Study finds Chennai has the most number of academic incubators

IIM Bangalore and IIT Madras conducted study on incubators’ impact on startups

The Indian Institute of Management Bangalore and the Indian Institute of Technology Madras have released a report on start-up incubation ecosystem. 

The India Incubator Kaleidoscope 2024 is a joint venture between NSRCEL of IIM Bangalore and Centre for Research on Startup and Risk Financing (Crest) of IIT Madras.  

A. Thillai Rajan, head of Crest and professor of Finance, in the Department of Management Studies and Srivardhini K. Jha, professor of entrepreneurship, IIM Bangalore and chairperson of NSRCEL, led the effort. The report offers insights and recommendations to policymakers and business leaders on creating and nurturing startup incubators, essential for job creation and economic growth.  

Ms. Jha said the report addressed the gap between activities and impact of incubators that are not well understood and highlights the need to raise incubation activity and enhance the quality of incubation efforts nationwide.  

Over 1,100 incubators are currently active in the startup ecosystem with the southern region housing 45% of all incubators. Around 48% of incubators are in tier 1 cities, with Chennai housing the highest proportion of academic incubators at 82% and Bengaluru and Gurugram with 71% and 84% of industry incubators respectively. There is need to establish more incubators in India as the incubator density is 0.8 per million population as against between 8 and 10 incubators in the U.S.A., the U.K. and China, the report said.

Students, young professionals and women founders with modest financial resources seek out incubators whereas the rate of incubation is high among deep tech sectors such as AI, ML, data analytics and biotech.  

The study also found that incubated startups won more awards and were more engaged in creating intellectual property. Such startups had five times more published patents than those non-incubated.

Mr. Thillai Rajan said the research found that incubators enhanced the credibility of startups that they support. Amitabh Kant, G20 Sherpa, and former CEO of Niti Aayog, who released the report said the research findings vindicated the policy emphasis on incubators, he said. 

IIM Bangalore director Rishikesha T. Krishnan said incubators support the unique needs of diverse creators by accelerating grassroots development and leveling the playing field. 

IIT Madras director V. Kamakoti said the recommendation of the report would be beneficial for all stakeholders. 

Published - October 05, 2024 10:40 pm IST