definition

An incubator is an organization designed to help early-stage startups grow by providing resources, mentorship, office space, and access to networks.

Unlike accelerators, which typically operate on fixed-term programs, incubators often support companies for longer periods and focus on helping entrepreneurs develop their ideas into sustainable businesses.

The concept of business incubators first gained traction in the 1950s and 1960s in the United States, when local governments and universities began offering workspace and shared services to stimulate economic development.

Over time, incubators evolved into structured programs that go beyond infrastructure to include mentorship, business coaching, and introductions to investors. Today, incubators can be run by universities, corporations, governments, or independent organizations.

A well-known example is the Idealab incubator in California, founded in 1996. It has helped launch dozens of successful companies by offering not only office space and shared services but also strategic guidance and operational support.

In Asia, university-linked incubators such as those at the National University of Singapore (NUS) or Tsinghua University in Beijing have played a significant role in shaping local startup ecosystems.

Incubators lower the barriers to entry for new entrepreneurs. By offering resources that young companies could not otherwise afford, incubators increase survival rates for startups, help foster innovation, and contribute to the growth of local and global entrepreneurship ecosystems.

For investors and governments, incubators are valuable because they nurture a pipeline of promising companies that can drive economic growth and job creation.