The Impact of Innovativeness on the Financing Performance of Corwdfunding Projects: The Moderating Effect of Incremental and Radical Innovation

Using the data from the Chinese crowdfunding platform, Demo Hour, from November 2017 to March 2018, this paper investigates the impact of innovativeness on the financial performance of corwdfunding projects moderating by incremental and radical innovation. The results indicate that the financing performance of radical innovation projects is lower than that of incremental innovation projects, and for incremental innovation projects, the higher the degree of innovation, the higher the financing performance of corwdfunding projects is. For radical innovation projects, however, the higher the degree of innovation, the lower the financing performance of incremental innovation projects is. The findings help to eliminate the misunderstanding on the relationship between innovativeness and the financing performance of corwdfunding projects by the sponsors of the crowdfunding project with the shortage of original funds. Furthermore, this study guides the R&D team of crowdfunding project to develop new projects which are more in line with public preference, thus to improve the financing performance of corwdfunding projects.