Are Incubators Good for Business? Understanding Incubation Practice—The Challenges for Policy

In this paper we explore a phenomenon that is currently a key component of the UK government's business support policies. Growing investment in incubation, and increased emphasis on it as a tool for regional development, require an understanding of its practice. We aim to provide insights for policymakers and practitioners to help them meet the needs and aspirations of users. Initially we present the key findings from a significant global review of studies of incubators, conducted on behalf of UK Business Incubation (UKBI), and the UK Department of Trade and Industry. The review identifies key factors in determining the potential added value of incubators. We then present the key findings from a subsequent in-depth study of seven incubators across England and Scotland, commissioned by UKBI. The conclusions of the study highlight the dichotomies relating to the potential polarisation of incubator objectives (from property development focus to business development focus) and how these influence the implementation of effective incubation processes from the perspective of tenant and graduate firms. The policies and practices of operators highlight a blurring of the distinction between incubator management and incubation development.