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New Opportunities for
Incubation Centers
[ i~
Written by
/
Fooyin University Hospital Innovation Incubation Center
Director Huang, Kuo-Ming
Functions of Incubation
C
enters
The idea behind incubation centers originated in the U.S . Particularly during the Recession period, the nation relied on small &and medium enterprises to revive its economy. Ther~fore, incubation centers were deemed highly beneficial for small and medium enterprises in their infancy. The goal of establishing incubation centers is usually to reduce the risks and to increase the chance of success for entrepreneurs. The ultimate goals is are to increase employment opportunities, to revive the economy and to commercialize innovative technology. The operation of US incubation centers is usually run by professional managers with experiences of managing enterprises. In Taiwan, however, it is difficult to recruit professionals into this business. According to statistics from the National Business Incubation Association (NBIA), employment opportunities and sales generated by enterprises with stationed within incubation centers stationed are higher than theabove average numbers. Therefore, incubation center's effectiveness on cultivating small &and medium enterprises is well confinned.The fast-rapidly increasing numbers
of Incubation Centers
Since 1996 when the first incubation center was set up in Taiwan, the number of domestic incubation centers has grown close to one hundred. For a relatively small economy like Taiwanlittle place like Taiwan, the growth rate is indeed amazing. However, to observe this from a practical point of view, the scale of incubation centers in Taiwan is usually small with only a few staffs. Their professional capability and experience are also insufficient. We wonder if the true meaning hidden behind all these exceptional numbers figures can really bring about high incubation effectiveness for enterprises. Surely, the result is worth contemplating. ~ 50
g.
40 ~ S. 30s
·
2
20 <:T ~ 10 ;;: 0'IIorth Arca CeDI ...1 Arca ~oulh "'rc.. E,d~ \rca orr,hare I-Iund
Region [ Regional Oistriburions of Incubation Cenlcrs in Taiwan]
Questionable performance
effectiveness
According to statistics from the Small &and Medium Enterprise Administration of the Ministry of Economic Affairs, incubation centers established and managed by schools and government account for 86% of all incubation centers. This fully illustrates the results from the government's utilization of the power of policies policy ofin promoting incubation centers. Incubation centers set by schools have spent much of their time to meeting the competent authority'S document demands. Meanwhile, most of the incubation center's counseling services to enterprises are administrative services. All activities are focused on holding various kinds of infonnation meetings and therefore substantial assistance function to enterprises is pretty weak. Whether the Incubation Center's counseling effectiveness of beingwhile stationed in at enterplises is as satisfactory as the one shown on the report fromsuggested by the Ministry of Economic Affairs, the competent authority, is anyone's guess.
Problem
s
and bottlenecks for the
Incubation
C
enters
Domestic incubation centers have been operating for more than 10 years. We're convinced that there
•
_.
must be many problems and bottlenecks accumulated
in the operating systemoperation of incubation centers. These are all obstacles to the management of centers
and many of these problems or bottlenecks cannot be solved or overcome by the centers themselves. The author of this article has been observing problems faced by domestic incubation centers. These problems
will, if not solved after a long period of time, exert a major influence on the development of incubation
centers and the effectiveness of counseling effectiveness on for enterprises.
l.Emphasis on quantity instead of quality: Management of incubation centers focuses on the number of enterprises stationed instead of the cultivation development of enterprises.
2.Lack of professionals to counsel enterprises:
Management of incubation centers is usually run by teachers. As for managers, they are usually freshmen that have never been working in enterprises. On the
other hand, incubation centers have no way to keep experienced and capable talented people.
3.Lack of cross-field professionals: Management of an enterplise requires coordination of various terms
elements such as production, marketing,
peopleHuman Resources, distribution and finance. For incubation centers, tbey usually don't have enough professionals to assist in the management of centers.
4.Lack of characteristic and innovative concepts: To perform counseling and incubation on for enterprises effectively, every incubation center needs to create its own characteristics and cultivate the ability of innovations so that they could can provide
enterprises with more assistance and room for development.
5.Inefficient Administration: When operation of the incubation center is run by school, the time to meet the demands of enterprises is often affected because
of the decisions taken by high level personnel or of
the unclear positioning of the stationed enterprises
stationed.
Development opportunities for
Incubation Center
Last year, the National Taiwan University set up an "Incubation New World" Although there are not many items for sale and the website is pretty simple
and primitivequite basic, no one really knows how many obstacles had to be overcome first before setting
up such an incubation outlet. This is a precious bold pioneering move, especially for a national university. I think every incubation outlet can learn how to utilize innovative thinking to create a win-win model that
will not only assist in the development of enterprises but also increase revenue for the incubation center. If we apply this issue with the "smile curve" model which was raisedsuggested by Mr. Shi, Jen-Ron, the National Taiwan University Incubation Outlet has
gradually moved towards both ends of tbe curve and
has come up withproduced high value products. Indeed, developments of Incubation Centers should
not be limited to running errands for the stationed
enterprises or being an institution doing nothing but handing in reports. The future Future development
opportunities for all incubation centers lie in the ways
to create the know-how needed to manage their own
centers as well as the maximum maximizing benefit for their brands and services.
