Incubator

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Synopsis: Entrepreneurship: Incubator:

such as incubators and clusters, hoping to attract companies and influence economic growth. Traditional policy is applied and there is still a misunderstanding of the difference between innovation and research,

The infrastructure of innovation considers the role of universities, incubators and other possible supports for innovation-related activities.

The best ideas and early-stage projects will be awarded seed grants (below EUR100 000) and supported by an incubation program hosted by one of a European network of business incubators.

In turn they can function as incubators for collaboration (Jerome, 2013. Schmidt and Nurcan (2009) present the five principles of SM tools that drive the creation of content and context:

Phd Program, the Danish Incubator Program and the Danish GTS-system (Danish RTO institutes. Thomas has worked previously at the Nordic Council of ministers, the Ministry of Economic Affairs and the Prime minister's Office.

Examples of relevant policy approaches include creation of science parks and business incubators, encouraging mobility of staff between universities and industry,

the industry incubator programme in Norway',Technology Analysis and Strategic Management, Vol. 23, No. 1: 75-85 37 Missing an open goal?

the industry incubator programme in Norway, Technology Analysis and Strategic Management, Vol. 23, No. 1: 75-85 Cohen, Wesley M. and Levinthal, D. A. 1990

Campus Incubators; Commercialisation Fund; Technology Centres. Develop a support framework where innovative startups can reach their full potential.

These initiatives are aimed at deriving improved impact from the substantial resources invested in the innovation policy area research centres, technology centres, campus incubators etc.

Campus Incubators; Commercialisation Fund; Technology Centres. EI will develop an Innovation Partnership service for smaller projects seeking to address identified industry needs.

These incubators house over 350 companies and over 1, 500 people. 5. 3. 3 Co-working Spacethe Entrepreneurship Forum highlighted the importance of the availability of co-working spaces

incubators and Business Innovation Centres may be of some value in this. 5. 3. 4 Private Sector/Representative Bodiesas the Entrepreneurship Forum has highlighted,

500 are employed people directly in incubator companies. A review of the Incubator programme is currently underway to evaluate the impact of this investment to date

and to identify any unmet industry demands in this area. 2012: No approvals 2013: €2. 0m approved Programme/Fund and Objective Number of Projects Funding Areas of strategic Focus 2014-2016 Community Enterprise Centres:

technology transfer offices, incubators, competence centres and centres of excellence have been added to WT's innovation ecosystem to provide services to the region's innovative actors.

and outputs from incubators/accelerators, etc. See Annex 2). Current Performance: Sales and Exports In the face of difficult global market conditions, Ireland's overall trade performance has improved steadily since 2011.

EI) 204 In collaboration with the European space agency manage the initialisation of the European space agency (ESA) Incubator. EI) 205 SFI will target 34 licences and 6 spinouts from the twelve SFI Research Centres in 2015.

Únag) 207 Develop advanced property solutions for innovative companies seeking to move from the incubator phase to market.

clusters and incubators across the island of Ireland to stimulate economic growth and encourage investment and collaboration in the design sector.

-Support to networks of incubators for social innovation. 27-Support a research programme on public sector and social innovation;

Two EU-wide networks of incubators are particularly notable. Firstly,‘TRANSITION-Transnational Network for Social Innovation Incubation'is a project that supports the scaling-up of social innovations across Europe by developing a network of incubators bridging established partners within the fields of social innovation (SI

) and innovation-based incubation (IBI. Secondly,‘BENISI-Building a European Network of Incubators for Social Innovation'seeks to build a Europe-wide network of networks of incubators for social innovation,

with the aim to identify at least 300 social innovations that are identified with high potential for scaling successfully,

which provide incubator services, training for social economy, and access to international networks to nurture

Horizon 2020 will continue to support these social innovation measures under the heading of hubs and incubators for the Innovation Union.

over 200 companies 21 International Business Incubator OWZ Berlin-Adlershof Business Incubation with the focus on East-West business More than 30 companies from 12 countries:

space for growth on-site 43 First incubator 1991 with 5 companies on 1, 000 m newspapers argued:

such as public incubators and science parks (Fini et al. 2011), that create a supportive environment and thus facilitate university industry interactions.

