CNSE WORKSHOP

The Innovation Impacts of Government Subsidies and Venture Capital Investments 

on China’s High Technology Companies

Time：15:30-17:00, Dec. 2nd/Fri., 2016

Venue：Small Classroom, Wanzhong Building, NSD, PKU

Host：Prof. Yong WANG, Prof. Xin WANG, Prof. Jiajun XU

Speaker：Xiuping Hua (The University of Nottingham Ningbo China)

【ABSTRACT】

This study examines how government subsidies, venture capital (VC) investments affect innovation of China’s high technology companies. Using a panel data of 584 firms listed in Shanghai & Shenzhen stock exchanges and 768 firms in China’s pilot over-the-counter equities market, namely the National Equity Exchange and Quotation (NEEQ) market, during 2001–2015, we find that government subsidies play a positive role upon firms’ innovation activities, and the positive impact is even more significant in the private sector. The empirical evidence reveals that that VC investment is an effective way to promote the innovation outputs. We further explore the relationship between government subsidies and VC investments, and find government subsidies do not crowd out VC investments, but convey positive investment signals, especially in provincial capital cities. The findings provide insightful implications that better-designed government subsidies are an effective channel to promote the innovation capabilities for China’s high-tech firms and to facilitate VC investors to play a bigger role in nurturing innovation.

【SPEAKER】

Dr. Xiuping Hua is currently an Associate Professor of Finance at Nottingham University Business School China, the Deputy Director of Centre for Global Finance at University of Nottingham Ningbo China, and the Secretary-in-general for Centre for Inclusive Finance at People’s Bank of China Ningbo Branch and University of Nottingham Ningbo China. She was also the part-time partner and vice president of Ningbo’s largest venture capital firm, Junrun Capital. She obtained her PhD degree in Finance from the University of Sheffield Management School (UK). Dr. Hua’s interests include asset pricing, derivatives, digital finance, innovation finance, and inclusive finance. She has published articles in both academic journals and practitioners, such as the Journal of International Money and Finance, the European Journal of Finance, Business History, Research in International Business and Finance, Economic Modelling, China Daily, and so on. She has also worked as Principal Investigators for many research grants or consultancy programs of domestic and international governments, research institutes, universities, companies and financial organizations.