Exploring the potential of business incubators in fostering sustainability transitions A case study of Urban Tech Helsinki

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School of Arts, Design and Architecture | Master's thesis
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Date

2024

Department

Major/Subject

Mcode

Degree programme

Master's Programme in Creative Sustainability

Language

en

Pages

110

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Abstract

Global climate change and the depletion of natural resources signal that current development trajectories are unsustainable, necessitating transformative system changes. Sustainability-oriented startups can drive such changes on the niche level, yet they often encounter challenges, mainly as they grow. Business incubators have emerged as vital players in the innovation ecosystem, supporting startups, including those focused on sustainability. However, the literature around business incubators suggests that they are not fully equipped to tackle complex global challenges. This thesis investigates how business incubators foster sustainability transitions, focusing on their role as transition intermediaries. It examines Urban Tech Helsinki (UTH), a business incubator of the Aalto Startup Center, dedicated to supporting startups offering sustainable urban solutions. Data was collected through semi-structured interviews, documentation, and participant observation, involving nine stakeholders from UTH's ecosystem. A thematic analysis comprising inductive and deductive approaches was employed, with codes based on Kivimaa's (2014) framework on transition intermediaries. The findings demonstrate that UTH acts as a transition intermediary by embedding sustainability into its core strategy and providing crucial support mechanisms for startups. However, this role is part of a collective effort involving other stakeholders, such as city actors. Financial constraints and current innovation structures, which emphasise product-market fit, may limit the potential for systemic change. The study suggests rethinking these factors to support more transformative innovations, recommending that business incubators implement a pre-incubation program, urging city actors to enhance transparency, and consider hiring a service or organisational designer to rethink challenge-sharing processes.

Description

Supervisor

Jalas, Mikko

Thesis advisor

Jalas, Mikko
Ahonen, Kaisa

Keywords

business incubator, innovation, systemic change, sustainability transitions, sustainability-oriented startups, transition intermediaries, strategic niche management

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