New national business incubation study identifies best practices for success

Nov 18, 2011 By Bernie DeGroat

(PhysOrg.com) -- The University of Michigan's Institute for Research on Labor, Employment, and the Economy has released a new study, "Incubating Success: Incubation Best Practices that Lead to Successful New Ventures," funded by the U.S. Department of Commerce, Economic Development Administration.

The study, led by U-M's IRLEE and research partners at the State University of New York at Albany, the National Business Association and Cybergroup Inc., is the first study of business incubators to focus on best practices. Lawrence Molnar, associate director of IRLEE, is the principal investigator.

The researchers surveyed business incubator managers throughout the United States and across industry sectors, correlating specific incubator best practices with the success and stability of businesses that have graduated from incubator programs.

They found that the synergy among multiple practices, rather than a single practice, policy or service, produces success for incubation programs. At the same time, the study identifies the best practices that are the most reliable predictors of incubator client success. The findings indicate that regardless of the lead organization, age or size of the incubator or regional economic conditions, these best practices make it more likely that a incubator will graduate successful companies.

Results from the study also include recommendations for policymakers and funders motivated to maximize the impact of public investments incubation programs, as well as recommendations for incubation practitioners interested in developing new or reviewing ongoing incubation programs.

A supplementary free online has been developed based on the study's findings. It provides benchmarks for evaluating existing incubator programs and provides suggestions for improving their operations, as well as offering new incubators clear models and protocols for success.

Explore further: Consumer sentiment brightens holiday spending

More information: Complete study and measurement tool: www.edaincubatortool.org

add to favorites email to friend print save as pdf

Related Stories

Israeli tech incubators celebrate success

Feb 28, 2006

Airline passengers in Newark, N.J., and open-heart-surgery patients worldwide have the Israeli government to thank for the technological innovations that keep them safe and healthy, officials of the technology incubator program ...

Israeli, U.S. venture firms open joint lab

Mar 02, 2006

An Israeli venture-capital firm and a U.S. venture-capital company announced Wednesday they would join forces to invest millions in 10 new tech startups.

Entry screening won't stop SARS, flu

Sep 23, 2005

Screening air passengers as they arrive at British airports is unlikely to prevent importation of either SARS or influenza, researchers in London report.

Recommended for you

Consumer sentiment brightens holiday spending

15 hours ago

Consumer confidence posted its fourth consecutive monthly gain in November, rising to its highest level since July 2007, according to the Thomson Reuters/University of Michigan Surveys of Consumers.

Over-identifying restrictions in economic analysis

Nov 25, 2014

The analysis of empirical economics has long made use of a tool called the generalized method of moments (GMM). This method is used as a generic way of estimating parameters in an empirical model where the ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.