Incubation and Acceleration

Incubator models are evolving rapidly internationally and this has implications for government support. The trends include an increased focus on innovative rather than general start-ups, broader packages of support to complement office space and an integral offer of seed funding. Moreover, specialist incubators are also emerging for particular industry sectors (such as life sciences or marine industries) and particular target groups (such as women entrepreneurs or university entrepreneurs). 

Accelerators offer short duration support to accelerate the achievement of key milestones for the most promising firms. The main purpose of business accelerators is to speed up the process of business creation and to prepare entrepreneurs to receive an influx of capital. The services offered to entrepreneurs are similar to those offered by business incubators and typically include management training, the development of a growth strategy, and the preparation for external investment.

Digitalisation is one of the current trends having important impacts on business incubation and acceleration, along with increased internationalisation and increasingly rapid innovation. For example, digitalisation is leading to the establishment of fully-virtual incubators and hybrid incubators blending virtual services (e.g. mentoring, coaching) with physical services (e.g. access to wet labs, face-to-face networking). Governments need to respond to the changing environment in their policy approaches, whilst getting the basics right in terms of robust methods of business selection, effective bundles of services, and effective quality and performance management across incubator and accelerator systems.