The Status Quo Of China's Venture Capital, Features, And A Way Out

As a new method of financial innovation, venture capital, which let high technology, capital and management be combined together, has promoted the advanced countries' economy, speeded upgradation of industrial structure and got the fame of' high-tech Industry's Incubator'In China, every year more than fifty thousand invention and technological innovation has been accumulated, but only near five per cent of them has been used in mass production. It's getting a hot topic that how to industrialize the science and technological innovation as soon as quickly considering our country how to face up with the international competition in the era of such knowledge-based economy.Based on analyzing the Chinese high-tech industry's state in capital market and introducing the mechanism of mature venture capital industry, this issue brings out some useful and practicable suggestions on how to govern and supervise the system, and so on. All these suggestions are advised according to our country's real state as well as the foreign tradition and experience, and expected to take some active effect to the development of the venture capital industry in China.The author investigated several hi-tech industrialization areas and R&D institutes, in dependently analyzed the process of China hi-tech industrialization, pointed out some shortcomings, and got the conclusion: venture capital would promote the process. In the suggestions that how to form the system, the author provided his own opinions, such as the tax level would be lowered whatever the company's style is and some new methods would be introduced to culture the intellectuals. Finally, in the case, the author described the development process of a high-tech company, showed how high technology, management and capital got involved.