Business incubators are an important part of the support infrastructure of SMEs in the world. The first business incubation activities were carried out in the USA and Western Europe.
The first incubator, Batavia Industrial Center (BIC), was set up in Batavia (in the state of New York) in the USA in app. 1959, the initial impuls being that a big company had been closed down and the space of 80.000 m2 had been left available within the premises of a multi-storey building. Autorised to rent the free space, Josef Mancuso decided to lease it in small parts. One of the first tenants was a company which incubed hens and that is why, more or less out of fun, the building got to be known as an „incubator". Already in the first year, 8.500 m2 were successfuly rented to app. 30 companies. BIC has been in operation till today, it counts 110 tenants who have created 1.000 jobs altogether. The beginnings of the center resemble current initiatives of restructuralisation and revitalisation of industrial regions in Central and Eastern Europe.
Incubation pioneers appeared in Europe at the end of 1960s. They were established on the basis of research parks and concentrated on the support of technologically oriented start-ups, e.g. Heriot-Watt University, Edinburgh (1969) or Cambridge University.
In the 1970s, the first incubators were set up in Australia (1972) and Asia (1974). In the 1980s, other incubators were opened in Scandinavia (1982) and Germany (1983). At the same time, the first Latino - American incubator was created in 1986. The 1990s were a chance for Central and Eastern Europe. The first incubators started to appear already in 1990. It was in this time when the first business incubation began to develop also in Africa.
Gradually, various relatively heterogenous models of business incubators evolved on different continents. At present, more than 60 national and international business incubation associations and research and technological parks exist in the world, which actively support the development of new enterprises and regional economic growth.
(Source: Business Incubators within the Regional Development and Transfer of Technologies. INTEG Project. Initial presentation. 2005)
Business incubators should not provide solely a rent at discounted rates and counselling services for starting entrepreneurs. In the developed countries, their real benefit rests on the search for innovative companies. In Slovakia, we are just at the begining. Incubators primarily fulfill the basic role - they concentrate starting entrepreneurs at one place and create for them advantageous conditions when compared to their launch at the market on their own.
Incubators in Slovakia
Currently, such a kind of support system for starting SMEs has not yet been developed in full in Slovakia. A suitably equipped and functioning network of incubators providing an entrepreneur with premises, complex range of services and necessary starting capital is, in comparison with Europe, at its very beginning. However, it is possible to say that in Slovakia the sector of business incubators has recently experienced some growth. Still, many incubators are being established with the aim to help innovative start-ups but sometimes provide shelter also to non-innovative businesses, though. In spite of that, the problem does ot lie only in the incubators. The practice shows that Slovak high-tech will not rise without the support of the academic sector, interconnection of research and development with the practice as well as venture capital.
Thanks to the funds from the PHARE programme and the state budget, the following business incubators were set up during 2002 - 2003: Martin, Bratislava, Spišská Nová Ves, Rožňava and technological incubators in Banská Bystrica, Prešov and Košice. The research and technological park in Žilina was reconstructed in 2004.
In 2005, the technological incubator in Sládkovičovo and University Technological Incubator STU in Bratislava were established using the means of PHARE Programme 2002 CBC - Cross-border co-operation Austria - Slovakia, INTEG grant scheme. Both incubators were opened during the ceremony in October and November 2005, respectively. In the same year, under the programme "Support of SMEs through the incubators′ network and the implementation of the Research-based spin-off method", the Business incubator in Prievidza was reconstructed and similarly financial resources were invested into the construction of the Business incubator in Moldava nad Bodvou.
Further state budget means were invested into the construction part of the Business incubator in Moldava nad Bodvou in 2006, mainly into its connection to mains. At present, its building has been approved and put into operation. In the same year, investments were made into six other incubators in Gelnica, Handlová, Martin (city incubator), Moldava nad Bodvou, Rimavská Sobota (the business incubator of so called 2nd generation) and Spišská Nová Ves. Incubators were supported from the means of Structural Funds - SOP Industry and Services, Measure 1.2. in the total amount of SK 119,53 mil., other means being invested by incubators themselves and their partners. The above-mentioned incubators have been opened, the latter one - the incubator in Gelnica, was put into operation as of June 2007.
In 2007, the final funding was made into the incubators in Gelnica, Handlová, Moldava nad Bodvou and Spišská Nová Ves - the 2nd phase under the Measure 1.2, Public sector SOP Industry and Services. The total amount of investments into the construction and equipment made from the Structural Funds, including co-financing from the state budget as well as own means and other sources, reached 0,85 mil. eur.
Currently, 16 incubators supporting newly-established companies can be found in different regions of Slovakia. Through the programmes carried out by NADSME, the total amount of 20 mil. eur (including financial and non-financial deposits of owners and cities) were invested into the construction of the Slovak National Network with the capacity of 17.329,4 m2. Others 0,84 mil. eur. were used for the support of incubators in the form of partial settlement of costs under the programme "the Support of SMEs via the network of incubators and the implementation of Research-based spin-off method" in 2004,2005, 2007, 2008 and 2009. However, in 2006 no state budget funds were allocated for the co-financing of operational costs of incubators which influenced their activities, the range of services as well as prices for premises and services provided.
An important factor of investments into the development of incubators′ network is their impact on the employment in regions. As to December 31, 2008 1 235 jobs in 281 incubated companies were created in the direct connection with the operation of incubators.
Some Slovak incubators implement "Research-based spin-off" method which creates suitable conditions for the use of research and development outputs, patents, industrial and utility models in the close connection with research and technological institutions. The method is based on the professional selection of projects, provision of premises at discounted rates, administrative services, mentoring and professional counselling as well starting capital.
