Venture Capital and Corporate Innovation: From the Perspective of VCs' Patent Sensitivity

Abstract

Abstract:

This paper studies how venture capitalists' investment decision is affected by firms' ex ante patenting activity. Drawing on the signaling theory and using patent data and venture capital investments of Chinese listed firms from 1999 to 2016, we find prior patenting activity strongly predicts VC investment propensity, amount and valuation, and our result is driven by first round VC investment. The patent sensitivity is more pronounced for private domestic VCs, for corporate venture capital (CVCs), and when the investee is located in high IP protection environments. Finally, we find positive association between VCs' patent sensitivity and internal rate of return (IRR) upon exits. Our evidence sheds light on how VCs interpret firms' patent signals in China, and how policy makers can direct VC industry to facilitate technological innovation.

Key words: venture capital, patent application, patent grant, corporate innovation, patent sensitivity

Xu Xiangyang, Lu Haitian, Meng Wei. Venture Capital and Corporate Innovation: From the Perspective of VCs' Patent Sensitivity[J]. , 2018, 30(10): 58-72,118.

References

[1] Shane S., Stuart T. Organizational Endowments and The Performance of University Start-Ups[J]. Management Science, 2002,48(1):154-170
[2] Park H. D., Steensma H. K. When Does Corporate Venture Capital Add Value for New Ventures?[J]. Strategic Management Journal, 2012,33(1):1-22
[3] Hellmann T., Puri M. The Interaction Between Product Market and Financing Strategy:The Role of Venture Capital[J]. Review of Financial Studies, 2000,13(4):959-984
[4] Higgins M. J., Stephan P. E., Thursby J. G. Conveying Quality and Value in Emerging Industries:Star Scientists and The Role of Signals in Biotechnology[J]. Research Policy, 2011,40(4):605-617
[5] Hoenen S., Kolympiris C., Schoenmakers W., et al. The Diminishing Signaling Value of Patents between Early Rounds of Venture Capital Financing[J]. Research Policy, 2014,43(6):956-989
[6] 俞仁智,何洁芳,刘志迎. 基于组织层面的公司企业家精神与新产品创新绩效——环境不确定性的调节效应[J]. 管理评论, 2015,27(9):85-94
[7] Hoenig D., Henkel J. Quality Signals? The Role of Patents, Alliances, and Team Experience in Venture Capital Financing[J]. Research Policy, 2015,44(5):1049-1064
[8] Hsu D. H., Ziedonis R. H. Resources as Dual Sources of Advantage:Implications for Valuing Entrepreneurial-Firm Patents[J]. Strategic Management Journal, 2013,34(7):761-781
[9] 李曜,王秀军. 我国创业板市场上风险投资的认证效应与市场力量[J]. 财经研究, 2015,41(2):4-14
[10] Jiang P., Cai C. X., Keasey K., et al. The Role of Venture Capitalists in Small and Medium-Sized Enterprise Initial Public Offerings:Evidence From China[J]. International Small Business Journal, 2014,32(6):619-643
[11] 陈工孟,俞欣,寇祥河. 风险投资参与对中资企业首次公开发行折价的影响——不同证券市场的比较[J]. 经济研究, 2011,46(5):74-85
[12] 蔡宁. 风险投资"逐名"动机与上市公司盈余管理[J]. 会计研究, 2015,(5):20-27
[13] Engel D., Keilbach M. Firm-Level Implications of Early Stage Venture Capital Investment-An Empirical Investigation[J]. Journal of Empirical Finance, 2007,14(2):150-167
[14] Chemmanur T. J., Krishnan K., Nandy D. K. How Does Venture Capital Financing Improve Efficiency in Private Firms? A Look Beneath the Surface[J]. Review of Financial Studies, 2011,24(12):4037-4090
[15] 杨晔,邵同尧. 基于面板数据的风险投资与区域创新因果关系研究[J]. 管理评论, 2012,24(6):27-33
[16] Spence M. Job Market Signaling[J]. The Quarterly Journal of Economics, 1973,87(3):355-374
