Efficiency Analysis Of National-level Business Incubators In China

Business incubator has been rapidly developing in many countries since it emerged in the United States. Taking the perspective of its 20 years'development in China, it has been an important carrier to promote entrepreneurship and autonomous innovation of enterprises. To ensure it plays better promoting function on technological innovation in future, we must strive to improve business incubator's operating efficiency, thus achieving the sustainable development of business incubators. Therefore, the establishment of a business incubator evaluation system, which can comprehensive and objectively evaluate the efficiency of business incubators, has an important realistic significance.In this project, technological efficiency, pure technological efficiency and scale efficiency of 205 national-level business incubators in year 2008, has been evaluated employing DEA method first. The elevation results show that, for these business incubators with lower DEA relative efficiency, they should strictly control the number of employees, improve fund management, improve fund utilization efficiency and constrain site area to avoid extravagance.Then, K-mean Cluster Analysis was performed for business incubators'efficiency, using pure technical efficiency and scale efficiency as its variables. Results show that, our business incubators get conspicuous problem in resource allocation, improving the existing input-output combinations of resources and efficiency control to avoid redundant resources investment should be required; on the other hand, the continuing-improved business incubators get low efficiency, thus considerably lower the overall level of business incubators, so more focus should be given on how to improve the efficiency of this type of business incubator.