Title: A world away from venture capital funds: biotechnology and finance in Shanghai

Authors: Brian Richard, Ken Malone, Brent D. Hales, Markus A. Turkopuls

Addresses: Department Economic and Workforce Development, University of Southern Mississippi, 118 College Drive, #5022 Hattiesburg, MS 39406, USA. ' Department Economic and Workforce Development, University of Southern Mississippi, 118 College Drive, #5022 Hattiesburg, MS 39406, USA. ' Department Economic and Workforce Development, University of Southern Mississippi, 118 College Drive, #5022 Hattiesburg, MS 39406, USA. ' University of Southern Mississippi, 5 Alverston Ct., Irmo SC, 29063, USA

Abstract: A survey of the financing methods of 19 Shanghai medicinal biotechnology companies revealed a lack of private venture capital fund participation. Alternatively, these companies have obtained financing from government sources based substantially on the reputation and relationships of the companies| officers with government officials. This aligns with recent literature suggesting that China is an exception to the dominant body of literature on the relationship of strong legal and financial institutions to the commercialisation process. The dominant body of literature suggests that strong legal and financial institutions are needed to provide patent protection to promote inventions and their commercialisation which, in turn, protects investors and promotes financing of the commercialisation process.

Keywords: China; biotechnology financing; entrepreneurship; venture capital; guanxi; technoentrepreneurship; technopreneurship; Shanghai; government finance.

DOI: 10.1504/IJTE.2009.027546

International Journal of Technoentrepreneurship, 2009 Vol.2 No.1, pp.64 - 78

Received: 29 Jan 2008
Accepted: 10 Nov 2008
Published online: 31 Jul 2009 *

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