Increasing attention has been paid to the development of the university-based science and technology park (USTP) in China since science and technology research has become a key factor in international competitiveness. In China, the essential role for the USTP is as a special kind of high-technology industry incubator, attached to a research university. This differentiates it from other Chinese science and technology parks. The paper sets out and discusses the strategic goals of the USTPs and their functions, as well as the management structure and operating systems which can best attain their goals of developing an innovative culture and promoting regional and national economic development. The authors also address the necessity for change in China's higher education system if the parks are to operate effectively and outline relevant issues for government policy. (Contains 1 table and 1 figure.)