Technology business incubators in China: Designing a booster for economic transformation
Business incubators in China were deployed by the Chinese Government solely as a critical instrument to develop and industrialize its technological advancements and are only open to technology-based ventures. This article reviews the development of Chinese business incubators over the past two decades, addressing such key issues as the Chinese business incubators’ founding and funding, service offerings and tenant selection criteria, and discusses the future development of the technology business incubation industry in China. The role and funding by government is very important, though recent efforts are being made to diversify ownership and funding. Incubator specialisms, relating to the industrial areas they are located, are increasing. Selection criteria, based on technology focus, commercial potential and management team, are seen as important. It appears that business incubators in China have been a booster for the transformation of the Chinese economy from the ‘Made in China’ model to a new ‘Created in China’ model.Aernoudt, R. (2002) ‘Incubators: Tool for entrepreneurship?’, Small Business Economics 23 (2): 127-35.
Chandra, A. and He, W. (2008) ‘Government involvement and financial service intensity: A comparative study of three business incubators in China’, International Journal of Innovation and Learning 5(3): 266-82.
Chen, Z. (2009) ‘“Venture Angel” incubated over 520 firms in 21 years’, Wuhan Evening News 6 January, www.whibi.com/news/local/200901/20090106161821.html [accessed 10 January 2009]. www.whibi.com/news/local/200901/20090106161821.html
China Daily (2005) ‘Bo: 800 million shirts for one airbus A380’, China Daily 5 May, www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm [accessed 25 November 2008]. www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm
Day, M. and Jones, E. M. (2004) ‘The Incubation Chain’, paper presented at the National Business Incubation Association Conference, 25-28 April, Atlanta, Georgia.
Global Economic Research. (2009) ‘China GDP growth rate’, www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY [accessed 10 January 2009]. www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY
Goh, A. L. S. (2006) ‘Evolution of industrial policy-making in support of innovation: The case of Singapore’, International Journal of Innovation and Learning 3(1): 110-25.
Government of Singapore (2005) ‘Enterprise & Innovation Year 2005 in Review’, www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html [accessed 12 September 2006]. www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html
Haapasalo, H. and Ekholm, T. (2004) ‘A profile of European incubators: A framework for commercialising innovations’, International Journal of Entrepreneurship and Innovation Management 4(2/3): 248-70.
Harwitt, E. (2002) ‘High technology incubators: Fuel for China's new entrepreneurship?’, China Business Review 29(4): 26-29.
Huang, Y., He, W. and Nie, M. (2006) ‘From “Made in China” to “Created in China”’, China Economist September: 86-96.
Kim, H. and Ames, M. D. (2006) ‘Business incubators as economic development tools: Rethinking models based on the Korea experience’, International Journal of Technology Management 33(1):.1-24.
Keane, M. (2007) Created in China: The Great New Leap Forward, London: Routledge Curzon.
Kim, H., Lee, Y. and Ames, M. D. (2005) ‘Promoting business incubation for improved competitiveness of small and medium industries in Korea’, International Journal of Technology Management 32(3/4): 350-70.
Kuratko, D. F. and LaFollette, W. R. (1986) ‘Examining the small business incubator explosion’, Mid-American Journal of Business 1(2): 29-34.
Lee, K. B. (2003) ‘The evolutionary process of venture incubation in Korea’, International Journal of Entrepreneurship and Innovation Management 3(1/2): 78-86.
Liang, G. (2008a) ‘Implementing the doctrine of the Party's 17th Congress and promoting incubation industry to new glory’, (in Chinese) Science & Technology Industry of China January: 19-24.
Liang, G. (2008b) ‘Message from the director’, www.ctp.gov.cn/ctp-eng/index.htm [accessed 25 November 2008]. www.ctp.gov.cn/ctp-eng/index.htm
MOST (2006) ‘The strategic planning outline for technology business incubators in China for the “11th Five-Year Plan” period’, (in Chinese) www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm [accessed 26 November 2008]. www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm
Mann, J. (2007) ‘The prize for peace’, CNN special report, 10 December, http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html [accessed 25 November 2008]. http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html
NBIA (2009) ‘What is business incubation?’, www.nbia.org/resource_Centre/what_is/index.php [accessed 10 January 2009]. www.nbia.org/resource_Centre/what_is/index.php
People's Daily Online (2007) ‘From “Made in China” to “Created in China”’, updated 6 February 6, http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html [accessed 2 December 2008]. http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html
Scaramuzzi, E. (2002) ‘Incubators in developing countries’, infoDev Program, Washington DC: World Bank.
