The objective of this paper is to identify the key components to developing a successful business incubator as an effective tool for economic development based on the case study of an unsuccessful effort. Design – The Gateway Innovation Center case study presents an opportunity to examine some possible pitfalls of developing a business incubator. A scant four months after opening, the organizers of the incubator decided to give up on the project. Exploring the various missteps in the formation of the Gateway Innovation Center provides a better understanding of key issues in developing successful incubators.
Very few business incubator failures are examined. This is one of the first case studies to examine the short life of a highly anticipated business incubator in an area of Southern California that was seeking to foster new businesses and create jobs in a region of relatively high unemployment.
