Business Incubation Strategy of High-Tech Venture Firms in a Science Park - Technopolis: Best Practices for Science and Technology Cities - page 147

start-up because of the variety of costs faced by the venture firms prior to the stage
when sales revenues meet expenses.
Furthermore, incubators should link with the technology commercialization
center or one-stop business service center because poor management is the leading
killer of small business. BIs should have on-site experts who can identify funding
sources in both the public and private sectors and assist in the application process,
as well as network experts for general management assistance, technology assis-
tance, and self-employment training.
In order to accelerate technology transfer from a science park to the market-
place for high technology-based venture business a Technology Commercializa-
tion Center should be established by the university or the city government. This
office is charged specifically to provide businesses with direct access to the
research institute in the science town, the universities' technological institute, and
their graduate business school. This center as a linking mechanism is very essential
to a science park because both research institutes and universities do not know
what kinds of specific research industry wants, and industry does not recognize
what kinds of research is done.
With the technical-assistance mechanism of the technology commercialization
center in place, venture capitals set up by universities, research institutes, city
government, and the private sector, should establish a seed-capital and lending
fund to encourage entrepreneurship. The venture capital corporation can make
both loans and equity investments.
3.2 Service Factors for the Successful Technology Business
Incubator
Service factors
We can identify the factors of success and services incubators need. Even if the
needs of incubators are different from place to place, the areas of support to SME
ranked in European countries are modeled as follows (Snyder et al. 1992),
• Technology development
• Facilitation of start-up enterprise
• Financing and exports
• Training
• Information and counseling.
In addition to these factors, access to needed inputs such as finance, raw
materials, technology, skills and an ever-opening market is required. The Korean
environment for SME creation and growth also highly depends on public policies
and business infrastructure within the framework of supply and demand. In Fig. 4 ,
the timely support of incubator is illustrated to deal with problems encountered
during incubation.