Smilor, R. W. and Gill, M. D. (1986) The New Business Incubator: Linking Talent, Technology, Capital, & Know-how, Lexington, MA: Lexington Books.
Shalhoub, Z.K. and Al Qasimi, L. (2004) ‘Crafting the environment for high tech incubation projects: The case of Dubai’, International Journal of Management Practice 1(1):.86-108.
Soetanto, D. P. (2006) ‘Nurturing technology-based firms: The resources-based perspective in the incubation process’, International Journal of Management and Enterprise Development 3(6): 534-47.
Torch Center (2008) ‘Chinese technology business incubators’, (in Chinese) www.ctp.gov.cn/dxal/intr.html [accessed 25 November 2008]. www.ctp.gov.cn/dxal/intr.html
TWIB (2008) ‘Tianjin Women's Business Incubator’, www.tjwbi.com/system/2007/03/13/000168845.shtml [accessed 3 December 2008]. www.tjwbi.com/system/2007/03/13/000168845.shtml
Xu, J. and Wang, Q. (2007) ‘The 20th anniversary of Wuhan East Lake New Tech Venture Center: A cradle for start-up heroes’, Hubei News Network, 20 September, (in Chinese) http://old.hbstd.gov.cn/info.jsp?id=7568 [accessed 25 November 2008]. http://old.hbstd.gov.cn/info.jsp?id=7568
Aernoudt, R. (2002) ‘Incubators: Tool for entrepreneurship?’, Small Business Economics 23 (2): 127-35.
Chandra, A. and He, W. (2008) ‘Government involvement and financial service intensity: A comparative study of three business incubators in China’, International Journal of Innovation and Learning 5(3): 266-82.
Chen, Z. (2009) ‘“Venture Angel” incubated over 520 firms in 21 years’, Wuhan Evening News 6 January, www.whibi.com/news/local/200901/20090106161821.html [accessed 10 January 2009]. www.whibi.com/news/local/200901/20090106161821.html
China Daily (2005) ‘Bo: 800 million shirts for one airbus A380’, China Daily 5 May, www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm [accessed 25 November 2008]. www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm
Day, M. and Jones, E. M. (2004) ‘The Incubation Chain’, paper presented at the National Business Incubation Association Conference, 25-28 April, Atlanta, Georgia.
Global Economic Research. (2009) ‘China GDP growth rate’, www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY [accessed 10 January 2009]. www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY
Goh, A. L. S. (2006) ‘Evolution of industrial policy-making in support of innovation: The case of Singapore’, International Journal of Innovation and Learning 3(1): 110-25.
Government of Singapore (2005) ‘Enterprise & Innovation Year 2005 in Review’, www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html [accessed 12 September 2006]. www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html
Haapasalo, H. and Ekholm, T. (2004) ‘A profile of European incubators: A framework for commercialising innovations’, International Journal of Entrepreneurship and Innovation Management 4(2/3): 248-70.
Harwitt, E. (2002) ‘High technology incubators: Fuel for China's new entrepreneurship?’, China Business Review 29(4): 26-29.
Huang, Y., He, W. and Nie, M. (2006) ‘From “Made in China” to “Created in China”’, China Economist September: 86-96.
Kim, H. and Ames, M. D. (2006) ‘Business incubators as economic development tools: Rethinking models based on the Korea experience’, International Journal of Technology Management 33(1):.1-24.
Keane, M. (2007) Created in China: The Great New Leap Forward, London: Routledge Curzon.
Kim, H., Lee, Y. and Ames, M. D. (2005) ‘Promoting business incubation for improved competitiveness of small and medium industries in Korea’, International Journal of Technology Management 32(3/4): 350-70.
Kuratko, D. F. and LaFollette, W. R. (1986) ‘Examining the small business incubator explosion’, Mid-American Journal of Business 1(2): 29-34.
Lee, K. B. (2003) ‘The evolutionary process of venture incubation in Korea’, International Journal of Entrepreneurship and Innovation Management 3(1/2): 78-86.
Liang, G. (2008a) ‘Implementing the doctrine of the Party's 17th Congress and promoting incubation industry to new glory’, (in Chinese) Science & Technology Industry of China January: 19-24.