and incubators for academic spin-offs, a relatively new route for commercialisation of academic inventions. Therefore, regional innovation systems provide a means for universities to engage with their local environments on activities

with a focus on cooperation between incubators and the region's universities (Regional Innovation Monitor: Sweden, 2012.

innovation infrastructures (incubators), cluster initiatives and co-financing of federal programmes. Currently, there are more than 100 incubators (Impulszentren)

and 20 technology parks throughout the country, more than 40 cluster initiatives linking companies and research institutions around thematic priorities (e g. automotive suppliers, wood and wood products, plastics, environmental technologies, biotechnologies etc.)

and, in addition, in contrast to conventional lamps, they can be used in incubators. The prototype was developed at the Center for Biomedical Engineering from the Faculty of engineering,

Copenhagen School of Entrepreneurship (DK) 22 Flexible workspaces for students with no job providing start-up experience to avoid long-term problems-ICT for student start-ups in lab incubator environment as part of

mentoring, brainstorming and general informal hub/incubator serendipity, plus interaction with business angels, facilitators, accelerators, venture capitalists and other investors.

and adapting from thousands of other global IT hubs and incubators, often termed‘Silicon xxxx'(as in Silicon valley in California or Silicon Roundabout in London).

In the CSE incubator hub case for unemployed students, ICT is vital and so well integrated into all activities that the service

which were aimed at stimulating universities'technology transfer activities (Social Renewal Programme of the New Hungary Development Plan) supporting the establishment of business incubators and supporting the development of the incubators'services portfolios

(CHOP business incubator programme). CH innovation stakeholders can also access JEREMIE funding instruments. JEREMIE, i e.

e g. they supported the establishment or the development of technology incubator centres, and technology-oriented industrial parks.

but the number of incubators is relatively low. As for innovation output indicators, in 2008 the number of Hungarian and foreign language publications related to Central Hungary was 12,816 and 10,141, respectively,

Integration of these data into the countrywide information system. 2. Evaluation and registration of innovation centres, incubator houses and technology centres. 3. Information provision about funding opportunities for innovative SMES,

Such incubators must be recognised of a quality, however; not simply an employment scheme for second class innovation advisors (as sometimes appears to be the case.

four companies were announced in October 2013 to receive the title of accredited technology incubator that enable them to participate in the Start-up 13 programme and received €200. 000 de minimis support.

22 Development of industrial commons and development of the technology ecosystem, e g. industrial research centres, measurement centres, supply networks, business incubators and science parks, Development of the knowledge

technology incubator programme launched(+)Several measures of the Economic Development Operational Programme (GOP) provided significant funding opportunities for SMES(+)large number of SMES got support from SF for their development activities(-)SMES would require more funding support

a number of incubators, or labs, focused on mobile entrepreneurs have been established over the last five years in emerging markets,

In addition to local incubators, there are now numerous regional competitions for app developers in emerging markets, many with a social agenda, that offer financial support and training for developers to use mobile platforms.

Innovative ICT solutions for youth employment 36 Business incubators and accelerators are emerging around the world seeking to emulate the successes of Silicon valley.

business accelerators and incubators. 129 While the excitement around entrepreneurship is unmistakeable, it is also important to temper expectations as there is no definitive evidence that entrepreneurship will solve the job situation faced by youth in the developing world.

www. bioscience. heacademy. ac. uk/resources/entrepreneurship/skills. aspx 133 An ihuber is a person who frequents the IHUB co-working space and business incubator in Nairobi, Kenya

and business incubator in Nairobi that was started in March, 2010 by Erik Hersman, Cofounder of Ushahidi.

and part incubator. Since it was founded, the ihub has generated over 30 start-up companies, held over 120 events,

launched a number of initiatives from research to a tech incubator, engaged with the university community,

including co-working spaces, tech hubs, business incubators, and hacker/maker spaces. These spaces offer vibrant locales for apps development and other activities

to direct support for such initiatives as innovation spaces and incubators to attract creative talent. Community organizations also have an important role to play in equipping youth with the relevant skills and connecting them to employment and entrepreneurship opportunities.

