Entrepreneurship and innovation have become increasingly important for regional economic development and industry upgradation in recent China. This research focuses on the rapid growth of entrepreneurship in the city of Shenzhen and investigates the relationship between incubation policies and high-tech startup formation from a spatial perspective. Using firm-level data in 2020 and employing a geographical grid-based analysis, it builds spatial econometric models to examine the effect of local incubators on the formation and aggregation of new firms. The spatial Zero-inflated Poisson regression model is selected after a comparison of different models. After controlling other factors, the result shows that incubators have a significant positive effect on attracting new high-tech startups. Besides, the effect of different types and levels of incubators is different. In general, the lower administrative level mass maker spaces have a more significant positive effect than the larger, government-backed technology business incubators.