Abstract: Technology business incubators are important carrier to drive innovation development. This paper analyzes the mechanism of innovation driven development from the angle of technology incubators, and exmazines their innovation driving effect, using DEA-malquist index methods and the 2009-2012 years’ dynamic panel data of the national business incubators. Results indicate that the innovation driving effect of technology business incubators have large room for improvement, which are correlated significantly with entrepreneurship mentors,organizational structure and region. Besides, we also find that inefficient incubators are urgent to reduce the waste of space, personnel and other resources, and to improve the output of scientific & technological achievements and innovative talents. Further analysis show that, the innovation driving effect of China's technology business incubators has improved dynamically. In addition, results indicate that entrepreneurial mentors in Company type incubators can significantly improve technological progress and TFP (total factor productivity), than that in the entrepreneurship centers. According to the results, some correlated policy recommendations are proposed to improve the technology business incubators.

Key words: technology business incubators, innovation driving development, Malmquist productivity index, total factor productivity