By Sun Fei, Wang Yanyan & Zhang Liping, Research Team on “Financial Support for Technological Innovation”, Research Institute of Finance, DRC

Research Report, No.353, 2021 (Total 6418) 2021-11-25

Abstract: The leading role of US innovation-oriented sci-tech companies in global technological progress is inseparable from the efficient operation of its capital system. Apart from the backing up by a developed global securities market, venture capital and corporate venture capital also serve as key pillars for the development of sci-tech companies. The positive role played by US capital operation system rests on the virtuous circle of mutual promotion within science, technology and capital sectors as well as between sci-tech and capital. Although China’s financial structure is different from that of the United States, the latter’s experience in improving the efficiency of capital operation is still referable. To build and improve the capital operation system is conducive to China’s innovation-oriented sci-tech capital operation system and to pooling synthetic capital support. This paper notes that we  need to improve policy guidance to ensure the support of technological innovation through venture capital; give full play to the role of fund towns to develop regional clusters composed of capital and technology; further refine systems of stock exchanges to provide more effective support for the listing and development of sci-tech companies; and encourage large companies to set up corporate venture capital and boost collaborative technological innovation of industrial chains.

Keywords: capital operation system, venture capital, technological innovation