Resource Mobilization and Business Incubation : The Case of Korean Incubators

Abstract

The rapid expansion of business incubators in Korea is one of the most important phenomena affecting the high-tech industries in Korea. This paper presents the current conditions of Korean incubators and proposes what factors are important for their continual development. First, we present how rapidly this new organizational model, business incubation, expanded in Korea after the IMF bailout crisis. Second, we explore factors that lead these incubators to perform better. We emphasize that better qualified technical, managerial, and administrative support of incubators are important success factors. However, we also argue that better networked incubators perform better. By better networked incubators, we mean the incubators that can provide the incubatees (start-ups) with effective internal networking (e.g., alliance among incubatees) and sufficient external networking as well (e.g., technical support from outside experts, professional assistance from outside consultants, support from the central and local governments, etc.). We agree to the earlier literature that encouraging networking among incubatees is an important success factor for incubators. In this paper, we also suggest that external networking and outsourcing are significant components in the case of Korea where most of incubators are not self-sufficient in providing services and support to incubatees.