| Over the past few decades, the United States and other developed countries have benefited from Venture Capital, under which a lot of well-known high-tech companies became stronger and stronger, such as Microsoft, IBM, and Intel. Meanwhile, with our country joined in the process of globalization, Venture Capital spreads over the world and has deeply taken root in China. After nearly20years’development, Venture Capital in China has begun to take shape, overall, we have to admit that it is still in the formative years and far from mature, which is compared with developed countries. There is still a long way to go.However, how does the Venture Capital play a role in the economy, and how to solve the problem which exists in process of the development of Venture Capital in China,and how to improve the mechanism and so on, they are problems which we must face recently.This paper will discuss Venture Capital’s effects to regional economic development in China. Firstly, it will analyze the Venture Capital’s general mechanism to regional economic development in the perspective of industry, which follows the line of Venture Capital-Industry-Regional economic development; then, taking the Yangtze River Delta region of China for example, this paper will discuss the specific effect through empirical analysis; finally, the corresponding advice will be given.As there are too few relevant topics of research, theoretical research is very fragmented, and empirical research is extremely rare. Especially for the Yangtze River Delta region, the current literature has not yet involved, this article would like to discuss the subject through a systematic combination of theory and empirical research, hoping to be innovative and breakthrough. The main contents and the main points are as follows:The first part (Chapter1), this paper analyzes the current research status and insufficient after a literature review and comment toward the paper all over the world, and then establishes a research perspective and research methods. Through the review of the literature, we can find that current research is mostly limited to research on the micro aspect and there are few discussions about the macro aspect, especially in the empirical aspect.The second part (Chapter2), theoretical discussion of a general transmission mechanism in industry lever, it is mainly related to Venture Capital in high-tech industries, traditional industries and emerging industries. We can get that Venture Capital resources achieve the formation of high-tech industries and agglomeration primarily through integration of Venture Capital to promote technological innovation, capital accumulation, establish a modern management system, and help the technical upgrading of traditional industries and the birth of a new industry through technology diffusion of new technologies.The third part (Chapter3,4), detailed analysis of Venture Capital effect on the regional economy, it is divided into two effects:quantity effects and quality effects. Quantity effects include effects of economic growth and employment growth effects; quality effects also contain technology progress and industrial upgrading effects. In quantity effects’aspect, the accumulation of large-scale high-tech industries, the upgrading of traditional industries and the emergence of new industries expand regional economic growth and employment opportunities. In quality effects’aspect, the regional technological progress is an inevitable result of technological innovation, technology diffusion, and industrial agglomeration; and technological progress, the formation of high-tech industry cluster, high technology of traditional industries and emerging industries of industrial high-class together lead to a regional industrial upgrading.Part IV (Chapter5), after theoretical discussion, taking China’s Yangtze River Delta Region for example, with the empirical methods of mathematical statistics, in order to analyze specific issues, we get the economic development effects of the Yangtze River Delta region in China. The main conclusion is:Venture Capital Technology Innovation role was not significant in attracting labor force; Venture Capital for the Yangtze River Delta region is poor technological innovation, In Venture Capital of China, this is relevant to the current laws and regulations and other systems, the integrity of capital markets, personnel training, changes of government functions and other issues closely related; Venture Capital has a role in promoting the technological progress on upgrading the industrial structure of the Yangtze River Delta region. From the role of Venture Capital and Venture Capital to upgrade the industrial structure effects, we can get:technological progress and industrial upgrading are related.Part Ⅴ (Chapter6), suggestions. After analyzing the current status of Venture Capital in the Yangtze River Delta region, this paper puts forward the following suggestions:Yangtze River Delta region should strengthen laws and regulations which is relevant to Venture Capital; improve capital market system, improve the exit mechanism; transform functions of the government to play a role of the market; enhance professional training of qualified personnel; expand the channels of Venture Capital to achieve the diversification; standardize service agencies, create a good service environment.The main contribution of this paper has two points:(A) Venture Capital’s effects in regional economic development are very fragmented recently, there is no systematic study, and most have be limited in one area, such as Venture Capital only studies the effects of economic growth, upgrades the industrial structure’s effects of Venture Capital and so on. Discussing the combination of the Venture Capital and the regional economy is an innovative research itself; this paper attempts to give a comprehensive analysis, which is also an innovation in the area.(B) Taking the industry as a perspective and following the research ideas of the Venture Capital-Industry-Regional economy, this paper analyzes Venture Capital’s influence to high-tech industries, traditional industries and emerging industries, and then transits to the analysis of regional economic development. There is an innovation that this paper discusses the Venture Capital’s influence towards the traditional industries and emerging industries. It is a breakthrough and makes up with the shortcomings of one-sided, because previous scholars only take into account the impact on the situation of high-tech industries. |
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