Business incubators as part of the development model of entrepreneurial ecosystems: Literature and business practice review
Keywords:
business incubators, model, entrepreneurial infrastructure, technological innovation, entrepreneurial ecosystems
Abstract
Based on empirical evidence and examples of business incubators from different regions, this study provides an overview of the growing importance of business incubators in en-trepreneurial ecosystems as a structure for supporting innovation and economic development. Drawing on groundbreaking research, this paper aims to clarify such dynamics while examining their effects on entrepreneurial efforts, proposing a sophisticated analysis of the impact of new technological and organisational trends on the role of business incubators. The study examines business incubators as support systems within entrepreneurial ecosystems, highlighting their evolution, important success factors, and emerging trends. A mixed methods approach was used, combining a systematic literature review with comparative analysis of case studies to identify key themes. This research draws on empirical evidence and case studies from different geographical contexts, integrating qualitative and quantitative data from academic literature and practical sources over the last decade. The study identifies strategic management, ecosystem integration, and adaptability to technological advances as important factors for incubation success. It reveals that sectoral and corporate incubators are playing an increasingly important role in shaping entrepreneurial ecosystems; it also advances understanding of the evolving role of business incubators and their integration into entrepreneurial ecosystems, offering insights for optimising their impact.
References
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Chong, S. K., Bahrami, M., Chen, H., Balcisoy, S., & Bozkaya, B. (2020). Economic outcomes predicted by diversity in cities. EPJ Data Science, 9(1), 17. https://doi.org/10.1140/epjds/s13688-020-00234-x
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Fuentes, N., Schmutzler, J., & Vargas, A. M. (2024). Unpacking the multilayered nature of entrepreneurial ecosystems: A conceptual complex adaptive system model. International Journal of Innovation Studies, 8 (4), 335–350. https://doi.org/10.1016/j.ijis.2024.08.001
Guan, C., & Jin, S. (2023). Does the type of funding affect innovation? Evidence from incubators in China. Sustainability, 15(3), 2548. https://doi.org/10.3390/su15032548
Hassan, N.A. (2020). University business incubators as a tool for accelerating entrepreneurship: theoretical perspective. Review of Economics and Political Science. https://doi.org/10.1108/REPS-10-2019-0142
Hausberg, J. P., & Korreck, S. (2020). Business incubators and accelerators: A co-citation analysis-based, systematic literature review. The Journal of Technology Transfer, 45, 151–176. https://doi.org/10.1007/s10961-018-9651-y
Kalantari, A., Kamsin, A., & Kamaruddin, H.S. (2017). A bibliometric approach to tracking big data research trends. J Big Data 4, 30. https://doi.org/10.1186/s40537-017-0088-1
Khokhawala, S., & Iyer, R. S. (2021). Entrepreneurial ecosystems: Spanning the institutional gaps in emerging economies via incubator networks. Journal of the International Council for Small Business, 2(3), 177–202. https://doi.org/10.1080/26437015.2021.1881930
Malecki, E. J. (2017). Entrepreneurship and Entrepreneurial ecosystems. Geography Compass, 12 (3). https://doi.org/10.1111/gec3.12359
