Venture Capital And China's Industrial Development Promotion Mechanism

There are various definitions for venture capital. The OECD deems that venture capital is an investment that is invested to the new and potential corporations. Some Chinese experts deem that venture capital is to invest to high technology industry which is quite risky, in order to acquire high ROE. In history, venture capital has experienced a long development time, but in China the venture capital enter to a new stage just in 2006, which a large mount of venture capital enter into the development of industry.In this dissertation, I mainly analyze two aspects, micro-aspect and industry-aspect, to indicate the influences from the venture capital to the industry development. In micro-aspect, the advantageous factors are: strengthen the alliances to the venture capital and the technology, help the corporation break the limits of development, upgrade the firm governance. The disadvantageous factors are: the issues of law and policy, venture capital can not quit successfully, the lack of talents of venture capital. In industry-aspect, through regression, I find that venture capital has significant influences to high technology industry, less significant in total economics. In addition to that, I also explain the functions the venture capital to the transformed economics body. But the irrational recommendations and commands from the government will limit the effects of venture capital.