Abstract
Hi-tech SMEs are difficult to obtain financing from banks in China, they have little or no collateral, the value of their innovation is hard to evaluate. For these reasons, entrepreneurs in the hi-tech SMEs tend to rely on venture capital, but hi-tech SMEs have two deficiencies. This paper first analyses these two deficiencies: the limited appropriability of technology innovation and asymmetric information, which lead to market failure, so venture capital investment in hi-tech SMEs isn’t optimal, there exists a financing gap, then we elaborate on various kinds of effective laws and economic policies foreign governments have adopted to solve the financing gap, based on present situation in China, at last the paper proposes what policies Chinese government should adopt to bridge this gap.
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Lu, Z., Shen, Y. (2011). The Government’s Role in Venture Capital Financing of Hi-tech SMEs in China. In: Dai, M. (eds) Innovative Computing and Information. ICCIC 2011. Communications in Computer and Information Science, vol 232. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23998-4_8
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DOI: https://doi.org/10.1007/978-3-642-23998-4_8
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