Liang, G. (2008b) ‘Message from the director’, www.ctp.gov.cn/ctp-eng/index.htm [accessed 25 November 2008]. www.ctp.gov.cn/ctp-eng/index.htm
MOST (2006) ‘The strategic planning outline for technology business incubators in China for the “11th Five-Year Plan” period’, (in Chinese) www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm [accessed 26 November 2008]. www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm
Mann, J. (2007) ‘The prize for peace’, CNN special report, 10 December, http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html [accessed 25 November 2008]. http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html
NBIA (2009) ‘What is business incubation?’, www.nbia.org/resource_Centre/what_is/index.php [accessed 10 January 2009]. www.nbia.org/resource_Centre/what_is/index.php
People's Daily Online (2007) ‘From “Made in China” to “Created in China”’, updated 6 February 6, http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html [accessed 2 December 2008]. http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html
Scaramuzzi, E. (2002) ‘Incubators in developing countries’, infoDev Program, Washington DC: World Bank.
Smilor, R. W. and Gill, M. D. (1986) The New Business Incubator: Linking Talent, Technology, Capital, & Know-how, Lexington, MA: Lexington Books.
Shalhoub, Z.K. and Al Qasimi, L. (2004) ‘Crafting the environment for high tech incubation projects: The case of Dubai’, International Journal of Management Practice 1(1):.86-108.
Soetanto, D. P. (2006) ‘Nurturing technology-based firms: The resources-based perspective in the incubation process’, International Journal of Management and Enterprise Development 3(6): 534-47.
Torch Center (2008) ‘Chinese technology business incubators’, (in Chinese) www.ctp.gov.cn/dxal/intr.html [accessed 25 November 2008]. www.ctp.gov.cn/dxal/intr.html
TWIB (2008) ‘Tianjin Women's Business Incubator’, www.tjwbi.com/system/2007/03/13/000168845.shtml [accessed 3 December 2008]. www.tjwbi.com/system/2007/03/13/000168845.shtml
Xu, J. and Wang, Q. (2007) ‘The 20th anniversary of Wuhan East Lake New Tech Venture Center: A cradle for start-up heroes’, Hubei News Network, 20 September, (in Chinese) http://old.hbstd.gov.cn/info.jsp?id=7568 [accessed 25 November 2008]. http://old.hbstd.gov.cn/info.jsp?id=7568
Aernoudt, R. (2002) ‘Incubators: Tool for entrepreneurship?’, Small Business Economics 23 (2): 127-35.
Chandra, A. and He, W. (2008) ‘Government involvement and financial service intensity: A comparative study of three business incubators in China’, International Journal of Innovation and Learning 5(3): 266-82.
Chen, Z. (2009) ‘“Venture Angel” incubated over 520 firms in 21 years’, Wuhan Evening News 6 January, www.whibi.com/news/local/200901/20090106161821.html [accessed 10 January 2009]. www.whibi.com/news/local/200901/20090106161821.html
China Daily (2005) ‘Bo: 800 million shirts for one airbus A380’, China Daily 5 May, www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm [accessed 25 November 2008]. www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm
Day, M. and Jones, E. M. (2004) ‘The Incubation Chain’, paper presented at the National Business Incubation Association Conference, 25-28 April, Atlanta, Georgia.
Global Economic Research. (2009) ‘China GDP growth rate’, www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY [accessed 10 January 2009]. www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY
Goh, A. L. S. (2006) ‘Evolution of industrial policy-making in support of innovation: The case of Singapore’, International Journal of Innovation and Learning 3(1): 110-25.
Government of Singapore (2005) ‘Enterprise & Innovation Year 2005 in Review’, www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html [accessed 12 September 2006]. www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html
Haapasalo, H. and Ekholm, T. (2004) ‘A profile of European incubators: A framework for commercialising innovations’, International Journal of Entrepreneurship and Innovation Management 4(2/3): 248-70.
Harwitt, E. (2002) ‘High technology incubators: Fuel for China's new entrepreneurship?’, China Business Review 29(4): 26-29.
Huang, Y., He, W. and Nie, M. (2006) ‘From “Made in China” to “Created in China”’, China Economist September: 86-96.
Kim, H. and Ames, M. D. (2006) ‘Business incubators as economic development tools: Rethinking models based on the Korea experience’, International Journal of Technology Management 33(1):.1-24.
