InformationWeek SMB TechEncyclopedia

An organization that fosters the growth of new ideas or companies. An incubator generally acquires small companies and provides them with financing, management expertise, office services and possibly office space. Incubators may adopt a think tank approach and look for synergies between the ideas, products and technologies they are developing in order to grow faster. Many Internet incubators arose in the latter 1990s with the intention of creating more dot-com success stories.