Breaking through technology blockade: A study on corporate venture capital investment strategy of high - tech companies

突破技术封锁:高科技公司创业投资策略研究

Abstract

Technological innovation is a core element in developing new productive forces. Faced with the US-initiated technological blockade against China, breaking free from dependence on foreign technology and promoting technological self-reliance is crucial for the high-quality development of China's high-tech industry. This paper examines how Chinese high-tech companies utilize venture capital to overcome technological blockades and tackle key core technologies, using the US Entity List sanctions as a backdrop. The study finds that compared to high-tech companies not subject to Entity List sanctions, sanctioned companies significantly increased their venture capital investment after being sanctioned. Furthermore, venture capital significantly increased the number of patent applications, patent citations, and patent knowledge breadth for these companies in key core technology areas. Further analysis shows that when sanctioned companies have higher market positions, greater trustworthiness, and stronger absorption capabilities, they have a stronger incentive to initiate venture capital to overcome technological blockades. In terms of specific investment behavior, sanctioned high-tech companies are more likely to invest in startups with high upstream industry relevance and in early-stage development. This study reveals the important role of corporate venture capital in overcoming foreign technological blockades and tackling key core technologies, providing important insights for the independent innovation of Chinese high-tech enterprises.