Study On Mutual Relationship Between City Innovation System And Venture Capital And Its Application

Nature of city innovation system and venture capital determines that they can combine a mutual dynamic network, in which S&T industry is the intermedium, capital market is the most important joint. And the good process of this network is significant for city innovation system, for venture capital, and even for sustainable development of the whole country.Based on the above analysis, this paper evaluates the performance of venture capital in several representative cities with data envelopment analysis, and points out the reason why venture capital hasn't played a effective role to city innovation system is that joints between the two systems generate friction, which max the cost of venture capital.At last, from the aspect of agency cost, and having venture capital fund as the subject, this paper explains the cause of venture capital low running efficiency and puts forward some suggestions.