A Study On The Mechanism Of Business Incubator Based On Innovation Market Failure

The appearance and development of Business Incubator are not an economic phenomenon happened by accident,but with profound theoretic basis.Especially,the organization innovation of entrepreneur incubating group exposes the apparent deficiency of its theoretic research.In the angle of innovation market failure,this paper concludes that there exist market price mechanism failure and business contract mechanism failure in the process of new venture creation by analyzing the characteristics of emerging ventures,and makes further analysis of the characteristics of these two market failures.As the substitute of price mechanism failure and contract mechanism failure,business incubator is a market organization innovation that exerts itself to maximize its benefits by syncretizing entrepreneur and manager,idea and capital,and agglomerating innovation resources.Based on this theoretic analysis,this paper also analyzes the tenancy,management and investment mechanism of incubator,and constructs incubator Innovation Resources Syncretizing Model and Investment-Yield Model,which consider business incubator in pursuit of inner-innovation-resource allocating efficiency and outer-innovation-resource coordinating efficiency.Besides,in order to make the theoretic analysis more intuitive,a case study of idealab! is made to extend the conclusion of the theoretic research.