This study aims to formulate an innovative business incubator model by optimizing the school cooperative’s role to enhance the entrepreneurial spirit of vocational high school students in Indonesia. The method used in this study was the research and development (R&D) method from Thiagarajan, Semmel, and Semmel (1974), namely the Four-D model (define, design, develop, and disseminate) to determine a business incubator model which is compatible with school cooperatives design. Data were collected by questionnaire and interviews of students and teachers in several vocational high schools located in Central Java, Indonesia. The research resulted in the innovation management of school cooperatives which is integrated into a new business incubator model which has successfully improved the knowledge, practical skills, and entrepreneurial spirit of students in observed schools. The model consists of three stages, including planning, implementation, and evaluation which implies that collaboration among school stakeholders is key in implementing this business incubator model in order to achieve the same goal; strengthening students’ entrepreneurial spirit. The model defined in this result could be implemented in other schools to be analyzed further in terms of its effectiveness. © 2022 The Authors.
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