Abstract:      Incubators represent an essential policy instrument pivotal in catalyzing innovation within entrepreneurial ventures. Exploration of the symbiotic relationship between incubators and entrepreneurial entities holds substantial significance in augmenting the developmental effectiveness of these enterprises, thereby fostering a robust ecosystem conducive to innovation and entrepreneurship. This study, centering on incubators and their resident enterprises, delved into the dynamics of their mutual selection and matching processes grounded in the principles of bilateral matching theory. Furthermore, it conducted empirical examinations to ascertain the influence of these matching paradigms on the innovation investment strategies of the enterprises involved.The study presented herein discovered that: (1) The actual connections formed between incubators and entrepreneurial ventures closely comply with a two-sided matching process, wherein factors like company size, growth prospects, entrepreneurial background, team composition, and the attributes and prowess of the incubator play a vital role in establishing a stable alliance; (2) A robust alignment between startups and incubators markedly fosters innovation investment; and (3) Financial limitations serve as an intermediary influence linking the suitability of the startup-incubator pairing and the enterprises′ innovation investments. These outcomes suggest that a consistent partnership between incubators and entrepreneurial entities aids in matching the incubation market′s resource supply with demand and in forming trust-based relationships. This harmony eases financial hurdles for companies, thereby facilitating increased investment in innovation. This paper will offer novel viewpoints and strategic suggestions for the optimal distribution of resources within the entrepreneurial incubation arena to enhance innovation financing.

Key words: incubator, start-ups, bilateral matching;enterprise innovation investment