Abstract: At present, the constructions of innovation ecosystem in Shanghai and Beijing have been at the forefront in China. However, Shanghai is facing the challenge on how to reduce business cost. The Silicon Valley of America with high business cost sets a good example of a complete, mature regional innovation ecosystem which attracting a large number of start-up enterprises by low opportunity costs "offset" high business costs. Based on the theory of innovation ecosystem, this study analyzes the development characteristics and government behavior of innovation ecosystem in the Silicon Valley of America from the national level and local level. At last, this paper puts forward some suggestions on how to deepen the construction of global S&T innovation center in Shanghai.