A model for the development of small high-technology businesses based on case studies from an incubator

Alf Scherer and D. W. McDonald examine several emerging companies that are currently being assisted by an incubator for small, technology-based businesses. The case studies illustrate how the short- and long-term responses to new technical and market opportunities need to be clearly separated and prioritized. A common failing observed is the underestimation of the time and resources required to successfully commercialize the first product before moving on to the development of second-generation products. A multistep process model of business and product development was found to be a useful tool in diagnosing the status of the start-up companies, as well as identifying future decision points and alternative courses of action.