This research investigates the role of local govments in stimulating an emerging industry and focuses on the specific growth of the new energy vehicle industry in Hangzhou,China.This research confirms that enabling firms to access emerging technology,acquire financial support,and touch customers and/or suppliers are critical to foster the emergence and development of industries.Moreover,the primary contribution of this study is to emphasize the support of the local govment in the development of emerging industries on the perspective of the creation of a large-scale market demand.The creation of large-scale market demand may inspire actors to be proactive in responding to these incentives;thus,public and private actions may help increase the accessibility to technology,infrastructure,and finances.Hence,a market-oriented policy that incentivizes the creation and expansion of market demand among diverse public and private actors should be seen as the key issue for the emergence and growth of emerging industries.Policies should also be adopted promptly with the development of the market.