Research on heterogeneous financial support mechanisms for innovation in different types of technology enterprises

•There is heterogeneity in the financial support mechanisms for innovation between leading technology enterprises and technology start-ups in China.•The role of venture capital in the innovation of start-ups is prominent, while the role of government is relatively limited.•National fiscal policies exert a notably positive impact on the innovation activities of leading technology enterprises.•In the central and western regions of China, government finance play a direct and significant role in supporting the innovation of leading technology enterprises. This study employs panel data from 30 provinces in China (excluding Tibet, Hong Kong, Macao, and Taiwan) spanning the years 2014 to 2020 to empirically analyze the financial support mechanisms for innovation in both technology start-ups and leading technology enterprises. The findings reveal significant heterogeneity in these mechanisms. Venture capital plays a prominent role in fostering innovation within technology start-ups, particularly in the incubation stage. Conversely, government support for these start-ups is relatively limited, primarily offered through initiatives such as technology enterprise incubators. In contrast, national fiscal policies exert a notably positive impact on the innovation activities of leading technology enterprises.