Innovative ICT solutions for youth employment 69 Glossary Accelerators For-profit incubator that support start-ups with funding and other services in exchange for equity.

Incubators Programs that support start-ups through business support services and resources. Information technology Outsourcing (ITO) Refers to the outsourcing of computer or internet related work, such as programming.

Horizon 2020 will continue to support these social innovation measures under the heading of hubs and incubators for the Innovation Union.

Research project, Advocating and campaigning, Maker and hacker spaces, Investing and Funding, Event, Incubators and Accelerators, Advisory or expert body, Education And Training. 3 Technology Trends:

including a focus on incubators with a specific focus on supporting digital social innovators. Incubators typically support innovators in exchange for equity, at pre-seed or seed stage.

There are nearly 100 incubators/accelerators in Europe. Large foundations and charities often play an active role in hosting

and running makerspaces and incubators focusing on supporting DSI. The work by Nesta in the UK, on the tech for good incubator Bethnal Green Ventures,

and the Waag society in Amsterdam, working on setting up and hosting one of Europe's first Fab Labs,

are two examples of this in Europe. In the United states, Code for America provides seed funding, office space,

FUNDING, ACCELLERATION, INCUBATION A range of incubators, accelerators, impact incvestment schemes have been set up by public and private funders to support digital innovation projects.

Although incubators and accelerators have been always around, their presence in aiming to address social challenges has been limited rather to date.

AND CAMPAIGNING EVENT INCUBATORS AND ACCELERATORS MAKER AND HACKER SPACES ADVISORY OR EXPERT BODY INVESTMENT AND FUNDING 152 26 13 74 76 70 30 30 31 32 0 Project

the call for the creation of an open data incubator within Horizon 2020 aims to help SMES set up supply chains,

open infrastructures Innovation Labs Incubators & accelerators Knowledge sharing & networking Training Standards of evidence framework Impact assessment tools for aocial innovation There is a common sentiment

INCUBATORS & ACCELERATORS Mechanisms that foster social entrepreneurship such as incubators, accelerators or other intermediary platforms are necessary to provide resources in different phases of the development of DSI.

TRANSITION project A good example to foster a European networks of incubators is funded the European commission TRANSITION project.

and is a 30-month project that supports the scaling-up of social innovations across Europe by developing a network of incubators,

The incubator programme run by the UK's Open Data Institute and the DSI accelerator programme run by Bethnal Green Ventures have demonstrated potential in how models developed to support early-stage businesses can be adapted to support

a school, a university, a service centre, a train station, a business park, an ecomuseum, an incubator, a neighbourhood, etc.

It is a mix between a training center, a research center and an incubator for business and social initiatives.

(e g. local development trusts and incubators. Community transport social enterprises often use some commercially run bus contracts to cross subsidise services for the disabled.

business advice and guidance (business planning, coaching and mentoring, support with marketing) premises for start-up centres, incubators and single enterprise business premises innovation to develop new products,

In addition, they act as an incubator for new community organisations in the rural areas. They host the migrant children project‘BELONG

and autonomy. http://www. alcotra-innovation. eu/progetto. shtml 41 7. Incubation The world of social innovation has a number of incubators and centres.

o an incubator for social enterprises and social innovation, owned by the City of Milan o the Hub Milan:

http://milan. the-hub. net/,a private initiative o Co-working and an incubator specialised in sustainable innovation, http://www. avanzi. org/english Antropia (http

://antropia. essec. fr/)is an incubator for social enterprises run by the Institute of Innovation and Social Entrepreneurship of the ESSEC business school in Île-de-France60.

Mars (CA)( http://www. marsdd. com/)is a social incubator which helps create successful global businesses from Canada's science, technology and social innovation.

The Australian Centre for Social Innovation-TACSI63 is focused an incubator on producing innovations by combining multi-disciplinary teams. 60 Financed by ERDF, http://iies. essec. edu/61 Financed

It has acted as an incubator to many projects and ventures some of which are located co at its London headquarters.

the possible support for the development of business incubators and investment support for self employment and business creation can be very relevant for socially innovative start-ups.

