Research On Development Of Western Venture Capital Market Based On Option Game Theory

Venture capital industry has been over half a century in our country, which have gone through nearly 20 years. Venture capital is an important issue which people focus on and research. Practice and experience of the data show that venture capital have a great role on regional economic growth. However, the risk of investment and economic mainly focus on the micro level in foreign countries. In China, the current study was only to stay in the general exposition of the theory, which has not examined the relationship between venture capital and regional economic growths in-depth quantitative. So the article strives to achieve a breakthrough on this.In this paper, venture capital, real options, game theory and other relevant knowledge are used, in order to explore the influence of venture capital on regional economic growth. In the following empirical study, the paper constructed a VC regional environment evaluation system by AHP including 7 first level indicators, such as the economic environment, high-tech industrial environment, innovation environment, policy environment, financial environment, human environment, service environment. The paper conducted an empirical analysis of venture capital by China's eastern, central and western China Venture Capital and Regional Economic Growth .In China's eastern region, the advantages of the investment climate is a huge market, abundant resources, human capital, capital, technology, entrepreneurship and venture capital as well as a positive attitude and a sound infrastructure. However, the levels of economic development of central and western are low, and high-tech industrial base is weak, and innovative resources are not a sound, and basic services and the facilities are weak. At present, there is a big gap between the eastern and western regions of venture capital investment environment. At present, the eastern region has shown a first-mover advantage, but it is undeniable that the central and western region has a huge advantage, and compared the central and western regions to the eastern part , the gap is shrinking, and the central and western regions is taking various measures to improve the investment environment. I believe the western region's investment environment will have a greater difference in the future.This article, by advantage of the real option and game theory, constructs the model of inefficient adventure capital with the comparison of the east and west market of investment of adventure capital. Based on the difference of model parameters and initial investment timing, the analysis shows the threshold value of the investment of the west adventure enterprises is higher than that of the east. What's more, because the waiting time of the west adventure enterprises is more valuable, those enterprises will choose to watch ,which offers an explanation of inefficient adventure capital in the west. At last, on the basis of the model and analysis above, the article advances some suggestions and propositions for the further development of the west adventure capital investment market, especially emphasizes on the important value of S&T insurance in the development of western venture capital market.