Research On The Effect Of Venture Capital’s Impact On Technological Innovation

The country’s competitiveness is more and more dependent on the ability of technological innovation today, technological innovation is the source of sustainable economic development. The experience of foreign studies shows that venture capital is not only the catalyst of technological, but also can promote the upgrading of industrial structure. Foreign study of the mechanism of venture capital’s impact on technological innovation has covered several levels of macro, meso and micro. However, there is only a few domestic research on empirical analysis. Most of them are limited to micro and macro level. Few studies have been based on the industry level.Firstly, we analyze the mechanism of venture capital’s impact on technological innovation from the angle of economical financing, information coordination and life cycle. We find that venture capital can effectively promote the development of technical innovation. Subsequently, we compete an empirical analysis on the role of venture capital to technological innovation from the view of the state, industry and enterprise respectively.On the analysis based on the national level, we have built a model of innovative output. Based on this model, we use the time series data from1995to2009as database to analyze venture capital’s impact on technological innovation. After an empirical study using linear regression, the results show that:Venture Capital has no significant influence on technological innovation.On the analysis based on the industry level, we use the pharmaceutical and healthcare industry’s data from2003to2009as database to analyze venture capital’s impact on technological innovation, we find that:venture capital can promote the effectiveness of the technological innovation of the pharmaceutical and healthcare industries, but R&D investment has no significant influence on technological innovation. After the breakdown of the patent, we find that venture capital has no significant on the effect of invention patent applications, but has a positive significant effect on the non-invention patents.On the analysis based on the enterprise level, we use the data of the companies which were public companies on GEM before31December2011as the database, we find that:The stake of venture capital is positively correlated to technology innovation effectiveness and R&D investment. In addition, we find that the companies which have no venture background has no much difference on the invention patent compared by the companies which has venture background. However, the companies with no venture background has5.1times non-invention patent greater than the companies which has venture background. This view suppport the conclusion we have got on the analysis based on the industry level.Finally, this paper gives some policy suggestion and suggests possible directions for further research based on a summary of key conclusions.