IDEAS home Printed from https://ideas.repec.org/a/kap/jtecht/v42y2017i3d10.1007_s10961-016-9493-4.html
   My bibliography  Save this article

The graduation performance of technology business incubators in China’s three tier cities: the role of incubator funding, technical support, and entrepreneurial mentoring

Author

Listed:
  • Li Xiao

    (Lancaster University Management School)

  • David North

    (Middlesex University)

Abstract

This study examines the effects of technology business incubator (TBI)’s funding, technical support and entrepreneurial mentoring on the graduation performance of new technology-based firms in China’s three tier cities. Using a new dataset on all TBIs and incubated new technology-based firms from government surveys conducted over five consecutive years from 2009 to 2013 combined with archival and hand-collected data, we find the effects of incubator services on the early growth of new technology-based firms vary according to the local context. Technical support facilities and entrepreneurial mentoring from TBIs are found to have significantly and positively influenced the early development of the firms in the four most affluent tier 1 cities, whilst these effects become less pronounced for the tier 2 and tier 3 cities. These two services are also found to influence graduation performance in the government and university types of TBI respectively. Results support the notion that the effectiveness of an incubator’s services is shaped by the level of a city’s socio-economic development and that the city location of a TBI does impact the graduation performance of its incubatees.

Suggested Citation

  • Li Xiao & David North, 2017. "The graduation performance of technology business incubators in China’s three tier cities: the role of incubator funding, technical support, and entrepreneurial mentoring," The Journal of Technology Transfer, Springer, vol. 42(3), pages 615-634, June.
    • Handle: RePEc:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9493-4
    DOI: 10.1007/s10961-016-9493-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10961-016-9493-4
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10961-016-9493-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Storey, D. J. & Tether, B. S., 1998. "New technology-based firms in the European union: an introduction," Research Policy, Elsevier, vol. 26(9), pages 933-946, April.
    2. Li Xiao & David North, 2012. "Institutional transition and the financing of high-tech SMEs in China: A longitudinal perspective," Venture Capital, Taylor & Francis Journals, vol. 14(4), pages 269-287, October.
    3. Bollingtoft, Anne & Ulhoi, John P., 2005. "The networked business incubator--leveraging entrepreneurial agency?," Journal of Business Venturing, Elsevier, vol. 20(2), pages 265-290, March.
    4. Michael Schwartz, 2012. "Incubation time, incubator age, and firm survival after graduation," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 15(1/2), pages 108-130.
    5. Elisa Salvador, 2011. "Are science parks and incubators good “brand names” for spin-offs? The case study of Turin," The Journal of Technology Transfer, Springer, vol. 36(2), pages 203-232, April.
    6. David North & Robert Baldock & Farid Ullah, 2013. "Funding the growth of UK technology-based small firms since the financial crash: are there breakages in the finance escalator?," Venture Capital, Taylor & Francis Journals, vol. 15(3), pages 237-260, July.
    7. 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, January.
    8. Zoltan Acs & David Storey, 2004. "Introduction: Entrepreneurship and Economic Development," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 871-877.
    9. Sarfraz Mian & Wadid Lamine & Alain Fayolle, 2016. "Technology Business Incubation: An overview of the state of knowledge," Post-Print hal-02014389, HAL.
    10. 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.
    11. Folta, Timothy B. & Cooper, Arnold C. & Baik, Yoon-suk, 2006. "Geographic cluster size and firm performance," Journal of Business Venturing, Elsevier, vol. 21(2), pages 217-242, March.
    12. Zhang, Haiyang & Sonobe, Tetsushi, 2011. "Business incubators in China: An inquiry into the variables associated with incubatee success," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-26.
    13. Sarfraz Mian & Wadid Lamine & Alain Fayolle, 2016. "Technology Business Incubation : An overview of the state of knowledge," Post-Print hal-02313371, HAL.
    14. 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.
