The Impact of Sci-Tech Finance on Technology Entrepreneurship: Empirical Evidence from China

Abstract

Based on provincial panel data from 2010-2019, this paper uses the entropy method to measure the development level of technology entrepreneurship in China and then empirically analyzes the effect of sci-tech finance on technology entrepreneurship. The results show that, nationwide, only bank lending has a positive effect on technology entrepreneurship among the different sci-tech finance indicators, and government and enterprise R&D spending has a negative impact. Meanwhile, there is regional heterogeneity in the effect of sci-tech finance on entrepreneurship in the technology sector. Both banks and venture capital have significant positive effects on technology entrepreneurship in areas with high levels of technology entrepreneurship development, while venture capital does not have significant effects in areas where technology entrepreneurship is developing at medium and low levels. The impact of government investment in science and technology and corporate investment in research and development on technology entrepreneurship is either negative or negligible. Finally, the paper offers some suggestions based on empirical findings.