Small and medium enterprises (SMEs) have played an important role in Taiwan' s economic development whereas business incubation centers facilitate and foster SMEs strengthen their innovation capabilities. Due to a new business revolution creation, Web 2.0, it is critical to understand the rules for success on the new platform. This paper introduces the development of business incubation centers and web 2.0 concepts. We analyze the competitive opportunity for innovative incubation centers are to fully embrace the potential of Web 2.0 to collaboration and sharing between users. We propose a knowledge sharing service (KSS) model for innovative incubation centers. The KSS model amalgamates Web 2.0 and CORPS model to facilitate the process of creating an environment conducive to innovation and new business activity. The proposed KSS model aims to help innovation incubation centers moving towards a dynamic, collaborate intelligence and sharing new era - Web 2.0 and beyond.