The Practices of Sci-tech Finance Policy: Value-Orientation, Stimulation, and Value Creation

Abstract

The integration of science, technology, and finance is critical to the innovation and value creation of technology companies. In China, sci-tech finance policies have been formulated to support and help technology companies. Policy stimulus is becoming the key driver in different phases of value creation by providing complementary resources or reducing risk to technology companies. We propose a value-oriented, multidimensional framework to address the complex realities of the interplay between policy, technology companies, and value creation. The framework explains the impact of policy incentive and compensation mechanisms on the value creation of technology companies. An electrical manufacturing company was selected as an evidence-based example to validate the framework and display the expected results and unexpected consequences.