Function of Technology Incubator as Risk Taker on New Technology-Based Firms : A Case Study on Technology Incubator LIPI

Technology Incubator is an intermediary institution which undertakes the process of coaching, mentoring, and developing the incubator participant/tenant focussing on aspects of technology that will be developed. Participants in technology incubator are entrepreneurs of the category of new technology-based firms (NTBFs). These companies in carrying out their business activities sometimes cannot run optimally, let alone compete with large companies of long standing. Their weaknesses include minimal financial resources, management deficiencies, lack of access to raw materials, less mature core technologies used in manufacturing their products and difficulties in marketing and market access. The risks they face can be reduced by joining a technology incubator, where the technology incubator creates a supporting climate for the NTBFs to grow and expand their operations. LIPI, the Center for Innovation of the Indonesian Institute of Sciences has a funding scheme and the necessary resources for technology incubation. It has facilitated the 11 start-ups involving different types of technology. It also facilitates infrastructure and human resources development through workshops, scientific support for academics/researchers, and access to market information owned by the Technology Incubator, LIPI. Support from LIPI has enabled the tenant to use existing resources optimally to run the activities of the company and assisted in the establishment of successful technology based firms