“Corporate incubation is clearly becoming more widely adopted by many technology players as a way to foster integration of entrepreneurial ideas at a lower cost. The long-term financial practicability of corporate incubators is still unclear and would require further analysis. Due to the complex nature of the investments held by corporate incubators, this is a daunting task, beyond the scope of this study.
However, what can be seen from this study is that there are a number of models that can be used by corporations looking to enter the incubation space. Each model could be used to successfully extract value, depending on the goals and ambitions of each individual organization.
Both research and case studies highlight clearly defined elements of corporate incubators that offer indicators of success. These include access to funding, access to management coaches and mentors with specific start-up related skillsets, facilitation of networking via an outstanding location and contact base, and access to top talents from universities and start-up management teams. Depending on the model, harnessing the associated assets will make it possible to create a successful incubation approach.
Incubation is a competitive market. It is essential to have the right approach to attract the best start-ups. Additionally, it is critical to carefully define the activities of the corporate incubator and its support structures across internal innovation units, to ensure all innovation-related initiatives are managed as productively and effectively as possible.”