1. What is a Technology Business Incubator?

A Technology business incubator nurtures the development of technology based and knowledge driven
companies helping them to survive and grow during the start up period (2-3 years) by providing an
integrated package of work space, shared office services, access to specialized equipment and value
added services like management assistance, business planning, access to finance, technical assistance
and networking support. The main objective of the TBI is to produce successful business ventures that
create jobs and wealth in their region.
2. How do tenant company's benefit to a TBI?
A decent infrastructure coupled with an integrated package of business support services with moderate
costs offered by a TBI enables the tenant companies to start up their venture with a lower initial
investment. The TBI also assist the tenant companies by offering critical support services so as to
minimize the chances of failure and improve their survival prospects. Various studies report that the
survival rate of the incubatees (tenant enterprises) is nearly 70% to 80%. In addition, the networking
support provided by the TBI helps the tenants companies to establish credibility and also reduces their
time to develop marketable product and services.

3. What are the agencies, which support the establishment of TBI in India?

National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of
Science and Technology, Govt. of India is the leading Governmental agency to support the establishment
of TBI. It provides financial assistance for creating state of the art facilities in the identified thrust areas.
It also offers partial /full support for recurring/operational cost for a period of five years. It is expected
that the TBI after five years would be in a position to attain the operational self-sufficiency. In addition,
the applying host institution also sponsors the TBI by offering land, building, equipments and facilities,
technical expertise, etc. and other support services from the institution to strengthen the activities of
TBI. In some cases other like-minded organizations and the State Government also join hands to
promote the TBI in a suitable location having potential for entrepreneurship development and creation
of new enterprises in the chosen technological areas (single/mixed).


4. Are there any technological areas earmarked for the TBI?

A TBI can be set up in any technological (single /mix) area after thorough study and analysis. The area
should essentially offer good market potential and institute should have the needed expertise, good
facilities, proven track record of R&D work to demonstrate their strength and justify the potential of the
selected thrust area. The areas may range from biotechnology, information and communication
technology, design, micro-electronics, embedded systems, manufacturing, agri-business, environment
and energy, etc.

5. Who can set up a TBI?

An institution in operation for at least 5 years and having good resource base of R&D work in identified
technological area, technology commercialization, some experience and drive for entrepreneurship
development would be the primary target group for setting up a TBI. Some of the institutions having
focus on business management systems and practices could also apply with proper systems for
innovations and technology sourcing.

6. How many TBIs are there in India?

NSTEDB, DST has promoted nearly 40 TBIs in the country and over 15 Science and Technology
Entrepreneurship Park (STEP). 5 more TBIs are planned to be set up in 2005-2006. Some of the leading
institutes like IITs, IIMs , NITs, NID, ICRISAT have set up incubators. Some of the State Governments
other agencies have set up initiative similar to that of TBI to promote the growth of specific industry i.e.
food processing, bio-technology, etc. Small Industry Development Bank of India (SIDBI) has also set up
innovation and incubation set at IIT, Kanpur and BITs Ranchi. With globalization and liberlisation,
emergence of knowledge driven product and services in sunrise areas and its ensuing benefits to the
nation and society, the incubator programme is becoming popular in India.

7. What is the global scenario of TBI?

Incubator programs have been established in many countries to stimulate creation of technology-
oriented small businesses. At present, there are nearly 4000 incubators of various types operational in
the World. In USA, there are more than 1000 incubators including about 200 Internet incubators. Europe
has nearly 1000 incubators including 300 in Germany. Among the developing countries, China has shown
exponential growth in the incubators and over a period of ten years has set up almost 400 incubators.
Korea too, is reported to have about 300 Incubators. While Japan, Malaysia and Singapore are catching
up. High-technology incubators have been particularly successful in U.S., Israel, and China.

8. How one can apply to DST for establishment of TBI?

One can visit the website www.nstedb.com to get the details of TBI scheme and the proposal can be
developed based on the available template. The proposals are required to be submitted to NSTEDB for
preliminary examination. The proposals are then considered by a National Advisory Committee to take it
up further.

9. What are the indicators of a successful TBI?

The success of a TBI can be judged from the efficacy of the TBI operations, number of successful
enterprises, social impact created in the region and good financial health of the TBI. The TBI should be a
visible and known entity in the region for stimulating new enterprises.

10. What makes a TBI programme successful?

Following are the general guidelines in order to make the TBI programme successful:-

Careful selection of the location and host institution
Careful Identification of thrust area backed up by a feasibility study.
Identify a champion to steer the process of setting up an Incubator
Arrange resource mobilization and good support from its sponsors.
Ensure proper Implementation through
Appropriate systems & processes to execute the business plan of TBI
A good service package for tenants
Committed, competent and dynamic core team
Effective management board
Good linkages and networking
Well laid out entry and exit policies for tenant companies.
Good infrastructure
Involvement, commitment and full cooperation from host institute and other stake holders.
11. How do incubators help start up in getting funding?

Incubators can help tenant companies in securing capital in a number of ways:-

Managing in-house and revolving incubation funds/ seed support fund.
Connecting companies with angel investors (high-net-worth individual investors)
Working with companies to perfect venture capital presentations and connecting them to venture
capitalists.
Assisting companies in applying for bank loan.
12. What are the different models of TBIs?

In the developing economies like India, each TBI evolves its model based on the need, its strength and
the thrust area of the technology. The TBI model usually has following features.

Sector specific
In and around Univ., Technical Institute/R& D/Management institute
Well Equipped
Incubation process may involve the following.
Select the Tenant - Incubate- Graduate
Select the idea - test the idea -market feasibility - business plan -start the venture - arrange for seed
fund- mentorship program- incubate the start-up- graduate
Select the technology-upscale the technology- match making with the entrepreneur- mentor -incubate-
graduate