Identifying Business Incubators Based on Their Real Activities: Evidence from China

Past literature on business incubators distinguished incubators based on their mission statements. However, more and more mission statements become a slogan rather than a reality. It is therefore more appropriate to identify business incubators based on their real activities, rather than the missions they declared. With a sample of technology business incubators (TBIs) in China, we try to investigate business incubators’ real activities by examining the incubation efficiency along the following five dimensions, i.e., survival of new ventures, technology transfer, local economic growth, job creation, and profit generation. Furthermore, we identified six types of business incubators. The results indicate that generally Chinese TBIs have a greater preference for acquiring profits over other dimensions. 





References:
[1] Aerts, K., Matthyssens, P. & Vandenbempt, K., “Critical role and
screening practices of European business incubators”, Technovation, vol.
27, no.5, pp. 254-267, May. 2007.
[2] Bruneel, J., Ratinho, T. & Clarysse, B., “The evolution of business
incubators: comparing demand and supply of business incubation services
across different incubator generations”, Technovation, vol. 32, no.2, pp.
110-121, Feb. 2012.
[3] Phan, P.H., Siegel, D.S. & Wright M., “Science parks and incubators:
observations, synthesis and future research”, Journal of Business
Venturing, vol. 20, no. 2, pp. 165-182, Mar. 2005.
[4] Lalkaka, R. & Shaffer D., “Nurturing entrepreneurs, creating enterprises:
technology business incubation in Brazil,” International conference on
effective business development services, 1999.
[5] MOST. “China was ranked second to the United States in terms of the
number of incubators on a world scale,”
http://www.most.gov.cn/kjbgz/200712/t20071224_57980.htm. Dec.
2007.
[6] Aernoudt, R., “Incubators: tool for entrepreneur?”, Small Business
Economics, vol. 23, no. 2, pp. 127-135, Sep. 2004.
[7] Barbero, J.L., Casillas, J. C. & Ramos, A., “Revisiting incubation
performance how incubator typology affects results”, Technological
Forecasting and Social Change, vol. 79, no. 5, pp. 888-902, 2012.
[8] Grimaldi, R. & Grandi, A., “Business incubators and new venture
creation: an assessment of incubating models”, Technovation, vol. 25, no.
2, pp.111-121, Feb. 2005.
[9] Scillitoe, J.L. & Chakrabarti, A.K, “The role of incubator interactions in
assisting new ventures,” Technovation, vol. 30, no. 3, pp.155-167, Mar.
2010.
[10] Allen, D.N. & Mccluskey, R., “Structure, policy, services, and
performance in the business incubator industry,” Entrepreneurship,
Theory and Practice, vol. 15, no. 2, pp. 61-77, 1990.
[11] Peters, L., Rice, M. & Sundararajan M., “The role of incubators in the
entrepreneurial process,” Journal of Technology Transfer, vol. 29, no. 1,
pp.83-91, Jan. 2004.
[12] Mian, S.A., “Assessing value-added contributions of university
technology business incubators to tenant firms,” Research Policy, vol. 25,
no. 3, pp.325-335, May. 1996.
[13] Bøllingtoft, A. & Ulhøi, J.P., “The networked business
incubator–leveraging entrepreneurial agency?” Journal of Business
Venturing, vol. 20, no. 2, pp. 265-290, Mar. 2005.
[14] Hansen, M.T., Chesbrough, H.W. & Nohria N., “Networked incubators:
hothouses of the new economy,” Harvard Business Review, vol. 78, no 5,
pp.74-84, Sep/Oct. 2000.
[15] Hackett, S.M. & Dilts, D.M., “A real options-driven theory of business
incubation”. Journal of Technology Transfer, vol. 29, no 1, pp. 55-82, Jan.
2004.
[16] Colombo, M. & Delmastro, M., “How effective are technology
incubators? Evidence from Italy,” Research Policy, vol. 31, no. 7, pp.
1103-1122, Sep. 2002.
[17] Peña, I., “Business incubation centers and new firm growth in the Basque
country,” Small Business Economics, vol. 22, no. 3, pp. 223-236,
Apr/May. 2004.
[18] Chen, C.J., “Technology commercialization, incubator and venture
capital, and new venture performance,” Journal of Business Research, vol.
62, no. 1, pp. 93-103, Jan. 2009.
[19] Bøllingtoft, A. 2012. The bottom-up business incubator: Leverage to
networking and cooperation practices in a self-generated,
entrepreneurial-enabled environment. Technovation, 32(5):304-315.
[20] Bergek, A. & Norrman, C., “Incubator best practice: a framework.,”
Technovation, vol. 28, no. 1, pp. 20-28, May. 2008.
