Fostering the Venture Capital Market by the Government Policy - A Case Study of Z-Park Practice in China

When evaluating the competitive advantage of a nation or a region, the role of achievements in the fields of scientific research and business innovation weighs heavily. Venture capital investment reinforces the entrepreneurial spirit by producing innovative and cutting-edge technology and products. Venture capital funds and builds companies from the simplest form-just an entrepreneur and an idea expressed as a business plan to freestanding, mature organization. Being as the earliest and largest science park in China, Zhongguancun Science Park has taken brave steps in financial innovation and actively attracted overseas and domestic fundings into the Park to address the financing difficulty of the high-tech firms in Zhongguancun. Using Zhongguancun Science Park as an example, this article traces the development of venture capital market in China in the past decade, focuses on the government supporting policies in the field, and concluded the positive effect of government role in fostering the venture capital market in a high-tech region of an emerging economy.