Commercial spin-offs from government laboratories and regional economic development: The huntsville Alabama story

Incubator organizations, their spin-off firms and the resulting progeny can be a major force in regional economic development. When the incubator organization is a high- technology government R&D facility, the leverage effects on the local economy can be even more significant. However, the vicissitudes of government funding may create discontinuities in the incubator phenomenon that must be carefully managed. The economic transition of the Huntsville, Alabama, USA, area from a cotton farming region to a high-technology electronics R&D centre provides an illustration of how government incubator organizations can be constructively managed to foster significant regional economic development. The story contains many lessons for economic planners, government policy makers and private sector entrepreneurs.