Incubation Push or Business Pull? Investigating the Geography of U.S. Business Incubators

Abstract

The primary purposes of this article are to present new data on the geographic distribution of U.S. business incubators and to explore the geographically bounded factors that influence the location of business incubators. The authors’ data show that U.S. business incubators are unevenly distributed across urban/rural divisions, states, and counties. Factor analysis identifies three common factors from 28 demographic, social, and economic variables drawn from publicly available data at the county level. These factors include agglomeration, welfare, and business/entrepreneurship. The results of binomial logistic regressions suggest that incubators are more likely to be found in counties with high levels of agglomeration but low levels of existing business development. Our findings suggest support for the incubation push hypothesis over the business pull hypothesis on the location of business incubators based on the regional configuration of incubator presence.