The Evolution Characteristics and Influence Mechanism of Chinese Venture Capital Spatial Agglomeration

As an emerging financial entity, venture capital has a significant impact on regional development. However, the research on venture capital mainly focuses on the fields of finance, management, and economics, and fewer researchers study venture capital from the perspective of geography and space. This research explored the evolution characteristics and influence mechanism of Chinese venture capital spatial agglomeration. The innovation of this paper lies in including the spatial effect and conducting a spatial econometric analysis of the spatial agglomeration of venture capital in China after the exploratory analysis of the factors affecting the spatial agglomeration of venture capital. Firstly, based on the data of study area, this paper found that the spatial distribution of venture capital in China had an obvious agglomeration characteristic by using multiple measurement methods. Secondly, by constructing the spatial econometric model based on three different spatial weight matrices, we found that the science and technology environment, financial environment, social environment, and entrepreneurial environment levels were the main factors to affect the agglomeration of venture capital. Thirdly, due to the degree of spatial agglomeration of venture capital being divided into three stages in terms of time dimension, after the regression analysis of different periods, we found that the factors which affected spatial agglomeration of venture capital changed significantly with the passage of time. In addition, from the regression results of eastern, central, and western region samples, we can see that the degree of spillover effect was the lowest in the central region, the highest in the western region, and the middle in the eastern region. At last, this paper provided useful policy enlightenment for enterprise innovation, industrial upgrading, and regional economic management.