| Business incubator appeared in the 1950s in the United States, which took it as the main task to help the start-up enterprises. The global economy environment was very recession during that period, with a lot of large traditional manufactories closed down and a large number of workers gone out of work in America. At the same time, with the development of new technology revolution, the market competition became more intense, which changed the industry structure, technology structure and consuming structure. In order to meet such changes, the American government provided a good law and financial policy environment to help SMEs. Under such conditions, business incubator emerged at every corner of America at a very fast rate, as the time require. The character of the incubator is to provide services for start-up enterprises, like office rental, facilities sharing, consulting, staff training, financing net, etc., which reduced small enterprises' cost and risk and became strong support of start-up enterprises. To be more important, the incubators helped recover the American economy and stabilize the society.Business incubator in European countries has similar background and character with the American counterparts, but has the different function and mode. The concept of Business incubator was introduced into China in the 1980s. In 1988, it was brought into the Ministry of Science's torch plan and became one of the most important parts of China hi-tech industry support service system. China has learnt a lot of advanced experience in business incubator from America and the European countries, but mixed up with the Chinese conditions, business incubators in China have some Chinese characters in some aspects, for example, the government is the main body of incubator behavior and the main investor of incubator, etc. Once Business incubator was set up in China, it brought remarkable economy benefit and went beyond the expectation of society benefit. But, to some extent, the business incubators in China haven't posed a good running system and managerial regulation, especially, people have not got enough understanding about the basic theories and running theories to establish and run the incubator. Meanwhile, China has not got a standardized framework of incubator development. All these conditions restrict the development of business incubators in China. The current thesis studies incubator development in America and European countries, analyzing the current situation of incubator development in China and comparing the difference of incubator development between EU, U.S.A. and China to find out the reason why incubator succeeded in China and the gap between China and the advanced countries and to propose some suggestions on how to develop the incubators in China in the future. The current thesis is divided into four parts. The first part discusses the concept of Business incubation, the basic theories, its functions, types, effects and meanings to the society development. In this part there are two innovation standpoints, The concept of Business incubator has two representative standpoints: specialists outline the incubator's characters; explanations made by UNDP define the incubator's meaning; I and incubator industry outline the third definition, definition from incubator industry represents the essence of incubator and this is the soul of incubator. I think the enterprise start-up theory and society network theory are the basic theory of incubator. Business incubator is a platform to link start-up enterprises and all society networks. Business incubator can be classified into many different types by running principal, objectives, specialize character and organizing format. The main functions of incubator are: creating environment for starting out a new enterprise, consulting and financing service, etc. The effects and meaning of incubator are: breeding a regional economic growth point, accelerating industry restructure, enhancing technology innovation and creating employment chance.The second...
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