In today’s digital economy, we often assume that software startups dominate the entrepreneurial landscape. But what about innovators developing physical products? New research published in the Strategic Management Journal reveals that makerspaces — collaborative workspaces providing access to tools like 3D printers and laser cutters — are significantly boosting hardware entrepreneurship across the United States.

The study by Dr. Jiayi Bao, assistant professor at Texas A&M University’s Mays Business School, provides compelling evidence that these community-oriented fabrication hubs not only increase entrepreneurial participation but also enhance commercialization outcomes — with important implications for founders, investors, and economic developers alike.

Who Benefits from Makerspaces?

Contrary to popular belief, makerspaces don’t primarily benefit “accidental entrepreneurs” who stumble upon business ideas while tinkering. Instead, the research shows that intentional entrepreneurs — individuals actively pursuing business goals — drive most of the increased startup activity in these spaces.

The study notes that “Makerspaces can significantly lower the technological entry barrier for intentional entrepreneurs by providing them with affordable access to the fabrication tools and materials needed to engage in the initial prototyping of their venture ideas.”

The data reveals a striking pattern: metropolitan areas with active makerspaces see a significant increase in local hardware-focused Kickstarter projects compared to similar regions without such facilities. However, these benefits don’t extend equally to all ventures — software startups and non-technology businesses show no significant improvement in commercialization success rates.

How Makerspaces Drive Entrepreneurial Success

The study identifies two complementary mechanisms that explain how makerspaces benefit hardware entrepreneurs:

1. Resource Provision: Democratizing Product Development

Before makerspaces, hardware entrepreneurs faced prohibitive costs for prototyping equipment and materials. Now, shared access dramatically reduces these barriers:

• Development costs drop by up to 50-fold
• Prototyping time shrinks from weeks to days
• Entrepreneurs can run more design iterations before market launch

This resource democratization enables founders to create higher-quality prototypes for potential investors and early customers, improving fundraising outcomes and market readiness.

2. Social Facilitation: Knowledge Spillovers

Beyond physical resources, makerspaces foster valuable social interactions around common technological challenges:

“The overlapping knowledge domains around the technological infrastructure generate the knowledge proximity that is crucial for learning and collaboration,” explains Dr. Bao.

The study found that entrepreneurs working in makerspaces experience a significantly higher likelihood of commercialization success compared to their non-makerspace counterparts, partly due to these knowledge spillovers.

Interestingly, these social benefits are strongest for entrepreneurs spanning multiple product categories and in regions with higher demographic homogeneity, suggesting that a broad scope or an inclusive environment for learning is essential to support these benefits.

When Makerspaces Matter Most

The research identifies clear boundary conditions for makerspace effects:

1. Physical products are essential: The benefits primarily apply to hardware ventures requiring physical prototyping, not software or service businesses.
2. Resource-constrained environments: Makerspaces have the greatest impact in regions with less developed entrepreneurial ecosystems and for founders tackling more ambitious projects.
3. Multi-disciplinary innovation: Entrepreneurs working across multiple product categories see enhanced benefits, suggesting makerspaces particularly benefit those pursuing cross-domain innovation.

Implications for Stakeholders

For Entrepreneurs

If you’re developing hardware products, makerspaces offer more than just affordable tools — they provide an ecosystem that can significantly improve your chances of success. The data suggests intentional entrepreneurs should view makerspaces strategically, not just as convenient workshops but as commercialization accelerators.

For Investors

The presence of makerspace experience in a hardware startup’s background could serve as a positive signal of product quality and founder resourcefulness. Investors might consider partnering with local makerspaces to identify promising hardware ventures early in their development.

For Policymakers

“Understanding the makerspace effects is crucial for designing systems and structures that support inclusive prosperity for entrepreneurs who otherwise lack access to technological infrastructure or knowledge spillovers,” notes Dr. Bao.

Regions seeking to revitalize manufacturing or stimulate local innovation should consider investing in makerspaces as essential entrepreneurial infrastructure, particularly in underserved communities.

For Program Managers

Traditional incubators and accelerators should consider integrating makerspace elements, particularly when supporting hardware startups. However, as Bao cautions, “programs that typically attract software startups will not likely benefit much from investments in developing technological infrastructure for prototyping.”

Unlocking the Full Potential of Makerspaces

This research challenges conventional wisdom about entrepreneurial support systems, demonstrating that “competitive, prominent accelerators and incubators are not the only avenues for entrepreneurs to achieve commercialization success.”

As hardware continues to merge with software in emerging fields like IoT, robotics, and smart devices, makerspaces represent a vital and previously underappreciated component of our innovation ecosystem — one that effectively bridges the gap between digital design and physical production for tomorrow’s breakthrough products.