Abstract:Zhejiang province has put forward four indicators for hidden champions, including focus on production, high-quality manufacturing, characteristic development, and continuous innovation. Based on the sample composed of 555 hidden champions in Zhejiang province from 2015 to 2017, this study examined the driving models of these enterprises from two dimensions by using a cluster analysis. This paper also explored the distribution of characteristics of different kinds of hidden champions and tested the effects of policy support on their business operations. The results show that: (1) The hidden champions in Zhejiang can be divided into four types, namely, factor-driven, innovation-driven, low-level dual-driven, and high-level dual-driven. At present, most of them are low-level dual-driven enterprises. The number and driving models of hidden champions are not evenly distributed in different regions. (2) There are significant differences in the business operations of hidden champions with different driving models, and the high-level dual-driven provides an important direction for the development of hidden champions. Specifically, we can increase the R&D investment of factor-driven enterprises, and increase the factor input of innovation-driven enterprises. (3) Policy support has generated a desirable impact on the business operations of hidden champions, in particular, on their R&D input and main business income, which have increased significantly after the launch of the plan. Based on above conclusions, we have provided some countermeasures for Zhejiang province, including raising the selection criteria, implementing the echelon cultivation and exit mechanism, accelerating the cultivation work of the central and southern regions of Zhejiang province, and accurately implementing the policy based on different driving models.