Incubator: An Economic Development Tool Designed to Support SME and Entrepreneur

Business incubators have existed for 50 years. Most of them have evolved from a simple real estate venture to organizations that provide a menu of assistance to businesses, from access to capital to access to specialized technical assistance. The core function of incubators is to help new businesses immerge, survive, and become viable. We couldn't conclude that any given business would not have succeeded "but for the incubator." Similar to other economic development strategies, incubators may best be considered as ongoing experiments. Policy makers need to judge the success or failure of experiments. This paper tries to perceive and survey experiences of china's incubators. In this paper, Background of the theory and purposes of incubator are analyzed. The core status of incubator in China's technical innovation system is sketched out. The systematic collection of business incubator data helps us to understand incubators' performance. to find out success reasons and imperfection factors, to search for proper countermeasures and foresee incubators' future development in China.