Market-oriented incentives to the innovation of new energy companies: research based on venture capital and patent data of companies
(2.Climate Change and Energy Economics Study Center, Wuhan University)
(3.Center of Hubei Cooperative Innovation For Emissions Trading System, Wuhan University)
(4.School of Economics, Huazhong University of Science and Technology 430074)
【Abstract】Whether the market approach represented by venture capital (VC) can effectively stimulate the innovation of new energy companies or not is of great significance for changing the development mode of China’s new energy industry, building a low-carbon, safe energy sector and market-oriented system for green technology innovation, and promoting green development. Against the specific background that the gap of government subsidies for new energy industry expands year by year, this paper takes the inherent influence mechanism of VC on innovation capability of new energy companies into consideration and explores the effect of heterogeneity of new energy companies on the effect of VC from the perspective of absorptive capacity. As shown in the result, VC, as a market-oriented capital operation, plays an important role in the development of new energy industry, and this incentive mechanism is realized mainly through three channels together: ①“capital increasing effect” is to financially support the companies’ development directly; ②“effect of innovation tendency improvement” means to boost companies’ enthusiasm for R&D; ③“effect of shareholder activism” refers to provide companies with various forms of value-added services. Therefore, for the current situation of new energy industry, the market should play the decisive role in resource allocation so as to ensure free flows of factors in the new energy field and the survival of the fittest of the companies, achieving the goal of intensive development and structural adjustment. Besides, the government should play a better role of direct intervention in gradually reducing subsidies for new energy while creating a favorable institutional environment for the improvement of innovation capability of new energy companies through macro-regulation. The research of this paper not only offers important enlightenment for the policy formulation of China’s new energy industry, but also provides some empirical evidence for stimulating technological innovation by using market mechanism.
【Keywords】 new energy industry; innovation capability; market mechanism; venture capital;
(Translated by KE Junyu)
. ① The results of the calculation are detailed in the public attachment of the website of China Industrial Economics (http://www.ciejournal.org). [^Back]
. ② As for the R&D expenditure price index Pt, this paper makes use of the data of China Statistical Yearbook on Science and Technology (2003–2016), and makes calculation according to the ratio of R&D expenditure for labor and asset in different industries and different years. The results are detailed in the public attachment of China Industrial Economy website (http://www.ciejournal.org). [^Back]
. ① Considering the effect of the impact of venture capital may lag behind, we place the lagged term of lnvcit in the empirical analysis. [^Back]
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