Spatial Econometric Analysis of Venture Capital and Clean Energy Startups: Evidence From China

Venture capital (VC) is an important external financing for clean energy industry and startups in developing countries. However, the research on VC in the clean energy sector in recent years from the spatial analysis perspective is still seldom seen. Based on the VC investments in China's clean energy industry from 2010 to 2023, this paper describes the spatial distribution and spatial correlation of clean energy startups, VC investments and VC firms using spatial econometric analysis. The results indicate that VC events in China's clean energy industry are highly concentrated in the eastern coastal areas and some provincial capitals. Meanwhile, there is a significant spatial correlation between clean energy startups, VC investments and VC firms, among which the spatial correlation of clean energy startups and VC firms is the most significant. Additionally, the spatial error model shows that the spatial distribution of VC firms, VC investments and the clean energy startups in neighboring cities have a significant positive effect on the clean energy startups.