Abstract The main purpose of this research is to explore the development characteristics, types, functions and operating mechanisms of incubation center in Taiwan and to analyze their relationships. The research processes mainly through case study.And Incubation Center of Taiwan University is selected for data collection and interview because of its outstanding performance. We analyze the operating mechanisms and the current state of our research target.To obtain more objective conclusions, we also interview and collect data from some tenants as comparation. The results and suggestions are as followed: 1.The float rate of the prjoect manager will influence the Incubation Center. 2.Government's relevant policies will influence the operating mechanisms and goals of Incubation Center. 3.The extent the school supports their own Incubation Center will influence the elasticity. 4.The completeness of incubation system will promote the efficiency of Incubation Center. 5.The operating model that Incubation Center, together with Incubation Company, channels into flexible and efficient corporatization management can plurally extend their targets and methods of service. 6.Because of the slow progress of the government¡¦s efforts in revising relevant law, the realistic operation can not be integrated. 7.The operations of the incubation center need to be set up on the basis of cooperartion in the manufacturer, school and incubation center to reach sustainablity.