Business incubators in New Zealand: A life cycle classification

Abstract

Business incubation represents a popular and growing economic development tool worldwide. It has various applications in both the profit and not-for- profit sectors and as such can operate on a number of different models. While business incubators have been established overseas for some time the industry represents a new development within the New Zealand domain. As such there is very little knowledge at present with regard to the operation of the industry in New Zealand. Therefore, this research study sought to address this void by conducting an exploratory investigation of business incubators in New Zealand. Life cycle theory was used to classify and map four New Zealand business incubators. The management policies used in regard to the selection monitoring and graduation of tenants by these incubators were also identified and compared to the findings of overseas research studies. Data was gathered through a number of means, namely questionnaires, interviews and secondary information. The primary data source was the incubator managers themselves as they were felt to have the greatest understanding of both their individual incubators and the industry as a whole at this present time. The research generated a number of findings with regard to the development of the individual incubators and the overall industry in New Zealand. The overall industry was found to be in the early periods of the growth stage of development. While the level of development of the individual incubators varied, most were classified as being in the business development stage. It was found that the New Zealand incubator life cycle has been compressed from that historically experienced overseas. The core reason for this appears to be the diffusion of knowledge in regard to best practice, and the application of this by New Zealand incubators.