Commercializing Technology Through New Business Incubators

Abstract

Considers the new business incubator as a means of leveraging resources to develop new companies. The new business incubator - otherwise known as the innovation center, among other names - has been evolving since the late 1970s to give new firms, especially high-technology and manufacturing firms, structure and credibility. As a company's innovative management system, the incubator's director, board of directors, advisory council, and consultant network provide knowledge and enthusiasm, improved efficiency, and the perception of success, among other things. These resources, and more specific assistance related to facilities support, administrative assistance and business expertise, give the company a competitive edge. A national survey of new business incubators was administered in July-August of 1985, followed up by onsite analysis and in-depth interviews with incubator managers and directors in the United States. According to the data from the 50 respondents, management and marketing are the two most important functions of incubators. Firms that participate in an incubator are almost twice as likely to succeed than fail. Four incubator models are discussed: university-related, private, community, and corporate/franchise. At the time of the survey, approximately 170 incubators have been established in the U.S., with more under development in countries such as Japan, China, France, England and Germany. Conclusions show that while the incubator concept is still in the experimental stages, its usefulness in leveraging resources, encouraging development, and promoting cross-institutional networking will ensure its continued growth. (CJC)

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