Are University Business Incubators Overprotective Parents?

Abstract

University business incubators are a global rising phenomenon and have an imprint on the genetics of high technology-based academic spin-offs and are central to the triple-helix model of innovation systems for academia-industry-policy. Research focused on Regional Innovation System of Delft suggest that the high technology-based start-ups face challenges in their growth up to a time period as long as four years due to resource-based obstacles and this can be a factor affecting the mortality rate of start-ups in the regions. University business incubators are a powerhouse of open innovation and support permeable firm boundaries for external knowledge, organizations cannot enjoy competitive advantage just by the virtue of being exposed to it but have to acquire, assimilate (Potential Absorptive Capacity), transform and exploit (Realized Absorptive Capacity) knowledge as a resource. Relatively less is known about how does the incubator support help the start-ups to develop their dynamic capabilities and the possible implications of this parent-spin-off relationship on their growth after graduation from that incubator and removal of the incubator support. Thus, to address this research gap, this research study examines 67 academic startups from Yes! Delft by finding the answer to the research question -” What are the implications of a university incubator’s support to academic start-ups to implement open-innovation & develop dynamic capabilities on the growth of academic start-ups?”. From an extensive literature review, a hierarchal conceptual model is developed where a lower order consists of open innovation based activities and higher-order consists of dimensions of absorptive capacity, tested for outcome variable competitive advantage using three constructs- Innovation, Strategic Flexibility and Product development Related Performance. The data is collected using a questionnaire & analyses is done for PLS-SEM using the software SmartPLS3.0. The findings for three sub-research questions are then interpreted to understand growth implications for navigation critical junctures -opportunity recognition, entrepreneurial commitment, credibility & sustainable returns, followed by suggestions for practitioners.