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Assessing the effectiveness of business incubators in fostering SMEs: evidence from China

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  • Jin Hong
  • Jinfeng Lu

Abstract

The number of business incubators (BIs) in China has grown at an astonishing pace through the decades since their establishment. We investigated the effectiveness of China's business incubators as a government tool of cultivating small-medium sized enterprises (SMEs) by relating their service offerings to SMEs' performance. Using data on China's 120 state-level business incubators from 2008 to 2012 and data on the metropolises that host them, we find no evidence that infrastructure support contributes to intellectual property generation or venture capital acquisition. The results suggest a modest contribution of BIs' business assistance to SMEs' access to venture capital. Moreover, the findings confirm that professional technical assistance is valuable for SMEs' growth in the Chinese context. Additionally, we find that incubator's age and number of tenants are significantly positively correlated with the incubator firms' performance.

Suggested Citation

  • Jin Hong & Jinfeng Lu, 2016. "Assessing the effectiveness of business incubators in fostering SMEs: evidence from China," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 20(1/2), pages 45-60.
    • Handle: RePEc:ids:ijeima:v:20:y:2016:i:1/2:p:45-60
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    References listed on IDEAS

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    Cited by:

    1. Sohail, Kanza & Belitski, Maksim & Castro Christiansen, Liza, 2023. "Developing business incubation process frameworks: A systematic literature review," Journal of Business Research, Elsevier, vol. 162(C).
    2. Afred Suci & Sri Maryanti & Hardi Hardi & Nining Sudiar, 2022. "Embedding Design Thinking Paradigm in a University’s Business Assistance to Small Business," Systemic Practice and Action Research, Springer, vol. 35(2), pages 177-201, April.
    3. Surana, Kavita & Singh, Anuraag & Sagar, Ambuj D, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    4. Kavita Surana & Anuraag Singh & Ambuj D Sagar, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Papers 2005.13138, arXiv.org, revised Jun 2020.
    5. Marc H. Meyer & Chaewon Lee & Donna Kelley & Greg Collier, 2020. "An Assessment and Planning Methodology for University-Based: Entrepreneurship Ecosystems," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 29(2), pages 259-292, September.
    6. Hu, Yubei & Ahmad, Ali J. & Lu, Dawei, 2023. "Performance management challenges at Chinese business incubators: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    7. Wadim Strielkowski & Aida Guliyeva & Ulviyya Rzayeva & Elena Korneeva & Anna Sherstobitova, 2021. "Mathematical Modeling of Intellectual Capital and Business Efficiency of Small and Medium Enterprises," Mathematics, MDPI, vol. 9(18), pages 1-21, September.

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