Moderating effect of business environment on the relationship between fiscal science and technology expenditure and venture capital

This study examines the nexus between fiscal science and technology (S&T) &T) expenditure and venture capital growth using panel data from 293 prefecture-level cities from 2005 to 2022. Findings reveal that fiscal investments in S&T &T promote the development of venture capital. Furthermore, favorable business and financial environments positively moderate the stimulatory effect of fiscal S&T &T expenditure on venture capital. The impact of fiscal S&T &T expenditure on venture capital varies by region. This study bridges the theoretical gap in understanding the implications of the government's indirect support policies for venture capital and offers a fresh perspective on the dynamics between government and market forces.