ABSTRACTTaking an ecological perspective, we examine how two types of interdependence among business incubators located in the same region – mutualism and competition – affect the performance of these incubators. Using a dataset on Chinese National Technology Business Incubators (NTBIs) from 2008 to 2012, we show that incubator interdependence, measured by regional incubator density, has an inverted U-shaped relationship with a focal NTBI’s performance. We further explore how incubator ownership (government-owned vs. non-government-owned) and strategy (specialised vs. diversified) moderate the above relationship in China’s transitional economy. The results indicate that the linkage between incubator interdependence and incubation performance is stronger for non-government-owned and diversified business incubators. Theoretical and managerial implications are discussed.