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Specialisation versus diversification: perceived benefits of different business incubation models

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  • Michael Schwartz
  • Christoph Hornych

Abstract

Business incubator initiatives are a widespread policy instrument for the promotion of entrepreneurship, innovation and the development of new technology-based firms (NTBFs). Recently, there has been an increasing tendency for the more traditional diversified incubators to be superseded by incubators focusing their support elements, processes and selection criteria on firms from one specific sector, and its particular needs. Despite the increasing importance of such specialised incubators in regional innovation strategies, the question of whether they are advantageous has neither been investigated empirically nor discussed theoretically in detail. Drawing on large-scale survey data from 161 firms incubated in either diversified or specialised incubators in Germany, we investigate the benefits to firms of being part of a specialised business incubator as opposed to being part of a generalised business incubator. The investigation of the value-added contribution of specialised incubators, in particular regarding hardware components, business assistance, networking and reputation gains, reveals considerable differences compared to the more diversified incubation model.

Suggested Citation

  • Michael Schwartz & Christoph Hornych, 2012. "Specialisation versus diversification: perceived benefits of different business incubation models," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 15(3), pages 177-197.
    • Handle: RePEc:ids:ijeima:v:15:y:2012:i:3:p:177-197
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    Citations

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    Cited by:

    1. Christina Theodoraki & Karim Messeghem & Mark P. Rice, 2018. "A social capital approach to the development of sustainable entrepreneurial ecosystems: an explorative study," Small Business Economics, Springer, vol. 51(1), pages 153-170, June.
    2. Inès Gabarret & Annabelle Jaouen & Walid A. Nakara & Benjamin Vedel, 2014. "Why are small public incubators "lagging behind"? Learning from disability in the selection practices of a French incubator," Post-Print hal-01886228, HAL.
    3. Klofsten, Magnus & Lundmark, Erik & Wennberg, Karl & Bank, Nata, 2020. "Incubator specialization and size: Divergent paths towards operational scale," Technological Forecasting and Social Change, Elsevier, vol. 151(C).

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