Small business incubators in the USA: a historical review and preliminary research findings

• Published in: Journal of knowledge-based innovation in China 2013-09, Vol.5 (3), p.213-233
• Main Author: Shepard, Jeffrey M
• Format: Article
• Language: English
• Subjects: Innovation; Research & development; Strategy
• ISSN: 1756-1418; 1756-1426
• DOI: 10.1108/JKIC-07-2013-0013

Purpose – The aim of this study was to discuss the historical evolution of business incubators from 1959 to the present. Three cohort periods were defined: 1959-1979, 1980-1999 and 2000-2012. The business characteristics of corporate mission, plans and strategies, leadership/management, staff competence and expertise, facilities and resources and technology were described for each generation. Design/methodology/approach – The approach of this research was to gain an understanding of potential best practices and study what has been characteristically significant in small business incubators over the past 50 years. Findings – The historical study findings indicate that the basic premise of business incubators remained unchanged across time. The idea of nurturing a new and fledgling business until it can manage on its own, much like an incubator does for premature and newborn babies, still provides the impetus for business incubators today. However, business characteristics have evolved and grown more sophisticated over the years in response to situational and contextual forces. Certain characteristics have been retained, while others have undergone change. Research limitations/implications – In light of the discussion in this research, it is clear that comprehensive and systematic historical review from literature on small business incubators reveals that past incubators have provided many lessons for future models. The model has evolved dramatically but questions still revolve around the current state, and what is essential for future models. Practical implications – Although various models have been developed to explain the trajectories of such growth, it is clear that access to a network of business and financial forms of support, patented knowledge creation, and inter-firm partnerships are crucial. Originality/value – The value of this research is it defines three periods in small business incubator history in the USA defining what are consistent best practices for success. In addition, this research concerning small business incubators serves as a clear comprehensive and systematic historical review from literature revealing that past incubators have provided many lessons for future models.