The OECD has undertaken a mapping of the policies and programmes delivered by public entities at the national level in support of business incubators across the OECD’s 38 countries. A total of 70 policy initiatives have been identified and mapped. For each of the policies, structured information has been collected on a range of factors regarding the policies’ design and implementation arrangements. This chapter presents key findings and takeaways from the mapping exercise, shedding light on the general types of policy approaches that governments are pursuing to support their incubation systems.
Incubation in Entrepreneurial Ecosystems
Hatching Growth
Abstract
The OECD has undertaken a mapping of incubation support policies in the 38 OECD countries in order to give a comprehensive and high-level view on the broad types of policy support that governments are pursuing in order to support business incubators. This provides a context for the more in-depth policy examples and analysis presented in the rest of this publication (see Chapter 11 for more detailed discussion and recommendations on different policy approaches for supporting business incubators).
Structured information on the design features and implementation arrangements of each of the mapped policies has been collected following a standardised questionnaire template. This information has been gathered primarily through desk research from official sources, drawing also from the OECD’s international network and its ongoing work in this policy area. It is important to note that the scope of the mapping exercise is limited to national level initiatives or federal initiatives in countries with a federal system of government. Moreover, only policies that were active as of early 2025 have been mapped. The remainder of this chapter presents key findings emerging from the policy mapping data.
The policy mapping exercise identified 70 active incubation policies administered at the national level across the 38 OECD countries. The vast majority (63) of these form part of a broader strategic action plan or umbrella initiative (see Figure 10.1).
Source: OECD analysis
Many different types of entities can operate business incubators, including dedicated business support organisations as well as by entities such as universities, financial institutions, or corporations for whom incubation is just a part of their overall operational activities. Incubators can also be run by public entities themselves. Most incubation policies (50 out of the 70 policies mapped) provide assistance to dedicated business support organisations, although a significant number also support universities, public entities and established companies in the delivery of incubation programmes and services (see Figure 10.2). A smaller number of incubation policies target investors.
Source: OECD analysis
Government policies can support incubators in various ways. The most common policy approach is to provide financial assistance to support selected incubators in developing and delivering incubation programmes and services (see Figure 10.3). Indeed, 34 out of the 70 mapped policies include the provision of financial support to incubators. Chapter 11 of this publication provides detailed discussion on the key policy choices that governments face in designing these funding supports for incubators. Another approach is for public entities to create and operate their own incubation programmes, with 26 cases of this type of policy identified in the mapping across OECD countries.
In addition to funding or operating incubator programmes, policies can also support incubators through the organisation of matchmaking or networking activities (17 policies) and the provision of assistance to raise the capacity of incubator staff (11 policies). Each of these types of policy measures hold strong potential to boost the capacity and performance of business incubators, either as standalone support instruments or as a complement to public funding initiatives.
11 of the incubation policies involve the creation of an incubator network. Such networks can provide important assistance to incubators. In nine cases, the networks provide peer learning activities to their members, while the facilitation of connections with investors (8 policies) and universities (6 policies) is also frequent. It is relatively less common for the incubator networks to provide training or funding to their members, although this does occur for some of the policies identified in the mapping.
Policy can also support incubators indirectly by supporting startups’ in accessing incubators’ services. This is the case for five of the policies identified in the mapping. These policies often bolster demand for incubators’ services through the provision of vouchers that are to be used in exchange for incubation supports or through the issuance of special visas for international entrepreneurs to enable them to participate in incubation programmes in a certain country. Governments in some countries also create certifications and standards for incubators that help them to establish credibility in the entrepreneurial ecosystem and attract clients and partners.
Source: OECD analysis
Financial support policies for incubators can broadly be divided into two categories: i). the allocation of funding to selected incubators in order to support them in developing and delivering their programmes and services (20 policies) and ii). the contracting of third-party entities to deliver a defined incubation programme, often through public tenders (14 policies). An example of the former is Sweden’s National Incubator Programme (NIP), described in detail in Box 11.1 of this publication of this publication, while an example of the latter is the German Accelerator programme operated by the Start2Group, described in detail in Box 6.2 of this publication.
Incubator funding policies often impose conditions for the receipt of funding. 25 out of the 34 identified policies that provide financial support to business incubators require that the incubators report data on their clients’ performance, while 28 require the reporting of data on the services provided by the incubator (see Figure 10.4). For some policies, receipt of funding is also conditional on the actual performance of the incubators’ clients (15 policies), or the services delivered by the incubator (24 policies).
Source: OECD analysis
Track record is the most important selection criterion for incubator support policies, with 28 of the mapped funding programmes taking this factor into account when deciding which incubators to fund (see Figure 10.5). Service offering, ecosystem embeddedness, and the types of clients targeted are also key considerations. Some policies specifically target incubators that are specialised in a certain area, while others select incubators based on their objectives, legal status, or geographical location. The approaches governments take to select incubators for public support and the key policy considerations are discussed in detail in Chapter 11 of this publication.
Source: OECD analysis
Figure 10.6 shows that, where incubator policies stipulate which supports and services the funded incubators are to provide to their client startups, the most common requirements are for incubators to deliver mentoring or coaching (a stated requirement in 22 of 27 applicable policies), training (21 policies), networking activities (21 policies), and investor connections (20 policies). A less common requirement is for the incubators to provide direct funding to their clients.
Source: OECD analysis
The key message emerging from the policy mapping is that almost all OECD countries are embracing incubation policies as an important tool for supporting the development of startups and scaleups. Indeed, 31 OECD countries had an active incubation policy at the national level as of early 2025. These mostly form part of a broader strategic action plan or umbrella initiative, indicating that incubation policies are generally well integrated within wider government strategies for entrepreneurship development and innovation. It is important to note that, in addition to the 70 policies mapped at the national level, there are also many local initiatives that public entities are undertaking in order to bolster their incubation systems and programmes.
The most commonly deployed policy lever to support incubation is the provision of funding for third-party incubators, either through the provision of funding allocations to selected incubators or by contracting incubators to deliver pre-defined programmes. These programmes typically select incubators based on their track record of supporting startups, their ecosystem embeddedness and their service offering, among other things. Many public entities also set up and operate their own incubation programmes where they see particular opportunities or support gaps. The policy mapping shows public funding for incubators often comes with strings attached, with most policies requiring funded incubators to submit data on the performance of their clients and/or the services they deliver as a condition for funding. A smaller number of policies also make funding conditional on the actual performance of incubators’ clients.
In addition to providing financial assistance, policies can also support incubators in a variety of other ways, including through the creation of networks for incubators or the provision of training for incubator staff. In nine OECD countries, governments have created incubator networks that will typically organise peer learning activities and facilitate connections with investors, universities, and other relevant entities. Policy can also support incubators indirectly by boosting demand for their programmes and services, often through the provision of vouchers for startups or visas for entrepreneurs.
Overall, the policy mapping provides a high-level view on the different types of policies and approaches that governments are taking to support business incubators. Beneath the broad policy categories presented in this chapter are numerous, more detailed policy design and implementation decisions that governments must take in order to ensure the effectiveness of their interventions. These policy choices in the design and implementation of incubation policies are the focus of the next chapter of this publication, which includes a range of inspiring international practices as well as practical recommendations for policymakers.