Examining the Impact of Incubator Characteristics on Tenant Performance: an Empirical Investigation

This thesis explores the role of incubators, which are considered to be among the key players in the entrepreneurship support ecosystem, in influencing tenant performance, specifically within the Italian context. The research integrates a review of existing literature with an empirical analysis of Italian incubators and incubated organizations. Initial descriptive statistics reveal that the Italian incubator ecosystem is predominantly located in the north, and primary revenue is generated through the provision of services to tenants, rental fees, and subsidies. Each incubator supports 27.5 organizations on average, while the mean funding received by incubated organizations amounts to €7.37 million for each incubator. An entity fixed effects regression model is employed to study the impact of incubator characteristics on tenant performance. The results indicate that the physical space offered by incubators is directly proportional to tenants’ number of employees and total asset value. Furthermore, incubator investments in the entrepreneurial training of tenants are found to significantly increase the revenue growth of incubated organizations. The age of the incubator is also found to positively impact tenant revenues and size, suggesting that there is potential for improved performance going forward, as younger Italian incubators mature.