Incubation Agreement Definition

Author: Georald Camposano | December 10th, 2020

About one-third of incubation programs are sponsored by economic development organizations. Public bodies (for example. B cities or counties) account for 21% of the program`s sponsors. An additional 20% are subsidized by academic institutions, including two- and four-year colleges, universities and fachhochschulen. [10] In many countries, incubaation programmes are funded by regional or national governments as part of a comprehensive economic development strategy. However, in the United States, most incubaation programs are independent, community-based and resource-related projects. The U.S. Economic Development Administration is a frequent source of funds for the development of incubst order programs, but once a program is open and operational, it generally does not receive federal funding; Only a few states offer centralized funding for the incubator. Rents and/or client costs account for 59% of the incubator`s revenues, followed by service contracts or subsidies (18%), and cash grants (15%). [10] Business incubators differ from research and technology parks in their commitment to start-ups and first-timers. On the other hand, research and technology parks are generally large projects that house everything from corporate laboratories, government or university laboratories to very small businesses.

Most research and technology parks do not provide support services to businesses that are the hallmark of a business incubation program. However, many research and technology parks house incubation programs. [3] In-industry activity has not been limited to industrialized countries; Incubation environments are currently being implemented in developing countries and are generating interest in financial support from organizations such as UNIDO and the World Bank. Incubators also differ from U.S. small business administration small business development centers (and similar business assistance programs) because they serve only selected clients. On July 7, 1953, the Small Business Administration was created in the Small Business Act. Its purpose is to “promote, advise, support and protect the interests of small businesses where possible.” In addition, the Charter ensures that small businesses will receive an “appropriate share” of all government contracts and the sale of surplus assets. [4] SBDCs work with every small company at every stage of development, not just start-ups. Many business incubaation programs work with their local SBDCs to create a one-stop shop for business support. [5] The amount of time a company spends in an incubation program can vary considerably depending on a number of factors, including the type of business and the level of the business.

Life sciences and other companies with long cycles of research and development need more time in an incubation program than manufacturing or service companies that can immediately produce and market a product or service. On average, incubator clients spend 33 months in a program. [10] Many incubation programs define graduation requirements by developmental criteria, such as. B corporate revenue or staffing, instead of time. While some incubation programs (regardless of non-profit or for-profit origin) earn equity in corporate clients, most do not. Only 25% of incubaation programs indicate that they participate in some or all of the clients. [10] The U.S.-based International Business Innovation Association estimates that there are approximately 7,000 business incubators in the world. A study funded by the European Commission in 2002 identified some 900 incubation environments in Western Europe. [9] As of October 2006, there were more than 1,400 business incubators in North America, up from just 12 in 1980.

In 1997, Her Majesty`s Treasury identified some 25 incubation environments in the United Kingdom; Until 2005, ukBI identified about 270 incubation environments across the country. Just a little

Tags: Uncategorized |