The Enterprise and Economic Development Glossary a resource of the .network library

incubation:

... in technical development, the process of moving from concept, through the research stage, to the point of introducing a practical tec application or engineered product into commerce; a process of enterprise development; metaphorically, a process of hatching a entrepreneurial venture that, for example, stems from an idea in academia with the support of advocates and investors committed to its practical applications; a business incubation.

Entrepreneurial incubation programs are designed to accelerate the development of enterprises that are attractive to investors. The enterprises are incubated in an environment where support resources and services are typically available to a group thus reducing their cost individually. With overhead reduced during the risky period of moving from concept to productive organization, an enterprise is able to leave incubation with a better chance of standing on its own. According to a 1997 report of the University of Michigan, National Business Incubation Association, Ohio University, and Southern Technology Council titled Business Incubation Works nearly 90% of enterprises that successfully complete incubation programs stay in business long term. More information at and business incubation FAQ at NBIA.org.

Wikipedia offers comments about the incubator process. They include an explanation of how incubation centers typically differ from research and technology parks.

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