113 3. 3. 2. 1. Networks of Incubators for Social Innovation...113 3. 3. 2. 2. Social Innovation Europe (SIE...

of capacity building and recognition tools such as incubators, hubs, forums, prizes and research in methodologies, benchmarking

Incubators to generate the birth and growth as well as tools to exchange, compare and value are other essential components of the social innovation ecosystem.

2. 3. Incubation The world of social innovation has a number of incubators and centres

and yy the launch of a pilot action on networks of incubators for social innovation, to assess,

this can include finance for business advice and guidance (business planning, coaching and mentoring, support with marketing) as well as for premises for start-up centres, incubators and single enterprise business premises.

mapping the ground covered by the sector is a prerequisite for the development of capacity building tools like incubators,

candidate and potential candidate countries or the EFTA countries for projects to be implemented in one or more of these countries. 3. 3. 2. Networks 3. 3. 2. 1. Networks of Incubators for Social

a pilot action on networks of incubators for social innovation supports two European networks in order to assess, support

For the purposes of this action, incubators include any organisation that acts as an incubator at local

The TRANSITION185 and BENISI186 networks are two examples of such incubators. 3. 3. 2. 2. Social Innovation Europe (SIE) The platform187 was set up in 2011 as a pilot within the Social Innovation Initiative.

and (potentially) to support networks of social innovation incubators. As a bottom-up, beneficiary-driven programme, it will depend a lot on the proposed projects. 3. 4. Research Research on social innovation has been supported for almost twenty years by the social science

funds, agencies, brokers, incubators, and intermediaries. In the social field these institutions remain much less developed than in other fields.

Taking innovative front line workers out of service roles and putting them into incubators or prestigious time-limited roles to turn ideas into business plans (with the time costs then potentially turned into equity or loans).

or to club together to commission incubators (being tested by the ESRC. 100) Collective voice and credits.

such as India's (NIF) and the Regional Innovation Funds in the UK. 290) Innovation incubators play a critical role:

The Young Foundation's Launchpad has drawn from the experience of many different kinds of incubator

and a business incubator, alongside a social innovation investment fund. Mars is a nonprofit innovation centre connecting science, technology,

97 Incubators 133 Information systems 20-22; 89; 119-120 Infrastructure 114-115 Innocentive 134 Innovation Innovation Challenge Prize 54 Innovation Exchange 38;

Incubators, which have long been widespread in business, have started to take off 152 innovations/spring 2006 In business,

but also because of public subsidy of technology and private investment in incubators, venture capital, and startups. The equivalent potential supports for social innovation foundations and public agencies are much weaker.

and incubators that deliberately focus on mining new technologies for social applications. In all of these, social innovation is likely to be most successful

and explore case studies examples. that are available from investors, incubators, accelerators or policy makers. Funders can also discover great DSI projects on the living map that they might want to invest in Find potential partners to collaborate with

However, the call for the creation of an open data incubator within Horizon 2020 aims to help SMES set up supply chains,

and maintaining communities Incubators Accelerators Competing with your own products and services Competing with the ecosystem Governments as service providers:

High entry barriers (technological skills) Lack of conflict-resolution mechanisms Tension between hierarchy and equality Developers Developers Entrepreneurs Tech events Accelerators/incubators Venture capital

Accelerators and incubators are another type of enablers. Both accept early start-ups that have a potential commercial viability

The incubator focuses on providing the prerequisites for a company to develop, such as housing, expertise and business contacts.

Innoenergy Highway57 for example, is a European incubator with interesting attributes: it has six entry points,

/skills/signalling (developers) Scalability Less cost Increase of profit Contracts/employability Developers Seed funding Events Support to entrepreneurs Incubators

It is also the case of incubators and accelerators. They may be considered a tool in themselves to make start-ups

Incubators, for example, are physical locations that provide a defined set of services/tools to individuals or small companies.

