Assessing value-added contributions of university technology business incubators to tenant firms

Abstract

This paper assesses the value-added contributions of university technology business incubators (UTBIs) to their new technology-based tenant firms. The business incubator is widely believed as providing a nurturing environment for new business start-ups. However, the role played by university relationships in supporting the development of new technology-based firms (NTBFs) has escaped systematic review in the US due to a lack of historical data. To fill this gap, this article presents empirical data on UTBIs by focusing on their value-added dimensions which include typical incubator services along with university-related inputs. The study is based on a national survey of six representative UTBI facilities, providing an insight into the value-added aspects as perceived by the clients. It concludes that several UTBI services, specifically some of the university-related inputs such as university image, laboratories and equipment, and student employees add major values to the client firms, making the UTBI a viable strategy for nurturing NTBFs.