3.9.1 Introduction to Incubators, Accelerators and Research Parks
Business incubators are a fairly recent addition to the innovation ecosystem in many countries. This section details how to interact with them to accelerate commercialization.
Business incubators are organizations designed to accelerate the growth and success of startup and early-stage companies. They typically rent space for small companies in an environment supportive to their growth and success. They can specialize in general small business; technology business, biotech, or Information Technology (IT), etc. The specialized incubators usually provide unique, useful and expensive equipment to companies in the incubator, and normally offer services which enhance small company success, including:
- Access to a proven group of mentors for early-stage businesses
- Practical courses on product development
- Customer discovery services to understand the market
- Accounting
- Fundraising and financing
- Customer relationship development
They are also often a good place to network with people who can help find investment capital from angel investors, state governments, economic-development coalitions and other investors.
An incubator helps entrepreneurs develop business ideas while accelerators expedite growth of existing companies with a minimum viable product (MVP). Incubators operate on a flexible time frame ending when a business has an idea or product to pitch to investors or consumers and obtains equity funding. Accelerators generally offer the same services as incubators, but at a more mature company stage and do not rent space.
Research parks are communities of innovation with anchor institutions such as universities, municipalities, federal labs, or corporations. Many research parks have an incubator, a multi-tenant facility for small high-growth companies renting space and additional organizations large enough to pay rent on a steady basis but undertaking R&D and light manufacturing.
3.9.2 Incubators and the Innovation Ecosystem
TTPs should consider the incubator as one tool to help accelerate commercialization. Both incubators and accelerators offer easy, inexpensive access to wide networks of knowledgeable people familiar with commercialization. TTOs should consider forming ongoing close relationships with local incubators to allow university researchers earlier access to such networked resources for early-stage start-up companies. Such relationships can lead to joint applications for funding of the commercialization activities.
Incubators are financed differently than TTOs and much of their management time is spent securing future financing. Some incubators charge fees for their services and rentals and sometimes the fees are paid in shares in their start-up tenants. TTPs must be aware of this practice as they look to negotiate an equity containing technology license to the start-up.
For more information, see the International Business Innovation Association and the Association of University Research Parks.