A Sino-US comparative analysis of the hi-tech entrepreneurial model

摘要

This paper adds a government subsidy variable to expand the WWY (Wang, C., Wang, N., Yang, J., 2012) model, which is a three-stage entrepreneurial dynamic partial equilibrium model and a useful theoretical tool to analyze entrepreneurial realities after government intervention factors are considered. We analyze the productivity shock and market portfolio risk, endogenous entry and exit, investment, consumption, enterprise value and so on, using 15 parameters and 21 variables. The paper explains the present hi-tech entrepreneurial competitive advantage of US, even Chinese government provides lump sum financial subsidy. Although subsidies lower the initial entrepreneurial condition, significantly increase the number of startups, but would not improve entrepreneurial quality such as the investment and the growth of the hi-tech entrepreneurial wealth. The ongoing market deepening reforms such as IPO reform and venture capital cooperation will finally improve model parameters of China and weaken US's advantage. Another conclusion is that debt-based entrepreneurship should not be encouraged. The conclusions will have some important policy significance.