Linking incubator services to the performance of incubated firms: A review

The effectiveness of services provided by a business incubator is the basis and premise for promoting the incubator itself and for incubating and developing new ventures inside. Services in different forms, contents and levels may influence the performance of incubated firms such as surviving rate and growth rate. We first classify incubator services into several types including infrastructure, educating, business assistance and networking services based on business practices and a careful literature review. Then some propositions were developed to link these services to the performance of incubated firms. Finally we construct a business model to illustrate the co-evolution process between incubator and incubatees, and how new services are generated and adopted in the process. We also consider the timing effect - the difference between incubating and nurturing phases. By employing a suitable operating model, an incubator is seen not only an enabler, but also an accelerator.