Technology business incubators as engines of growth: towards a distinction between technology incubators and non-technology incubators

Business incubators are an increasingly popular tool for promoting job and wealth creation. Yet given the heterogeneity of incubation models, it is not always clear how incubators operate, what their main characteristics are and how can they best contribute to job and wealth creation. If technology is central in promoting economic growth and new firm creation the crucial mechanism in transferring new knowledge to markets, then technology incubators have the biggest potential to contribute to economic growth. We define technology incubators by their strategic choices in terms of mission, linkages to universities and geographical location. We investigate their nature by comparing the levels of business services provision, selection criteria, exit policy and tenants’ characteristics. Our sample includes 12 incubators located in six Northwestern European countries and a total of 101 incubated companies. Data were collected in both incubators and among their tenants. Results show that technology incubators provide more tenants with their services, select younger companies and practice stricter exit policies. Additionally, they tend to attract more experienced teams of entrepreneurs. Our main contribution is a better understanding of the technology incubators impact against the remainder population of business incubators. We speculate that incubators not focussed in incubating technology might not be contributing to company creation at all. Further, the low levels of service provision are both a product and a consequence of slack selection criteria and weak exit policies. Finally, we discuss the implications of our findings to business incubator managers, policy makers and prospective tenants

Are Business Incubators helping? The role of BIs in facilitating tenants’ development

Business incubators (BI) are among a variety of initiatives to stimulate economic growth by promoting the creation and development of new companies. The rapid growth of BIs in recent years confirms their importance in the economic fabric. In this study, we conceptualize BIs using insights from knowledge based theory of the firm, resource-based view thinking and capabilities literature. BIs will be seen as service providers geared towards helping their tenants in solving developmental problems. The more problems the BI helps to solve the bigger the incubation value for tenants; further, as tenant firms solve problems they develop important capabilities which will yield increase their chances of survival once they graduate. Results show that tenants unequivocally seek support after experiencing problems. Solving those problems is a function of BI support and other external sources part of each tenant firm’s network of contacts. Age and human capital of tenant firms have a negative impact in the total number of the problems solved, suggesting BIs’ deficiencies in helping more experienced and older tenants. Our main contribution is to shed light on the processes of delivering support to young firms within BIs. Importantly, we assess the value of the BIs’ intervention by measuring the amount of developmental problems they help tenants to overcome. Finally, we discuss the implication of our finding to BI managers, prospective tenants and policy makers

Planning effectual growth: a study of effectuations and causation in nascent firms

Two main contrasting approaches are used in the entrepreneurship literature to explain how new ventures strategize: causal/planned strategies and effectual/emergent strategies. In this study, we explore the use of these strategies within micro and small firms. Our results show that larger companies typically used more planned strategies while simultaneously relying on effectual mechanisms. We observe that companies operating in known markets, anchoring their business ideas on experience and having a strong growth intention grow larger. This suggests that causal and effectual mechanisms can co-exist and lead to growth when combined. Theoretical and practical implications of these findings are discussed

Reframing the role of knowledge parks and science cities in knowledge-based urban development

Knowledge-based urban developments (KBUDs) are an increasingly common element of urban planning and strategy making: policy makers and developers set out to stimulate economic prosperity by promoting the integration and concentration of research, technology, and human capital. But KBUD is, by its advocates’ own admission, a fuzzy concept, assuming that local physical development will drive urban upgrading within wider innovative production networks. We seek to address one element of this confusion by exploring how physical developments actively create innovative connections between local actors, drawing on the microscale science park and incubator literature. Using the case of one knowledge precinct, Kennispark in the east of the Netherlands, we investigate how active and passive elements of KBUDs drive integration of knowledge infrastructure in the urban fabric, as a prerequisite to building cross-city connections. On the basis of both qualitative and quantitative data, we conclude that there is a dynamic interrelation of proximity and connectivity within the precinct that contributes to building within-city knowledge communities that may in turn lead to improved cross-city connectivity and hence urban upgradin

Business support within business incubators

Business incubators (BI) have been established worldwide as tools for company creation and small businesses support. BIs claim to help their tenants by providing them with the optimal conditions for increasing early stage survival. Practitioners and researchers agree that business support is a crucial dimension of BI. Yet this feature is seldom researched. In this study we investigate to what extent business incubators support their tenants overcome their developmental problems. Results show that tenants do not experience many problems and when they do business support is not necessarily sought. Furthermore, our data suggests that business support is not preferentially sought within incubator environment. When this happens, support provided by the BI does not contribute to problem solving. Finally, we discuss the impact of the type of BI in helping their tenants

Are they really helping? : an assessment of evolving business incubators'value proposition

Most studies about business incubation describe an array of available services but often fail to present the tenants’ assessment quality. We set out to investigate if business incubators differ in terms of their value proposition. To do so, we identify three distinct generations of business incubators based on different dimensions included in their value proposition. We pose the question of whether the generation affects the extent to which tenant companies use the different dimensions of the incubator’s value proposition. Using data collected within business incubators and their respective tenants, the results show that while incubators claim to have similar support structures regardless of their generation, tenants in the older generations make less use of the incubator’s service portfolio. We discuss the implications of our findings for incubator managers, prospective tenants and policy makers

Regional innovation culture in an age of globalisation - towards culture 2.0?

How can the issue of regional culture be used in analyses of territorial innovation in ways that are not self-evidently flawed? The persistent invocation of ‘culture’ as an explanatory or residual influence in explaining differential territorial outcomes suggests that there is likely to be some variables which should be accounted for. But at the same time, approaches tend to fail to precisely specify culture in ways that do not take it as being exogenous and fixed. This paper argues that this shortcoming results from trying to apply the concept regional culture to explain regions as a bounded systems, and that by relaxing this constraint, and thinking of culture within open and porous systems, it becomes possible to identify how culture might meaningfully operate around territorial innovation at the regional scale, through learning arenas linking local materialist practices with wider epistemic communities. Using a brief illustration drawn from the region of Twente in the Netherlands, focusing on the role of its university as a learning arena, the paper argues that more focus on how learning arenas create regional-scale networks will help to illuminate the influence of regional culture within territorial innovation models