Empirical Study on the Relationship between Venture Capital and Independent Innovation Based on the Co-integration

This paper made an empirical analysis on the internal relation between venture capital and independent innovation. By such approach as co-integration test, Granger causality test, the paper analyzed the relationship between venture capital and patent applications based on the data from 1994 to 2009 in China, and gives such. conclusions: 1 along-term co-integration relationship exists between venture capital and independent innovation; 2venture capital has a bilateral causality with the independent innovation. The results support the normative judgment: Venture capital has spurred independent innovation.