A Novel Approach to Incubator Evaluations: The PROMETHEE Outranking Procedures
Michael Schwartz, Maximilian Göthner
IWH Discussion Papers,
No. 1,
2009
Abstract
Considerable public resources are devoted to the establishment and operation of business incubators (BIs), which are seen as catalysts for the promotion of entrepreneurship, innovation activities and regional development. Despite the vast amount of research that has focused on the outcomes or effectiveness of incubator initiatives and how to measure incubator performance, there is still little understanding of how to determine incubators that are more effective than others. Based on data from 410 graduate firms, this paper applies the multi-criteria outranking technique PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluation) and compares the long-term effectiveness of five technology-oriented BIs in Germany. This is the first time that outranking procedures are used in incubator evaluations. In particular, we investigate whether PROMETHEE is a well-suited methodological approach for the evaluation and comparisons in the specific context of business incubation.
Read article
Determinants of Academic-Industry Linkages and Incubator-internal Cooperation Patterns of Incubator Firms: Empirical Evidence from Germany
Michael Schwartz, Christoph Hornych
IWH Discussion Papers,
No. 2,
2009
Abstract
The article examines cooperation patterns of firms located in German business incubators (BIs) and technology centers. Based on cross-sectional data, the study explores the network activities within the tenant portfolio and the academic-industry linkages of the tenant firms. In this respect, we contribute to the literature on the impact of business incubation by explicitly considering differences regarding cooperation patterns between diversified and specialized incubator facilities. Contrary to common assumptions, we do not find a higher propensitiy for incubator-internal cooperation activities for firms located in specialized BIs. However, firms located in specialized BIs show significantly higher propensity to engage in academic-industry linkages compared to firms located in diversified incubators.
Read article
Incubator Age and Incubation Time: Determinants of Firm Survival after Graduation?
Michael Schwartz
IWH Discussion Papers,
No. 14,
2008
Abstract
On the basis of a sample of 149 graduate firms from five German technology oriented business incubators, this article contributes to incubator/incubation literature by investigating the effects of the age of the business incubators and the firms’ incubation time in securing long-term survival of the firms after leaving the incubator facilities. The empirical findings from Cox-proportional hazards regression and parametric accelerated failure time models reveal a statistically negative impact for both variables incubator age and incubation time on post-graduation firm survival. One possible explanation for these results is that, when incubator managers become increasingly involved in various regional development activities (e.g. coaching of regional network initiatives), this may reduce the effectiveness of incubator support and therefore the survival chances of firms.
Read article
Technologie- und Gründerzentren im Lichte von Diversifizierung versus Spezialisierung
Michael Schwartz, Christoph Hornych
IWH Discussion Papers,
No. 7,
2008
Abstract
In Germany, a growing tendency can be observed to focus business incubators (BIs) and technology centers and their respective support elements and processes as well as the selection criteria applied by the incubator management on firms from solely one sector or few but complementary sectors and their specific needs and requirements. These are called specialized business incubators (SBIs). Despite the increasing importance of specialization strategies of business incubators as local and regional policy instruments, there are no reliable empirical examinations of the specifics, and advantages in particular, of SBIs compared to more diversified BIs. On the basis of survey-data, that comprises responses from 161 actual firms incubated in 13 diversified BIs and 13 specialized BIs in Germany, this study investigates the mechanisms within the specific context of specialized BIs and their value-added contribution versus the more diversified incubation model. For the first time, this study provides large-scale empirical evidence concerning the effects of adopting a specialization strategy in the context of business incubation.
Read article
Foreign Subsidiaries in the East German Innovation System – Evidence from Manufacturing Industries
Jutta Günther, Björn Jindra, Johannes Stephan
IWH Discussion Papers,
No. 4,
2008
Abstract
This paper analyses the extent of technological capability of foreign subsidiaries located in East Germany, and looks at the determinants of foreign subsidiaries’ technological sourcing behaviour. The theory of international production underlines the importance of strategic and regional level variables. However, existing empirical approaches omit by and large regional level factors. We employ survey evidence from the “FDI micro data- base” of the IWH, that was only recently made available, to conduct our analyses. We find that foreign subsidiaries are above average technologically active in comparison to the whole East German manufacturing. This can be partially explained by the industrial structure of foreign direct investment. However, only a limited share of foreign subsidiaries with R&D and/or innovation activity source technological knowledge from the East German innovation system. If a subsidiary follows a competence augmenting strategy or does local trade, it is more likely to source technological knowledge locally. The endowment of a region with human capital and a scientific infrastructure has a positive effect too. The findings suggest that foreign subsidiaries in East Germany are only partially linked with the regional innovation system. Policy implications are discussed.
Read article
Effects of the promotion of investment in East Germany
Joachim Ragnitz
IWH Discussion Papers,
No. 186,
2003
Abstract
Investment in East Germany is heavily subsidized. Econometric estimates based on a treatment approach show that the level of investment is significantly higher in firms being supported by state aid. Nevertheless, capital productivity is lower in East Germany, indicating a misallocation of capital. Additionally, there are negative effects in West Germany due to negative crowding-out effects. Therefore state aid in East Germany should be reduced in the medium run.
Read article
Does East Germany need a new technology policy? – Implications from the functioning of the R&D market after the transformation
Ralf Müller
IWH Discussion Papers,
No. 145,
2001
Abstract
Technology policy is a major part of government's efforts in contributing to East Ger-many's economic recovery. However, even a decade after unification East Germany does not produce sufficient technology goods. Thus, the question is whether technology policy is either not suitable or inefficient in tackling East Germany's deficits. A special technology policy for East Germany is justified by the lack of regional networks for technology firms; without a compensating policy East Germany would continue to lag behind West Germany also with respect to incomes. Yet only a few of the policy in-struments applied so far are efficiently dealing with these deficits. Thus, a future technology policy for East Germany should – mainly by the supply of R&D-infrastructure – support implementation of these kinds of networks.
Read article