Research on the Industrial Cluster Incubation System for Entrepreneurial Activities: the Construction and Functions

Practical Experience has shown that the agglomeration and successful rate of the entrepreneurial activity in the industrial clusters was much higher than non-industrial clusters, the aim of this paper is to contribute to a greater understanding of the process about how the industrial cluster promote the entrepreneurial activities functioning as the incubator of the entrepreneurs and enterprises. By analyzing the detailed cases of the leather industrial cluster in Wenzhou in China, we raised the following questions: (1) what are the major parties in the industry cluster that can construct an effective incubation system to enhance the entrepreneurs’ growth? (2)What are their functions in providing the resources to facilitate the entrepreneur growth and enterprise development? The empirical bases for the analyses are derived from various sources: historical documents, statistical data, and in-depth interviews with key entrepreneurs in private and public organizations. According to the evidence from Wenzhou, we proposed the model of the industrial cluster incubation system, which identified its major parties and the function of each party.