ABSTRACT
This chapter explores the issues as: Why and where should the public Venture Capital (VC) be invested and their relationship with private venture capital? How can the public VC be more efficient for funding hi-tech start-ups? And what are the strategies to integrate public and private public VC. It examines the public VC programs at Federal and State Levels in the United States. The chapter offers the current situation of Chinese venture capital development. It presents public venture capital program Innovation Fund for Small Technology-based Firms (IFSTF) at the central government level and matching funds at the provincial and municipal level. The chapter focuses on the models that integrate public and private venture capital both in the US and China. It presents some discussion and suggestions on government policies. The Small Business Innovation Research (SBIR) program encourages small businesses to explore their technological potential and provides incentive to profit from its commercialization.
