mengke & Fu, Changluan & Song, Jinbo, 2024. "The effect of state-owned venture capital on enterprise innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008341
    DOI: 10.1016/j.frl.2024.105804
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324008341
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105804?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Liegsalz, Johannes & Wagner, Stefan, 2013. "Patent examination at the State Intellectual Property Office in China," Research Policy, Elsevier, vol. 42(2), pages 552-563.
    2. Thomas J. Chemmanur & Karthik Krishnan & Debarshi K. Nandy, 2011. "How Does Venture Capital Financing Improve Efficiency in Private Firms? A Look Beneath the Surface," The Review of Financial Studies, Society for Financial Studies, vol. 24(12), pages 4037-4090.
    3. Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & Sara E. Bennett, 2020. "Sustainable economic growth in the European Union: The role of ICT, venture capital, and innovation," Review of Financial Economics, John Wiley & Sons, vol. 38(1), pages 34-62, January.
    4. Zhang, Dongyang & He, Yurun & Lu, Meiting, 2024. "Is energy firms' investment behavior more sensitive on corporate perception of monetary policy?," Energy Economics, Elsevier, vol. 136(C).
    5. Zhang, Dongyang & Bai, Dingchuan & Wang, Cao & He, Yurun, 2024. "Distribution dynamics and quantile dynamic convergence of the digital economy: Prefecture-level evidence in China," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    6. Vanderhoven, Ellen & Steiner, Artur & Teasdale, Simon & Calò, Francesca, 2020. "Can public venture capital support sustainability in the social economy? Evidence from a social innovation fund," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lin, Qi & Zhao, Xiaoyang & Hong, Weihang, 2025. "The impact of government data accessibility on cross-regional venture capital investments," Finance Research Letters, Elsevier, vol. 71(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Dongyang & Bai, Dingchuan & He, Yurun & Sun, Qiaobing, 2024. "Synergistic abatement effects of Broadband China and environmental regulation: Firm-level evidence," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    2. Liu, Yang & Zhang, Jintao & Zhu, Le, 2025. "Pay for air pollution: Ecological compensation policy and corporate investment," International Review of Financial Analysis, Elsevier, vol. 97(C).
    3. Gu, Jing & Zhang, Fujuan & Xu, Xun & Xue, Chaokai, 2023. "Stay or switch? The impact of venture capitalists' movement across network communities on enterprises’ innovation performance," Technovation, Elsevier, vol. 125(C).
    4. Alperovych, Yan & Hübner, Georges & Lobet, Fabrice, 2015. "How does governmental versus private venture capital backing affect a firm's efficiency? Evidence from Belgium," Journal of Business Venturing, Elsevier, vol. 30(4), pages 508-525.
    5. Massimo Colombo & Annalisa Croce & Samuele Murtinu, 2014. "Ownership structure, horizontal agency costs and the performance of high-tech entrepreneurial firms," Small Business Economics, Springer, vol. 42(2), pages 265-282, February.
    6. Josh Lerner & Ramana Nanda, 2020. "Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 237-261, Summer.
    7. Ola Bengtsson & John R. M. Hand, 2013. "Employee Compensation in Entrepreneurial Companies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 312-340, June.
    8. Bhanot, Karan & Kadapakkam, Palani-Rajan, 2022. "Pay for performance, partnership success, and the internal organization of venture capital firms," Journal of Corporate Finance, Elsevier, vol. 75(C).
    9. Tang, Chaoli & Dong, Shuyun & Zhou, Rui, 2025. "The impact of digitalization on corporate resilience," International Review of Economics & Finance, Elsevier, vol. 97(C).
    10. Chen, Chen & Xue, Zhixin, 2025. "New-type infrastructure and corporate digital transformation: Evidence from a multimethod machine learning approach," Finance Research Letters, Elsevier, vol. 74(C).
    11. Arslan Kulanov & Assiya Issakhova & Olga Koshkina & Parida Issakhova & Alma Karshalova, 2020. "Venture Financing and the Fuel and Energy Complex: Investing in Alternative Energy," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 531-538.
    12. Zhang, Yeqing & Zhang, Xueyong, 2020. "Patent growth and the long-run performance of VC-backed IPOs," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 33-47.
    13. Silvia Magri, 2014. "Does issuing equity help R&D activity? Evidence from unlisted Italian high-tech manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(8), pages 825-854, November.
    14. Xu, Zhiyi & Yang, Jindi, 2025. "Impact of digital finance on rural industry revitalization," International Review of Economics & Finance, Elsevier, vol. 97(C).
    15. Zhang, Yuejia & Mayes, David Geoffrey, 2018. "The performance of governmental venture capital firms: A life cycle perspective and evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 48(C), pages 162-185.
    16. Fabio Bertoni & María Ferrer & José Martí, 2013. "The different roles played by venture capital and private equity investors on the investment activity of their portfolio firms," Small Business Economics, Springer, vol. 40(3), pages 607-633, April.
    17. Choi, Jaewoong & Yoon, Janghyeok, 2022. "Measuring knowledge exploration distance at the patent level: Application of network embedding and citation analysis," Journal of Informetrics, Elsevier, vol. 16(2).
    18. Liang, Guibao & Xia, Qiao & Zhang, Lijie, 2025. "Nonlinear influence of digital finance on green economic efficiency," International Review of Financial Analysis, Elsevier, vol. 101(C).
    19. Colombo, Massimo G. & D’Adda, Diego & Pirelli, Lorenzo H., 2016. "The participation of new technology-based firms in EU-funded R&D partnerships: The role of venture capital," Research Policy, Elsevier, vol. 45(2), pages 361-375.
    20. To, Thomas Y. & Navone, Marco & Wu, Eliza, 2018. "Analyst coverage and the quality of corporate investment decisions," Journal of Corporate Finance, Elsevier, vol. 51(C), pages 164-181.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.