The role that technology business incubators (TBIs) play in the development of new ventures is of utmost importance for innovative enterprises especially in preparing them to adapt during times of fast-changing business environments. Establishing the effects that incubation services have on these innovative ventures particularly small to medium enterprises (SMEs) can assist in understanding how they develop capabilities that can enable surviving in the market once they have graduated. The survival capabilities utilised by SMEs in changing business environments can be referred to as dynamic capabilities. This paper explored the dynamic capability developed by SMEs from product development services offered by TBIs. A qualitative research method approach was utilised where 16 technology business incubation managers were assessed to determine their perceptions of a dynamic capability developed from product development services. The results of the study reveal that Technology Management is a dynamic capability developed from Product Development services during the business incubation process. This study contributes to better understanding of the dynamic capabilities view (DCV) theory when looking at incubation services and their impact on innovative SMEs, particularly product development services. It practically explains the relationship between Product Development and Technology Management. This is important for incubation practitioners to understand when providing their services to SMEs. It is equally relevant for entrepreneurs in preparation for the inevitable change in business environment as it provides a perspective on how to adapt to this change by building technology management capacity from the product development services received during incubation. The study adopted a unique approach of combining two critical enterprise development instruments which are business incubators and technology stations into one component. These two entities were viewed with one lens and adopted an umbrella term that called these two entities combined as Technology Business Incubators.

Keywords: Business incubation, Dynamic capabilities, Technology Management, Product Development, Operations Management