Incubator best practice: A framework

Incubators have become a ubiquitous phenomenon in many parts of the world and are viewed as a tool for promoting the development of technology-based growth firms. Considering the large faith and the considerable amounts of money invested in incubators, the identification of best practice incubator models is of importance. Previous incubator assessment literature has tended to emphasise the measurement of incubator outcomes. In this paper, we argue that best practice identification requires a holistic approach, where the goals of the incubators are taken into account and the performance of different incubators are put in relation to their incubator models. In this context, the aim of this paper is to develop a framework that can serve as a basis for identifying best practice incubator models and for more rigorous evaluations of incubator performance. The framework suggested includes three distinguishing model components: selection, business support and mediation. We distinguish between idea-focused selection and entrepreneur-focused selection as well as between picking-the-winners and survival-of-the-fittest selection. Business support is seen as a continuum from laissez-faire to strong intervention. Mediation strategies vary in terms of the type of innovation system in focus: technological, regional or cluster. The framework is applied to 16 Swedish incubators. (C) 2007 Elsevier Ltd. All rights reserved.