Difference between revisions of "Incubator Definition Based on a Review of Definitions in the Literature"
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by providing office space, sharedservices and business assistance. A business incubator is a shared officespace facility that seeks to provide its incubatees (i.e. ‘‘portfolio-’’ or ‘‘client-’’ or ‘‘tenant-companies’’) with a strategic, value-adding intervention system (i.e. business incubation) of monitoring and business assistance. This system controls and links | by providing office space, sharedservices and business assistance. A business incubator is a shared officespace facility that seeks to provide its incubatees (i.e. ‘‘portfolio-’’ or ‘‘client-’’ or ‘‘tenant-companies’’) with a strategic, value-adding intervention system (i.e. business incubation) of monitoring and business assistance. This system controls and links | ||
resources with the objective of facilitating the successful new venture development of the incubatees while simultaneously containing the cost of their potential failure...the incubator is also a network of individuals and organizations including the incubator manager and staff, incubator advisory board, incubatee companies and employees, local universities and university community members, industry contacts, and professional services providers such as lawyers, accountants, consultants, marketing specialists, venture capitalists, angel investors, and volunteers.Typically, most incubators do not maintain their own investment fund, serving | resources with the objective of facilitating the successful new venture development of the incubatees while simultaneously containing the cost of their potential failure...the incubator is also a network of individuals and organizations including the incubator manager and staff, incubator advisory board, incubatee companies and employees, local universities and university community members, industry contacts, and professional services providers such as lawyers, accountants, consultants, marketing specialists, venture capitalists, angel investors, and volunteers.Typically, most incubators do not maintain their own investment fund, serving | ||
| − | instead as a broker that introduces incubatees to sources of capital when the need arises (pp. 8). [He separates incubators by] Incubator level: primary financial sponsorship - Publicly Sponsored; Nonprofit-sponsored; University-sponsored; Privately-sponsored (pp. 8, Kuratko and LaFollette,1987; Smilor, 1987b; Temali and Campbell, 1984). | + | instead as a broker that introduces incubatees to sources of capital when the need arises (pp. 8). [He separates incubators by] Incubator level: primary financial sponsorship - Publicly Sponsored; Nonprofit-sponsored; University-sponsored; Privately-sponsored (pp. 8, Kuratko and LaFollette,1987; Smilor, 1987b; Temali and Campbell, 1984). [He also separates incubators by] Business assistance: 1. Shared space; 2. Low rent; 3. Business support services (pp. 8; Brooks, 1986) |
| [https://link.springer.com/content/pdf/10.1023%2FB%3AJOTT.0000011181.11952.0f.pdf/ Link] | | [https://link.springer.com/content/pdf/10.1023%2FB%3AJOTT.0000011181.11952.0f.pdf/ Link] | ||
| TBD | | TBD | ||
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|Allen and Rahman | |Allen and Rahman | ||
|1985 | |1985 | ||
| − | |the universal purpose of an incubator is to increase the chances of a[n incubatee] firm surviving its formative years | + | |...the universal purpose of an incubator is to increase the chances of a[n incubatee] firm surviving its formative years. The incubator provides a protected environment in which new ventures—representing opportunities both for local economic expansion and investment—can develop. |
|[https://link.springer.com/content/pdf/10.1023%2FB%3AJOTT.0000011181.11952.0f.pdf/ Link] | |[https://link.springer.com/content/pdf/10.1023%2FB%3AJOTT.0000011181.11952.0f.pdf/ Link] | ||
|TBD | |TBD | ||
|- | |- | ||
| − | | | + | |Temali and Campbell |
| − | | | + | |1984 |
| − | | | + | |Incubators can be classified according to the nature of their primary financial sponsor or the business focus of the incubatees. |
| | | | ||
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Revision as of 11:43, 27 March 2019
Contents
Methodology
-Source: Google Scholar -Search terms: incubator* AND (compan* OR firm*) -Steps: 1. Found The Evolution of Business Incubators: Comparing demand and supply of business incubation services across different incubator generations; 2. Looked through intro of article and found chart and list of definitions of incubators
Incubator Definitions in the Literature
| Institution | Publication Year | Definition | URL | Key Characteristics |
|---|---|---|---|---|
| National Business Incubation Association | Business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts. A business incubator's main goal is to produce successful firms that will leave the programme financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies. | Link | TBD | |
| United Kingdom Business Incubation | Business Incubation is a unique and highly flexible combination of business development processes, infrastructure and people, designed to nurture and grow new and small businesses by supporting them through the early stages of development and change. | Link | TBD | |
