Abstract: Niche selection reflects the subject's utilization of resources and adaptation to the environment.?Incubators?have?the marketization and clustering development,?but most incubators have single revenue model and rely on government subsidies.?In view of this trend, the paper?studies how niche width and overlap?affect?the incubators’?performance?of?market?recognition and?government?recognition. The?paper chooses?147 incubator samples of Hangzhou future city?from 2015 to 2018?to?do empirical?study,?the conclusion?shows?that?in terms of market recognition, niche overlap has a significant negative impact?and?in terms of government recognition, niche width has a significant positive impact, while the interaction term between niche width and overlap degree has a significant negative impact and there is a double threshold effect. Therefore, the?paper ?proposes that the marketization operation of incubators should be guided by the uniqueness, and local governments should strengthen the internal combination of government recognition and market recognition?to form good guidance?for??incubator clusters .