Innovation fund belongs to financing. The establishment of innovation fund, on the one hand, alleviates the problem of insufficient innovation funds for small and medium-sized scientific and technological enterprises through direct assistance, on the other hand, attracts and drives governments and financial institutions at all levels to pay more attention to and support the innovation activities of small and medium-sized scientific and technological enterprises, and drives the establishment of an investment and financing system that conforms to the laws of market economy and serves the technological innovation of small and medium-sized scientific and technological enterprises.