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This paper reviews the literature on incubators in developed and developing countries. The authors show that the concept of incubators has evolved in time according to market and firm needs. Contemporary successful incubators are profit-oriented, provide a wide range of services, focus more on intangible business services, and employ qualified managers and support staff. By drawing lessons from country experiences they assess the appropriateness of incubators as a tool for entrepreneurship promotion in developing countries.
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