A control group study of incubators’ impact to promote firm survival
It is widely unclear as to whether start-up firms supported by publicly-initiated incubator initiatives have higher survival rates than comparable start-up firms that have not received support by such initiatives. This paper contributes to the underlying discussion by performing a large-scale matched-pairs analysis of the long-term survival of 371 incubator firms (after their graduation) from five German incubators and a control group of 371 comparable non-incubated firms. The analysis covers a 10-year time span. To account for the problem of selection bias, a non-parametric matching approach is applied to identify an appropriate control group. For neither of the five incubator locations, we find statistically significant higher survival probabilities for firms located in incubators compared to firms located outside those incubator organizations. For three incubator locations the analysis reveals statistically significant lower chances of survival for those start-ups receiving support by an incubator. The empirical results, therefore, raise some doubts regarding the impacts of incubation on long-term firm survival. Copyright Springer Science+Business Media, LLC 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cefis, Elena & Marsili, Orietta, 2006. "Survivor: The role of innovation in firms' survival," Research Policy, Elsevier, vol. 35(5), pages 626-641, June.
- Fukugawa, Nobuya, 2006. "Science parks in Japan and their value-added contributions to new technology-based firms," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 381-400, March.
- Sean Hackett & David Dilts, 2008. "Inside the black box of business incubation: Study B—scale assessment, model refinement, and incubation outcomes," The Journal of Technology Transfer, Springer, vol. 33(5), pages 439-471, October.
- Iain M. Cockburn & Stefan Wagner, 2007.
"Patents and the Survival of Internet-related IPOs,"
NBER Working Papers
13146, National Bureau of Economic Research, Inc.
- Slavo Radosevic & Marat Myrzakhmet, 2006. "Between Vision And Reality: Promoting Innovation Through Technoparks In Kazakhstan," Working Papers 66, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
- 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.
- Michael Schwartz & Maximilian G�thner, 2009. "A multidimensional evaluation of the effectiveness of business incubators: an application of the PROMETHEE outranking method," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 27(6), pages 1072-1087, December.
- Yang, Chih-Hai & Motohashi, Kazuyuki & Chen, Jong-Rong, 2009. "Are new technology-based firms located on science parks really more innovative?: Evidence from Taiwan," Research Policy, Elsevier, vol. 38(1), pages 77-85, February.
- Maximilian Zedtwitz & Rosa Grimaldi, 2006. "Are Service Profiles Incubator-Specific? Results from an Empirical Investigation in Italy," The Journal of Technology Transfer, Springer, vol. 31(4), pages 459-468, 07.
- L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters, in: Credit and State Theories of Money, chapter 1 Edward Elgar.
- Colombo, Massimo G. & Delmastro, Marco, 2002. "How effective are technology incubators?: Evidence from Italy," Research Policy, Elsevier, vol. 31(7), pages 1103-1122, September.
- Rudy Aernoudt, 2004. "Incubators: Tool for Entrepreneurship?," Small Business Economics, Springer, vol. 23(2), pages 127-135, 09.
- Mahoney, Joseph T., 1995. "The management of resources and the resource of management," Journal of Business Research, Elsevier, vol. 33(2), pages 91-101, June.
- P.A. Geroski & José Mata & Pedro Portugal, 2003.
"Founding Conditions and the Survival of New Firms,"
w200301, Banco de Portugal, Economics and Research Department.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
- Zoltan J. Acs & Catherine Armington & Ting Zhang, 2007. "The determinants of new-firm survival across regional economies: The role of human capital stock and knowledge spillover," Papers in Regional Science, Wiley Blackwell, vol. 86(3), pages 367-391, 08.
- Mariagrazia Squicciarini, 2008. "Science Parks’ tenants versus out-of-Park firms: who innovates more? A duration model," The Journal of Technology Transfer, Springer, vol. 33(1), pages 45-71, February.
- 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.
- Richard Ferguson & Christer Olofsson, 2004. "Science Parks and the Development of NTBFs-- Location, Survival and Growth," The Journal of Technology Transfer, Springer, vol. 29(1), pages 5-17, 01.
- Harald Strotmann, 2007. "Entrepreneurial Survival," Small Business Economics, Springer, vol. 28(1), pages 87-104, January.
- Michael Schwartz, 2009. "Beyond incubation: an analysis of firm survival and exit dynamics in the post-graduation period," The Journal of Technology Transfer, Springer, vol. 34(4), pages 403-421, August.
- Ensley, Michael D. & Pearson, Allison W. & Amason, Allen C., 2002. "Understanding the dynamics of new venture top management teams: cohesion, conflict, and new venture performance," Journal of Business Venturing, Elsevier, vol. 17(4), pages 365-386, July.
- Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 961-975.
- Scott Shane & Toby Stuart, 2002. "Organizational Endowments and the Performance of University Start-ups," Management Science, INFORMS, vol. 48(1), pages 154-170, January.
- 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.
- 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.
- Peter Bearse, 1998. "A Question of Evaluation: NBIA's Impact Assessment of Business Incubators," Economic Development Quarterly, , vol. 12(4), pages 322-333, November.
When requesting a correction, please mention this item's handle: RePEc:kap:jtecht:v:38:y:2013:i:3:p:302-331. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.