By locating similar or complementary entities in proximity to each other, the incubator may also play a critical role in promoting knowledge transfer, both formally and informally,

what type of activities they are involved in (from research projects to delivering services or running incubators for early stage DSI start-ups).

and running makerspaces and incubators focusing on supporting DSI. The work by Nesta in the UK on the tech for good incubator Bethnal Green Ventures and Waag Society in Amsterdam work on setting up

and hosting one of Europe's first Fablabs are two examples of this. Grassroots communities and movementsnon-institutional actors and grassroots organisations and civil society groups are key players in initiating

and Festivals Open Hack Make festival Makerfaire Running Incubators and accelerators ODI start-up Programme Bethnal Green Ventures Hosting

and training 31 Network 29 Event 27 Incubators and Accelerators 26 Advisory or expert body 15 Advocating

Through incubators and accelerators: As has been the case with the support for innovative businesses, social innovations often need support in the early idea stages to refine their business models

To address this, a number of incubators and accelerators have emerged, who invest in‘tech for good'projects, typically in exchange for equity, at pre-seed or seed stage.

Although incubators and accelerators have been always around, their presence in aiming to address social challenges has been limited rather to date. 33 Traditional business accelerators offer advice

Co-working environments, such as innovation centres, accelerators, incubators, and hacker spaces, have begun to proliferate. The MIT founded a precursor in 2002 called Fab Lab,

The digital fabrication include machines such as, Laser cutter, Milling machine, Vinyl Cutter, Embroidery Machine, 3d printer, Thermal Cycler, Microscope, Centrifuge, Spectrometer, Incubator, Autoclave, Rotary

Commercenet's investment and support model combines the elements of a research lab, startup incubator and public interest initiative.

and the incubators Rockstart and Techstars. In these accelerator/incubator programmes for start-ups they learned how to build a company, how to pitch,

and how to convince financial investors. Daan believes that further access to a network of peers where he

what type of activities they are involved in (from research projects to delivering services or running incubators for early stage DSI start-ups).

and running makerspaces and incubators focusing on supporting DSI. The work by Nesta in the UK on the tech for good incubator Bethnal Green Ventures and Waag Society in Amsterdam work on setting up

and hosting one of Europe's first Fablabs are two examples of this. Grassroots communities and movementsnon-institutional actors and grassroots organisations and civil society groups are key players in initiating

and Festivals Open Hack Make festival Makerfaire Running Incubators and accelerators ODI start-up Programme Bethnal Green Ventures Hosting

and training 31 Network 29 Event 27 Incubators and Accelerators 26 Advisory or expert body 15 Advocating

Through incubators and accelerators: As has been the case with the support for innovative businesses, social innovations often need support in the early idea stages to refine their business models

To address this, a number of incubators and accelerators have emerged, who invest in‘tech for good'projects, typically in exchange for equity, at pre-seed or seed stage.

Although incubators and accelerators have been always around, their presence in aiming to address social challenges has been limited rather to date. 33 Traditional business accelerators offer advice

Co-working environments, such as innovation centres, accelerators, incubators, and hacker spaces, have begun to proliferate. The MIT founded a precursor in 2002 called Fab Lab,

The digital fabrication include machines such as, Laser cutter, Milling machine, Vinyl Cutter, Embroidery Machine, 3d printer, Thermal Cycler, Microscope, Centrifuge, Spectrometer, Incubator, Autoclave, Rotary

Commercenet's investment and support model combines the elements of a research lab, startup incubator and public interest initiative.

and the incubators Rockstart and Techstars. In these accelerator/incubator programmes for start-ups they learned how to build a company, how to pitch,

and how to convince financial investors. Daan believes that further access to a network of peers where he

Availability of and access to capital Friends and family Regulatory framework 4 Network access 6 Market framework 5 Incubators Business Angels Availability of and access to capital Venture capital

frequently complemented by funds drawn from incubators and business angels. Venture capital is primarily available in Europe to ventures that are past the proof of concept stage,

and financing A growing number of European accelerators and incubators can combine financial support with networking, mentorship and physical space for entrepreneurs.

the number of incubators and accelerators has increased at an annual rate of 29%to an overall number of 260 start-up programmes in Europe,

**Incubator: provision of physical space, usually without funding but with mentorship network, informal event programmes, consulting services, investor exposure and public funding links.

