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Incubation time, incubator age, and firm survival after graduation

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  • Michael Schwartz

Abstract

On the basis of a sample of 149 graduate firms from five German business incubators, this article contributes to incubator/incubation literature by investigating the effects of the age of the incubators and the firms' incubation time in securing long-term survival of the firms after leaving the incubator facilities. The empirical findings from Cox proportional hazards regression and parametric accelerated failure time models reveal a statistically significant negative impact for both variables incubator age and incubation time on post-graduation firm survival. One important implication that follows from the empirical results for policy makers and managers of those initiatives is that, when incubator managers become increasingly involved in various regional development activities, this may reduce the effectiveness of incubator support. Also, our finding speaks in favour of a strict limitation of incubation times and reinforces arguments of the supporters of maximum tenancy.

Suggested Citation

  • Michael Schwartz, 2012. "Incubation time, incubator age, and firm survival after graduation," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 15(1/2), pages 108-130.
    • Handle: RePEc:ids:ijeima:v:15:y:2012:i:1/2:p:108-130
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    Citations

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    Cited by:

    1. Caren Klingbeil & Thorsten Semrau, 2017. "For whom size matters – the interplay between incubator size, tenant characteristics and tenant growth," Industry and Innovation, Taylor & Francis Journals, vol. 24(7), pages 735-752, October.
    2. Li Xiao & David North, 2017. "The graduation performance of technology business incubators in China’s three tier cities: the role of incubator funding, technical support, and entrepreneurial mentoring," The Journal of Technology Transfer, Springer, vol. 42(3), pages 615-634, June.
    3. Del Sarto, Nicola & Isabelle, Diane A. & Di Minin, Alberto, 2020. "The role of accelerators in firm survival: An fsQCA analysis of Italian startups," Technovation, Elsevier, vol. 90.
    4. Henry Okwo & Charity Ezenwakwelu & Anthony Igwe & Benedict Imhanrenialena, 2019. "Firm Size and Age mediating the Firm Survival-Hedging Effect: Hayes’ 3-Way Parallel Approach," Sustainability, MDPI, vol. 11(3), pages 1-17, February.

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