Abstract
The objective of this chapter is to describe the features of Hong Kong’s venture capital system and make policy recommendations to improve its effectiveness as an institutional support for the establishment of new firms and the commercialization of new technologies as part of a larger objective of diversifying Hong Kong’s industrial base and creating a base for future economic growth. To do this effectively, we must address venture capital (VC) as a “system” rather than the more limited sense of a category of investment capital or a segment of the finance industry. With this broader scope, we will explicate the characteristics of specific types of actors and the formal and informal rules and norms by which they make decisions. As our analysis reveals, the current system has emerged from Hong Kong’s particular historical, social, political and economic environment. While logical in this sense, it has not proven to be very supportive of new technology-based ventures.
We would like to thank Asian Venture Capital Journal (AVCJ) for providing relevant data, and Boaz Wong and Jody Wong for their assistance in data analysis. The preparation of this chapter is partially supported by a grant from the CUHK Li & Fung Centre for Supply Chain Management and Logistics and a GRF grant of the Hong Kong University Grants Committee (CUHK 440008) given to the first author.
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© 2010 Kevin Au, Steven White
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Au, K., White, S. (2010). Hong Kong’s Venture Capital System and the Commercialization of New Technology. In: Fuller, D.B. (eds) Innovation Policy and the Limits of Laissez-faire. Palgrave Macmillan, London. https://doi.org/10.1057/9780230304116_7
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DOI: https://doi.org/10.1057/9780230304116_7
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