University-based incubators’ performance evaluation: a benchmarking approach

Purpose The purpose of this paper is to understand the existing incubation practices and to develop suggestions for other incubations programs’ practitioners, by developing a benchmark study of outstanding Taiwanese university-based incubators (UBIs). Design/methodology/approach This research result is based on the methodology for generating a benchmarking from six outstanding Taiwanese UBIs and for other business incubators around the world. Findings According to this research result, the authors propose eight key performance indicators (KPIs): three for setting up and operating UBIs and five for incubator functions and services. Among those eight KPIs, the average set-up cost is US$595,000; the average number of incubatees is 22; the length of tenancy is four years; and the growth in incubatees’ turnover is around 15 percent. Research limitations/implications Even the samples were outstanding UBIs in Taiwan; for future research, this approach might be applied to a bigger number of incubation centers or UBIs. Practical implications Many countries or areas still lack experience in setting up and running business incubators; therefore, practical advices for the managers are crucial for the success of these business incubators, and this benchmarking methodology can be applicable in some of those cases. Originality/value The benchmarking methodology for setting up the values of each KPI and the evaluation approach.