The rapid development of modern information economy and the ups and downs of mass entrepreneurship have put forward higher requirements for innovation and entrepreneurship education. In view of the current situation and shortcomings of innovation and entrepreneurship education, a virtual city system based on virtual reality technology is proposed as a practical training platform for college students’ innovation and entrepreneurship. The platform provides basic functions such as resource supply, production, management, and consulting services. College students, as citizens of a virtual city, engage in various creative, production, and management activities. Teachers guide college students’ innovation and entrepreneurship activities in accordance with the goals of urban development. Based on this, a series of courses have been developed to systematically train university students’ innovative and entrepreneurial abilities. This paper mainly studies the simulation system of college students’ innovation and entrepreneurship based on virtual reality technology. This article has conducted simulation research on virtual reality innovation and entrepreneurship of Chinese college students, and conducted data surveys. The amount of science and technology talent introduction and cultivation has increased, but the growth rate is slow and the number of R & D personnel is relatively small. There are 700,000 technical personnel, including 9,000 scientific and technological activity personnel, and only 7,000 R & D personnel. By 2019, the number will increase to 980,000 professional and technical personnel, 198,000 scientific and technological activity personnel, and 150,000 research and development personnel. However, the overall growth rate has slowed down, and the number of R & D personnel has been relatively small.