A Research On Venture Capital Development Promoting Technological Innovation

As a “catalyst” of high technology industry development and an “engine” ofeconomic growth, venture capital plays a significant role for country development.Venture capital has been introduced into China since the1980s. After growing up formore than30years, it begins to take shape and plays an important role in multipleindustries, while it has little effect in promoting transformation of scientific andtechnical achievements. According to China statistical yearbook of science andtechnology2012, for foreign dependence of technology in China is very high, theconversion rate of scientific and technical achievements is only10%, which is farbehind the average level of40%in developed countries. Therefore, this thesis is namedas “development research of venture investment promoting technology innovation”,which has practical significance and theoretical value.The present situation of venture investment and technology innovation are studiedfor exploring the relationship between them, after reviewing the situation at home andabroad, especially in Shanxi Province, this thesis comes out the conclusions that foreignventure investment has a long history, domestic venture investment develop fast, whileventure investment in Shanxi started early but slowly developed. After that, usingstandard research to analyze interactions between venture capital and technologyinnovation, and points out the venture capital is a mechanism for sharing risks intechnology innovation. Based on the present research, this thesis collects the relevantannual data from1995to2013-venture capital data and technology innovation ofShanxi province, then the relationship of venture capital and technology innovation arestudied. The results show that between technology innovation and venture capital havegood effects. According to the above findings, this thesis puts forward correspondingpolicy recommendations on “development research of venture investment promotingtechnology innovation” from four perspectives, such as government, policies,companies and theories. Specifically, the strategy of government perspective is encouraging financial institutions to invest high-tech enterprises, the strategy of policyperspective is that private capital supports local technology innovation through thefinancial sector, the strategy of business perspective is that high-tech enterprises shouldpromote technology innovation, the strategy of theory perspective is to support theinnovation of venture capital theory.The innovation of this paper displays in the following two aspects: on one hand, alot of previous studies “promote technology innovation of venture investmentdevelopment” from one side, this thesis studies the theories systematically and doesempirical investigation, then puts forward some inspiring conclusions. On the otherhand, this thesis studies data from1995to2013-venture capital data, the patent data oftechnology innovation empirically, and proposes tactics from four perspectives ondevelopment research of venture investment promoting technology innovation, whichthe previous studies are not related to.