Venture capital's portfolio network and portfolio firm's innovation performance: Evidence from China

We examine how VC's portfolio network shapes portfolio firms' innovation. Through empirical research of the panel data of Chinese listed firms from 2009 to 2016, we find that competitive network ties exert negative impact on portfolio firms' innovation which complements existing research from the perspective of portfolio network. Second, considering the heterogeneity of innovation, we find that the progressive innovation is easier to be impaired by competitive network ties. Third, employing Chinese VC data can open a window to see the role of VC's portfolio network after the invested firm goes public and improve our understanding of VC's role in the latter half of investment cycle.