This article sets out a systematic process for monitoring and evaluating an incubator's contribution to technological development. Monitoring and evaluation are sometimes seen as an onerous or peripheral process, but they are, in fact, not peripheral but central to maximising the performance of an incubator. The article describes four approaches to measuring the technological benefits of incubation and the activities needed.
Objectives
This Guideline promotes the concept of systematically and continuously evaluating the regional effects of incubator activities on technological development. Technological evaluation should not be limited to “hardware & software”, that is physical objects; the evaluation should include technological development as the result of “a private network of persons, ideas and objects” as Hargadon emphasizes[1]. Results will indicate incubator contributions to generation and/or development of the local innovation systems.
Key Issues
The evaluation must be structured to provide results that objectively demonstrate whether an incubator is contributing to technological development in the region. It is important that the evaluation is consistent with the incubator’s mission and objectives.
Evaluation of technological benefits must include the range of incubator functions in the network of people, ideas and objects. The evaluation can be grouped in the following categories:
- Internal evaluation of the competencies and products developed by incubator companies. The focus should be how incubator activities support development of innovative products and services. Indicators could include number of products generated, number of patents registered, number of books published.
- External evaluation of the effects of incubator companies’ products and services on already established companies (industry, commerce and services). Indicators could include number of clients served, percentage cost reduction as a result of technology developed through the incubator.
- Academic evaluation of the results of incubator activities on creation and/or development of research groups and the number of research projects transformed into products or services. Indicators could include number and diversity of research groups, number of research projects transformed into business opportunities.
- Integration evaluation of the effect and interaction of incubators on universities/research centers. Indicators could include number of research projects developed as a result of incubator company demands, number of companies that utilize products generated from university research.
Evaluating incubator technological benefits can be outlined in the following steps:
- Identify interested parties in the incubator’s network;
- Gather information on technological developments relevant to interested parties;
- Define indicators and targets with which to evaluate technological developments;
- Define time periods for obtaining information relevant to the indicators and targets;
- Define a system of periodically obtaining the information;
- Define a process to disseminate evaluation results; and
- Using the results, and in cooperation with interested parties, prepare an Action Plan to correct problems, improve results and take advantage of the opportunities identified.
Responsible Parties
Evaluation of technological benefits can be carried out by the incubator or partners with a direct stake in the results, such as a university, local government or an entity that provides support to innovation and enterprise.
It is important that relevant parties be involved in developing indicators to ensure all needs are met.
It is important that those directly involved in the evaluation have experience with company incubators, research and development or technological innovation.
Indicators
- Number of products generated
- Number of patents registered
- Number of books published
- Number of clients served
- Percentage cost reduction as a result of technology developed through the incubator
- Number and diversity of research groups
- Number of research projects transformed into business opportunities
- Number of patents generated
- Number of projects with universities or research centers
- Number of research projects developed in partnership with private initiative
- Volume of royalties obtained by the incubator, university or research center, as a result of projects supported by the incubator.
Results
Evaluating technological benefits can provide information required to broaden university-company interaction and also serve as an efficient marketing instrument for the incubator and its partners.
[1] HARGADON, Andrew. How Breakthroughs Happen: the surprising truth about how companies innovate. Boston: Harvard Business School Press, 2003.
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