Business Incubation Centres in Universities and Their Role in Developing Entrepreneurial Ecosystem
Higher education institutions are centres of knowledge creation and their contribution to the entrepreneurial ecosystem through the knowledge spill over is being acknowledged by the governments as well as policymakers. Several nations and governments are encouraging formation of ventures that are nurtured at the universities, considered as spin-offs and business incubators. Knowledge-driven economies need to be backed by compelling mechanisms like the start-up ecosystem that get nurtured at the university level.
Research in universities can be capitalised and monetised by actuating the launch of more firms. Such firms can later upscale their wealth creation and can notably affect the economy both at micro and macro levels. Shane and Stuart (2002) had examined the influence of start-ups initial resource on the performance of the start-ups. Faith in the incubation system exists due to its ability in establishing small and medium enterprises (SMEs), which form the backbone of any economy contributing to national wealth creation via contribution to the gross domestic product (GDP), employment and exports. University-supported start-up incubators have of late become the mainstay. This universal trend is being increasingly pronounced as distingué that can manifest into pecuniary gains for a country.
Creation of university start-ups or spin-offs is often viewed as inherent to the supporting institution that embraces an entrepreneurial culture through its curricula, scholastic motivation, creation of technology transfer offices (TTOs), innovation centres and business incubation centres to the contemporary rise in proof-of-concept centres. These organisational components or knowledge intermediaries are strategic actions by the institutions that can augment the significant additions on the business as well as the pioneering fronts. Research into university-based business incubation centres or innovation centres has failed to distinguish between the various activities undertaken by these centres and few studies were found in this area in recent years describing the effects of such initiatives on the spin-off creation.
With its huge manpower potential, India has built a strong support system surrounding the start-ups and is currently ranked third in the world for its expeditious advancements. Despite this, studies concerning business incubators at universities has not attracted much attention in research studies. The Indian government initiated the Start-up India programme in 2016 aimed at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive to the growth of start-ups. The focus of the start-up movement has been on simplification and handholding, funding support and incentives, industry–academia partnership and incubation. In fact, the first incubator Science and Technology Entrepreneurship Park (STEP) in India was established as early as in 1986 at the Regional Engineering College, Tiruchirappalli.
Given the potential of start-ups in wealth creation in an economy, universities can play a leading role in the entrepreneurial ecosystem. This article focuses on the need to provide a strong impetus for establishing business incubation centres at universities for progressive creation of innovation start-ups.
Article Information
Business Incubation Centres in Universities and Their Role in Developing Entrepreneurial Ecosystem
Julie Vardhan, Madhuri Mahato
First Published September 14, 2021
Research Article
DOI: 10.1177/23939575211034056
Journal of Entrepreneurship and Innovation in Emerging Economies