Keane, M. (2007) Created in China: The Great New Leap Forward, London: Routledge Curzon.
Kim, H., Lee, Y. and Ames, M. D. (2005) ‘Promoting business incubation for improved competitiveness of small and medium industries in Korea’, International Journal of Technology Management 32(3/4): 350-70.
Kuratko, D. F. and LaFollette, W. R. (1986) ‘Examining the small business incubator explosion’, Mid-American Journal of Business 1(2): 29-34.
Lee, K. B. (2003) ‘The evolutionary process of venture incubation in Korea’, International Journal of Entrepreneurship and Innovation Management 3(1/2): 78-86.
Liang, G. (2008a) ‘Implementing the doctrine of the Party's 17th Congress and promoting incubation industry to new glory’, (in Chinese) Science & Technology Industry of China January: 19-24.
Liang, G. (2008b) ‘Message from the director’, www.ctp.gov.cn/ctp-eng/index.htm [accessed 25 November 2008]. www.ctp.gov.cn/ctp-eng/index.htm
MOST (2006) ‘The strategic planning outline for technology business incubators in China for the “11th Five-Year Plan” period’, (in Chinese) www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm [accessed 26 November 2008]. www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm
Mann, J. (2007) ‘The prize for peace’, CNN special report, 10 December, http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html [accessed 25 November 2008]. http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html
NBIA (2009) ‘What is business incubation?’, www.nbia.org/resource_Centre/what_is/index.php [accessed 10 January 2009]. www.nbia.org/resource_Centre/what_is/index.php
People's Daily Online (2007) ‘From “Made in China” to “Created in China”’, updated 6 February 6, http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html [accessed 2 December 2008]. http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html
Scaramuzzi, E. (2002) ‘Incubators in developing countries’, infoDev Program, Washington DC: World Bank.
Smilor, R. W. and Gill, M. D. (1986) The New Business Incubator: Linking Talent, Technology, Capital, & Know-how, Lexington, MA: Lexington Books.
Shalhoub, Z.K. and Al Qasimi, L. (2004) ‘Crafting the environment for high tech incubation projects: The case of Dubai’, International Journal of Management Practice 1(1):.86-108.
Soetanto, D. P. (2006) ‘Nurturing technology-based firms: The resources-based perspective in the incubation process’, International Journal of Management and Enterprise Development 3(6): 534-47.
Torch Center (2008) ‘Chinese technology business incubators’, (in Chinese) www.ctp.gov.cn/dxal/intr.html [accessed 25 November 2008]. www.ctp.gov.cn/dxal/intr.html
TWIB (2008) ‘Tianjin Women's Business Incubator’, www.tjwbi.com/system/2007/03/13/000168845.shtml [accessed 3 December 2008]. www.tjwbi.com/system/2007/03/13/000168845.shtml
Xu, J. and Wang, Q. (2007) ‘The 20th anniversary of Wuhan East Lake New Tech Venture Center: A cradle for start-up heroes’, Hubei News Network, 20 September, (in Chinese) http://old.hbstd.gov.cn/info.jsp?id=7568 [accessed 25 November 2008]. http://old.hbstd.gov.cn/info.jsp?id=7568
Aernoudt, R. (2002) ‘Incubators: Tool for entrepreneurship?’, Small Business Economics 23 (2): 127-35.
Chandra, A. and He, W. (2008) ‘Government involvement and financial service intensity: A comparative study of three business incubators in China’, International Journal of Innovation and Learning 5(3): 266-82.
Chen, Z. (2009) ‘“Venture Angel” incubated over 520 firms in 21 years’, Wuhan Evening News 6 January, www.whibi.com/news/local/200901/20090106161821.html [accessed 10 January 2009]. www.whibi.com/news/local/200901/20090106161821.html
China Daily (2005) ‘Bo: 800 million shirts for one airbus A380’, China Daily 5 May, www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm [accessed 25 November 2008]. www.chinadaily.com.cn/english/doc/2005-05/05/content_439584.htm
Day, M. and Jones, E. M. (2004) ‘The Incubation Chain’, paper presented at the National Business Incubation Association Conference, 25-28 April, Atlanta, Georgia.
Global Economic Research. (2009) ‘China GDP growth rate’, www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY [accessed 10 January 2009]. www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=CNY
Goh, A. L. S. (2006) ‘Evolution of industrial policy-making in support of innovation: The case of Singapore’, International Journal of Innovation and Learning 3(1): 110-25.
