A New Business Model for Technology-Based Business Incubators: The Case of Innovation Works in China. No. 2014-009 Featured

  • Written by  Mingfeng Tang, Cuiwen Li, Yu Chen and Angathevar Baskaran


In recent years China has become the world’s second largest hub of technology-based business incubators (TBIs). The traditional business model of TBIs focuses on providing new ventures with traditional services, such as office, one-stop administrative service and some consulting services. The prevailing model does not create as many successful high-tech ventures as expected. Our paper aims to study an emerging new business model of TBI which combines angel capital with traditional incubator business model. To analyse this phenomenon, we take the TBI called the Innovation Works in Beijing, which pioneered this new business model in China, as a case study. We examine the following main research questions:  (1)  What is the inner logic of the angel capital-based incubator business model? (2) What are the major critical elements that help to build the angel capital-based incubator business model and how does angel capital-based incubator come into being? (3) How does the angel capital-based incubator business model operate and how different it is from traditional incubator business model? We employed mainly primary data gathered through from interview, on-site visits, and survey and value chain approach analytical framework to find answers to the research questions. We found that unlike many traditional Chinese TBIs, the emerging business model does not generate money from office rent but focuses on the provision of value-added services. It tightly combines the profit of incubator with the success of incubation tenants. Incubator and tenants cooperate with each other particularly in value creation, value transfer and value reward. The success of building-up of angel capital-based incubator business model needs four important elements: external entrepreneurial environment (national environment in China), strategic motivation of incubator leader, incubator culture and inner source. Our findings from the analysis of Innovation Works have some major policy implications for the future development of TBIs in China and other emerging economies.

Last modified onThursday, 11 December 2014 10:31


  • dublin golf
    dublin golf Friday, 22 September 2017 21:51 Comment Link

    Hmm is anyone else encountering problems with the images
    on this blog loading? I'm trying to determine if its a problem on my end or if it's the blog.
    Any responses would be greatly appreciated.

  • Tuesday, 19 September 2017 03:09 Comment Link

    Have you ever considered about including a little bit more than just your articles?
    I mean, what you say is fundamental and all. Nevertheless think about if you added
    some great visuals or video clips to give your posts
    more, "pop"! Your content is excellent but with pics
    and videos, this site could undeniably be one
    of the most beneficial in its field. Good blog!

  • dublin golf
    dublin golf Sunday, 17 September 2017 11:22 Comment Link

    I am in fact delighted to read this website posts which includes
    tons of helpful information, thanks for providing such statistics.

  • Terrie
    Terrie Sunday, 10 September 2017 05:13 Comment Link

    I've been exploring for a little for any high quality articles or blog posts
    in this sort of space . Exploring in Yahoo I ultimately stumbled upon this site.
    Reading this information So i am happy to express that I have a very excellent uncanny feeling I
    discovered exactly what I needed. I such a lot indubitably
    will make sure to don?t overlook this site and give it a glance on a continuing basis.

  • Sunday, 10 September 2017 04:27 Comment Link

    It's wonderful that you are getting thoughts from this post as well as from our dialogue made here.

  • Lelio Vieira Carneiro Junior
    Lelio Vieira Carneiro Junior Friday, 08 September 2017 23:10 Comment Link

    Whats up are using Wordpress for your blog platform?
    I'm new to the blog world but I'm trying to get started and create my own. Do you require any coding knowledge to make your own blog?
    Any help would be really appreciated!

  • Lelio Vieira Carneiro Junior
    Lelio Vieira Carneiro Junior Thursday, 07 September 2017 02:41 Comment Link

    I do not even know how I ended up here, but I thought this post was
    good. I do not know who you are but definitely you are going to a famous blogger
    if you aren't already ;) Cheers!

  • Lelio Vieira Carneiro Junior
    Lelio Vieira Carneiro Junior Monday, 04 September 2017 18:05 Comment Link

    Having read this I thought it was really informative.
    I appreciate you spending some time and energy to put this
    informative article together. I once again find myself spending a significant amount of time both reading and leaving comments.
    But so what, it was still worthwhile!


    It's a pity you don't have a donate button! I'd most certainly
    donate to this superb blog! I suppose for now i'll settle
    for book-marking and adding your RSS feed to my Google account.

    I look forward to brand new updates and will share this site with my Facebook group.
    Talk soon!

  • Saturday, 02 September 2017 15:54 Comment Link

    I like the valuable information you supply on your articles.
    I'll bookmark your weblog and test once more right here frequently.

    I'm reasonably certain I will be told plenty of new stuff proper right here!
    Best of luck for the next!

Leave a comment

Make sure you enter the (*) required information where indicated. HTML code is not allowed.

back to top


Useful Links

Contact Info

210 Steve Biko Street

Tel: +27 12 382 2679
Fax: +27 86 665 4587

About SARChI

Supported & Hosted by