's not just steel, coal and apartment buildings anymore. China's facing another type of glut as it's economy slows. Start up spaces, incubators and accelerators. I'm Sue Lin Wong in China's eastern city of Tianjin. I'm standing in a special zone built by the government to encourage innovation.
It's about 5 square kilometers. That's about two square miles and it already has 11 incubators. The government's been trying to fill it up, but the entrepreneurs just aren't showing up. China is trying to build innovation from the top down, by setting aside spaces for startups. But some experts say government projects like these lead to wasteful spending.
In the northern town of Chartrung, signs of a bubble. The economy here is growing at half of the national rate. The government hoped this 25-floor state funded incubator could attract startups and spur growth, but it's empty. And it's far from the only case. China's got about 2,000 startup spaces and is building many more.
Most of them are government funded. Today the occupancy rate is less than 40%. Meanwhile, private startup spaces like this one in Beijing are filling up. The boss boy plans to open 20 more locations within two years.>> It seems like the government's incubators are more like employment projects, so most of them are located outside town where rents are lower, but we're thinking about needs of the entrepreneur so we put our offices in the heart of the city.
>> Others say if the government really wants to build a high tech innovation theme, it would have a better chance of success if it got experts like venture capitalists on board.>> Put some money in the game and set them loose to find and fund the next generation of entrepreneurs.