The Study On Venture Capital Promotion For Technological Innovation

Since its reform and opening-up,China has made leaps and bounds in technology by taking advantage of technological gap with developed countries such as Europe and America.It has gave full play to the late-come's advantages and made rapid development of technology through "introduction—assimilation—re-innovation".With the rapid upgrading of technology,China's economy has maintained a rapid development,too.The rapid economic growth has resulted in the profound improvement of China's factor endowment structure.This signifies the diminishing of late-come's advantages of China,and also implies that the capacity for independent innovation will play a key role in ensuring the future high-speed growth of China's economy. It is thus clear that technological innovation has become a key factor in economic growth.However,due to a high degree of uncertainty of technological innovation in the investment process, there will be information asymmetry between investors and innovation enterprises.Then asymmetric information may lead financing market of technological innovation to a lemons market and they will emerge the principal-agent problems between them.Fortunately,from the foreign experiences,we know that venture capital is an effective way to solve these problems.So,making a deep research and discussion about the effect of venture capital to the development of high-tech industry and technological innovation,and promoting the development of China's venture capital industry actively and effectively will play an important theoretical and practical significance to the development of China's economy.Based on the data concerning venture capital and correlative data of high-tech industry of27provinces and municipalities,this paper takes a try to conduct an theoretical and empirical analysis on the contribution and effect of the venture capital to the development of high-tech industry,and then makes corresponding policy recommendations.In the theoretical research part,this paper analyses the characteristics of the financing structure of high-tech industry firstly.Secondly,this thesis analyses the characteristics of technological innovation and investment characteristics of venture capital.It shows that the venture capital appears as a risk-sharing mechanism for technological innovation.Then the thesis analyses the mechanism of venture capital how to promote the innovation of high-tech industries,and how to share the risk in technological innovation process and reduce asymmetric information.Finally the article introduces some economic theory about venture captical how to promote technological innovation.In the empirical research part,the article has collected correlative data of China. The paper estimates the effect of venture capital on technological innovation by using China's inter-provincial panel data of27provinces and municipalities from2006to2009,which overcomes the deficiency of insufficient samples in previous literatures which use national time series data,thus this paper obtains a more credible conclusion. The results of empirical research show that venture capital encourages technological innovation in China.However,the effect of venture capital on technological innovation and development of high-tech industries is far less than that of R&D.Especially in comparion with developed countries,the contribution of China's venture capital for technological innovation and high-tech industry is not so significant.Finally,based on the empirical results of the thesis,this paper put forward corresponding policy recommendations,and hope that China's venture capital can make a greater contribution to the development of high-tech industry and also its technological innovation.