Innovation is crucial for implementing the Paris Agreement and achieving the Sustainable Development Goals.
• Incubators and accelerators can reduce the risk, enhance the impact and speed up the technology innovation process. They do this by building the capacity of entrepreneurs and connecting them to markets, finance and other key innovation actors.
• However, incubators and accelerators face many challenges to success, especially for supporting the innovation of climate technologies in developing countries. For instance, incubators and accelerators struggle to perform effectively if the supporting environment (the entrepreneurial ecosystem) is weak. Furthermore, incubators and accelerators face challenges in becoming financially self-sufficient. Finally, the incubator and accelerator model is often based on that used in Silicon Valley, which may not be effective in a developing country context.
• Key findings related to international public finance and strengthening climate technology incubators and accelerators in developing countries:
1. A strong entrepreneurial ecosystem unlocks financing for incubators and accelerators;
2. Crowding in private finance helps to transform ideas into solutions;
3. New incubation models should aim for financial sustainability