Mian, S., Lamine W., & Fayolle A., (2016). Technology Business Incubation: An overview of the stateof knowledge. Technovation, 50-51, 1–12. https://doi.org/10.1016/j.technovation.2016.02.005
Milošev, V., Kostovski, I. & Dragović, R. (2024). The importance of business incubators for the implementation of energy management. IIZS 2024, 14, 241–247. https://doi.org/10.46793/IIZS24.241M
Prokop, D., & Thompson, P. (2023). Defining networks in entrepreneurial ecosystems: the openness of ecosystems. Small Business Economics, 61, 517–538. https://doi.org/10.1007/s11187-022-00710-w
Roundy, P.T. (2021). Leadership in startup communities: how incubator leaders develop a regional entrepreneurial ecosystem. Journal of Management Development, 40(3), 190–208. https://doi.org/10.1108/JMD-10-2020-0320
Ryzhonkov, V. (2013). Entrepreneurship, business incubation, business models & strategy blog. Wordpress. https://worldbusinessincubation.wordpress.com/business-incubation-models/
Schwartz, M., & Hornych, C. (2010). Cooperation patterns of incubator firms and the impact of incubator specialization: Empirical evidence from Germany. Technovation, 30 (9-10), 485–495. https://doi.org/10.1016/j.technovation.2010.05.001
Simatupang, T. M., Schwab, A., & Lantu, D. (2015). Introduction: Building Sustainable Entrepreneurship Ecosystems. International Journal of Entrepreneurship and Small Business, 26(4), 389–398. https://doi.org/10.2139/ssrn.3161598
Stam, E., & Van de Ven, A. (2021). Entrepreneurial ecosystem elements. Small Bus Econ 56, 809–832. https://doi.org/10.1007/s11187-019-00270-6
Theodoraki, C., & Messeghem, K. (2017). Exploring the entrepreneurial ecosystem in the field of entrepreneurial support: a multi-level approach. International Journal of Entrepreneurship and Small Business, 31(1), 47–66. https://doi.org/10.1504/IJESB.2017.083847
Theodoraki, C., Messeghem, K., & Rice, M.P. (2018). A social capital approach to the development of sustainable entrepreneurial ecosystems: an explorative study. Small Bus Econ 51, 153–170. https://doi.org/10.1007/s11187-017-9924-0
Theodoraki, C. (2020). A holistic approach to incubator strategies in the entrepreneurship support ecosystem. M@n@gement, 23, 13–27. https://doi.org/10.37725/mgmt.v23i4.4412
Wadichar, R. K., Manusmare, P., & Burghate, M. A. (2022). Entrepreneurial Ecosystem: A Systematic Literature Review. The Journal of Business Perspective, 28(2), 143–156. https://doi.org/10.1177/09722629221093866
Yuan, X., Hao, H., Guan, C.H., & Pentland, A. (2021). What are the key components of an entrepreneurial ecosystem in a developing economy? A longitudinal empirical study on technology business incubators in China. Cornell University - General Economics, arXiv: 2103.0813. https://doi.org/10.48550/arXiv.2103.08131
Alaassar, A., Mention, A.-L., & Aas, T. H. (2021). Exploring a new incubation model for FinTechs: Regulatory sandboxes. Technovation, 103. https://doi.org/10.1016/j.technovation.2021.102237
Autio, E., Nambisan, S., Thomas, L. D., & Wright, M. (2018). Digital affordances, spatial affordances, and the genesis of entrepreneurial ecosystems. Strategic Entrepreneurship Journal, 12(1), 72-95. https://doi.org/10.1002/sej.1266
Awonuga, K. F., Mhlongo, N. Z., Olatoye, F. O., Ibeh, C .V., Elufioye, O. A., & Asuzu, O. F. (2024). Business incubators and their impact on startup success: A review in the USA. International Journal of Science and Research Archive, 11(1), 1418–1432.https://doi.org/10.30574/ijsra.2024.11.1.0234
Becker, O., & Gassmann, B. (2006), Towards a resource-based view of corporate incubators. International Journal of Innovation Management, 10(1), 19–45. https://doi.org/10.1142/S1363919606001387
