Business incubators as a technological infrastructure for supporting small innovative firms’ activities

International Journal of Entrepreneurship and Innovation Management

Volumn 3, Issue 1-2, 2003, Pages 4-21

  Vedovello, C ^a   Godinho, M ^b  

^a Instituto de Pesquisas Tecnologicas   (Brazil)

^b UNIVERSITY OF LISBON   (Portugal)

Author keywords

business incubator; innovation policy; small and medium sized firms; Technological infrastructure

Indexed keywords

EID: 84887758833     PISSN: 1368275X     EISSN: 17415098     Source Type: Journal    
DOI: 10.1504/ijeim.2003.002215     Document Type: Article

References (26)

1. Gregersen, B. and Johnson, B. (2001) ‘Learning economy, innovation systems and development’, Paper prepared for the ESST Converge Project (‘Strategies and policies for systemic interactions and convergence in Europe – converge’).
2. OECD (1996) Industrial Competitiveness, Directorate for Science, Technology and Industry, Head of Publications Service, Paris.
3. Porter, M. (1990) The Competitive Advantage of Nations, MacMillan.
4. Georghiou, L.G. and Metcalfe, J.S. (1993) ‘Evaluation of the impact of European Community research programmes upon industrial competitiveness’, R&D Management, Vol. 23, No. 2, pp.161–169.
5. For a detailed discussion about this topic, see Nelson, R.R. and Rosenberg, N. (1993) ‘Technical innovation and national systems’, in Nelson, R.R. (Ed.) National Innovation Systems: A Comparative Analysis, Oxford University Press, pp.3–21.
6. Gonenç, R. (1994) ‘A new approach to industrial policy’, The OECD Observer, April/May, Vol. 187, pp.16–19.
7. The differences between mechanisms and channels are not always clear. Within the context of technology transfer, Autio and Laamanen [8] present the following definitions: technology transfer mechanism “is any specific form of interaction between two or more social entities during which technology is transferred” and technology transfer channel “is the links between two or more social entities in which the various technology transfer mechanisms can be activated”. In other words, mechanisms refer to the form of transferring something and channels relate to the link, or context, in which the mechanism is inserted in.
8. Autio, E. and Laamanen, T. (1995) ‘Measurement and evaluation of technology transfer: review of technology transfer mechanisms and indicators’, Int. J. Technology Management, Vol. 10, No. 7/8, pp.643–664.
9. Kandel, N. (1994) ‘RTO infrastructure in Europe: analytical survey’, in CEC, The Future of Research and Technology Organizations in Europe, (RTOs) EUR 15458 EN.
10. Rush, H., Hobday, M., Bessant, J. and Arnold, E. (1995) ‘Strategies for best practice in research and technology institutes: an overview of a benchmarking exercise’, R&D Management, Vol. 25, No. 1, pp.17–31.
11. Justman, M. and Teubal, M. (1996) ‘Technological infrastructure policy: an international perspective’, foreword and introduction in Teubal, M., Foray, D., Justman, M. and Zuscovitch, E. (Eds.) The Jerusalem Institute for Israel Studies, Kluwer Academic Publishers.
12. Rush and colleagues [10] investigated the following Research and Technology Institutes: Institute fur Produktionstedmik und Automautisierung (IPA), Germany; Institut for Verkstadsteknisk Forskning (IVF), Sweden; Pera International (Pera), UK; Korea Institute of Science and Technology (KIST), Korea; Industrial Technology Research Institute, (ITRI), Taiwan; Singapore Institute of Standards and Industrial Research (SISIR), Singapore; Hong Kong Productivity Centre.
13. Amato Neto, J. (2000) Redes de Cooperação Produtiva e Clusters Regionais – Oportunidades para as Pequenas e Médias Empresas, Fundação Vanzolini/Editôra Atlas.
14. Kumar, U. and Kumar, V. (1997) ‘Incubating technology: best practices’, Federal Partners in Technology Transfer, National Research Council, Canada (http://www.nrc.ca/ftpp).
15. European Commssion (2001) Innovation and Technology Transfer, March Issue.
16. However, it is important to stress that there is no unanimity around this idea. For example, Kevin O’Sullivan, Vice-President of Development of the Massachusetts Biomedical Initiatives, has stated: “The term incubator has an image problem…It’s come to denote a real estate deal connected to equity rather than a way of nurturing and growing young companies”. In the same note, Sally Linder, Director of Publications of the NBIA, has complemented that “Some [business incubators] were solid businesses that helped form good companies…but others were get-rich-quick schemes designed to grab a piece of the Internet gold mine…and when the gold ran out, the ventures folded” (NBIA, Press Release, Dec.2000).
