An Empirical Study Of Venture Capital To Promote The Transformation And Upgrading Of Economy

The U.S. subprime mortgage crisis, which began in2006, has had a huge impacton the global financial market as well as the world’s major financial institutions, notonly further slowing down the U.S. economic growth, but also exerting a seriousnegative effect on the world economy. With the development of economic andfinancial globalization, China’s economy is hard to be an exception against thebackground of downturn of American economy and global financial turmoil. With theinvestment-driven extensive economic growth mode hard to go on, the promotion ofeconomic transformation and upgrading is a matter of great urgency. Venture Capital,which is a booster of innovative economy and an accelerator of the economictransformation and upgrading, plays a vital role in the economic transformation andupgrading. On this basis, this paper has conducted a comprehensive research on thestatus of venture capital in Guangdong Province, through which the author exploreshow the venture capital promotes the transformation and upgrading of economy, usingresearching methods of the factor analysis and simple regression.The empirical results show that venture capital plays a significant role inpromoting the transformation and upgrading of economy, which is achieved mainlythrough its influence on Average GDP, the number of patent applications received, thenumber of patent applications authorized, new product sales, the proportion ofhigh-tech industries, the proportion of high-tech exports, and unit output of industrialemissions.The significance of this research is that it analyzes how venture capital promoteseconomic transformation and upgrading through empirical method, and can serve as areference on the transformation and upgrading of Guangdong Province’s economy.