Title: A profit-sharing scheme to provide financial support for incubatees considering the technology transfer process

Authors: R.B. Seno Wulung; Katsuhiko Takahashi; Katsumi Morikawa

Addresses: Academy of Leather Technology, Ministry of Industry Republic of Indonesia, Panggungharjo, Sewon, Bantul, Yogyakarta, 55188, Indonesia; Department of System Cybernetics, Graduate School of Engineering, Hiroshima University, Kagamiyama 1-4-1,Higashi Hiroshima, 739-8527, Japan ' Department of System Cybernetics, Graduate School of Engineering, Hiroshima University, Kagamiyama 1-4-1, Higashi Hiroshima, 739-8527, Japan ' Department of System Cybernetics, Graduate School of Engineering, Hiroshima University, Kagamiyama 1-4-1, Higashi Hiroshima, 739-8527, Japan

Abstract: Technology incubators provide support for incubatees through technology transfer mechanisms and act as intermediaries for financial support. We consider the situation in which an incubator manager and investors attempt to reach an agreement regarding profit sharing to provide financial support. The incubator manager wants to maximise the profit of the incubatees and the income of the incubator, while the investors prefer to maximise their investment revenue. Both types of decision makers consider the technology level and technology assimilation rate of the incubatees, which are certain for the incubator manager and uncertain for the investors. We analyse the benefit of using a profit scheme agreement under negotiation and without negotiation. Furthermore, we examine the impact of technology level and technology assimilation rate in the decision making process and suggest several factors relevant in the technology transfer process to be considered by the incubator manager when setting up a technology incubator.

Keywords: technology incubators; technology transfer; financial support; profit sharing; technology level; technology assimilation; decision making.

DOI: 10.1504/IJBIR.2016.079508

International Journal of Business Innovation and Research, 2016 Vol.11 No.4, pp.461 - 483

Received: 09 Apr 2014
Accepted: 17 Jun 2014

Published online: 15 Sep 2016 *

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