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Research on heterogeneous financial support mechanisms for innovation in different types of technology enterprises

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  • Ma, Baolin
  • Li, Ke
  • Xu, Haiwen
  • An, Jin
  • Wang, Yihan
  • Zhang, Yu

Abstract

This study employs panel data from 30 provinces in China (excluding Tibet, Hong Kong, Macao, and Taiwan) spanning the years 2014 to 2020 to empirically analyze the financial support mechanisms for innovation in both technology start-ups and leading technology enterprises. The findings reveal significant heterogeneity in these mechanisms. Venture capital plays a prominent role in fostering innovation within technology start-ups, particularly in the incubation stage. Conversely, government support for these start-ups is relatively limited, primarily offered through initiatives such as technology enterprise incubators. In contrast, national fiscal policies exert a notably positive impact on the innovation activities of leading technology enterprises.

Suggested Citation

  • Ma, Baolin & Li, Ke & Xu, Haiwen & An, Jin & Wang, Yihan & Zhang, Yu, 2024. "Research on heterogeneous financial support mechanisms for innovation in different types of technology enterprises," Finance Research Letters, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:finlet:v:68:y:2024:i:c:s1544612324010225
    DOI: 10.1016/j.frl.2024.105992
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    References listed on IDEAS

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    1. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
    2. Chenghua Guan & Shengxue Jin, 2023. "Does the Type of Funding Affect Innovation? Evidence from Incubators in China," Sustainability, MDPI, vol. 15(3), pages 1-19, January.
    3. Valérie Revest & Alessandro Sapio, 2012. "Financing technology-based small firms in Europe: what do we know?," Small Business Economics, Springer, vol. 39(1), pages 179-205, July.
    4. Lu, Jin & Li, Yaling, 2024. "How does corporate venture capital enhance incumbents' innovation? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 83(C).
    5. Abderrahim Laachach & Younes Ettahri, 2023. "The effects of venture capital on firm innovation: the role of absorptive capacity," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 31(3), pages 407-432.
    6. Matteo Rossi & Giuseppe Festa & Ludovico Solima & Simona Popa, 2017. "Financing knowledge-intensive enterprises: evidence from CVCs in the US," The Journal of Technology Transfer, Springer, vol. 42(2), pages 338-353, April.
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    Cited by:

    1. Zhu, Fengzhan & Chen, Liang, 2025. "Credit availability, overinvestment, and corporate innovation capability," Finance Research Letters, Elsevier, vol. 76(C).

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