| European Commission | A business incubator is an organization that accelerates and systematises the process of creating successful enterprises by providing them with a comprehensive and integrated range of support, including: Incubator space, business support services, and clustering and networking opportunities. By providing their clients with services on a ‘one-stop-shop’ basis and enabling overheads to be reduced by sharing costs, business incubators significantly improve the survival and growth prospects of new start-ups. A successful business incubator will generate a steady flow of new businesses with above average job and wealth creation potential. Differences in stakeholder objectives for incubators, admission and exit criteria, the knowledge intensity of projects, and the precise configuration of facilities and services, will distinguish one type of business incubator from another (p. 9). | Link | TBD | |
| Organisation for Economic Co-operation and Development | Technology incubators are a specific type of business incubator: property-based ventures which provide a range of services to entrepreneurs and start-ups, including physical infrastructure (office space, laboratories), management support (business planning, training, marketing), technical support (researchers, data bases), access to financing (venture capital funds, business angel networks), legal assistance (licensing, intellectual property) and networking (with other incubators and government services) (p. 4). | Link | TBD | |
| Aernoudt | 2004 | An interactive development process where the aim is to encourage people to start their own business and to support start-up companies in the development of innovative products. (…) Besides accommodation, an incubator should offer services such as hands-on management, access to finance (mainly through links with seed capital funds or business angels), legal advice, operational know-how and access to new markets (p. 127). | Link | TBD |
| Sherman and Chappell | 1998 | Business incubator is an economic development tool primarily designed to help create and new businesses in a community. Business incubators help emerging businesses by providing various support services, such as assistance in developing business and marketing plans, building management teams, obtaining capital, and access to a range of more specialized professional services. They also provide flexible space, shared equipment, and administrative services (p. 313). | Link | TBD |
| Hackett et al. | 2004 | Viewed the incubator as an enterprise that facilitates the early-stage development of firms
by providing office space, sharedservices and business assistance. A business incubator is a shared officespace facility that seeks to provide its incubatees (i.e. ‘‘portfolio-’’ or ‘‘client-’’ or ‘‘tenant-companies’’) with a strategic, value-adding intervention system (i.e. business incubation) of monitoring and business assistance. This system controls and links resources with the objective of facilitating the successful new venture development of the incubatees while simultaneously containing the cost of their potential failure...the incubator is also a network of individuals and organizations including the incubator manager and staff, incubator advisory board, incubatee companies and employees, local universities and university community members, industry contacts, and professional services providers such as lawyers, accountants, consultants, marketing specialists, venture capitalists, angel investors, and volunteers.Typically, most incubators do not maintain their own investment fund, serving instead as a broker that introduces incubatees to sources of capital when the need arises (pp. 8). [He separates incubators by] Incubator level: primary financial sponsorship - Publicly Sponsored; Nonprofit-sponsored; University-sponsored; Privately-sponsored (pp. 8, Kuratko and LaFollette,1987; Smilor, 1987b; Temali and Campbell, 1984). [He also separates incubators by] Business assistance: 1. Shared space; 2. Low rent; 3. Business support services (pp. 8; Brooks, 1986) |
Link | TBD |
| Allen and McCluskey | 1990 | ...focus on the primary and secondary objectives of four types of incubators that are distributed along a valueadding continuum.From least value-adding to most value-adding, these incubator types include For-Profit Property Development Incubators, Non-Profit Development Corporation Incubators, Academic Incubators, and For-Profit Seed Capital Incubators. | Link | TBD |
| Allen and Rahman | 1985 | ...the universal purpose of an incubator is to increase the chances of a[n incubatee] firm surviving its formative years. The incubator provides a protected environment in which new ventures—representing opportunities both for local economic expansion and investment—can develop. | Link | TBD |
| Temali and Campbell | 1984 | Incubators can be classified according to the nature of their primary financial sponsor or the business focus of the incubatees. |
Obstacles of Defining an Incubator
- "There are several sources of definitional ambiguity. First is the diffusion and repeated adaptation of the original business incubator concept in order to fit varying local needs and conditions (Kuratko and LaFollette, 1987). Second is the interchangeable manner in which the terms ‘‘Research Park,’’ ‘‘Technology Innovation Center,’’ and ‘‘Business Incubator’’ are used in the literature (Swierczek, 1992)" Source. - "...emergence of virtual incubators (also referred to as ‘‘incubators without walls’’) that endeavor to deliver business assistance services to incubatees who are not colocated within the incubator." Source. - "...draw[ing[ out a distinction between incubators as real estate development efforts, and incubators as systematic business developmentbusiness assistance efforts (Brooks, 1986; Smilor, 1987b; Smilor and Gill, 1986). Source.
