Role of University Based Incubators in Emerging Economies

Introduction

In today’s world, it’s getting quite difficult to survive on a single source of income, therefore many are now resorting to the entrepreneurship sector. Business setting is now becoming a common trend. Business incubators sponsored by the education sector are not only popular in the developed countries but are now gaining importance in the developing nations. There is an increasing acknowledgement of the boundaries of government sector as a main media for key economic growth. Instead, private sector has jumped to the rescue, supported by related economic reforms such as de-regulation, privatization, and creation of an independent legal system.In this scenario, many universities have started or a in the process of introducing/ modifying their different business programs to meet today’s ever changing demands.

Current Scenario

Educational sector is playing a vital role in this regard. Today, many universities are setting up incubation centers and accelerators to provide subsidized or free space and training to their students, for setting up their startups. University based incubators are a special type of business incubators that are located in universities.This is beneficial to both, universities get a chance to practically see the benefits of their education and students get a chance to step into the professional world of business.

University entrepreneurs take the greatest advantage of this and are more likely to be successful than those who start their businesses many years after graduation or those who never attended universities. Utilizing universities as potential launch-pads for startups could help address uneven regional development/graduate retention.

Other than capital, finding and securing funds for new ventures is often a struggle, locally based universities can help young entrepreneurs to look for less- saturated markets with cheaper installation and running costs, they can simultaneously boost regional economic activities by their startups.

Universities are fundamental to both the economy and society at large, and with their potential as physical hubs of startup creation, beyond the thin possibility of university incubation pad, remains considerably unknown. Over the past 10 or 20 years, trialing with university-based incubators and accelerators has increased, with some noteworthy successes to date.

An example of a university based incubator is given below.

Initiative	University	Benefits
Stanford Industrial Park	Stanford University	Benefit to local industry: Provided land (220 acres) and ties to Stanford faculty (consultants) and students (employees).Benefit to University: Lockheed Aerospace Company (a tenant) helped in building the reputation of Stanford’s Aeronautical Engineering Department