This article examines the impact of incubation on the advancement of innovation and entrepreneurship, utilising an extensive worldwide examination of published literature on research conducted on incubators. The paper commences by examining the role of incubators in cultivating start-up ecosystems. The study employed a case study approach to analyse government policies and processes in India, making it the first of its kind to provide a thorough analysis. The analysis of the study highlights the necessity of business incubation for promoting innovation, technology, and entrepreneurship in both developed and developing economies. However, their operational focus and performance standards differ from each other due to their distinct political and economic contexts.