The Promoting Effect of Regional Incubator Operational Efficiency on Regional Industrial Structure Upgrading

Since the 1980s, Western countries have utilized business incubators with notable success. In China, research on incubators remained largely theoretical in the 1990s, and practical implementation did not occur until around 2010. However, their impact on the economy, society, and technology remains unclear. Using panel data from 30 provinces in China between 2014 and 2023, this study examines how the operational efficiency of regional business incubators affects industrial structure upgrading. The study finds that: First, the operational efficiency of regional business incubators significantly promotes industrial structure upgrading and is an important driving force for high-quality economic development. Second, there is a U-shaped relationship between the operational efficiency of business incubators and the level of industrial structure upgrading. In the early stages of incubator development, efficiency may inhibit industrial upgrading, but as efficiency improves, its positive impact becomes more evident. Third, the effect of business incubator operational efficiency on industrial structure upgrading varies across regions, with more pronounced effects in the eastern region. The paper recommends enhancing incubator efficiency, improving infrastructure, and fostering regional cooperation to optimize industrial structures and support sustainable economic development.