The incubation center plays a very important role (factor) in the era of knowledge-based economy. It provides various and valuable services to the start-up companies, assists them in growing, and contributes greatly to the economic progress. The first Taiwanese incubation center was established in 1996, and there were about 50 by the end of 2000. Most of them were founded by the universities and sponsored by the government. Upon the literature review and expert interview, we carried out the SWOT analysis. These results suggest the government facilitate the development of private-owned incubation center, adjust the criteria of subsidy to the academic-based incubation center, amend obsolete rules, and restructure the university in order to provide a viable incubation environment.