Studies On Financing Channels Of High-tech Enterprises

As the undertaker of converting high-tech inventions into products and even merchandise, high-tech enterprises and their development have a direct impact on the ratio of converting research results into real productivity and ultimately on a country抯 economic growth. One of the essential elements for the development of high-tech enterprises is, undoubtedly, capital, the lack of which has unfortunately become the ottleneck?hindering the development of present-day high-tech enterprises in China. 1:10:100 is the ratio of capital input between R&D, invention application and mass- production in developed countries, while in China that ratio only reaches 1:0.7:100. As a result, only 10% of the research results have been converted into productivity and only about 10% of the patents granted applied, far below that of 60-80% in developed countries. The contribution of high-tech industry to the economic growth in China is merely 20-30%, while in developed countries that figure runs up to 50-60%. In addition to the insufficient capital input, problems also lie in the financing structure of high-tech enterprises in our country, which is monotonous in channel and unreasonable in structure. The special features of high-tech enterprises determine that the prior financing channels should be through venture capital and going public on the stock market while financing through the enterprises?accumulated funds, the government抯 R&D input, and bank loans should remain secondaiy. However, the fact is that of the. funds involved in the transformation of research results into productivity in our country only 2.3% comes from venture capital while that from bank loans and accumulated funds account for over 82%. This thesis analyses the current situation and problems in the financing of our high-tech enterprises, and attempts to come up with some solutions. The thesis begins with the financing features and significance of high-tech enterprises. Then, it analyses the financing situation, especially the problems in its external financing channels: R&D input, bank loans, venture capital and financing on the stock market. Finally, the author suggests some new thoughts and specific measures for the financing renovation of high-tech enterprises, by framing a financing system based primarily on venture capital and stock market, with the enterprises?accumulated funds, R&D input and bank loans as supplementaries. In the case study in the last chapter, the author employs related theory and methodology in the analysis of our software enterprises?financing practice, expounding the significance of a reasonable financing system, especially the role of venture capital for the software enterprises.