Incubator Zones

History of Incubator Zones

According to the National Business Incubation Association, the first incubator zone in the United States was the Batavia Industrial Center. It opened in 1959 in Batavia, New York. By the late 1970s, incubator zones became more common in the [Page 1552]United States, especially in the Northeast, where they were seen as a means to help bring about the revitalization of communities that had been hit hard by deindustrialization. The growth of incubator zones accelerated rapidly in the 1980s as many communities recognized the value of promoting small-business development as a means of promoting economic growth. Incubator zones have spread throughout the world. The National Business Incubation Association estimates that there are currently about 5,000 incubator zones around the world.

The U.S. Small Business Administration promoted the development of incubator zones in the mid 1980s. The Small Business Administration held several conferences and published several handbooks and a newsletter. Another important development in the growth of incubator zones in the United States was the creation, in 1982, by the Pennsylvania Legislature of the Ben Franklin Partnership Program, one of the first comprehensive manufacturing and technology agendas in the United States. Incubator zones were a key component of this program, which serves as a model for other programs around the United States.

Services Provided by Incubator Zones

The length of time that a business spends in an incubator zone varies, depending on a number of factors, including the nature of the business and the entrepreneur's level of business acumen. In industries, such as biotechnology, that have relatively long research and development cycles, companies generally require more time in an incubator zone than service or manufacturing companies that can bring a product or service to market in a relatively short time. On average, companies spend a little less than 3 yrs. (years) in an incubator zone. Most incubator programs set benchmarks, such as staffing levels or revenues, to determine when companies are ready to leave an incubator zone.

Incubator zones provide a variety of services to start-up companies, but some of the most common services that they provide are management guidance, technical assistance, and consulting services. Many incubator zones provide additional resources, including access to suitable rental space, flexible lease terms, shared services, and assistance in securing the financing necessary to allow a company to grow.

Many incubator zones in the United States are affiliated with the National Business Incubation Association, a nonprofit organization whose primary mission is to provide training and to serve as a source of information on incubator management and tools to assist start-up businesses. In addition, the National Business Incubation Association conducts research, compiles statistical data, produces publications to disseminate best practices, and tracks relevant legislation.

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