Venture Capital On The Role Of Technological Innovation

With the accelerated economic globalization,it has been the trend of global economic development that innovation and technology and high-tech industry promote sustained and rapid economic growth.We are more aware of the importance of technological innovation to maintain sustained economic growth.Venture capital,as the most active strength of the field of modern investment and financing,seeks for close intergration,mutual promotion and common development with high-tech enterprises,with its unique way and characteristics.In the country where venture capital industry is mature, venture capital promotes technological innovation and has made tremendous contributions to the country's economic prosperity. Therefore, when countries in the world establish the policy to promote the development of national technology innovation,they always consider venture capital as a favourable tool.Generally speaking,venture capital and technological innovation are complementary tools for economic growth in the country.Without venture capital, technological innovation will occur;without technological innovation, venture capital will develop.However,only with the combination of the two, can high-tech industries in a country or a region develop more promptly and preferably.Therefore,it is of great theoretical and practical significance that studying deeply the role that venture capital played on the development of high-tech enterprises technological innovation,and actively promoting the development of venture capital in China.This paper first reviewd research status of the role that domestic and foreign venture capital played on technological innovation,and analyzed different research oriented on the relations of the two between the countries where venture capital is mature and our country ;then described the relating concepts and theories of venture capital and technological innovation and highlights the main characteristics of venture capital;later introduced the developmental status quo of our country's venture capital industry ,and the tide and characteristics of venture capital into China ;also empirically analyzed the study of the role that venture capital in our country played on the high-tech enterprises technological innovation, empirically studied the relations between the two ,using the existing historical data,and discussed the mutual interaction and promotion between the two ;at last ,this paper analyzed the problems in the development of our country's venture capital and in the process of high-tech enterprises technological innovation,refered and learned from advanced international experience,and put forward some suggestions on how to solve the existing problems ,to further promote the development of venture capital ,and to promote the innovation and development of high-tech enterprises in China .This paper concluded through empirical analysis that as a developing country, China should vigorously develop the venture capital industry, establish and constantly improve perfect risk investment mechanism to resolve the bottlenecks that constrain the development of high-tech enterprises technological innovation in our country to accelerate the process of innovative high-tech enterprises.