Abstract
This paper initially studied the formation and development of the derived economic ring circling university induced by university’s operations. University operations are associated with specific economic externalities; mainly due to that university has a strong cash flow which causes the effect of pooling of business resources. In all aspects, Capital flow movement is the most active operating resource succession in the ring, and is one of the academic fields worthy of extensive research. Forward induction and reverse incubation are effective useful approaches for university operators to form the derivative economic ring in practice.
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