This paper explores the changing approach of the Chinese state to health biotechnology innovation and, in particular, the position of venture capital within that process. How has the Chinese state dealt with the opportunities and threats posed by globalisation in this field, what status has it attached to the role of venture capital in innovation and what are the implications of these actions for the role of the state? In addressing these questions, the paper begins by examining the global context of the venture capital and innovation relationship, the varied nature of VC organisation, the business models that inform the VC approach to health biotechnology innovation and the implications of these factors for the role of the state. Secondly, it explores the nature and impact of state intervention in China on the VC contribution to innovation, the particular character of the Chinese VC industry and its economic environment and the capacity of the VC sector to contribute to China's position as a global player in health technology innovation. The paper concludes by reviewing the insights this case study provides into the problematic character of state adaptation in China to the challenges of globalisation.
