A Research On The Technological Innovation Effect Of Venture Capital In China

As a new way of companies' investment and financing,venture capital has shown a strong vitality in the process of scientific and technological innovation.There are a lot of research results have confirmed the existence of the technology innovation effeet of ven-ture capital.Venture capital has been through more than 30 years since its inception in China,What is the role it plays in the process of technological innovation?Is venture capital in China equipped with technological effect?First of all,the article discusses the inherent meaning of venture capital and tech-nological innovation,and then discusses the mechanism of venture capital's investment in technology from the angle of "technological innovation financing and mechanism ad-aptation" and "venture capital agreement".Theoretically,there is technology innovation effect of venture capital in China.Secondly,drawing on the innovative production function used by Kortum and lermer,the technology innovation effect of venture capital investment is decomposed into the effect of capital accumulation and the effect of technological innovation efficiency.Based on this,from the perspective of input and output,the model of the technological innovation effect of venture capital in China is deduced and established.The investment of venture capital,research and development expenses,the amount of invention patent application as output.And then,we use a panel date of 29 major provinces(autonomous regions in China from 2003 to 2013 for our research.In result,we concluded that venture capital in China has the effect of capital accumulation,but there is no the effect of tech-nological innovation efficiency.Finally,the DEA-Malmquist method is used to further investigate the technological innovation effect of venture capital in China and compare the efficiency of venture capi-tal and R&D expenditure on technological innovation.The result shows that venture capital in Jiangsu,Shanghai,Liaonirng,Anhui,Sichuan,Shandong and other venture ca-pital activities have the effect of technological innovation efficiency.In other regions,venture capital is less efficient for technological innovation and can not significantly con tribute to the improvement in the rate of innovation in these areas.The regional gap of te-chnological innovation effect of venture capital in China is significant.At the same time,it is found that venture capital in Jiangsu,Liaoning,Anhui,Zhejiang,Shandong is more effective in promotion of technological innovation than R&D investment,but it is un-deniable that most parts of China(such as most of the central and western regions)tech-nological innovation activities Still mainly rely on the traditional R&D funding.In short,the technology innovation effect of venture capital is exist in China,but the geographical difference is significant.Therefore,it is necessary for the government to play a guiding role,to promote the venture capital breakthrough geographical restric-tions,and to promote the coordinated allocation of regional venture capital,so as to mak e it better play the role in the process of technology innovation,and effectively promote regional technological innovation and economic or social development.