Measuring the viability of business incubators is something Claggett Wolfe Associates of Auburn, Calif., has done more than 50 times throughout the world. Now, at the behest of the NDSU Research and Technology Park board, Claggett Wolfe will bring their expertise in market assessment and business planning to Fargo-Moorhead.

The ultimate question is this: Can the region and the NDSU Research and Technology Park use an incubator to foster technology-based entrepreneurship in the region?

"The thing we need to understand in the initial phase of the study is how the regional economy works, the university's role in this economy and the capacity of the region to work together to nurture technology-based businesses through an incubator," said Claggett Wolfe principal Chuck Wolfe. "An incubator has to make sense within the broader picture of technology innovation and economic growth and has to be designed to work within the culture of the university and the community as a whole."

To assess the local environment for technology incubation, Wolfe and his colleagues will ask questions like: "What is the climate for risk taking and acceptance of failure? Are there university assets such as labs and computer facilities that can accommodate the needs of fledgling businesses? Can university researchers and administrators make the transition from academic research to transforming research into a marketable product or service? Is there a willingness to allow faculty to pursue non-academic pursuits involving new technology venture?

In addition to university personnel, the company will size up the region's business environment through contact with area business people, attorneys, economic development officials, political leaders, bankers, accountants, realtors and industry associations.

Education also is part of the feasibility study, because Wolfe said, people have heard about incubators, but many think its just a multi-tenant building with low rent and shared administrative services. The key element that differentiates incubators from multi-tenant real estate projects is the value-added services offered. The focus is to bring together business and technical advisers, financing and other services in a pro-active, nurturing environment to accelerate the business growth and reduce the rate of business failure. Properly designed and operated technology incubators have seen business success rates of between 70 and 80 percent.

"The success of an incubator is driven by the quality of the program's management and its capacity to provide value to its businesses and to its supporters," Wolfe said. Using the market assessment, Claggett Wolfe will determine the best opportunity for technology incubation in the region and create a comprehensive business plan. The plan will cover everything from facility size requirements to hiring and job descriptions to selection of businesses for incubation. The first draft of the plan should be ready in April.