    15. Jussi Jauhiainen, 2008. "Regional and Innovation Policies in Finland - Towards Convergence and/or Mismatch?," Regional Studies, Taylor & Francis Journals, vol. 42(7), pages 1031-1045.
    16. Rod Shrader & Donald S. Siegel, 2007. "Assessing the Relationship between Human Capital and Firm Performance: Evidence from Technology–Based New Ventures," Entrepreneurship Theory and Practice, , vol. 31(6), pages 893-908, November.
    17. Fabio Bertoni & Annalisa Croce & Diego D'Adda, 2009. "Venture capital investments and patenting activity of high-tech start-ups: a micro-econometric firm-level analysis," Venture Capital, Taylor & Francis Journals, vol. 12(4), pages 307-326, November.
    18. Sara Cruz & Aurora Teixeira, 2010. "The Evolution of the Cluster Literature: Shedding Light on the Regional Studies-Regional Science Debate," Regional Studies, Taylor & Francis Journals, vol. 44(9), pages 1263-1288.
    19. Mian, Sarfraz A., 1996. "Assessing value-added contributions of university technology business incubators to tenant firms," Research Policy, Elsevier, vol. 25(3), pages 325-335, May.
    20. Michael Fritsch & Viktor Slavtchev, 2011. "Determinants of the Efficiency of Regional Innovation Systems," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 905-918.
    21. Chris Hendry & James Brown & Robert Defillippi, 2000. "Regional Clustering of High Technology-based Firms: Opto-electronics in Three Countries," Regional Studies, Taylor & Francis Journals, vol. 34(2), pages 129-144.
    22. Robert E. Carpenter & Bruce C. Petersen, 2002. "Is The Growth Of Small Firms Constrained By Internal Finance?," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 298-309, May.
    23. Colombo, Massimo G. & Grilli, Luca, 2010. "On growth drivers of high-tech start-ups: Exploring the role of founders' human capital and venture capital," Journal of Business Venturing, Elsevier, vol. 25(6), pages 610-626, November.
    24. Phillip Phan & Donald S. Siegel & Mike Wright, 2016. "Science Parks and Incubators: Observations, Synthesis and Future Research," World Scientific Book Chapters, in: Phillip H Phan & Sarfraz A Mian & Wadid Lamine (ed.), TECHNOLOGY ENTREPRENEURSHIP AND BUSINESS INCUBATION Theory • Practice • Lessons Learned, chapter 9, pages 249-272, World Scientific Publishing Co. Pte. Ltd..
    25. Pontus Braunerhjelm & Benny Borgman, 2004. "Geographical Concentration, Entrepreneurship and Regional Growth: Evidence from Regional Data in Sweden, 1975-99," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 929-947.
    26. 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.
    27. Mike Wright & Ajay Vohora & Andy Lockett, 2004. "The Formation of High-Tech University Spinouts: The Role of Joint Ventures and Venture Capital Investors," The Journal of Technology Transfer, Springer, vol. 29(3_4), pages 287-310, August.
    28. Koh, Francis C. C. & Koh, Winston T. H. & Tschang, Feichin Ted, 2005. "An analytical framework for science parks and technology districts with an application to Singapore," Journal of Business Venturing, Elsevier, vol. 20(2), pages 217-239, March.
    29. Rudy Aernoudt, 2004. "Incubators: Tool for Entrepreneurship?," Small Business Economics, Springer, vol. 23(2), pages 127-135, September.
    30. 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.
    31. 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 177-184, March.
    32. Markman, Gideon D. & Phan, Phillip H. & Balkin, David B. & Gianiodis, Peter T., 2005. "Entrepreneurship and university-based technology transfer," Journal of Business Venturing, Elsevier, vol. 20(2), pages 241-263, March.
    33. Colombo, Massimo G. & Delmastro, Marco, 2002. "How effective are technology incubators?: Evidence from Italy," Research Policy, Elsevier, vol. 31(7), pages 1103-1122, September.
    34. Mian, Sarfraz & Lamine, Wadid & Fayolle, Alain, 2016. "Technology Business Incubation: An overview of the state of knowledge," Technovation, Elsevier, vol. 50, pages 1-12.
    35. Hong, Wei, 2008. "Decline of the center: The decentralizing process of knowledge transfer of Chinese universities from 1985 to 2004," Research Policy, Elsevier, vol. 37(4), pages 580-595, May.
    36. Wright, Mike & Clarysse, Bart & Lockett, Andy & Knockaert, Mirjam, 2008. "Mid-range universities' linkages with industry: Knowledge types and the role of intermediaries," Research Policy, Elsevier, vol. 37(8), pages 1205-1223, September.
