Executive Summary

In recent years, developed and developing countries have targeted the diversification of their economies at sustainable, smart and inclusive growth. Business incubators (BIs) have contributed positively to technology based companies as innovation accelerators, fostering a climate of entrepreneurship, technology transfer, technology commercialization and job creation. BIs are proven and well known internationally as dynamic tools for fostering new ventures in terms of their economic development, job creation and as vital components of entrepreneurial infrastructure. Presently, there are over 7000 BIs worldwide. Approximately 1400 BIs operate in North America, including 1115 in the USA. In Europe, approximately 900 BIs are in existence and there are roughly 21 in the Middle East. BIs must adapt and expand in the Gulf Cooperation Council (GCC) countries, as this will lead to the support of diverse economies, the commercialization of new technologies, job creation and wealth building, with an anticipated company survival rate for incubated companies of 90%.

The objectives of this research are 1) to identify and analyse the key indicators of incubator best practices in developed and developing countries, 2) to compare incubator models in developed and developing countries, 3) to identify the strengths and weaknesses of BIs in developed and developing countries, and 4) to produce guidelines and recommendations for the implementation of business incubation based on successful best practices from international case studies. In addition, the research methodology employs a mixed-methods approach involving quantitative (survey) and qualitative (multiple case studies and inter views) analyses to examine incubator best practices in developed and developing countries.

An overview of 137 incubators in the survey sample - incorporating both developed and developing countries - reveals that more than half (64.2%) of developed and developing countries’ incubator goals involved creating an entrepreneurial climate, increasing employment and commercializing technologies. Most developed and developing countries’ incubators offered strong tangible and specialized services (58.6%). The majority (59%) of the developed and developing countries’ incubators were technology focused. In terms of ranking, 33.6% of respondents felt that their incubators were well known in both the developed and developing countries. Most of the incubators in developed and developing countries were founded before 2002 (68.7%); thus, most were already well established between 2001 and 2010. Nearly half of developed and developing countries’ incubators were sponsored by their respective governments (42.9%). More than half (55%) of developed and developing countries’ incubators created 50 jobs per incubator programme. The tenancy duration for developed and developing countries’ incubators ranged from 3 to 4 years (50%). Most developed and developing countries’ incubators had from 1 to 5 staff (74%). Incubators in developed and developing countries had an average financial model (48.1%).