The Separating Effect of Venture Capital on Patents: Evidence from GEM Listed Companies in China

DOI

10.2991/icmesd-19.2019.27How to use a DOI?

Keywords

Venture capital, Patent, Separating Effect, Financial constraint.

Abstract

Based on the dataset of the Growth Enterprise Market (GEM) listed companies in China, from 2009 to 2016, our analyses reveal the separating effect of venture capital investment on heterogeneous patents, as the supply of venture capital increases, there is a significantly negative linear relationship with the application number of low-quality non-invention patents, however there is an inverted U-shape relationship with the application number of high-quality invention patents. Our results remain robust for estimation with Heckman two-stage model to address the potential sample selection bias in the provision of venture capital. We further formulate an intermediary effect model and find that the mitigation of financial constraint completely functions as an intermediary variable. Our findings have implication for both policy makers and practitioners and provide evidence on the role of venture capital in improving the quality of innovation effectively.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiao-Wei Li
PY  - 2019/07
DA  - 2019/07
TI  - The Separating Effect of Venture Capital on Patents: Evidence from GEM Listed Companies in China
BT  - Proceedings of the 5th Annual International Conference on Management, Economics and Social Development (ICMESD 2019)
PB  - Atlantis Press
SP  - 181
EP  - 187
SN  - 2352-5428
UR  - https://doi.org/10.2991/icmesd-19.2019.27
DO  - 10.2991/icmesd-19.2019.27
ID  - Li2019/07
ER  -