Research On Geographical Agglomeration Effect Of Venture Capital In China

Venture Capital is an investment behavior that provides equity capital for high-growth SMEs in order to obtain capital appreciation.Venture capital in the Silicon Valley and Boston 128 Information Highways presents a unique agglomeration phenomenon,and has played a powerful role in boosting the development of the high-tech industries in the two places.The development of venture capital in China has experienced the embryonic stage dominated by the US dollar fund,the initial stage of the launch of GEM and the steady rise of RMB fund investment activities,and now it is in the development stage of rapid growth of market scale and intensified competition in the industry.The phenomenon of regional agglomeration of venture capital has also begun to emerge in areas where China’s economic development level is relatively advanced and scientific and technological innovation is active.Most of the existing studies focus on the phenomenon of regional agglomeration of venture capital and its influencing factors,while few literatures pay attention to the effects of regional agglomeration of venture capital.Empirical studies on regional agglomeration of venture capital rarely consider the interaction between different regions.Based on this,the spatial panel model is selected in this paper to analyze the regional agglomeration effect of venture capital and the mutual influence between regions.This paper sorts out the existing research results on regional agglomeration of venture capital from three aspects: the phenomenon of regional agglomeration of venture capital,the influencing factors of regional agglomeration of venture capital,and the regional agglomeration effect of venture capital.In the theoretical analysis part,firstly,the principalagent theory and transaction cost theory in venture capital are expounded.Secondly,the formation mechanism of regional agglomeration of venture capital is analyzed on the basis of industrial cluster theory.Finally,based on the theory of regional economic growth,this paper analyzes the effects of regional agglomeration of venture capital investment,and proposes that regional agglomeration of venture capital investment will have an impact on regional economic development level,innovation capability of regional enterprises and population quality.Then,on the basis of the statistical yearbook of venture capital and data obtained from the Wind database,Arcgis software will be used to illustrate the current situation of regional agglomeration of venture capital in China from three perspectives: the number of cases of venture capital,the amount of venture capital and the regional agglomeration index of venture capital.Based on the panel data of 30 provinces and cities in China from 2012 to 2017,this paper adopts the spatial panel model to study the regional agglomeration effect of venture capital,considers the mutual influence between regions into account in the model,and analyzes the direct and indirect effects of regional agglomeration of venture capital.The conclusions of this paper are as follows:(1)Venture Capital regional agglomeration can promote the economic development level of ascension,and the direct and indirect effects of the regional concentration of venture capital on the level of economic development are positive,that is,the venture investment regional integration can promote the economic development of both the provinces and cities and neighboring provinces and cities,and vice versa.(2)Regional concentration of venture capital can enhance the innovation capability of regional enterprises,including R&D investment,technological output and R&D efficiency of enterprises.In addition,the direct and indirect effects of regional cluster of venture capital investment on the innovation capability of regional enterprises are both positive,that is,the regional cluster of venture capital investment in this province as well as in neighboring provinces can enhance the innovation capability of regional enterprises in this province.Based on the above conclusions,this paper puts forward the following policy recommendations :(1)actively build a national independent innovation demonstration zone to promote the balanced distribution of venture capital;(2)establish regional economic belts to enhance the linkage effect between regions.(3)local governments should strengthen the construction of guiding funds and leverage more social capital.