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China Business Incubator Industry Indepth Research and Development Trend Report

China Business Incubator Industry Indepth Research and Development Trend Report

Last Update:2014-05-09

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A business incubator is a service institution to cultivate and support the development of medium and small-sized hi-tech enterprises. By providing physical space and infrastructure, and a range of services as well for startup companies, incubators will help entrepreneurs to reduce creation risks and costs, increase the success rate, promote the transformation of scientific fruits, help and support the growth and development of medium and small-sized enterprises, and cultivate successful enterprises and entrepreneurs.

China scientific business incubator traces back to the late 1980s. China's first business incubator, Wuhan East-lake Hi-tech Innovation Center established in 1987. After many years development, the number of China business incubator keeps increasing, and its power keeps strengthening as well. As of the end of 2010, there were almost 900 business incubators in China, including innovation service center, business incubator for returned personnel, and all types of scientific enterprises containing university science and technology park, among which there were 246 state-level business incubators.

At present, China has formed a large-scale incubator team, with a massive amount in the world and ranking the first among developed countries. Those medium and small-sized scientific enterprises that are cultivated by incubators known as "the cradle of hi-tech enterprises" will develop very well. The business incubators are beneficial to generate a batch of mature enterprises, which provide continuing reserve forces to the development of China hi-tech industry. Moreover, those mature enterprises have become dominant forces of the development of hi-teach industry. It's predicted as of the end of 2010, there were over 48,000 enterprises graduated from business incubators, with a area coverage of more than 30 million sqm; and their average income at the year of graduation is 5.2 times as high as the registered capital. Among them, the enterprises with over 10 million income accounted for 30%, and there were more than 80 enterprises listed on the board after graduation.

Currently, there are more than 51,000 enterprises in business incubators, with over 1.05 million employees. The incubator enterprises have applied for 82,000 patents, and 60% of them have been approved, among which there are 40% of creation and software patents. By "Torch Entrepreneur Mentors Action", China has formed a counseling team with 3,500 personnel. The age limit of enterprises which have been tutored expand to 11.7 months, with an annual income increase of 34.6%. In addition, a student-base incubator is a high-end mode of venture promoting employment. Nowadays, The Ministry of Science and Technology of the People's Republic of China has approved to set up 149 internship bases for student technological entrepreneurship. And the incubators have attracted more than 2,300 university students' start-up enterprises and over 14,850 people to enter incubators.

There are 1,200 incubators, and there are more than 40,000 incubated enterprises in China. European countries attach great importance to the development of incubators. Specifically, the French government give 50% subsidy for enterprises' services costs caused by incubators, and it invests special funds annually to support the development of the incubator of the Ministry of National Research; the Swedish government has specially set up a incubator foundation to grant each incubator 420,000 US dollars without asking for any economic return, just aiming at increase the number of scientific enterprises. The development of China's incubators also gains the concern and recognition from the government. In June 2010, the "National Long-term Talent Development Program (2010-2020) " released by the CPC central committee and the State Council clearly pointed out "continue to increase the investment in business incubators and other infrastructure, and create innovation service networks". In terms of China, the development of scientific incubator is in the ascendant. Although China incubator industry develops rapidly, compared with advanced countries, China should still learn the advanced development mode of foreign leading enterprises and experience in the aspect of incubator construction, especially when China encounters a tide of scientific innovation. China's incubator and enterprises need to further enhance the functions of incubator platform, improve China's hard and soft power, so as to maintain its leading position in Asia, then China has more right to speak in the international, and becomes one of the world's most dynamic centers as well.

According to the "Twelfth Five-year" Plan of China Scientific Business Incubator (Draft), the number of China's all types of incubators will reach 1,500, with a total coverage of more than 50 million sqm and total asset of over 5 billion Yuan by 2015. Besides, there will be more than 100,000 business incubators. Meanwhile, in order to realize the internationalization of China's incubator, there will be 500 state-level incubators, 10 world-class incubators, 40 leading regional incubators and 100 incubators with characteristics in China by 2015. The business incubator industry has bright prospects. What's more, due to richer and richer investment entities, especially the combination of incubators and risk investment in recent years, the competition in the industry becomes fiercer and fiercer, despite of gaining financing investment at the same time.

With Forward’s long-term tracking and collecting market data of business incubator industry, we roundly and accurately analyze the industry structure system for you from the view of mastering the whole industry. This report mainly focuses on analyzing China business incubator industry’s development size, development speed and operation conditions, depending on current market environment of business incubator industry and relying on its market demand. Meanwhile, with comprehensive and specific first-hand market data, Forward helps you to grasp the market and development trends of business incubator industry, so as to win advantages from competition!

Here, we would like to express our sincere gratitude to State Information Center, Bureau of Statistics of China, International Information Research Institute, Chinese Academy of International Trade and Economic Cooperation, Tsinghua University Library, Development Research Center of the State Council and Beijing Essence Forward Research Center, for their great support when we conduct this report!

Notice: All the market data, especially corporations' ranking data in the report, only for business reference. Please do not take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Business Incubator Industry


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