Incubators Take Notice: Your Entrepreneurs Are Networking with the Wrong People
Startup incubators used by cities and companies to jump-start innovation have a problem to overcome. Attendees tend to network with people they already know, says research by Rembrand Koning.
- Like party guests who refuse to mingle, entrepreneurs tend to gravitate toward people they already know at these programs, especially if they participate as a team, diminishing the learning potential.
- Participants with more prior ties were more likely to miss out on peer effects, or the benefits of learning from those with stronger skills.
- Koning's research might be sobering to the cities and institutions that invest in startup-focused events and programs in the hopes of stirring innovation and prosperity.
- Even if a fledgling community emerges from the interactions at these events, the potential peer effects will likely decline over time.
- For established companies, Koning's research raises another potential peril of referral-based hiring.