This　study　evaluates　the　causal　effect　of　technology　finance　policies　on　the　innovation　quality　of　high-tech　SMEs　by　the　propensity　score　matching　-　Differences-in-Differences　(PSM　-　DID)　model.　The　results　indicate　that　technology　finance　policies　can　significantly　improve　innovation　quality　by　inhibiting　its　＂lemon　effect＂.　At　the　same　time,　technology　finance　policies　show　obvious　heterogeneity　in　＂strategic　emerging　and　non-strategic　emerging　industries＂and　can　help　high-tech　SMEs　move　towards　specialised　innovation.　China　is　a　large　emerging　market;　hence　it　makes　sense　to　extend　this　study　to　other　emerging　countries.　　©　2023　ACM.