Business Incubation Models

This page contains Business Incubation Models. This is a summary of post series about Business Incubation Models.  The main purpose of this section is to review existing Business Incubator’s Models, and assess their historical applicability, performance and efficiency for business innovation purposes. Business Incubation is a concept which involves multiple stakeholders, dozens “building blocks”, various types of resources and  several service categories (around 100 specific services in total). Business Incubation Models will be described below in order to better define, analyze, design, calibrate, evaluate and think about business incubation. These models have been developed by researchers, consultants and practitioners since 1985. Moreover, they created around 20 different models.

20 Business Incubation Models

20 Business Incubation Models - Comparison Matrix

20 Business Incubation Models – Comparison Matrix

Here are links to each part of the series:

 

1985, Campbell, Kendrick & Samuelson, white-box, process, operations

Campbell, Kendrick & Samuelson's incubation model (1985)

Campbell, Kendrick & Samuelson’s incubation model (1985)

The model stresses on process functions of incubator as main business development tool that can transform idea into a real business. The main outcome of the model: Incubation process is of key importance

More information about the model is in the post here.

1987, Smilor, mixed, structure, operations

Smilor's Incubation Model (1987)

Smilor’s Incubation Model (1987)

This model was developed by Smilor in 1987 by refining Campbell’s model (1985). Smilor created structure model via describing main incubator affiliates, support systems and description of main outcomes of the incubation process. He considers an incubator as a transformation mechanism that assist entrepreneur in building a venture. Even though the representation of the model doesn’t provide extensive information about particular services that business incubator  supplies to tenants, Smilor categorizes the benefits that business incubators provide to their tenants through four dimensions:

  1. Credibility development.
  2. The shortening of the learning curve.
  3. Faster troubleshooting.
  4. Access to the network of entrepreneurs…

More information about the model is in the post here.

1988, Nijkamp & Smilor, black-box, structure model, operations

Nijkamp & Smilor’s Generic Incubator Model (1988)

Nijkamp & Smilor’s Generic Incubator Model (1988)

This model is the combination of two. Firstly, Smilor introduced his model and then it was extended by Nijkamp. Nijkamp’s (1988) model is the interpretation of a generic business incubator. He argues that any  business incubator acts as a mediator between entrepreneurs and community. Thus, successful implementation of the incubator requires combintation of at least these elements:

  • Sources of entrepreneurs
  • Recognition of opportunities by entrepreneurs
  • Demand for business incubation services…

More information about the model is in the post here.

2000, Carter & Jones-Evans, white-box, process model, operations

Carter & Jones-Evans Process Incubation Model (2000)

Carter & Jones-Evans Process Incubation Model (2000)

This is a first true process model in a row. Carter & Jones-Evans (2000) proposed a typical five-step incubation process, as shown in the figure above. As it can be seen from Carter & Jones-Evans’ (2000) model the process is organized and focused on the needs of the incubatee, which will be supported by the services provided by the incubators during the incubation process. The incubation process according to the Carter & Jones-Evans consists of the following stages: idea formulation, post entry development, opportunity recognition, entry and launch, pre-start planning and preparation…

More information about the model is in the post here.

2000, Nowak and Grantham, white-box, structure, operations

Nowak and Grantham Virtual Incubation Model (2000)

Nowak and Grantham Virtual Incubation Model (2000)

Nowak and Grantham (2000) have established their model on the following premise:  “Traditional business development entrepreneurs face a common challenge: the absence of capital, human resources, and management capabilities.” So, the new model needs to provide the small business community with a structure and mechanism to easily access:

  • information on ‘‘best practices’’ for business development
  • industry and management experience
  • resources for international marketing, sales and distribution

They proposed the creation of a virtual incubation model, based on networked innovation, which brings together, if only in a virtual sense, centers of technical and business or management excellence…

More information about the model is in the post here.

2000, Booz, Allen & Hamilton model, white-box, process, operations

Booz, Allen & Hamilton Corporate Incubator Model (2000)

Booz, Allen & Hamilton Corporate Incubator Model (2000)

Main contribution of the model proposed by Gregor Harter, Klaus Hölbling & Steffen Leistner from Booz, Allen and Hamilton[1] is conceptualization of business incubation and applying it to a corporation’s needs in continuous innovation. The model describes how corporate incubator could reinforce and support innovation practices…

More information about the model is in the post here.

2002, Lazarowich & Wojciechowski ‘New Economy’ Incubator Model, white-box, structure, operations

Lazarowich & Wojciechowski 'New Economy' Incubator Model (2002)

Lazarowich & Wojciechowski ‘New Economy’ Incubator Model (2002)

The model described by Lazarowich and Wojciechowski[1] explains ‘new economy’ incubators. They are characterized by the following:

  • “Business incubators are private-sector, profit-driven with the pay-back coming from investment in companies rather than from rental income.
  • They tend to focus mainly on high-tech and internet-related activities and unlike ‘traditional’ incubators, do not have job creation as their principal.
  • ‘New economy’ incubators often have an essentially virtual presence with financial and business services at the core of the offering unlike their ‘traditional’ counterparts that usually  center on the provision of physical workspace.”

