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Abstract
This paper examines the extent to which both the support services of Technological Business Incubators (TBIs) and exogenous local factors facilitate the innovation activity of incubated new ventures. Using data on all 215 surviving Chinese incubators and their incubated firms from government surveys conducted over five consecutive years from 2009 until 2013, combined with information from nine case studies, we examine the effects of four incubator services on three levels of innovation in incubated firms, whilst also taking account of key exogenous factors. Technical service support from an incubator was found to have had a positive influence on all levels of innovation activity across all regions whilst incubator financial support had a positive effect on the making of more advanced innovations. The availability of venture capital had a significant impact on making lower order innovations whereas the availability of scientific knowledge resources influenced more advanced innovation activity. Whereas TBI support services in the more developed Eastern region are mainly concerned with leveraging external resources, those in the less developed Central and Western regions are more concerned with compensating for the lack of external resources to support innovation.
Notes
1. Face to face interviews with managers from the Torch High Technology Industry Development Centre China were conducted in July 2011 and again in June 2013 to discuss the definition of these measures and the data required by MOST.
2. As the dependent variables are count data rather than continuous variables, negative binomial regression was the most appropriate model to use (an OLS regression could lead to inconsistent estimators and predictive values as it assumes continuous dependent variables).
3. Professor Xu Zhi from an elite university in Guangzhou, who is well networked with the Department of Science and Technology of Guangdong, arranged all the interview appointments for us. All the face to face interviews with directors of TBIs and entrepreneurs of firms were conducted by one of the authors who speaks both Chinese and English, being accompanied by the professor and his researchers. Each interview with TBI directors lasted 2 h on average, including a tour of laboratories, open access and exhibition facilities, whilst each interview with resident entrepreneurs lasted 40 min.