"Technology Finance Policies and Enterprise Innovation \"Lemon Effect\" : Catalysis or Inhibition".

This study evaluates the causal effect of technology finance policies on the innovation quality of high-tech SMEs by the propensity score matching – Differences-in-Differences (PSM – DID) model. The results indicate that technology finance policies can significantly improve innovation quality by inhibiting its "lemon effect". At the same time, technology finance policies show obvious heterogeneity in "strategic emerging and non-strategic emerging industries" and can help high-tech SMEs move towards specialised innovation. China is a large emerging market; hence it makes sense to extend this study to other emerging countries.