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Technology business incubators in India: what determines their R&D contributions to the national economy?

Bala Subrahmanya Mungila Hillemane (Department of Management Studies, Indian Institute of Science, Bangalore, India)

International Journal of Innovation Science

ISSN: 1757-2223

Article publication date: 27 November 2020

Issue publication date: 4 December 2020

336

Abstract

Purpose

The purpose of this study is to explore how do the characteristics of technology business incubators (TBIs), their chief executive officers, selection process and incubation process influence their research and development (R&D) contributions to the national economy.

Design/methodology/approach

These research questions are probed based on primary data gathered from 65 TBIs located in Bangalore, Chennai and Hyderabad, 3 of the leading start-up hubs of India comprising 9 accelerators, 31 incubators and 25 co-working spaces. Stepwise (backward elimination) regression method has been applied for six regression models for the analysis of research objectives.

Findings

Incubators more than accelerators and co-working spaces have incurred R&D investments for infrastructure development and hired exclusive R&D personnel. External networks and size of incubators in terms of number of incubatees are decisive for R&D investments and new products/services. TBIs accounted for a negligible share of patents relative to the number of new products/services generated in these TBIs, thereby indicating “low level of novelty/innovativeness” of new products/services. However, both new products/services and patent applications are crucial for revenue generation, implying that the generated new products/services are able to penetrate the market and patent application submission can act as a “signal” to the market.

Research limitations/implications

The overall research findings portend that there is scope and potential for an increasing R&D contribution to emerge from the TBIs along with their incubated start-ups, to supplement the national R&D efforts in India in the future. The emphasis, of course, has to be more on strengthening the innovation ecosystem through TBIs by means of industry–institute partnerships.

Practical implications

This study’s practical implications refer to the need to promote TBIs as a means of strengthening regional innovation systems in developing economies.

Social implications

TBIs can be a means of nurturing tech start-ups for generating employment and income in regional economies.

Originality/value

This is a first of its kind study with reference to an emerging economy exploring to understand the extent of R&D contributions emerging from TBIs, which have been promoted on an increasing scale across the country as a means of nurturing technology start-ups.

Keywords

Acknowledgements

This paper forms a part of the Research Project Report titled, Technology Business Incubators in India: An Exploratory Study on their contribution to National R&D Efforts. The research project was sponsored by the National Science and Technology Management Information System (NSTMIS), Department of Science and Technology, Government of India New Delhi (DST Project No. F.No. DST/NSTMIS/05/194/2016-17).

Citation

Mungila Hillemane, B.S. (2020), "Technology business incubators in India: what determines their R&D contributions to the national economy?", International Journal of Innovation Science, Vol. 12 No. 4, pp. 385-408. https://doi.org/10.1108/IJIS-03-2020-0020

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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