The paper uses a fuzzy regression discontinuity design to analyze the impact of the Innovation Fund for Technology-Based SMEs (i.e. ‘Innofund’) on the innovation and economic performance of technology-based SMEs. Initiated by China’s State Council in 1999, the Innofund is the first and premier program targeting technology-based SMEs in the PRC. We compile a unique dataset of 559 technology-based SMEs located in the Zhongguancun National Demonstration Zone in Beijing by combining data on Innofund applications from 2005 to 2010, annual firm performance from 2005 to 2015, and new software copyrights. We find that support from the Innofund can significantly improve overall innovation output and patenting efficiency of technology-based SMEs but has a limited effect on high-quality innovation output and related patenting efficiency. We also find that the Innofund supports limited improvement in the economic performance of technology-based SMEs.