Jun Li’s Research to be Published in Technovation
Jun Li’s Research to be Published in Technovation
Professor Jun Li and his co-authors are celebrating the acceptance of their manuscript, “Too Much of a Good Thing? Venture Capital Chase and Firm Innovation,” for publication in Technovation, one of the world’s leading interdisciplinary journals focused on technological innovation.
The Research
The study explores a question with major implications for entrepreneurs, investors and policymakers: can too much venture capital attention actually hinder innovation?
Using data from companies listed on China’s Growth Enterprises Market between 2010 and 2024, the researchers tracked firms across a six-year period spanning three years before and after their IPOs. The study focuses on the phenomenon of “VC chase” — when venture capital repeatedly concentrates around a small group of high-profile firms through multiple funding rounds, large investments and participation from numerous investors.
The findings reveal an inverted U-shaped relationship between VC chase and innovation performance. Moderate levels of concentrated venture capital attention appear to support innovation, but after a certain threshold, additional attention can begin to undermine it.
The researchers also found that the effect is more pronounced among firms with lower R&D intensity and those operating farther from the technological frontier of their industries. The findings offer practical implications for how founders and investors think about growth, funding strategy and long-term innovation.
Beyond the empirical findings, the paper introduces a broader theoretical framework that treats VC chase not as a static variable, but as a dynamic and multidimensional investment pattern shaped by temporal pacing and innovation rhythms. The authors believe this perspective could resonate across entrepreneurship, strategy and innovation research.
About the Journal
Technovation (ISSN 0166-4972), published by Elsevier, is a premier interdisciplinary journal covering the full innovation process — from conceptualization to commercialization — including entrepreneurship, strategy, management, policy and technology transfer.
