The Role Of Venture Capital Investment In Technological Innovation

Venture capital investment provided start-up enterprises with long-term capital and value-added services promote the technological innovation of enterprises.This article attempts to select domestic healthcare, biotechnology, media and entertainment industry, computer hardware, semiconductor, communication, energy, materials, resources development, agriculture, IT industry from2001to2010panel data to analysis relationship between venture capital investment and technological innovation.When we solve the endogeneity. problem of model,obtained that a domestic venture capital investment promote the technological innovation of enterpriises,but the effect seems small compared with foreign countries.From industry perspective,we find venture capital investment has a role in promoting technological innovation in biotechnology, media and entertainment, computer hardware, semiconductors, materials, agriculture and IT industry.but in healthcare, communication, energy and resources development industry,we find venture capital investment suppress technological innovation.If we divide venture capital investment into the first round of investment and subsequent investment,the evidence shows the effect of the subsequent investment in technological innovation is about5times of the first round of investment.Because venture capital investment in China has just started,the effect of venture capital on technological innovation will become increasingly evident with the improvement of relevant systems and regulation.