Investigate the Impact of Technology Finance Policy on Technological Innovation of Smalland Medium Sized Enterprises using PSM Method

Small and medium-sized enterprises (SMEs) are playing a key role on scientific and technological innovation. As a result, scientific and technological financial policies should be established properly to support SMEs to carry out scientific and technological innovation on the economic development of China. This paper makes an empirical study on the impact of the first batch of scientific and technological financial pilot policies implemented in 2012 on the technological innovation of SMEs using Propensity Score Matching (PSM) method. Based on that, we got two conclusions: 1) scientific and technological financial policies have a positive effect on the innovation of SMEs; 2) the effect of technology finance policy is decreasing. Finally, we propose some relevant policy recommendations from the perspective of the government.