Bernardus, D., Arisa, M. F., Sufa, S. A, & Suparwata, D. O. (2024). Supporting Start-ups in Indonesia: Examining Government Policies, Incubator Business, and Sustainable Structure for Entrepreneurial Ecosystems and Capital. International Journal of Business, Law, and Education, 5 (1), 236–259. https://doi.org/10.56442/ijble.v5i1.372
Bouncken, R.B., & Kraus, S. (2022). Entrepreneurial ecosystems in an interconnected world: emergence, governance and digitalization. Rev Manag Sci 16, 1–14. https://doi.org/10.1007/s11846-021-00444-1
Branstetter, L., Drev, M., & Kwon, N. (2018). Get with the Program: Software-Driven Innovation in Traditional Manufacturing. Management Science, 65(2), 459–954. https://doi.org/10.1287/mnsc.2017.2960
Cavallo, A., Ghezzi, A., & Balocco, R. (2019). Entrepreneurial ecosystem research: present debates and future directions. Int. Entrep. Manag. J., 15(3), 1291–1321. https://doi.org/10.1007/s11365-018-0526-3
Centre for Strategy and Evaluation Services, "Benchmarking of Business Incubators." Brussels: European Commission Enterprise Directorate General, 2002. https://ec.europa.eu/docsroom/documents/2767/attachments/1/translations/en/renditions/pdf
Chaudhary, S., Kaur, P., Ferraris, A., Bresciani, S., & Dhir, A. (2024). Connecting entrepreneurial ecosystem and innovation. Grasping at straws or hitting a home run? Technovation, 130. https://doi.org/10.1016/j.technovation.2023.102942
Chen, J., Cai, L., Bruton, G. D., & Naiheng Sheng (2019): Entrepreneurial ecosystems: what we know and where we move as we build an understanding of China. Entrepreneurship & Regional Development, 32(5-6), 370–388. https://doi.org/10.1080/08985626.2019.1640438
Chong, S. K., Bahrami, M., Chen, H., Balcisoy, S., & Bozkaya, B. (2020). Economic outcomes predicted by diversity in cities. EPJ Data Science, 9(1), 17. https://doi.org/10.1140/epjds/s13688-020-00234-x
Daim, T.U., Rueda, G., Martin, H., & Gerdsri, P (2006). Forecasting emerging technologies: Use of bibliometrics and patent analysis. Technological Forecasting and Social Change, 73(8), 981–1012. https://doi.org/10.1016/j.techfore.2006.04.004
Deyanova, K., Brehmer, N., Lapidus, A., Tiberius, V., & Walsh, S. (2022). Hatching start-ups for sustainable growth: a bibliometric review on business incubators. Review of Managerial Science 16, 2083–2109. https://doi.org/10.1007/s11846-022-00525-9
Ellegaard O., & Vallin J. (2015). The bibliometric analysis of scholarly production: How great is the impact? Scientometrics, 105(3), 1808–1831. https://doi.org/10.1007/s11192-015-1645-z
Feld, Brad. (2012). Startup Communities: Building an Entrepreneurial Ecosystem in Your City. Wiley. https://media.wiley.com/product_data/excerpt/50/11196176/1119617650-6.pdf
Forbes. (januar 2020). THE WORLD'S REAL-TIME. 01. Novembar 2024, https://www.forbes.com/real-time-billionaires/#4e1f11763d78
Fritsch, M., & Kublina S. (2018). Related variety, unrelated variety, and regional growth: The role of absorptive capacity and entrepreneurship. Regional Studies, 52(10), 1360–1371. https://doi.org/10.1080/00343404.2017.1388914
Fuentes, N., Schmutzler, J., & Vargas, A. M. (2024). Unpacking the multilayered nature of entrepreneurial ecosystems: A conceptual complex adaptive system model. International Journal of Innovation Studies, 8 (4), 335–350. https://doi.org/10.1016/j.ijis.2024.08.001
Guan, C., & Jin, S. (2023). Does the type of funding affect innovation? Evidence from incubators in China. Sustainability, 15(3), 2548. https://doi.org/10.3390/su15032548
Hassan, N.A. (2020). University business incubators as a tool for accelerating entrepreneurship: theoretical perspective. Review of Economics and Political Science. https://doi.org/10.1108/REPS-10-2019-0142
