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{{Project
|Has project output=Content,How-to
|Has sponsor=Kauffman Incubator Project
|Has title=Defining Incubators
|Has owner=Anne Freeman, Libby Bassini,
|Has project status=Active
}}
[[Category:Project Component]]
 
==Introduction==
 
The objective of this project is to come up with an objective definition of a high-tech high-growth incubator. As such, this project is related to our efforts to [[Formulate baseline attributes]] of incubators.
==Working Definition==
 
[[:Incubator Definition Based on a Review of Definitions in the Literature]]
 
[[:Accelerator Definition Based on a Review of Definitions in the Literature]]
 
[[:Hub Definition Based on a Review of Definitions in the Literature]]
So far we are defining an U.S. tech incubator as follows:
''*'' This definition will be updated/modified as we determine other characteristics that we want to include!!!
 
==Characteristics Generally Used to Differentiate an Incubator from an Accelerator==
#''Duration:'' Startups at an incubator generally do not all stay for the same fixed duration; Incubator does not have a fixed graduation date for its startups or has a program that lasts longer than one year
#''Investment:'' Incubator does not invest directly in the company or take equity in its startups
#''Cohorts:'' Incubator does not have limited-duration programs that ventures enter and exit in groups, known as cohorts or batches.[https://www.mitpressjournals.org/doi/pdf/10.1162/INOV_a_00184/ 1]
#''Application Process:'' Generally has a less selective, competitive admissions process than an accelerator
 
'''Sources:'''
 
[[:Incubator Definition Based on a Review of Definitions in the Literature]]
 
[[:Accelerator Definition Based on a Review of Definitions in the Literature]]
 
[[:Hub Definition Based on a Review of Definitions in the Literature]]
==Entrepreneur.com's Definition of an Incubator==
#''Resources:'' Provides firms with workspace, mentorship, and other resources to support the companies' growth;
#''Investment in Startups:'' Generally does not take an equity stake in the companies they support.
 
 
 
==TechRepublic.com's Definition of an Incubator==
 
According to [https://www.techrepublic.com/article/accelerators-vs-incubators-what-startups-need-to-know/ TechRepublic.com's definition of an incubator], this term refers to an organization with the following characteristics:
#''Purpose:'' Matches companies with the best resources for them to be successful
#''Duration:'' generally operates on a more open-ended timeline
#''Organizational Support:'' can receive support from outside organizations including VC firms, angel investors, government organizations, and corporations
#''Market Area:'' can focus on a specific industry or incubate companies from broad industries
#''Services:'' varied in nature, can include mentoring/business advice, connections to other resources within community, and options to lease space month-to-month
#''Environment:'' collaboration in a physical space, focus on co-working environment
 
 
==Small Business Administration Definition of an Incubator==
According to an academic paper titled, [https://www.sba.gov/sites/default/files/rs425-Innovation-Accelerators-Report-FINAL.pdf ''Innovation Accelerators: Defining Characteristics Among Startup Assistance Organizations''], written for the SBA, this term refers to an organization with the following characteristics (pg. 10):
#''Clients:'' varied client companies, can be from various industries
#''Selection Process:'' has a competitive selection process, mostly from local community
#''Duration:'' longer period of involvement with companies, can range between 1 and 5 years
#''Services:'' Access to management/consulting, intellectual property, and networks of entrepreneurs. Helps entrepreneurs develop skills for management and running a busineses
#''Investment:'' Generally, does not take equity and does not invest directly in the company
[[File:VennDiagram.png| frameless|Venn Diagram of incubators and accelerators]] Venn Diagram from pg.14 shows overlap and distinct qualities of incubators and accelerators
 
 
==National Business Incubation Association Definition of an Incubator==
Based on the academic paper titled, [https://inbia.org/wp-content/uploads/2016/09/InBIA-Industry-Terms.pdf?x84587 ''Operational Definitions: Entrepreneurship Centers''], NBIA defines an incubator as follows:
#''Investment:'' charge membership fees or monthly fees in exchange for office space and access to the incubator program services
#''Services:'' mentoring, training/education, networking opportunities within local community
#''Application Process:'' companies apply and are selected based on incubator's stated criteria/mission statement
#''Graduation:'' incubators have stated graduation policies based on milestones, growth metrics, or time
#''Duration:'' companies may join incubators on a rolling basis and can reside in incubator on a flexible timeline, typically 1-3 years
 
 
==Definition of an Incubator from EDA Paper "Incubating Success"==
''This paper is from 2011 and may be outdated in classifying accelerators as a subcategory of incubators''.
 
The research paper [http://edaincubatortool.org/pdf/Master%20Report_FINALDownloadPDF.pdf ''Incubating Success. Incubation best practices that lead to successful new ventures''], with support from the U.S. Deparment of Commerce and the Economic Development Administration, categorizes an incubator using the following qualities:
#''Business Model:'' incubators can be classified as one of the following categories (pg. 15) - physical building with on-site management, virtual, international, accelerator
#''Industry Focus:'' incubators can be classified according to industry focus (pg. 17) as - manufacturing, mixed-use, technology, or service
#''By Lead Organization:'' can classify incubators according to their affiliation with other organizations (pg. 21) - university/higher education, for-profit, state, nation
#''Key Services:'' successful incubators provide certain key services (pg. 27) including:
::* Assistance with Business Basics - accounting, presentation skills, business etiquette, marketing
::* Legal assistance
::* Access to Resources - capital, internet
::* Networking - within the community, with other entrepreneurs

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