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Incubator Age and Incubation Time: Determinants of Firm Survival after Graduation?

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Author Info
Michael Schwartz

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Abstract

On the basis of a sample of 149 graduate firms from five German technology oriented business incubators, this article contributes to incubator/incubation literature by investigating the effects of the age of the business incubators and the firms’ incubation time in securing long-term survival of the firms after leaving the incubator facilities. The empirical findings from Cox-proportional hazards regression and parametric accelerated failure time models reveal a statistically negative impact for both variables incubator age and incubation time on post-graduation firm survival. One possible explanation for these results is that, when incubator managers become increasingly involved in various regional development activities (e.g. coaching of regional network initiatives), this may reduce the effectiveness of incubator support and therefore the survival chances of firms.

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Publisher Info
Paper provided by Halle Institute for Economic Research in its series IWH Discussion Papers with number 14-08.

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Date of creation: Nov 2008
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Handle: RePEc:iwh:dispap:14-08

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Related research
Keywords: Firm survival; Hazard rates; Business incubators; Local technology policy;

Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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References listed on IDEAS
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  1. Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January. [Downloadable!] (restricted)
  2. I. Pena, 2004. "Business Incubation Centers and New Firm Growth in the Basque Country," Small Business Economics, Springer, vol. 22(3_4), pages 223-236, 04. [Downloadable!]
  3. Lofsten, Hans & Lindelof, Peter, 2002. "Science Parks and the growth of new technology-based firms--academic-industry links, innovation and markets," Research Policy, Elsevier, vol. 31(6), pages 859-876, August. [Downloadable!] (restricted)
  4. Link, Albert N. & Scott, John T., 2003. "U.S. science parks: the diffusion of an innovation and its effects on the academic missions of universities," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1323-1356, November. [Downloadable!] (restricted)
  5. Siegel, Donald S & Westhead, Paul & Wright, Mike, 2003. " Science Parks and the Performance of New Technology-Based Firms: A Review of Recent U.K. Evidence and an Agenda for Future Research," Small Business Economics, Springer, vol. 20(2), pages 177-84, March. [Downloadable!] (restricted)
  6. Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2008. "An Introduction to Survival Analysis Using Stata, 2nd Edition," Stata Press books, StataCorp LP, number saus, November-. [Downloadable!]
  7. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February. [Downloadable!] (restricted)
  8. Thierstein, Alain & Wilhelm, Beate, 1999. "Incubator, technology and innovation centers in Switzerland; features and policy implications," ERSA conference papers ersa99pa385, European Regional Science Association. [Downloadable!]
  9. Colombo, Massimo G. & Delmastro, Marco, 2002. "How effective are technology incubators?: Evidence from Italy," Research Policy, Elsevier, vol. 31(7), pages 1103-1122, September. [Downloadable!] (restricted)
  10. Lois Peters & Mark Rice & Malavika Sundararajan, 2004. "The Role of Incubators in the Entrepreneurial Process," The Journal of Technology Transfer, Springer, vol. 29(1), pages 83-91, 01. [Downloadable!]
  11. Rothaermel, Frank T. & Thursby, Marie, 2005. "University-incubator firm knowledge flows: assessing their impact on incubator firm performance," Research Policy, Elsevier, vol. 34(3), pages 305-320, April. [Downloadable!] (restricted)
  12. Phan, Phillip H. & Siegel, Donald S. & Wright, Mike, 2005. "Science parks and incubators: observations, synthesis and future research," Journal of Business Venturing, Elsevier, vol. 20(2), pages 165-182, March. [Downloadable!] (restricted)
  13. Almus, Matthias & Nerlinger, Eric A, 1999. " Growth of New Technology-Based Firms: Which Factors Matter?," Small Business Economics, Springer, vol. 13(2), pages 141-54, September. [Downloadable!] (restricted)
  14. Agarwal, Rajshree, 1996. "Technological activity and survival of firms," Economics Letters, Elsevier, vol. 52(1), pages 101-108, July. [Downloadable!] (restricted)
  15. Almus, Matthias, 2002. "What Characterizes a Fast-Growing Firm?," Applied Economics, Taylor and Francis Journals, vol. 34(12), pages 1497-1508, August. [Downloadable!] (restricted)
  16. Dr. Peter Kenning & Hilke Plassmann, 2004. "NeuroEconomics," Experimental 0412005, EconWPA. [Downloadable!]
  17. Rothaermel, Frank T. & Thursby, Marie, 2005. "Incubator firm failure or graduation?: The role of university linkages," Research Policy, Elsevier, vol. 34(7), pages 1076-1090, September. [Downloadable!] (restricted)
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