Does governmental venture capital (GVC) advance green innovation? Big data evidence from China

Yuchen Li, Jiayin Meng, Ruifan Zhou and Ying Wang

International Review of Economics & Finance, 2024, vol. 93, issue PA, 772-788

Abstract: This paper examines the impact of governmental venture capital on green innovation utilizing a unique and comprehensive dataset in China between 2009 and 2018. Our results consistently reveal significant and positive effects of GVCs on green innovation, a result derived from the analysis of 317,870 firm-year observations conducted through a difference-in-differences and propensity score matching panel approach. Moreover, GVCs investments indicate a significant but smaller effect when they invest in start-ups. Following GVC investments, companies tend to attract additional private and other governmental financing. Interestingly, GVCs structured as limited partnerships appear to stimulate more green innovation compared to corporate-venture-structured GVCs.

Keywords: Governmental venture capital (GVC); Green innovation; Patents; Certification effect; PSM method (search for similar items in EconPapers)
JEL-codes: G24 L26 M13 O38 Q55 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:93:y:2024:i:pa:p:772-788

DOI: 10.1016/j.iref.2024.03.056

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