More information about the model is in the post here.

2000, Lalkaka Incubator Development Model, white-box, process, development

Lalkaka Incubator Development Model - Planning (2000)

Lalkaka Incubator Development Model – Planning (2000)

This model is about the development of technology business incubator. The model was presented by Mr. Lalkaka in 2000 and was intended to guide planners, educators, sponsors and management teams in exploring and establishing a  successful TBI program.

More information about the model is in the post here.

2002, Costa-David, Malan, Lalkaka, NBIA, mixed, mixed, operations

Costa-David, Malan, Lalkaka Generic Incubator Model (2002)

Costa-David, Malan, Lalkaka Generic Incubator Model (2002)

This model was presented in a 2002 EU incubator benchmarking study[1] as a general ‘model of incubation’ based on EU-wide survey data. However, it was developed by very knowledgeable authors Costa-David, Malan, Lalkaka for NBIA. Later the Center for Strategy & Evaluation Services (EU) copied this model and used proposed benchmarks that depict incubator efficiency and performance in terms of using inputs, developing and orchestrating processes and ensuring a steady supply of quality outputs.

More information about the model is in the post here.

2003, Gibson, Wiggins, black-box, structure, operations

Gibson & Wiggins Technology Business Incubator Model (2003)

Gibson & Wiggins Technology Business Incubator Model (2003)

This is basically a copy-paste of a Smilor model (1987).

More information about the model is in the post here.

2004, Sahay, black-box, structure model, operations

Sahay Techology Business Incubator Model (2004)

Sahay Techology Business Incubator Model (2004)

More information abou the model is in the post here.

2004, Hackett & Dilts Generic Incubator model, black-box, structure, operations

Hackett & Dilts Business Incubator Model - Structure (2004)

Hackett & Dilts Business Incubator Model – Structure (2004)

The model is a universal business incubation model which can be used both in public and corporate purposes. In short, it is structured as black-box: inputs of the process, process activities, and outputs of the process. Authors also present a formula of Business Incubation Process. We think that this is the most successful representation of business incubator among all in the series.

More information about the model is in the post here.

2008, Bergek & Norrman model, white-box, process, operations

Bergek & Norrman Business Incubation Model (2008)

Bergek & Norrman Business Incubation Model (2008)

The model of Bergek & Norrman from 2008 continues the ideas that have been developed by Hackett & Dilts (2004),Smilor in 1987 and Gibson & Wiggins (2003). On the one hand the model  is centered on the results of the business incubation. On the other hand it’s still process model which describes different stages of the process. So, it’s easy to adapt it in the real life and build your incubator by applying this model.

More information about the model is in the post here.

2009, InfoDev, process, internal, operations

InfoDev Process Model (2009)

InfoDev Process Model (2009)

infoDev model is the model developed for building business incubators around the World within infoDev network. infoDev is a powerful and well-known World Bank program that “grows innovation around the world”. They work in five different areas: Access to Finance, Agribusiness Entrepreneurship, Climate Technology, Mobile Innovation, Women Entrepreneurs. One of the works they do is helping entrepreneurs by bringing them business coaching, access to early-stage financing, and better entrepreneurship environments (which are often include business incubators). They have published several materials that could be valuable for those who are creating business incubators. One of the models will be described today. An interesting point about this model of Business Incubation Series is the linkage between business incubation phases and entrepreneurial life cycle.

More information about the model is in the post here.

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21 thoughts on “Business Incubation Models

  1. Were can i find more detailed information about these models, if you have any materials please send a copy to me to my e-mail aidaselim@live.com. I am writing a master theses on business incubators in Macedonia , this information will help me a lot. Thank you in advance

  2. I really enjoy your blog. I would like to know about “Ryzhonkov Generic Business Incubation Model”. Could you tell me about this, please? I did my Doctoral Thesis on business incubators in México and would like to continue researching the subject, so, could you please be so kind to send me your blog information or if you write and article about. My e-mail: azalea_canales@hotmail.com. Thank you very much

  3. I believe most people confuse use the terms with Business Incubator and Business Incubation. A business incubator is a physical place where business incubation is a process that may or may not involve a business incubator, all be it a virtual one. The model most closely resembling the process of business incubation is 2009, InfoDev Process Model. In general, business incubation is a support process that nurtures individuals in the pre-business startup stage, supports the successful development of start-up and fledgling companies and aids in accelerating the development of entrepreneurial and small businesses by providing an array of targeted resources and services.

  4. Its really impressive and so comprehensive information. Can You please send the pdf to me as well ihfan@mara.gov.my. I would like to start my pHD under incubator business in technical institution in Malaysia, can you suggest the area that can be covered? Many thanks again

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