Empirical literature does not adequately throw light on the emergence of institutional intermediaries such as Technology Business Incubators (TBIs) in entrepreneurial ecosystems of emerging economies characterized by underdeveloped market infrastructure and limited private sector participation. The present study aims to understand the role and effectiveness of Government support for the promotion of TBIs in India. We conceptualize incubation support as occurring in two stages: first, the government allocates resources to create incubation infrastructure, followed by startups using the infrastructure and support for their own survival and scaling. A quantitative analysis is carried out based on secondary data on government support provided to 54 incubators in six better-developed states of India. We have carried out logistic regression analyses to analyze our key research objectives. Government support for the promotion of TBIs has led to significant infrastructure development, with a preference for university-based incubators (UBIs). The study makes two contributions: first, preferences attached in resource allocation are hindering the scaling of incubation support in the country. Second, different institutional strategies are required to maximize the creation and utilization of entrepreneurship support capacity, depending on the stage of development of the ecosystem.
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