A Research on the Effects of Venture Capital Market on High Technology Industry's Innovation

Using the theoretical models to assess the influential factors of the Venture Capital Market, this paper reviews the economic growth paths of Chinese economy. It adopts the methods of the mathematic model and quantitative analysis to work out some creditable thoughts and indicate relationship between industry's innovation and the influential factors of capital market. It draws two key points: 1. the venture capital is an important system variable to high tech innovation, which has crucial effects on the innovation; 2. the contribution rate of the capital market to the growth of economy actually represents the degree of improvement of abstract work's exchange effects, and consequently the venture capital market promotes the technological innovation.