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Do graduated university incubator firms benefit from their relationship with university incubators?

Author

Listed:
  • Vernet Lasrado

    (University of Central Florida)

  • Stephen Sivo

    (University of Central Florida)

  • Cameron Ford

    (University of Central Florida)

  • Thomas O’Neal

    (University of Central Florida)

  • Ivan Garibay

    (University of Central Florida)

Abstract

Business incubators have become a popular policy option and economic development intervention tool. However, recent research shows that incubated firms may not benefit significantly from their incubator relationships, and may even be more vulnerable to failure post departure (graduation) from an incubator. These findings suggest that the impact of business incubation on new venture viability may be contingent on the type of support offered by an incubator and attributes of business environments within which incubation services are provided. Incubation services that protect and isolate ventures from key resource dependencies may hinder venture development and increase subsequent vulnerability to environmental demands. Alternatively, incubation services that help ventures connect and align with key resource dependencies are likely to promote firm survival. We propose that incubators vary in the services and resources they offer, and that university incubators typically provide greater connectivity and legitimacy with respect to important contingencies associated with key industry and community stakeholders. This leads us to propose that university affiliation is an important contingency that affects the relationship between firms’ participation in incubators and their subsequent performance. The purpose of this study is to evaluate this contingency by examining whether firms graduating from university incubators attain higher levels of post-incubation performance than firms participating in non-university affiliated incubators. We test this by evaluating the performance of a sample of graduated firms associated with the population of university-based incubators in the US contrasted against the performance of a matched cohort of non-incubated firms. The analysis uses an enhanced dataset that tracks the number of employees, sales, and the entry and graduation (departure) points of incubated firms from a university incubation program, so as to delineate the scope of influence of the incubator.

Suggested Citation

  • Vernet Lasrado & Stephen Sivo & Cameron Ford & Thomas O’Neal & Ivan Garibay, 2016. "Do graduated university incubator firms benefit from their relationship with university incubators?," The Journal of Technology Transfer, Springer, vol. 41(2), pages 205-219, April.
    • Handle: RePEc:kap:jtecht:v:41:y:2016:i:2:d:10.1007_s10961-015-9412-0
    DOI: 10.1007/s10961-015-9412-0
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    References listed on IDEAS

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    Cited by:

    1. González-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “Gazelles”: Evidence from business accelerators," Journal of Financial Economics, Elsevier, vol. 139(1), pages 260-287.
    2. 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.
    3. van Rijnsoever, Frank J. & Eveleens, Chris P., 2021. "Money Don't matter? How incubation experience affects start-up entrepreneurs' resource valuation," Technovation, Elsevier, vol. 106(C).
    4. Radosław Wolniak & Michalene Eva Grebski & Bożena Skotnicka-Zasadzień, 2019. "Comparative Analysis of the Level of Satisfaction with the Services Received at the Business Incubators (Hazleton, PA, USA and Gliwice, Poland)," Sustainability, MDPI, vol. 11(10), pages 1-22, May.
    5. Gonzalez-Uribe, Juanita & Reyes, Santiago, 2021. "Identifying and boosting “gazelles”: evidence from business accelerators," LSE Research Online Documents on Economics 103145, London School of Economics and Political Science, LSE Library.
    6. Amezcua, Alejandro & Ratinho, Tiago & Plummer, Lawrence A. & Jayamohan, Parvathi, 2020. "Organizational sponsorship and the economics of place: How regional urbanization and localization shape incubator outcomes," Journal of Business Venturing, Elsevier, vol. 35(4).
    7. J. Piet Hausberg & Sabrina Korreck, 2020. "Business incubators and accelerators: a co-citation analysis-based, systematic literature review," The Journal of Technology Transfer, Springer, vol. 45(1), pages 151-176, February.
    8. Soetanto, Danny & van Geenhuizen, Marina, 2019. "Life after incubation: The impact of entrepreneurial universities on the long-term performance of their spin-offs," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 263-276.
    9. Marc H. Meyer & Chaewon Lee & Donna Kelley & Greg Collier, 2020. "An Assessment and Planning Methodology for University-Based: Entrepreneurship Ecosystems," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(2), pages 259-292, September.
    10. Good, Matthew & Knockaert, Mirjam & Soppe, Birthe & Wright, Mike, 2019. "The technology transfer ecosystem in academia. An organizational design perspective," Technovation, Elsevier, vol. 82, pages 35-50.
    11. Valentina A. Assenova, 2020. "Early-Stage Venture Incubation and Mentoring Promote Learning, Scaling, and Profitability Among Disadvantaged Entrepreneurs," Organization Science, INFORMS, vol. 31(6), pages 1560-1578, November.
    12. Natalya Radko & Maksim Belitski & Yelena Kalyuzhnova, 2023. "Conceptualising the entrepreneurial university: the stakeholder approach," The Journal of Technology Transfer, Springer, vol. 48(3), pages 955-1044, June.
    13. Shiri M. Breznitz & Paige A. Clayton & Daniela Defazio & Kimberley R. Isett, 2018. "Have you been served? The impact of university entrepreneurial support on start-ups’ network formation," The Journal of Technology Transfer, Springer, vol. 43(2), pages 343-367, April.
    14. Filippo Giordano & Jacopo Di Domenico, 2018. "Universit? e trasferimento tecnologico: il ruolo degli incubatori universitari," ECONOMIA E SOCIET? REGIONALE, FrancoAngeli Editore, vol. 0(3), pages 42-51.
    15. Kameliya Deyanova & Nataliia Brehmer & Artur Lapidus & Victor Tiberius & Steve Walsh, 2022. "Hatching start-ups for sustainable growth: a bibliometric review on business incubators," Review of Managerial Science, Springer, vol. 16(7), pages 2083-2109, October.
    16. Alaassar, Ahmad & Mention, Anne-Laure & Aas, Tor Helge, 2020. "Exploring how social interactions influence regulators and innovators: The case of regulatory sandboxes," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    17. María Redondo & Carmen Camarero, 2019. "Social Capital in University Business Incubators: dimensions, antecedents and outcomes," International Entrepreneurship and Management Journal, Springer, vol. 15(2), pages 599-624, June.
    18. Shekhar, Himanshu & Satyanarayana, Krishna & Chandrashekar, Deepak, 2023. "Role and contributions of an incubator in academic intrapreneurship – An examination," Technovation, Elsevier, vol. 126(C).
    19. Klofsten, Magnus & Lundmark, Erik & Wennberg, Karl & Bank, Megan, 2019. "Incubator specialization and size: divergent paths towards operational scale," Ratio Working Papers 326, The Ratio Institute.
    20. Andreas Panagopoulos & Stelios Rozakis & Katerina Sideri & Afroditi Anagnosti, 2019. "University Technology Transfer and Agricultural Science Entrepreneurial Education: a View from Inside," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1466-1481, December.
    21. repec:hal:journl:hal-04649151 is not listed on IDEAS
    22. Gonzalez-Uribe, Juanita & Hmaddi, Ouafaa, 2022. "The multi-dimensional impacts of business accelerators: what does the research tell us?," LSE Research Online Documents on Economics 115461, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Resource endowments; Economic development; Regional development; Entrepreneur support organizations; Business incubation; University based business incubators; Graduate firms;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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