The impact of venture capital on the development of medical and healthcare industry: Empirical analysis of Chinese A-share pharmaceutical companies

In this paper we explore the impact of venture capital on the development of China's healthcare industry by using data from China's A-share listed pharmaceutical companies from 2012 to 2022. The study empirically examines the impact of venture capital on the healthcare industry and its specific mechanism using a mediation effect model. We find that venture capital will further promote healthcare industry development through corporate research and development innovation and the clustering effect of venture capital. This contributes to the literature the research on venture capital and the medical and healthcare industries because it is an empirical study and it examines A-share pharmaceutical enterprises. Our findings are robust and assist and in promoting healthcare innovation by enhancing their scientific and technological innovation and the radiation effect. The robustness test further confirmed the role of venture capital in enhancing the medical and health industries. •Empirically analyzed Chines A-share pharmaceutical companies and venture capital.•Venture capital positively affects healthcare industry development.•Venture capital positively impacted the industry's total value.•Venture capital positively affects technological innovation and corporate profits.