Private Capital And Autonomous Innovation Of Science And Technology In Shanxi Province

Venture capital is an investment made by specialized organizations,such as capitalists in high-growth, high-risk and often high-technological firms that need capital to finance product devel-opment or growth. This sort of financing is, by nature, mostly in the form of equity rather than debt. Venture capitalists are often active investors, monitoring the progress of firms, sitting on boards of directors, and making out financing based on the attainment of milestones. Therefore, venture capital is an innovation of financial system. It is an important catalyst in the development, implementation and commercialization of high-technologies, including information and biotechnology. The venture capital market in the U.S. is known for its vibrancy and success in fueling the economy.Since Venture Capital has a great effect and also has an immense potential of increasing in value in the process of science and technology achievements inverting, during the past decades, commitments to the U.S. venture capital industry have grown dramatically. Being different from America, the venture capital market in China is promoted by the government instead of by the market, it causes that the potential supply and demand for venture capital can not be transferred into effective supply and demand under present conditions. I focus on the problem in Shanxi province, use the experience of U.S for reference, come up some suggestions about taking measures to stimulate individuals and non-government organizations to take part in Shanxi autonomous innovation.The paper is organized as follows:Chapter 1: Private capital and autonomous innovation of science and technology. probed into the relationship between venture capital and automous innovation of science and technology. through some successful venture capital cases in China and other countries, we got the conclusion that private capital is very important to automous innovation and also very important to Chinese economic growth, so I analyzed Chinese venture capital structure, probed into the ways private capital coming from and its financing channels. actually, China has a great potential of private capital.Chapter 2: Private capital and Shanxi autonomous innovation of science and technology. This part and Chapter 3 are the main part in this paper,in Chapter 2,I focused on Shanxi venture capital status among the big circumstance of China, it's not optimistic, there are some problems, such as investment in traditional key industry area is much heavier than other areas, new industry area and agriculture needs investment, the Utilization of foreign capital is falling off……well, actually,there is great private capital in Shanxi.Chapter 3: The practical operation of attracting private capital to Shanxi autonomous innovation of science and technology. Though there is great private capital in Shanxi,but it is slipping out of Shanxi province. aiming at these problems, I came up some suggestions that how to attract private capital to Shanxi autonomous innovation.The research methods of this paper is linking theory with practice, analysis and integration, and the comparative analysis method.Since the material about the topic is limited, the research is not very deepgoing, but I'm very interested in the topic, this paper laid a foundation for further research.