    37. Maura McAdam & Susan Marlow, 2011. "Sense and sensibility: The role of business incubator client advisors in assisting high-technology entrepreneurs to make sense of investment readiness status," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(7-8), pages 449-468, September.
    38. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    39. McAdam, Maura & Miller, Kristel & McAdam, Rodney, 2016. "Situated regional university incubation: A multi-level stakeholder perspective," Technovation, Elsevier, vol. 50, pages 69-78.
    40. R. P. Oakey, 2003. "Funding innovation and growth in UK new technology-based firms: Some observations on contributions from the public and private sectors," Venture Capital, Taylor & Francis Journals, vol. 5(2), pages 161-179, April.
    41. Pérez-Luño, Ana & Wiklund, Johan & Cabrera, Ramón Valle, 2011. "The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption," Journal of Business Venturing, Elsevier, vol. 26(5), pages 555-571, September.
    42. Storey, D. J. & Tether, B. S., 1998. "Public policy measures to support new technology-based firms in the European Union," Research Policy, Elsevier, vol. 26(9), pages 1037-1057, April.
    43. Sean M. Hackett & David M. Dilts, 2004. "A Real Options-Driven Theory of Business Incubation," The Journal of Technology Transfer, Springer, vol. 29(1), pages 41-54, January.
    44. Donald S. Siegel & Mike Wright & Andy Lockett, 2007. "The rise of entrepreneurial activity at universities: organizational and societal implications," Industrial and Corporate Change, Oxford University Press, vol. 16(4), pages 489-504, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mingfeng Tang & Grace Sheila Walsh & Cuiwen Li & Angathevar Baskaran, 2021. "Exploring technology business incubators and their business incubation models: case studies from China," The Journal of Technology Transfer, Springer, vol. 46(1), pages 90-116, February.
    2. Xiao-Hai Weng & Yu-Ming Zhu & Xiao-Yu Song & Naveed Ahmad, 2019. "Identification of Key Success Factors for Private Science Parks Established from Brownfield Regeneration: A Case Study from China," IJERPH, MDPI, vol. 16(7), pages 1-17, April.
    3. Anthony Kambi MASHA & Elvin SHAVA & Tafadzwa MAMBIRAVANA & Patrick William BWOWE, 2022. "Promoting Youth Empowerment through Business Mentorship in South Africa," Prizren Social Science Journal, SHIKS, vol. 6(1), pages 48-57, April.
    4. Li Zhang & Ping Gao & Yongtao Zhou & Yuchuan Zhang & Junhua Wang, 2019. "Surviving through Incubation Based on Entrepreneurship-Specific Human Capital Development: The Moderating Role of Tenants’ Network Involvement," Sustainability, MDPI, vol. 11(10), pages 1-19, May.
    5. Xiangfei Yuan & Haijing Hao & Chenghua Guan & Alex Pentland, 2021. "What are the key components of an entrepreneurial ecosystem in a developing economy? A longitudinal empirical study on technology business incubators in China," Papers 2103.08131, arXiv.org.
    6. Klofsten, Magnus & Lundmark, Erik & Wennberg, Karl & Bank, Megan, 2019. "Incubator specialization and size: divergent paths towards operational scale," Ratio Working Papers 326, The Ratio Institute.
    7. Mingfeng Tang & Hao Huang & Grace Walsh & Maribel Guerrero, 2023. "The impact of entrepreneurial overconfidence on incubator effectiveness," The Journal of Technology Transfer, Springer, vol. 48(1), pages 416-440, February.
    8. Tendai Douglas Svotwa & Olumide Jaiyeoba & Mornay Roberts-Lombard & Charles Makanyeza, 2022. "Perceived Access to Finance, Entrepreneurial Self-Efficacy, Attitude Toward Entrepreneurship, Entrepreneurial Ability, and Entrepreneurial Intentions: A Botswana Youth Perspective," SAGE Open, , vol. 12(2), pages 21582440221, May.
    9. Martin Hemmert & Adam R. Cross & Ying Cheng & Jae-Jin Kim & Masahiro Kotosaka & Franz Waldenberger & Leven J. Zheng, 2022. "New venture entrepreneurship and context in East Asia: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 21(5), pages 831-865, November.
    10. Vidit Mohan & Rohan Chinchwadkar, 2022. "Technology Business Incubation: A Literature Review and Gaps," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 53-63, June.
    11. 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).
    12. Good, Matthew & Knockaert, Mirjam & Soppe, Birthe & Wright, Mike, 2019. "The technology transfer ecosystem in academia. An organizational design perspective," Technovation, Elsevier, vol. 82, pages 35-50.
