Title: Government involvement and financial service intensity: a comparative study of three business incubators in China

Authors: Aruna Chandra, Wei He

Addresses: College of Business, Indiana State University, 800 Sycamore Street, Terre Haute, Indiana 47809, USA. ' College of Business, Indiana State University, 800 Sycamore Street, Terre Haute, Indiana 47809, USA

Abstract: Drawing on interview and archival data collected from three business incubators in China, we conducted an in depth study of Chinese business incubators to assess the impact of varying levels of government involvement on the nature of financial services provided by the incubator to its incubatee clients. Financial services were classified on a spectrum of low to medium to high intensity based on the depth of incubator involvement and level of risk. We found an inverse relationship between the two key variables – the lower the government involvement the greater the financial service intensity and vice versa. Managerial and policy implications of the findings are discussed.

Keywords: business incubators; China; government involvement; financial services; innovation.

DOI: 10.1504/IJIL.2008.017362

International Journal of Innovation and Learning, 2008 Vol.5 No.3, pp.266 - 282

Published online: 02 Mar 2008 *

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