Salido, Sabás and Freixas (2013), The Accelerator and Incubator Ecosystem in Europe, Telefonica. Creating and aligning partnerships between companies,

including representatives of schools, civil society, universities, business angels, accelerators, incubators, venture capitalists and corporate intrapreneurs.

There will be an interesting tier of companies who are not in a position to create their own accelerator or incubator;

however, require stronger early seed-stage funding as pointed out in Salido, Sabás and Freixas (2013), The Accelerator and Incubator Ecosystem in Europe, Telefonica, p. 2. 41.

See the policy recommendations of the recent report Salido, Sabás and Freixas (2013), The Accelerator and Incubator Ecosystem in Europe, Telefonica. 43.

Setup a business incubation monitoring and evaluation system that assesses the performance of Andalusia incubators against EU current benchmarks.

Technology parks also host business incubators, which only accept firms that are innovative, environmental friendly,

ANDALUCIA EMPRENDE has more than 200 business incubators (Centros de Apoyo al Desarrollo Empresarial, or CADE) around the Andalusia region, including rural areas.

which the winners spend three days training in the business incubators. In collaboration with EXTENDA, they offer four training programs:

they have an agreement with the Malaga-based Andalusia Technology Park (PTA) that the firms can move to the incubator in the Park.

Two ways to achieve this are to expand the presence of incubators in the technology parks as a way of providing more space for university spin-offs and entrepreneurial start-up firms,

Innovation centres and technology incubators became more common, as did support for entrepreneurs and start-up companies.

Attraction of the best technology-based firms to the regional business incubators. Multiplication of Renewable Resources:

Provide incubator accommodation: for 500 firms. Provide services: to nearly 12 400 entrepreneurs that applied for start-ups funds.

Many business incubators have been established by the region; universities and municipalities also implement their own business incubator programmes over and above those supported by the region.

A notable example is Andalusia Technology Park (PTA), which provides funding, support and information for business creation through a five-stage development model involving:

Incubator stage: open to the pre-incubated firms, as well as others. It offers lower rents and a support team of 8-10 people over a three-year period of time.

and incubators to ensure that the system is as efficient as possible. Introduce forms of support to corporate spinoffs The region‘s spin-off support is currently almost entirely focused on universities,

and investment into establishing incubators already, a relevant issue for the region to consider is a benchmarking model that would allow it to assess its performance relative to the European experience.

The best example of such benchmarking is funded the EC report Benchmarking of Business Incubators (CSES, 2002.

and start-ups is the establishment of business incubators. International best practice has demonstrated their value. The European incubator benchmarking study (CSES,

2002) highlights that there are about 900 incubators in the EU generating approximately 40 000 net new jobs annually

and that incubators accelerate the start-up of new businesses and help maximise their growth potential in a way that is more difficult for alternative SME support structures to achieve.

However, incubators are not a panacea for entrepreneurship and job creation. The experience of incubators in the EU has been mixed.

Therefore the contribution of the above EC study was to prepare benchmarks for what constitutes successful incubators (see table below).

It is important for Andalusia, having invested a large amount of time and funding, to assess the extent to which it is performing according to these benchmarks and,

if it falls short of those standards, to consider what needs to be done to maximise efficiency in future.

which should be considered in developing a successful incubator policy. The table below sets out some of the key issues that could be considered by the Andalusia region.

Table 6. Summary of key EU business incubator benchmarks Setting Up and Operating Average Range Benchmark Average capital investment cost €3. 7 million

subsidies 37%0%to 100%25%Incubator space 3, 000 m 90m-41, 000m 2, 000 4, 000 m Number of incubator tenants

27 firms 1-120 firms 20 30 Incubator Functions Average Range Benchmark Incubator occupancy rates 85%9%100%85%Length of tenancy

of incubator staff: tenants 1: 14 1: 2 1: 64 1: 10-1: 20 Percentage of managers time advising clients 39%5%80%50%Evaluating Services

) 5%to 100%p. a. 25%Average jobs per tenant company 6. 2 jobs per firm 1 to 120 NA New graduate jobs per incubator

Box 4. Summary of key EU business incubator qualitative factors Setting Up and Operating Business incubators should be designed to support

Incubators should be promoted by an inclusive partnership of public and private sector stakeholders. During the development phase

and a business plan to be devised that can provide a framework for incubator operations. There are a number of different set up funding models

but the evidence is that public support for the establishment of incubators will remain critical for the foreseeable future.

which incubators cover their operating costs and whilst many incubators rely on public subsidies, there is a strong argument in favour of dependence on this source of revenue funding being minimised.

