The Pathways and Practices of Patient Capital in Supporting High-quality Development of the Real Economy: Insights from International Experience

Patient capital has emerged as a critical financial mechanism for supporting the real economy. However, its value creation processes and practical pathways remain underexplored. This paper adopts an international comparative approach and utilizes case analysis to examine the core characteristics of patient capital—long-term orientation, inclusivity, and value co-creation. It identifies four key practical paradigms: Blackstone’s integration of industrial and financial investments to build a biopharmaceutical ecosystem, Spain’s “government-social capital alliance” for establishing a shared risk mechanism, African clean energy projects leveraging digital technology for precise investment, and South Korea’s institutional efforts to optimize the environment for the development of patient capital. The study uncovers several structural challenges prevalent in international practices, including fund misallocation, funding gaps in emerging sectors, and regional investment imbalances. In response, the paper proposes a “three-dimensional” development framework: from the institutional perspective, ensuring long-term policy stability; from the market perspective, building networks that link industry and investment while fostering a diversified capital ecosystem; and from the technological perspective, enhancing the role of financial technology. The findings offer a theoretical foundation for improving China’s patient capital support system and provide valuable insights for achieving high-quality development.

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Publication Details

Journal
Political Economy Quarterly
Published
2025-03-01
DOI
https://doi.org/10.26599/peq2025.9310105
Primary Topic
Innovation Policy and R&D
Type
article
Field-Weighted Citation Impact
0.00

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article

The Pathways and Practices of Patient Capital in Supporting High-quality Development of the Real Economy: Insights from International Experience

Tong Yin, He Li
Political Economy Quarterly
Innovation Policy and R&D
article

The Pathways and Practices of Patient Capital in Supporting High-quality Development of the Real Economy: Insights from International Experience

Tong Yin, He Li
article en

Abstract

Patient capital has emerged as a critical financial mechanism for supporting the real economy. However, its value creation processes and practical pathways remain underexplored. This paper adopts an international comparative approach and utilizes case analysis to examine the core characteristics of patient capital—long-term orientation, inclusivity, and value co-creation. It identifies four key practical paradigms: Blackstone’s integration of industrial and financial investments to build a biopharmaceutical ecosystem, Spain’s “government-social capital alliance” for establishing a shared risk mechanism, African clean energy projects leveraging digital technology for precise investment, and South Korea’s institutional efforts to optimize the environment for the development of patient capital. The study uncovers several structural challenges prevalent in international practices, including fund misallocation, funding gaps in emerging sectors, and regional investment imbalances. In response, the paper proposes a “three-dimensional” development framework: from the institutional perspective, ensuring long-term policy stability; from the market perspective, building networks that link industry and investment while fostering a diversified capital ecosystem; and from the technological perspective, enhancing the role of financial technology. The findings offer a theoretical foundation for improving China’s patient capital support system and provide valuable insights for achieving high-quality development.

Political Economy QuarterlyVol. 4(1)
Tsinghua University (CN)
Sanofi
Industry, innovation and infrastructure
Openalex Percentile: Top 82%
Innovation Policy and R&D
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The Pathways and Practices of Patient Capital in Supporting High-quality Development of the Real Economy: Insights from International Experience — Tong Yin, He Li · Political Economy Quarterly (2025) | TGRS Research Map | TGRS