The Development of Active Venture Capital Markets and Determinants of Venture Capital Markets in Pakistan and Turkey

The role of developing venture capital markets is important for community innovation activities. The venture capitalists are able to lower risks via supporting management. It allows increasing the expected profits of high-technology products. Venture capital market is known as one of the important funds for financing the innovation activities and it also has an effect on development of countries. In this study we examine the developments of venture capital markets and some important viewpoints which have effects on the genesis of venture capital markets. In addition to all we are interested in defining the determinants of venture capital markets. The main purpose of this study is to examine the needs of both Turkey and Pakistan while they intend to innovate. The growth of the countries is related to their effort on making innovations, which makes countries invest in innovation investments. What happens to Venture Capital Availability of countries, when Judicial Independence, Business cost of Terrorism and infrastructure's quality of countries is on the list of venture capitalist? We gather the Global competitiveness index data from the World Economic Forum from 2006-2007 to 2015-2016 and examine the determinants of venture capital markets by using panel data analysis. According to results VCs' priorities are different for both countries. Pakistani government should show more effort on the security of businesses and corruption.Turkish government should be following a different strategy for export. The products should be more advanced technology based. For Turkey another important point is that the asymmetry on the government procurement of advanced technology products should be controlled carefully