Research on Effect of Venture Capital to Technological Innovation in China
Chen Zhi1
COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(12C) 1032-1037
1 Department of Statistics, Shanxi University of Finance and Economic, China, Taiyuan, 030006
Basing endogenous economic growth theory and incentive-supervision theory, this paper expounds the effect of venture capital (VC) to technological innovation. Referencing the input-output method, technological innovation is thought as common goods, which can be produced during general production process. Then it chooses VC and R&D personnel as input factors, patent applications as output factor, and measures the effect of Chinese VC to technological innovation by calculating the Grey Relationship Degree (GRD). Data shows that VC’s effect is stronger and stronger, even the relevant degree of government capital and technological innovation is high. By using kernel density, six pictures show that VC’s distribution is disequilibrium; they reflect the main features of Chinese regional economic. Conclusions support that VC has significant effect on Chinese technological innovation. a way that using governmental invest to attractive folk and aboard is needed. Government should try to diversify the technology and investment market.