Cleantech incubators within the sustainable entrepreneurial ecosystem: Fundraising sources, income generation strategies, and the role of public support

Abstract

This paper explores the different financial viability strategies adopted by cleantech incubators (CTIs) located in both high-income and medium- and low-income countries. More specifically, we focus on three interrelated research questions: (i) What are the most common funding sources for CTIs, and how do they differ between high-income and medium- and low-income countries? (ii) What income generation strategies do they employ to achieve financial viability? (iii) What appears to be the main influence on whether or not a CTI adapts suitable strategies to achieve financial viability? The study uses data from 71 CTIs and interviews with 11 cleantech incubator managers. Although the vast majority of the examined CTIs rely on public funding, our results suggest that high levels of fundraising and income diversification strategies are requirements for securing financial viability. In addition, higher levels of government involvement appear to correlate with fewer income diversification strategies, whereas lower levels of government involvement increase the likelihood of the incubator's proclivity to pursue different fundraising and income generation revenues.