[17] Mann R. J., Sager T. W. Patents, Venture Capital, and Software Start-Ups[J]. Research Policy, 2007,36(2):193-208
[18] Haeussler C., Patzelt H., Zahra S. A. Strategic Alliances and Product Development in High Technology New Firms:The Moderating Effect of Technological Capabilities[J]. Journal of Business Venturing, 2012,27(2):217-233
[19] Cao J., Hsu P. H. The Informational Role of Patents in Venture Capital Financing[R]. SSRN Working Paper, 2011
[20] Conti A., Thursby M., Rothaermel F. T. Show Me the Right Stuff:Signals for High-Tech Startups[J]. Journal of Economics & Management Strategy, 2013,22(2):341-364
[21] Greenberg G. Small Firms, Big Patents? Estimating Patent Value Using Data on Israeli Start-ups' Financing Rounds[J]. European Management Review, 2013,10(4):183-196
[22] Häussler C., Harhoff D., Müller E. To Be Financed or Not…-The Role of Patents For Venture Capital-Financing[R]. Centre for European Economic Research Discussion Paper, 2012
[23] Audretsch D. B., Bönte W., Mahagaonkar P. Financial Signaling by Innovative Nascent Ventures:The Relevance of Patents and Prototypes[J]. Research Policy, 2012,41(8):1407-1421
[24] 陈晋,唐松莲,张明廷,等. 新创企业专利信号与风险投资估值:突破性、渐进性创新专利与风险情境因素[J]. 管理学季刊, 2016,1(4):72-93
[25] Mindruta D. Value Creation in University-Firm Research Collaborations:A Matching Approach[J]. Strategic Management Journal, 2013,34(6):644-665
[26] 陈思,何文龙,张然. 风险投资与企业创新:影响和潜在机制[J]. 管理世界, 2017,(1):158-169
[27] 陈工孟. 建立我国风险投资机构报告体系初探[J]. 上海立信会计学院学报, 2009,23(5):15-19
[28] 刘晓明,胡文伟,李湛. 风险投资声誉、IPO折价和长期业绩:一个研究综述[J]. 管理评论, 2010,22(11):9-20
[29] Hsu D. H. What Do Entrepreneurs Pay for Venture Capital Affiliation?[J]. Journal of Finance, 2004,59(4):1805-1844
[30] 叶小杰. 风险投资声誉,成功退出与投资收益——我国风险投资行业的经验证据[J]. 经济管理, 2014,36(8):98-108
[31] 钱苹,张帏. 我国创业投资的回报率及其影响因素[J]. 经济研究, 2007,(5):78-90
[32] 余琰,罗炜,李怡宗,等. 国有风险投资的投资行为和投资成效[J]. 经济研究, 2014,49(2):32-46
[33] 张学勇,廖理. 风险投资背景与公司IPO:市场表现与内在机理[J]. 经济研究, 2011,46(6):118-132
[34] 姚铮,胡梦婕,叶敏. 社会网络增进小微企业贷款可得性作用机理研究[J]. 管理世界, 2013,(4):135-149
[35] 钟覃琳,廖冠民,陆正飞. R&D投资能够提升企业生产效率吗?——基于区域人才政策工具变量的分析[J]. 会计与经济研究, 2016,30(5):3-16
[36] Xu X. E. What Drives the Returns on Venture Capital Funds?[J]. The Journal of Private Equity, 2008,12(1):42-55
[37] Cumming D. Contracts And Exits in Venture Capital Finance[J]. Review of Financial Studies, 2008,21(5):1947-1982
[38] Broughman B., Fried J. Renegotiation of Cash Flow Rights in the Sale of VC-Backed Firms[J]. Journal of Financial Economics, 2010,95(3):384-399
[39] 戴国强,王国松. 信息不对称和风险资本退出[J]. 财经研究, 2002,28(2):30-35
[40] 王宗萍,邹湘江. 基于财务控制权视角的风险投资退出方式研究[J]. 软科学, 2009,23(10):23-26
[41] Cockburn I. M., MacGarvie M. J. Patents, Thickets and the Financing of Early-Stage Firms:Evidence from the Software Industry[J]. Journal of Economics & Management Strategy, 2009,18(3):729-773
[42] Levitas E., McFadyen M. Managing Liquidity in Research-Intensive Firms:Signaling and Cash Flow Effects of Patents and Alliance Activities[J]. Strategic Management Journal, 2009,30(6):659-678
[43] 胡志颖,周璐,刘亚莉. 风险投资,联合差异和创业板IPO公司会计信息质量[J]. 会计研究, 2012,(7):48-56
[44] Chemmanur T. J., Loutskina E., Tian X. Corporate Venture Capital, Value Creation, and Innovation[J]. Review of Financial Studies, 2014,27(8):2434-2473
[45] 何韧,刘兵勇,王婧婧. 银企关系,制度环境与中小微企业信贷可得性[J]. 金融研究, 2012,(11):103-115
[46] 胡凯,吴清,胡毓敏. 知识产权保护的技术创新效应——基于技术交易市场视角和省级面板数据的实证分析[J]. 财经研究, 2012,38(8):15-25