United States Versus China: The Battle for Innovation Through Venture Capital — Trade Alliance to Promote Prosperity

United States Versus China: The Battle for Innovation Through Venture Capital In a report released on April 2, American Edge breaks down the global tech competition between the United States and China and the role of venture capital in that battle. The report points out the impact that venture capital has on global tech while comparing the United States to Europe and China. Here is some notable information from the report: Venture capital has a significant impact on technology innovation. China has undergone a rapid uptick in innovation thanks to increased venture capital investments and deals over the last 10 years. European countries, on the other hand, have experienced fewer startups and innovation because of their regulatory overreach and lack of venture capital investment. Finally, the United States has experienced a surge of innovation due to its robust venture capital landscape and the number of deals completed. The U.S. venture capital numbers more than doubled the combined contributions of China and Europe. Excessive regulation slows venture capital and stunts innovation. An alarming number of regulatory actions and proposals have been appearing at both the state and federal levels in the United States. These ideas threaten the venture capital industry as well as technological innovation. China, too, has suffered from strict government regulations; however, in recent years, it has changed its course and begun stimulating growth with less restrictive regulations. In order to keep pace with China, American policymakers must refrain from further restricting American venture capital and innovation. How can we ensure that the United States maintains its edge in terms of global innovation? American policymakers must be forward-thinking and establish a plan that will promote and support tech innovation across the country. Attacks from countries like China and Russia are nothing new, meaning the protection of U.S. national security, economic interests, and democratic principles against foreign adversaries must be the number-one priority of our policymakers and government. Read the full study about venture capital and technological innovation here.