Bridging Fiscal Policy and Innovation: The Institutional Logic of the “First-Invest-Then-Equity” Model in Xianyang’s Technology Transfer Reform

The transformation of scientific and technological achievements is a crucial link in closing the innovation value chain and promoting high-quality regional development. In recent years, under China’s national innovation-driven development strategy and the overall layout of the Qinchuangyuan Innovation Promotion Platform in Shaanxi Province, Xianyang City has taken the lead in reforming the fiscal investment and financing mechanisms for science and technology funds, establishing a “First-Invest-Then-Equity (FITE)” policy framework. This paper takes Xianyang’s FITE policy as its research object and adopts policy text analysis and comparative research methods to systematically examine the policy’s institutional background, operational mechanism, and implementation performance. Moreover, it conducts a comparative analysis with representative cities such as Suzhou, Hefei, Changsha, and Chengdu.The findings reveal that: (1) the FITE mechanism effectively facilitates the market-oriented operation of fiscal funds and improves the efficiency of technology commercialization; (2) the Xianyang model demonstrates institutional innovation in fiscal guidance, risk sharing, and revenue recycling, yet faces persistent challenges in mobilizing private capital, establishing efficient equity exit mechanisms, and integrating technology finance. Based on these diagnosed problems, this study proposes several optimization pathways, including improving the coordination between fiscal and private capital, establishing a scientific pre-investment evaluation system, strengthening post-investment performance management, diversifying equity exit channels, building an integrated technology–finance ecosystem, and enhancing legal frameworks and interdepartmental coordination.The research concludes that Xianyang’s FITE mechanism not only provides a replicable model for western Chinese cities in leveraging fiscal funds to promote technology commercialization but also offers valuable local experience for deepening China’s science and technology system reform and improving the overall innovation governance framework.