Incubator Functions The provision of physical space is central to the incubator model. Standard good practices now exist with regard to the most appropriate configuration of incubator space.

The value added of incubator operations lies increasingly in the type and quality of business support services provided to clients

and developing this aspect of European incubator operations should be a key priority in the future. Business incubators should charge clients for the support services they provide

but the level at which prices are pitched should be designed to minimise the risk of crowding out private sector providers.

With regard to incubator operating procedures, it is essential that there is a clearly defined target market and that this is reflected in the admission criteria.

Whilst achieving high occupancy rates is important to generate income this consideration needs to be balanced against the importance of maintaining selective admission criteria.

Adopting exit criteria that ensure a turnover of client companies is desirable even if the turnover of firms makes revenue levels from rental income and other services less certain.

Aftercare and networking with firms that have left an incubator should be regarded as just as important as providing services to incubator tenants.

The quality of the management team, and adoption of a businesslike approach to running incubators and monitoring clients, is crucial to performance

and best practices in this field are becoming standardised. The type of activities client companies are pursuing

that should be used to differentiate one type of incubator from another. Evaluating Services and Impacts The performance of business incubators should be judged primarily in terms of the results achieved,

i e. the impact they have on businesses, wider economic development and other priorities. In assessing the impact of incubators,

there is a need to obtain feedback directly from client companies. Likewise, a distinction should be made between gross and net impacts achieved by business incubators.

Although new economy incubators are currently out of favour, there are many lessons to be learnt that are relevant to the more traditional model (and vice versa).

Across Europe, there are a variety of different business incubator models and precise modalities should reflect local, regional and national circumstances and priorities.

Similarly, although only limited comparisons are possible, the research confirms significant differences between the way in

which European and US incubators operate and therefore scope for a sharing of experience and know-how.

Overall, business incubators are a very cost-effective instrument for the promotion of public policy objectives.

Best Practice and Policy Recommendations Business incubators should be encouraged to benchmark themselves against best practice standards

Benchmarking and best practice sharing should focus on the four key incubator service areas: entrepreneur training, business support, financing and technology support.

Business incubators should be encouraged to periodically undertake impact assessments. A further priority should be for business incubators reduce their dependence on public subsidies.

There is a need to professionalize the occupation of business incubator management. Source: CSES, 2002 Relevance to Andalusia and considerations for adoption There is a need to establish a monitoring

and evaluation (M&e) mechanism for the incubation activities since they are one of the most extensive and expensive activities being pursued by Andalusia,

The proposed evaluation against quantitative benchmarks would enable the region to assess the current incubator policy

the survival rate of firms reared in an incubator environment should be significantly higher than the business success rate amongst the wider SME community.

%suggesting that incubators are not operating as efficiently as might be hoped. Whilst survival rates are only one possible indicator of the performance of incubators

and others might be equally of importance (for example, the extent to which incubators contribute to high-growth firms or the employment impact in terms of job creation),

this suggests the necessity for an evaluation of the Andalusia incubator practice so far. This would provide a basis for change,

especially in view of the need to transit to the next programming phase where the region is likely to benefit from a reduced level of EU Structural Funds.

CSES (2002) Benchmarking of Business Incubators, Final report, DG Enterprise, Brussels. EC (2003) Green Paper:

ii) considering the large investments of Andalusia in business incubators, the regional government should engage in a more regular evaluation of this tool against current EU benchmarks;

Incubators are one of the most favoured tools of business development promotion in Andalusia. Only within the Malaga technology park (PTA) there are six of them.

Setup a business incubation monitoring and evaluation system that assesses the performance of Andalusia incubators against EU current benchmarks.

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