This document summarizes a masters project on business incubation in Portugal. Specifically, it examines the role of cohabitation between incubated and mature firms in a science and technology incubator located in Taguspark, Portugal. The project analyzes how physical proximity and networking opportunities between new and established companies in shared buildings can help incubated firms. It presents findings on the evolution of incubation programs in Taguspark and factors that facilitate or hinder networking. The conclusion discusses how incubators can better leverage potential benefits of cohabitation through selection criteria, placement of firms, and organized networking events.

1. A Work Project, presented as part of the requirements for the Award of a Masters Degree in
Management from the Faculdade de Economia da Universidade Nova de Lisboa.
BUSINESS INCUBATION
IN PORTUGAL
The role of cohabitation for networking
between incubated and mature firms in
a science and technology incubator
Bruno Serrano Nº82
A Project carried out with the supervision of Professor Stefan
Meisiek
27th June 2008

2. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

3. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

4. Business Incubators (1 of 2)
Organizations that offer a protected environment for new-born firms,
providing resources at below-market rates
 Evolution of the concept of Business Incubator
Business
Physical Shared Focus on
+ + development +
space services Networking
services
• Multi-tenant • Secretarial • Business • Networked
buildings support; advisory incubator;
• Office • Internal and
equipment external
networking

5. Business Incubators (2 of 2)
 The networked incubator
 Social dimensions in the entrepreneuring process  Social Capital Theory
 Implementation of formal mechanisms of networking
 Provide access to resources beyond the incubator
Internal networking  relationships between incubated firms
External networking  relationships with entities outside of the incubator
Increase chances of firms surviving after leaving the protected
environment of the incubator

6. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

7. Main objectives
 Portugal: Incubators in Science & Technology Parks
 Lispolis, Taguspark, Madan Parque, (...)
 Taguspark  Incubated firms share buildings with mature firms
Incubated firms Mature firms
Cohabitation Networking
advantages

8. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

9. Research site
 Taguspark
 Science & Technology Park created in 1992;
 Foster the development of S&T activity;
 Suburban area of Lisbon;
 Universities + R&D institutions + S&T based industry;
 Business incubator:
 Commercialize the results of scientific investigation
 Disseminate new technical competencies
 Methodology - Semi-structured interviews with 4 entities:
 Business Incubator
Different perspectives
 Incubated firms
on the same
 Mature firms
phenomenon
 Ex-incubated firms

10. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

11. Findings
1st incubation program: 2nd incubation program:
“incubator of ideas” “business incubator”
Taguspark Building Taguspark Building
Building Building
Building Building
Incubator of ideas Incubator of ideas
― ≤ 6 months ― ≤ 9 years
― Working space (telephone, ― Discounts on rents
internet)
― Business advisory  business plan
Established Incubated Universities and
firms firms R&D institutions

Connections between Connections between incubatees
incubatees and established firms

12. Findings
1st incubation program: 2nd incubation program:
“incubator of ideas” “business incubator”
Taguspark Building Taguspark Building
Building Building
Proximity
with other
Building
entrepreneurs Building
Incubator of ideas Incubator of ideas
Share ideas Problem solving
Access to Share
resources Networking knowledge
Motivation Reputability

13. Findings
 Networking in Taguspark:
Organized networking Spontaneous networking
Informal: - As a result of physical proximity
- Events that promote informal - Solution-driven interaction
interaction between all firms
Good opportunities to meet people
When problems or challenges
Not regular; little attendance; little arise, entrepreneurs can walk
results in terms of business across the corridor to find help
from more experienced firms
Formal:
Recognized as the most important
- Meetings between potential advantage from being in the
partners incubator
Not happening anymore Real benefits from networking not
unanimous

14. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

15. Discussion
 The transition from the 1st to the 2nd incubation program causes a
redefinition of the concept of internal networking
In literature: relationships between
incubated firms within the incubator
Incubator of ideas
≠
Building
In the 2ndprogram: relationships
between incubated firms and with
mature firms in the same building
 The presence of mature firms leverages the potential benefits from
networking:
 Experience
 Resources
 Networks

16. Discussion
Why are some firms benefiting from this cohabitation while other are not?
 Factors that facilitate and hinder networking:
Related to the
Related to the
construction of the
individuals
incubator

17. Discussion
Related to the
Related to the
construction of the
individuals
incubator
 Factors related to the construction of the incubator:
 Number of firms;
 Complementarity of skills and competencies;
 Existence of common areas
These factors are imposed equally to all firms in each bulding
They don’t explain why, in the same conditions, some entrepreneurs
draw benefits from networking while others don’t

18. Discussion
Related to the
Related to the
construction of the
individuals
incubator
 Factors related to the individuals:
 Networks are not given, but created by individuals Need for
common
 Networks are perceived and valued differently motivation
Transition Opportunity to forge relationships with mature firms
from 1st to 2nd
incubation
Negative impacts in the relationships between incubatees
program 
 Business relationships rely on social relationships  trust

19. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

20. Conclusion
 Cohabitation has an important role in promoting networking
between young and mature firms. However, it isn’t enough to forge
business relationships;
 Not all variables are in the hands of the incubator, but some steps
can be taken to leverage the potential benefits of networking:
 Selection criteria of entrepreneurs;
 Criteria for placing firms in the building (both mature and incubater
firms);
 Industry
 Technology
 Complementarity of businesses
 Complementarity of skills and competencies
 Mechanisms of organized networking
 Concerning the resources offered by the incubator:
 Eliminate the gap between the actual support offered and the way firms
perceive it

21. Agenda
 Business incubators
 Main objectives
 Research site
 Findings
 Discussion
 Conclusion
 Next steps

22. Next steps
 Dimensions of networking to be explored in future studies:
 Relationship between young firms and universities;
 External networking:
 How does the incubator promote external networking?
 How cohabitation with mature firms helps giving young firms access to
external networks?
 Comparative studies between Portuguese business incubators

23. Thank you