Hausberg, J. P., & Korreck, S. (2020). Business incubators and accelerators: A co-citation analysis-based, systematic literature review. The Journal of Technology Transfer, 45, 151–176. https://doi.org/10.1007/s10961-018-9651-y
Kalantari, A., Kamsin, A., & Kamaruddin, H.S. (2017). A bibliometric approach to tracking big data research trends. J Big Data 4, 30. https://doi.org/10.1186/s40537-017-0088-1
Khokhawala, S., & Iyer, R. S. (2021). Entrepreneurial ecosystems: Spanning the institutional gaps in emerging economies via incubator networks. Journal of the International Council for Small Business, 2(3), 177–202. https://doi.org/10.1080/26437015.2021.1881930
Malecki, E. J. (2017). Entrepreneurship and Entrepreneurial ecosystems. Geography Compass, 12 (3). https://doi.org/10.1111/gec3.12359
Mian, S., Lamine W., & Fayolle A., (2016). Technology Business Incubation: An overview of the stateof knowledge. Technovation, 50-51, 1–12. https://doi.org/10.1016/j.technovation.2016.02.005
Milošev, V., Kostovski, I. & Dragović, R. (2024). The importance of business incubators for the implementation of energy management. IIZS 2024, 14, 241–247. https://doi.org/10.46793/IIZS24.241M
Prokop, D., & Thompson, P. (2023). Defining networks in entrepreneurial ecosystems: the openness of ecosystems. Small Business Economics, 61, 517–538. https://doi.org/10.1007/s11187-022-00710-w
Roundy, P.T. (2021). Leadership in startup communities: how incubator leaders develop a regional entrepreneurial ecosystem. Journal of Management Development, 40(3), 190–208. https://doi.org/10.1108/JMD-10-2020-0320
Ryzhonkov, V. (2013). Entrepreneurship, business incubation, business models & strategy blog. Wordpress. https://worldbusinessincubation.wordpress.com/business-incubation-models/
Schwartz, M., & Hornych, C. (2010). Cooperation patterns of incubator firms and the impact of incubator specialization: Empirical evidence from Germany. Technovation, 30 (9-10), 485–495. https://doi.org/10.1016/j.technovation.2010.05.001
Simatupang, T. M., Schwab, A., & Lantu, D. (2015). Introduction: Building Sustainable Entrepreneurship Ecosystems. International Journal of Entrepreneurship and Small Business, 26(4), 389–398. https://doi.org/10.2139/ssrn.3161598
Stam, E., & Van de Ven, A. (2021). Entrepreneurial ecosystem elements. Small Bus Econ 56, 809–832. https://doi.org/10.1007/s11187-019-00270-6
Theodoraki, C., & Messeghem, K. (2017). Exploring the entrepreneurial ecosystem in the field of entrepreneurial support: a multi-level approach. International Journal of Entrepreneurship and Small Business, 31(1), 47–66. https://doi.org/10.1504/IJESB.2017.083847
Theodoraki, C., Messeghem, K., & Rice, M.P. (2018). A social capital approach to the development of sustainable entrepreneurial ecosystems: an explorative study. Small Bus Econ 51, 153–170. https://doi.org/10.1007/s11187-017-9924-0
Theodoraki, C. (2020). A holistic approach to incubator strategies in the entrepreneurship support ecosystem. M@n@gement, 23, 13–27. https://doi.org/10.37725/mgmt.v23i4.4412
Wadichar, R. K., Manusmare, P., & Burghate, M. A. (2022). Entrepreneurial Ecosystem: A Systematic Literature Review. The Journal of Business Perspective, 28(2), 143–156. https://doi.org/10.1177/09722629221093866
Yuan, X., Hao, H., Guan, C.H., & Pentland, A. (2021). What are the key components of an entrepreneurial ecosystem in a developing economy? A longitudinal empirical study on technology business incubators in China. Cornell University - General Economics, arXiv: 2103.0813. https://doi.org/10.48550/arXiv.2103.08131