Notice of RetractionIs venture capital really a catalyst to commercialization? Evidence from China

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Using a panel of China provincial areas from 2004–2008, we find that public research funding (R&D) and venture capital have a substitutive relationship in fostering the creation of new firms, and indirectly prove that it could spur innovation instead of public research funding. We also find that the positive relationship between public research funding (R&D) and the creation of new ventures. Our results remain robust to estimation with an instrument variable and lag structure in order to avoid the potential endogeneity issue. We believe that in short term venture capital do not have a complementary relationship in fostering start-ups.