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Approaches to Business Incubation: A Comparative Study of the United States, China and Brazil

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  • Aruna Chandra

Abstract

The purpose of this paper is to describe and compare key elements of the business incubation landscape in the United States, China and Brazil in order to provide an understanding of the similarities and differences in incubation systems across the three countries, as well as the opportunities and challenges inherent in the macro-environmental and institutional environments for new business creation. Incubator models are described and compared along key dimensions which include strategic objectives, incubator financing/incubator sponsorship and its impact on strategy, and the incubator’s service mix with an emphasis on financial services provided by incubators to client firms. The role of government and its impact on incubator strategy as well as its role in supporting the environment for new business creation is discussed. A study of incubation and the innovation ecosystem in these leading incubation markets ought to have relevance not just in cross cultural comparative settings, but also to global incubation in both developed and developing countries, in terms of policy and practice.

Suggested Citation

  • Aruna Chandra, 2007. "Approaches to Business Incubation: A Comparative Study of the United States, China and Brazil," NFI Working Papers 2007-WP-29, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfiwps:2007-wp-29
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    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2007-WP-29_Chandra.pdf
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    References listed on IDEAS

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    1. Rustam Lalkaka, 2003. "Business incubators in developing countries: characteristics and performance," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 3(1/2), pages 31-55.
    2. Etzkowitz, Henry & de Mello, Jose Manoel Carvalho & Almeida, Mariza, 2005. "Towards "meta-innovation" in Brazil: The evolution of the incubator and the emergence of a triple helix," Research Policy, Elsevier, vol. 34(4), pages 411-424, May.
    3. Aruna Chandra & Wei He, 2008. "Government involvement and financial service intensity: a comparative study of three business incubators in China," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 5(3), pages 266-282.
    4. Aruna Chandra & Wei He & Tim Fealey, 2007. "Business Incubators in China: A Financial Services Perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 13(1), pages 79-94, January.
    5. Chen Jin, Yin Jinrong, Zhu Miao, 2003. "Business incubators in China," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 3(1/2), pages 67-77.
    6. Smilor, Raymond W. & Gibson, David V. & Dietrich, Glenn B., 1990. "University spin-out companies: Technology start-ups from UT-Austin," Journal of Business Venturing, Elsevier, vol. 5(1), pages 63-76, January.
    7. Maximilian von Zedtwitz, 2003. "Classification and management of incubators: aligning strategic objectives and competitive scope for new business facilitation," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 3(1/2), pages 176-196.
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    Cited by:

    1. Ibrahim Semih Akçomak, 2009. "Incubators as Tools for Entrepreneurship Promotion in Developing Countries," WIDER Working Paper Series RP2009-52, World Institute for Development Economic Research (UNU-WIDER).
    2. Masutha Mukhove & Rogerson Christian M., 2014. "Small enterprise development in South Africa: The role of business incubators," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 26(26), pages 1-15, December.
    3. repec:rri:wpaper:201006 is not listed on IDEAS
    4. Junbo Yu & Mark Middleton & Randall Jackson, 2010. "Geography of Business Incubator Formation in the United States," Working Papers Working Paper 2010-10, Regional Research Institute, West Virginia University.
    5. Junbo Yu & Mark Middleton & Randall Jackson, 2010. "Toward the Geography of Business Incubator Formation in the United States," Working Papers Working Paper 2010-06, Regional Research Institute, West Virginia University.
    6. repec:rri:wpaper:201010 is not listed on IDEAS
    7. Rula Ali Al-Damen, 2021. "Business Incubator and Its Impact on Business Success: A Case Study of Jordan Enterprise Development Corporation (JEDCO)," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 11(1), pages 1-35, June.
    8. Eric Stokan & Lyke Thompson & Robert J. Mahu, 2015. "Testing the Differential Effect of Business Incubators on Firm Growth," Economic Development Quarterly, , vol. 29(4), pages 317-327, November.

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