[21] Chan, K.F. & Lau, T., “Theresa Lau, Assessing technology incubator
programs in the science park: the good, the bad and the ugly,”
Technovation, vol. 25, no. 10, pp. 1215-1228, Oct. 2005.
[22] Hackett, S.M. & Dilts, D.M., “A systematic review of business incubation
research,” Journal of Technology Transfer, vol. 29, no. 1, pp. 55-82, Jan.
2004.
[23] Ratinho, T. & Henriques, E., “The role of science parks and business
incubators in converging countries: Evidence from Portugal,”
Technovation, vol. 30, no. 4, pp. 278-290, Apr. 2010.
[24] Sá, C. & Lee, H. “Science, business, and innovation: understanding
networks in technology-based incubators,” R&D Management, vol. 42,
no. 3, pp. 243-253, 2012.
[25] NBIA. Business Incubation FAQ
http://www.nbia.org/resource_center/bus_inc_facts/index.php. May.
2008.
[26] UKBI. “What is Business Incubation?” http://www.ukbi.co.uk. May.
2008.
[27] EC., “Benchmarking of Business Incubators,” Final report, Brussels,
2002.
[28] Rice, M.P., “Co-production of business assistance in business incubators,
an exploratory study,” Journal of Business Venturing, vol. 17, no. 2, pp.
163-187, Mar. 2002.
[29] Phillips, R.G., “Technology business incubators: how effective as
technology transfer mechanisms?” Technology in Society, vol. 24, no. 3,
pp. 299-316, Aug. 2004.
[30] Siegel, D., Westhead, P. & Wright, M., “Science parks and the
performance of new technology based firms: a review of recent UK
evidence and an agenda for future research,” Small Business Economics,
vol. 20, no. 2, pp. 177-184, Mar. 2003.
[31] Rothaermel, F.T. & Thursby, M., “Incubator firm failure or graduation?
The role of university linkages,” Research Policy, vol. 34, no. 7, pp.
1076-1090, Sep. 2005.
[32] Rothaermel F.T. & Thursby, M., “University-incubator firm knowledge
flows: assessing their impact on incubation firm performance,” Research
Policy, vol. 34, no. 3, pp. 305-320, Apr. 2005.
[33] Hu, A., “Technology parks and regional economic growth in China,”
Research Policy, vol. 36, no. 1, pp. 76-87, Feb. 2007.
[34] Yuan & Gao, Z., “Programs and Plans for the Development of Science
and Technology of China,” National Defense Industry Press, Beijing,
1992.
[35] Yin, R., “Alternative measurements of productive efficiency in the global
bleached softwood pulp sector,” Forest Science, vol. 46, no. 4, pp.
558-569, 2000.
[36] Dai B. & Sun D. “Study on the Performance of Enterprise Incubator
Based on DEA Method,” Science & Technology Progress and Policy, vol.
29, no. 1, pp. 142-146, 2012.
[37] Zhang J. & Yin Q., “Difference Study on the Operational Efficiency of
Business Incubators in China - Based on Data Envelopment Analysis and
Cluster Analysis,” Science of Science and Management of S&T, vol. 31,
no. 5, pp. 171-177, 2010.
[38] Diza-Balteiro, L. & Heruzo A.C., “An analysis of productive efficiency
and innovation activity using DEA: an approach to Spain’s wood-based
industry,” Forest Policy and Economics, vol. 8, no. 7, pp. 762-773, Oct.
2006.
[39] Iraizoz, B., Rapun, M. & Zabaleta, I., “Assessing the technical efficiency
of horticultural production in Navarra, Spain,” Agricultural System, vol.
78, no. 5, pp. 387-403, Dec. 2003.
[40] Thursby J.G. & Kemp, S., “Growth and productive efficiency of
university intellectual property licensing,” Research Policy, vol. 31, no. 1,
pp. 109-124, Jan. 2002.
[41] Thursby J.G. & Thursby, M.C., “Who is selling the ivory tower? Sources
of growth in university licensing,” Management Science, vol. 48no. 1, pp.
90-104, Jan. 2002.
[42] Siegel, D., Waldman, D. & Link, A., “Assessing the impact of
organizational practices on the relative productivity of university
technology transfer offices: an exploratory study,” Research policy, vol.
32, no. 1, pp. 27-48, Jan. 2003.
[43] Siegel, D., Westhead P. & Wright, M., “Assessing the impact of
university science parks on research productivity: exploratory firm-level
evidence from United Kingdom,” International Journal of Industrial
Organization, vol. 21, no. 5, pp. 1357-1369, Nov. 2003.
[44] Schwartz, M. & Hornych, C., “Cooperation patterns of incubator firms
and the impact of incubator specialization: Empirical evidence from
Germany,” Technovation, vol. 30, no. 9, pp. 485-495, Sep/Oct. 2010.