Country Context and University Affiliation: A Comparative Study of Business Incubation in the United States and Brazil

Abstract

This study compared university affiliated and non-university affiliated business incubators in the United States and Brazil in order to assess the impacts of country context and affiliation on incubator funding sources, direct financial assistance to client firms and internal versus external service mix through use of quantitative and qualitative data. Affiliations with external entities can provide life giving resources; however, it may also transfer external shocks to the new venture calling for buffers. Results indicated that incubators in the United States have a higher number of funding sources, are more likely to provide direct financial support, and offer more external services relative to Brazilian incubators; whereas Brazilian incubators are more inclined to connect incubates to external financial resources but provide services in-house. The study results suggested that incubators in both countries use “bridges” and “buffers” to ameliorate resource deficits driven by environmental exigencies.