Abstract: Under the process of capitalization in China, there have much capital accumulated in no-equity asset sector, and which generated asset bubbles, there also is an issue that low efficiency of innovation investment in real economy. In order to explore the key point — the role of entrepreneurs — from innovation investment to achievements, it applies the Matsuoka and Shibata (2012) model on choice of entrepreneurs with financial market imperfections and asset bubbles. It discusses the mechanism about no-equity asset bubbles effecting on output efficiency through equilibrium analysis in micro-level.①No-equity asset bubbles confine entrepreneurs to invest innovation projects via increasing the external capital cost, and then make output efficiency down. ②No-equity asset bubbles restrict entrepreneurs to invest innovation projects according to decreasing capital accumulation, and then lead to reducing in output efficiency. ③A rising of output efficiency can improve capital accumulation and the repayment ability of entrepreneurs, which promote entrepreneurs to invest innovation project, in return, there will be success in restraining the expansion of no-equity asset bubbles and improving output efficiency.