Venture Capital And Regional Economics

"Independent Innovation"has been enacted as one of strategies of China, and to develop venture capital is where the shoe pinches.Virtually, venture capital is one of the market behaviors, so all functions of government that deal with venture capital should focus on developing a fitting environment. Considering the situation of our country,as an important part of national venture capital environment, regional environment is indispensable. Based on all available theory,factors are chosen to form the model of regional venture capital environment.Eastern littoral is the region that need venture capital most, and venture capital can be a breakthrough for sustainable economic development. However, in practice, we should consider the situation of China and establish regional venture capital environment that has local characteristic. Therefore, we should choose a representative region as a case to study, and the case I chose is Kunshan. Kunshan has been chosen as the case. Economic of Kunshan is developing at a rapid speed, but with a behindhand way and an insufficient potential. Kunshan must upgrade its industry to hi-tech industry, so she need venture capital.Based on the established model of regional venture capital environment, we consider the situation of Kunshan under correction. The most important thing the local government should do is to optimize the environment to develop venture capital.