A Study On The Effect Of China’s Private Equity Funds On Regional Innovation Capability

Asset Management Association of China has registered 708 private equity fund managers as of the end of June 2017,increased by 5.34% compared with the previous period,slower than the first quarter growth.Also,56576 private equity funds have been filed,and the scale of approval is 13.59 trilion yuan,breaking the 13 trillion yuan mark,pay the scale of 9.46 trillion yuan.Among them,the growth rate of private equity funds is more fierce.The scale of increasement is 1.14 trillion yuan,although private equity funds shrink 4903 billion yuan.It is not difficult to see that the status of private equity funds in China’s private sector is rising.In the other hand,the Party Central Committee,with the general secretary of Xi Jinping,has put forward the comprehensive implementation of the innovation-driven development strategy,and proposes forward new and higher requirements for scientific and technological innovation.Science and technology supporting the supply side of structural reform,promoting the deep integration of science and technology and innovation and entrepreneurship,cultivating new economic and social development of kinetic energy,the Chinese Academy of Sciences carries out the general secretary of Xi Jinping’s requirements who proposed "three comprehensive" and "four first",taking the lead in action plan,serving the main battlefield of the national economy.So,whether the development of private equity funds can promote the development of regional innovation capacity in China has become a question.This paper studies the relationship between private equity funds and regional innovation ability using the theoretical analysis,followed with empirical research,from the macroscopic point of view.The following six parts make up the entire essay:Introduction is the beginning of the whole essay,which mainly elaborates the related background and the significance of the topic.Also,this part defines the basic concepts,and summarizes the research ideas and research framework of the article;The second part is the literature review,mainly on the impact of private equity funds at home and abroad,the impact of regional innovation capacity factors and private equity funds on the impact of regional innovation capacity;The third part is the general analysis of the distribution of private equity funds in China and the regional innovation ability;The fourth part is the design of the empirical,including theoretical analysis,assumptions and the establishment of variables,models,etc;The fifth part is a concrete empirical analysis of the distribution of private equity funds and the regional economic development in China.The panel data model is determined by descriptive statistics and Hausman test,and the relevant data are tested using SPSS,STATA and other data processing software;The sixth part is the research conclusion,and will put forward the corresponding policy suggestion.The empirical results of this paper show that:(1)China ’s private equity funds have a certain role in promoting regional innovation capacity,that is,the larger the size of private equity funds,the stronger the regional innovation capacity;(2)Enterprise innovation ability and innovation performance have a significant positive impact on regional innovation ability.Innovative environmental indicators have a significant negative impact on regional innovation ability;(3)In terms of the eastern and central cities of our country,the knowledge creation ability has a significant positive impact on the regional innovation ability;(4)In terms of China’s western cities,knowledge acquisition has a significant negative impact on regional innovation capacity.The innovation of this paper is as follows:(1)The existing research on the influencing factors of regional innovation ability is mostly due to the geographical factors and human factors,while there is not so much empirical research on private equity funds;(2)The research on the innovation ability is mainly from the micro perspective.This paper starts from the macroscopic direction,and mainly studies the relationship between the regional innovation ability and the distribution and size of the private fund,which is a useful supplement to the existing research.