17. Entrepreneurs About (2001) web page http://entrepreneurs.about.com.
18. UNIDO (2001) Industrial Business Development Services, web page http://www.unido.org
19. European Innovation Monitoring System (EIMS) (1996) ‘Comparative study of science parks in Europe: keys to a community innovation policy’, European Commission, Directorate General XIII, The Innovation Programme, EIMS Publication, 29.
20. National Business Incubation Association (NBIA) 2001 web page http://www.nbia.org. The list of services refers to the American scenario, even it though may be easily found in other contexts. The same study undertaken by the NBIA points out that in 1998, there were more than 800 incubators in operation in the USA, housing around 19,000 on-incubators enterprises, and generating more than 245,000 new jobs. Each incubator houses, on average, 20 SMEs.
21. However, it is relevant to stress that the physical proximity between universities and research centres and enterprises does not guarantee, per se, that interaction between the two of them will be set up, and even when set up, if it will work out and be fully explored. Some characteristics of firms may influence the possibilities of linkages with academe: dimension, productive sector in which the firm is engaged in, and level of R&D activities.
22. Larsen, J.K. and Rogers, E.M. (1988) ‘Silicon Valley: the rise and falling off of entrepreneurial fever’, in Smillor, R.W., Kozmetsky, G. and Gibson, D.V. (Eds), Creating the Technopolis – Linking Technology Commercialization and Economic Development, Ballinger Publishing Company.
23. The Bologna Charter on SMEs Policies (adopted in June 2000), a document that very clearly states the political requirements regarding SMEs, stresses that the capacity of SMEs for competing needs to be helped through effective access to financial services, particularly seed money and capital for development, including the design and implementation of innovative financial tools capable of reducing risks and minimising transaction costs. It has also been recommended that policies related to SMEs should consider the reduction of barriers to the financing of innovation through “(1) facilitating the development of market mechanisms for equity financing, and related services, especially for innovative start-ups; (2) promoting risk-sharing programmes and measures, including financial support and tax incentives to R&D and innovation; and (3) supporting initiatives which facilitate ‘partnerships for innovation’ between entrepreneurs, public agencies and financiers”. The Bologna Charter on SME Policies. Conclusions of the Conference on “Enhancing the Competitiveness of SMEs in the Global Economy: Strategies and Policies”, web page (http://www.oecd.org.//dsti/sti/industry/smes/news/bologna.htm). The main objective of the Conference was “to increase the understanding of issues and policies related to SME competitiveness in the global economy – in particular, with regard to innovation, clusters and industrial districts, and electronic commerce – and to propose concrete and feasible initiatives through which the globalisation of SMEs may be facilitated”.
24. Just to illustrate this point, the European Round Table of Industrialists observes that “Fast access to risk capital on reasonable terms and conditions is essential for successful entrepreneurship and innovation, whether this takes the form of seed capital, venture capital or development capital”. See on this: European Round Table of Industrialists (1998), Job Creation and Competitiveness through Innovation. Competitiveness Working Group. The observation made by the working group may be applied to other circumstances in addition to the European one. In fact, this may be the case, for example, of the financial agents from different regions in Brazil that have experienced huge difficulties in operating with risk investment represented by SMEs.
25. Arzeni, S. (1997) ‘Entrepreneurship’, The OECD Observer, No. 209.
26. Comissão das Comunidades Europeias – DG XXIII (1999) As Prioridades da Europa: a Visão da União Europeia no Estímulo ao Espírito Empresarial. Cadernos PEDIP “Empreendedorismo e Criação de Empresas”, Caderno 4, PEDIP II e Ministério da Economia (Portugal) e Comunidade Europeia (Fundos Estruturais).