Abstract
The number of start-up company joining business incubator are increasing as studies show entrepreneurs that are associated with business incubator are performing better than non-incubated start-up company. A large number of the scholar are interested in research about business incubator. Although a lot of research has been done about the process of knowledge acquisition from incubator manager, co-production activity, there is lack of research on the relationship between co-production activity and its value to firms. So, the main aim of this study was to explore the role of interaction in value-added to firms being in a business incubator. The value-added to firms in this study are defined by product development & innovation, economic growth. The theoretical framework was based on co-production theory. The business assistance in the incubator is provided by co-production that occurs between incubator manager and their firms. The incubator manager helps their firm through his prior knowledge or experience as well as through external network; which involves the transfer of knowledge from incubator manager to firms. This process can occur via both direct or indirect contact with incubator manager. A quantitative study was done based on survey data obtained from 166 incubator firms affiliated to business incubator supported by Industrial Development Corporation of Norway (Siva). Data were analysed using SPSS version 24. It was found that the interaction via counselling, networking has a positive role in value-added to firms being in a business incubator. The business services provided by the incubator, no of meeting with incubator manager has also a positive role in value-added to firms being in a business incubator. The value-added to firms were defined by product development & innovation, economic growth. This study provides the better understanding of co-production activity such as counselling, networking, incubator services to incubator manager, policy maker, management team etc. to deliver better service to their firms.