Technology Incubators and the Performance of Technology-based Start-up Firms: Evidence from China

Abstract

This study examines the effects of incubator and region-factors on the graduation performance of technology-based start-up firms. Using new data on all Chinese technology-based incubators and incubated technology-based start-up firms from three government surveys conducted across China over consecutive years 2009, 2010, and 2011, we find variations in incubators across China’s three major regions. Empirical results also show that incubator-factors (i.e. size, financial support, technical service support, and professional service support) play a significant role in accelerating and stimulating the graduation performance of start-up firms in both richer and peripheral regions, whilst venture capital is the only regional determinant. The paper ends with a discussion on the policy implications of these findings.