Incubator to Incubator (I2I)

About incubation

Business incubators are organizations that support the entrepreneurial process, helping to increase survival rates for innovative startup companies. Only entrepreneurs with feasible projects are admitted into the incubators, where they are offered a specialized menu of support resources and services. The resources and services open to an entrepreneur include: provision of physical space, management coaching, help in making an effective business plan, administrative services, technical support, business networking, advice on intellectual property and sources of financing. The incubation process is intended to last around 2-5 years.

Incubators have many partners in addition to universities. Since new firms require finance to grow, incubators have close relationships with many kinds of investors. Seed capital and venture capital funds, business angels, and banks provide most of the seed and start-up capital for incubated companies. Since business incubators are powerful economic development tools, they collaborate actively with regional and national government agencies, from which they often receive financial grants. In many countries, business incubators have national associations to represent their interests and organize meetings where best practices are disseminated.

Evaluations of business incubators in Europe and the U.S. suggest that 90% of incubated startups were active and growing after three years of operation, which is a much higher success rate than that observed in startups launched without assistance. Science-based business incubators are thought to be particularly useful from a policy perspective because they can simultaneously promote knowledge diffusion, technology transfer and high-tech firm creation

INEC goals with I2I, results of second workshop

Most INEC members have already forged incubator programs over the years. Such programs can include physical premises, incentives, financials support, central provisioning of know-how and market-access. The aims of these incubators have much in common: to enhance incubation of home-grown innovations and successful start-ups as well as the development of innovative services and applications. They also offer the use of tools that have been developed within INEC communities. INEC’s initiative aims to bring these incubators together, have them compare notes on where they are in terms of place, time and results – and allow for real cooperation to be forged.

To INEC setting up I2I is not equal to setting up new incubators. Furthermore, international cooperation between incubators does not necessary lead to more incubators. INEC's goal is bringing together existing incubators which in its turn should lead to a better incubation process.

Therefore I2I is set-up to:

• Identify and replicate best practices
• Stimulate international collaboration among local SME’s
• Attract new business and employment
• Offer a ‘soft landing zone’

Main reasons to do so is allowing broadband initiatves to spread easier amongst the INEC member network. A network that could help minimizing risks since on an international scale:

Local failures can become international successes

• If it doesn’t work in one place, it could well work in another place…

White label services can be replicated with local flavour

• One product or service customized to meet varying local demand…

Investing in one service = investing in multiple markets

• Initial investment pay-offs not limited to local (original) market only…

The day after our workshop, INEC member Utah organized a morning of presentations and talks with multiple investment agencies for financial funding and venture capital, including the World Trade Center organization, Utah Fund of Funds, Thorpe Capital Group and Grow Utah venture, to understand their needs and create awareness of the I2I-initiative.

The INEC/I2I members in Utah.

• Bottom row: Andrew Bullen (MediaGuild - Amsterdam), Janine Huizinga (Waag Society, Amsterdam), Lou-Ann Christensen (Mayor Brigham City, USA), Dirk van der Woude (Citynet, Amsterdam), Odisseas Raptis (E-Trikala, Greece), Bala Balasubramaniam (MSC, Malaysia), Oskar Sandholt (Seltjarnarnes, Iceland), Paul Morris (UTOPIA, USA) and Paul Larsen (Brigham City, USA)
• Top row: Vasiliki Karasiotou (E-Trikala, Greece), Ricardo Krikke (INEC), Bas Boorsma (INEC) and Henk Korevaar (INEC)

As a result of these enthusiastic meetings in Utah, I2I involved members have agreed to further their scope in actually connecting several incubator projects. The form and structure for collaborating, as well as the way communication activities are commenced will be discussed during the third I2I meeting in Amsterdam on the 13th of November 2007 as part of the Broadband Cities pre-conference workshops.