Government of Singapore (2005) ‘Enterprise & Innovation Year 2005 in Review’, www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html [accessed 12 September 2006]. www.sedb.com/edb/sg/en_uk/index/news_room/news/2006/enterpriseinnovation.html
Haapasalo, H. and Ekholm, T. (2004) ‘A profile of European incubators: A framework for commercialising innovations’, International Journal of Entrepreneurship and Innovation Management 4(2/3): 248-70.
Harwitt, E. (2002) ‘High technology incubators: Fuel for China's new entrepreneurship?’, China Business Review 29(4): 26-29.
Huang, Y., He, W. and Nie, M. (2006) ‘From “Made in China” to “Created in China”’, China Economist September: 86-96.
Kim, H. and Ames, M. D. (2006) ‘Business incubators as economic development tools: Rethinking models based on the Korea experience’, International Journal of Technology Management 33(1):.1-24.
Keane, M. (2007) Created in China: The Great New Leap Forward, London: Routledge Curzon.
Kim, H., Lee, Y. and Ames, M. D. (2005) ‘Promoting business incubation for improved competitiveness of small and medium industries in Korea’, International Journal of Technology Management 32(3/4): 350-70.
Kuratko, D. F. and LaFollette, W. R. (1986) ‘Examining the small business incubator explosion’, Mid-American Journal of Business 1(2): 29-34.
Lee, K. B. (2003) ‘The evolutionary process of venture incubation in Korea’, International Journal of Entrepreneurship and Innovation Management 3(1/2): 78-86.
Liang, G. (2008a) ‘Implementing the doctrine of the Party's 17th Congress and promoting incubation industry to new glory’, (in Chinese) Science & Technology Industry of China January: 19-24.
Liang, G. (2008b) ‘Message from the director’, www.ctp.gov.cn/ctp-eng/index.htm [accessed 25 November 2008]. www.ctp.gov.cn/ctp-eng/index.htm
MOST (2006) ‘The strategic planning outline for technology business incubators in China for the “11th Five-Year Plan” period’, (in Chinese) www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm [accessed 26 November 2008]. www.most.gov.cn/kjgh/kjfzgh/200708/t20070824_52686.htm
Mann, J. (2007) ‘The prize for peace’, CNN special report, 10 December, http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html [accessed 25 November 2008]. http://transcripts.cnn.com/TRANSCRIPTS/0712/10/se.01.html
NBIA (2009) ‘What is business incubation?’, www.nbia.org/resource_Centre/what_is/index.php [accessed 10 January 2009]. www.nbia.org/resource_Centre/what_is/index.php
People's Daily Online (2007) ‘From “Made in China” to “Created in China”’, updated 6 February 6, http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html [accessed 2 December 2008]. http://english.peopledaily.com.cn/200702/06/eng20070206_347956.html
Scaramuzzi, E. (2002) ‘Incubators in developing countries’, infoDev Program, Washington DC: World Bank.
Smilor, R. W. and Gill, M. D. (1986) The New Business Incubator: Linking Talent, Technology, Capital, & Know-how, Lexington, MA: Lexington Books.
Shalhoub, Z.K. and Al Qasimi, L. (2004) ‘Crafting the environment for high tech incubation projects: The case of Dubai’, International Journal of Management Practice 1(1):.86-108.
Soetanto, D. P. (2006) ‘Nurturing technology-based firms: The resources-based perspective in the incubation process’, International Journal of Management and Enterprise Development 3(6): 534-47.
Torch Center (2008) ‘Chinese technology business incubators’, (in Chinese) www.ctp.gov.cn/dxal/intr.html [accessed 25 November 2008]. www.ctp.gov.cn/dxal/intr.html
TWIB (2008) ‘Tianjin Women's Business Incubator’, www.tjwbi.com/system/2007/03/13/000168845.shtml [accessed 3 December 2008]. www.tjwbi.com/system/2007/03/13/000168845.shtml
Xu, J. and Wang, Q. (2007) ‘The 20th anniversary of Wuhan East Lake New Tech Venture Center: A cradle for start-up heroes’, Hubei News Network, 20 September, (in Chinese) http://old.hbstd.gov.cn/info.jsp?id=7568 [accessed 25 November 2008]. http://old.hbstd.gov.cn/info.jsp?id=7568
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