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Business incubators in China: An inquiry into the variables associated with incubatee success

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  • Zhang, Haiyang
  • Sonobe, Tetsushi

Abstract

This paper examines the association between the outcome of business incubation and the resources used by incubators, by using a small panel of science and technology business incubators (STBIs) in China. We find that while the number of firms graduating from an STBI is closely correlated with the infrastructure as well as the human and financial resources at the STBI's disposal, the graduates' firm sizes, in terms of employment and value added, as well as their labor productivity are unrelated to such resource inputs. We also find that the educational levels of incubator managers and the financial support given to their clients have significant impacts on the number of graduates. However, the number of graduates does not increase with the scale and diversity of the cities in which their STBIs are located or with the presence of foreign ventures and universities in the locality. We do not find that university-based and government-established STBIs differ significantly in their incubation performance.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:ifweej:20117
    DOI: 10.5018/economics-ejournal.ja.2011-7
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    References listed on IDEAS

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    1. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    2. Zheng Wang & Zhaopan Ge, 2004. "Convergence and transition auspice of Chinese regional growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(4), pages 727-739, December.
    3. Todo, Yasuyuki, 2006. "Knowledge spillovers from foreign direct investment in R&D: Evidence from Japanese firm-level data," Journal of Asian Economics, Elsevier, vol. 17(6), pages 996-1013, December.
    4. 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.
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    Cited by:

    1. Vanderstraeten, Johanna & van Witteloostuijn, Arjen & Matthyssens, Paul, 2020. "Organizational sponsorship and service co-development: A contingency view on service co-development directiveness of business incubators," Technovation, Elsevier, vol. 98(C).
    2. 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.
    3. Li Cai & Naiheng Sheng & Garry D. Bruton & Haijing Yu, 2025. "Redefining the entrepreneurial ecosystem in China from a network-based view: A review and proposal for future research," Small Business Economics, Springer, vol. 64(2), pages 775-803, February.
    4. Zhe Cao & Xianwei Shi, 2021. "A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies," Small Business Economics, Springer, vol. 57(1), pages 75-110, June.
    5. Concy Liberata Noronha & Subhash Kizhakan Veatil Bhaskaran Pillai, 2025. "Fostering startups through the vehicle of entrepreneurial support organisations like technology business incubators (TBIs): a systematic literature review," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 15(1), pages 1-39, December.

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    Keywords

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    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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