    13. Hülya Ünlü & Serdal Temel & Kristel Miller, 2023. "Understanding the drivers of patent performance of University Science Parks in Turkey," The Journal of Technology Transfer, Springer, vol. 48(3), pages 842-872, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lukeš, Martin & Longo, Maria Cristina & Zouhar, Jan, 2019. "Do business incubators really enhance entrepreneurial growth? Evidence from a large sample of innovative Italian start-ups," Technovation, Elsevier, vol. 82, pages 25-34.
    2. Good, Matthew & Knockaert, Mirjam & Soppe, Birthe & Wright, Mike, 2019. "The technology transfer ecosystem in academia. An organizational design perspective," Technovation, Elsevier, vol. 82, pages 35-50.
    3. J. Piet Hausberg & Sabrina Korreck, 2020. "Business incubators and accelerators: a co-citation analysis-based, systematic literature review," The Journal of Technology Transfer, Springer, vol. 45(1), pages 151-176, February.
    4. Brian J. Bergman & Jeffery S. McMullen, 2022. "Helping Entrepreneurs Help Themselves: A Review and Relational Research Agenda on Entrepreneurial Support Organizations," Entrepreneurship Theory and Practice, , vol. 46(3), pages 688-728, May.
    5. Isabel Diez-Vial & Angeles Montoro-Sanchez, 2017. "Research evolution in science parks and incubators: foundations and new trends," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(3), pages 1243-1272, March.
    6. Laura Lecluyse & Mirjam Knockaert & André Spithoven, 2019. "The contribution of science parks: a literature review and future research agenda," The Journal of Technology Transfer, Springer, vol. 44(2), pages 559-595, April.
    7. T. Theeranattapong & D. Pickernell & C. Simms, 2021. "Systematic literature review paper: the regional innovation system-university-science park nexus," The Journal of Technology Transfer, Springer, vol. 46(6), pages 2017-2050, December.
    8. van Rijnsoever, Frank J. & Eveleens, Chris P., 2021. "Money Don't matter? How incubation experience affects start-up entrepreneurs' resource valuation," Technovation, Elsevier, vol. 106(C).
    9. Mian, Sarfraz & Lamine, Wadid & Fayolle, Alain, 2016. "Technology Business Incubation: An overview of the state of knowledge," Technovation, Elsevier, vol. 50, pages 1-12.
    10. Del Sarto, Nicola & Isabelle, Diane A. & Di Minin, Alberto, 2020. "The role of accelerators in firm survival: An fsQCA analysis of Italian startups," Technovation, Elsevier, vol. 90.
    11. Schwartz, Michael & Göthner, Maximilian, 2009. "A Novel Approach to Incubator Evaluations: The PROMETHEE Outranking Procedures," IWH Discussion Papers 1/2009, Halle Institute for Economic Research (IWH).
    12. Christian Sandström & Karl Wennberg & Martin W. Wallin & Yulia Zherlygina, 2018. "Public policy for academic entrepreneurship initiatives: a review and critical discussion," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1232-1256, October.
    13. Sansone, Giuliano & Andreotti, Pietro & Colombelli, Alessandra & Landoni, Paolo, 2020. "Are social incubators different from other incubators? Evidence from Italy," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    14. Elisa Salvador, 2012. "Italian Science Parks And Incubators: Some Considerations Arising From A Questionnaire Investigation On Research Spin-Off Firms," Post-Print hal-02093934, HAL.
    15. Elisa Salvador, 2011. "Are science parks and incubators good “brand names” for spin-offs? The case study of Turin," The Journal of Technology Transfer, Springer, vol. 36(2), pages 203-232, April.
    16. Schwartz, Michael, 2010. "A Control Group Study of Incubators’ Impact to Promote Firm Survival," IWH Discussion Papers 11/2010, Halle Institute for Economic Research (IWH).
    17. Elisa Salvador & Secondo Rolfo, 2011. "Are incubators and science parks effective for research spin-offs? Evidence from Italy," Science and Public Policy, Oxford University Press, vol. 38(3), pages 170-184, April.
    18. 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).
    19. José Barbero & José Casillas & Mike Wright & Alicia Ramos Garcia, 2014. "Do different types of incubators produce different types of innovations?," The Journal of Technology Transfer, Springer, vol. 39(2), pages 151-168, April.
    20. 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.

    More about this item

    Keywords

    Graduation performance; TBIs; New technology-based firms; Incubator research facilities; funding and mentoring; China;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jtecht:v:42:y:2017:i:3:d:10.1007_s10961-016-9493-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.