Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective
Cities are centers for the integration of capital and incubators of inventions. Attracting venture capital (VC) is of great importance for cities to advance in innovative technology and business models towards a sustainable and prosperous future. Yet we still lack a quantitative understanding of the...
| Main Authors: | , , , , , , |
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| Format: | Article |
| Language: | English |
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IEEE
2021-01-01
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| Series: | IEEE Access |
| Subjects: | |
| Online Access: | https://ieeexplore.ieee.org/document/9383309/ |
| _version_ | 1818945339466448896 |
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| author | Ruiqi Li Lingyun Lu Tianyu Cui Weiwei Gu Shaodong Ma Gang Xu H. Eugene Stanley |
| author_facet | Ruiqi Li Lingyun Lu Tianyu Cui Weiwei Gu Shaodong Ma Gang Xu H. Eugene Stanley |
| author_sort | Ruiqi Li |
| collection | DOAJ |
| description | Cities are centers for the integration of capital and incubators of inventions. Attracting venture capital (VC) is of great importance for cities to advance in innovative technology and business models towards a sustainable and prosperous future. Yet we still lack a quantitative understanding of the relationship between urban characteristics and VC activities. In this paper, we find a clear nonlinear scaling relationship between VC activities and the urban population of Chinese cities. In such nonlinear systems, the widely applied linear per capita indicators would be either biased to larger cities or smaller cities depends on whether it is superlinear or sublinear, while the residual of cities relative to the prediction of scaling law is a more objective and scale-invariant metric. Such a metric can distinguish the effects of local dynamics and scaled growth induced by the change of population size. The spatiotemporal evolution of such metrics on VC activities reveals three distinct groups of cities, two of which stand out with increasing and decreasing trends, respectively. The taxonomy results together with spatial analysis also signify different development modes between large urban agglomeration regions. Besides, we notice the evolution of scaling exponents on VC activities are of much larger fluctuations than on socioeconomic output of cities, and a conceptual model that focuses on the growth dynamics of different sized cities can well explain it, which we assume would be general to other scenarios. |
| first_indexed | 2024-12-20T07:57:33Z |
| format | Article |
| id | doaj.art-5e7b3dda24244ff5a40fcc7b0d95c029 |
| institution | Directory Open Access Journal |
| issn | 2169-3536 |
| language | English |
| last_indexed | 2024-12-20T07:57:33Z |
| publishDate | 2021-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj.art-5e7b3dda24244ff5a40fcc7b0d95c0292022-12-21T19:47:37ZengIEEEIEEE Access2169-35362021-01-019480524806310.1109/ACCESS.2021.30683179383309Assessing the Attraction of Cities on Venture Capital From a Scaling Law PerspectiveRuiqi Li0https://orcid.org/0000-0002-3290-9476Lingyun Lu1Tianyu Cui2Weiwei Gu3Shaodong Ma4Gang Xu5H. Eugene Stanley6https://orcid.org/0000-0003-2800-4495UrbanNet Laboratory, College of Information Science and Technology, Beijing University of Chemical Technology, Beijing, ChinaUrbanNet Laboratory, College of Information Science and Technology, Beijing University of Chemical Technology, Beijing, ChinaUrbanNet Laboratory, College of Information Science and Technology, Beijing University of Chemical Technology, Beijing, ChinaUrbanNet Laboratory, College of Information Science and Technology, Beijing University of Chemical Technology, Beijing, ChinaUrbanNet Laboratory, College of Information Science and Technology, Beijing University of Chemical Technology, Beijing, ChinaSchool of Remote Sensing and Information Engineering, Wuhan University, Wuhan, ChinaCenter for Polymer Studies and Department of Physics, Boston University, Boston, MA, USACities are centers for the integration of capital and incubators of inventions. Attracting venture capital (VC) is of great importance for cities to advance in innovative technology and business models towards a sustainable and prosperous future. Yet we still lack a quantitative understanding of the relationship between urban characteristics and VC activities. In this paper, we find a clear nonlinear scaling relationship between VC activities and the urban population of Chinese cities. In such nonlinear systems, the widely applied linear per capita indicators would be either biased to larger cities or smaller cities depends on whether it is superlinear or sublinear, while the residual of cities relative to the prediction of scaling law is a more objective and scale-invariant metric. Such a metric can distinguish the effects of local dynamics and scaled growth induced by the change of population size. The spatiotemporal evolution of such metrics on VC activities reveals three distinct groups of cities, two of which stand out with increasing and decreasing trends, respectively. The taxonomy results together with spatial analysis also signify different development modes between large urban agglomeration regions. Besides, we notice the evolution of scaling exponents on VC activities are of much larger fluctuations than on socioeconomic output of cities, and a conceptual model that focuses on the growth dynamics of different sized cities can well explain it, which we assume would be general to other scenarios.https://ieeexplore.ieee.org/document/9383309/Venture capital investmentcomplex systemsurban scaling lawsscale-invariant indicatorgrowth |
| spellingShingle | Ruiqi Li Lingyun Lu Tianyu Cui Weiwei Gu Shaodong Ma Gang Xu H. Eugene Stanley Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective IEEE Access Venture capital investment complex systems urban scaling laws scale-invariant indicator growth |
| title | Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective |
| title_full | Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective |
| title_fullStr | Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective |
| title_full_unstemmed | Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective |
| title_short | Assessing the Attraction of Cities on Venture Capital From a Scaling Law Perspective |
| title_sort | assessing the attraction of cities on venture capital from a scaling law perspective |
| topic | Venture capital investment complex systems urban scaling laws scale-invariant indicator growth |
| url | https://ieeexplore.ieee.org/document/9383309/ |
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