This panel discussion was a part of a programme ‘From Incubation to Enterprise’ which was conducted by Indian Institute of Management, Ahmedabad's (IIMA) Centre for Innovation, Incubation, and Entreprenuership (CIIE) on January 4, 2003. Professor Pankaj Chandra of IIMA led the discussion. The distinguished panelists were Mr Sandeep Srivastav and Professor Bipin Shah. Their experience and insight on the subject helped in understanding the process of incubation leading to enterprise. The panel discussion addressed the following questions: What is incubation? What is innovation? What is the process of incubation that is needed for commercializing an innovation? What role does an incubator play? The following important points were made by the panelists: An innovative entrepreneur should adapt to the demand of the market. The adaptation may be with regard to technology, marketing, business idea or business plan. The concept of incubation originated from the medical field. The concept of incubators is applied more to project ideas which have a high degree of uncertainty. The aim of the incubators is to facilitate the survival of such companies and also to nurture these companies for growth and success. Incubators play the role of risk-sharing and providing credibility to an idea as it progresses from being an idea to some kind of product. It minimizes uncertainty and increases the success rate of an enterprise that is at a very nascent stage. The difference among promotional efforts and hand-holding is that promotional effort is the assistance given for setting up a business whereas, in an incubator, it is more of hand-holding. The biggest benefit of being in an incubator is that it insulates you from the outside environment and hence an innovator can just concentrate on getting his idea fool-proof for the market. Incubators even provide the network, linking the innovators with societal resources. The network is of two kinds - knowledge network and social network. The role of venture capitalists in enterprise building is to provide linkages for a budding entrepreneur. But not many people are ready to give money at an idea level Professor Pankaj Chandra concluded the discussion by saying that the incubator is not just for supporting the innovator but also for ensuring that the idea is converted into an enterprise.