Hardware incubator sounds like a really good idea.
Many people are not interested in funding hardware projects at all - hardware just has a lousy reputation.
But having a hardware incubator means you concentrate expertise in all the stuff that's traditionally thought to be hard about hardware. Things like suppliers and distribution and stock control and sub-contracting etc etc.
http://www.plugandplaytechcenter.com/ is one incubator that is alive and kicking. They don't pass ideas to residents though, they're a real estate company and based on what they charge for a cubicle I think they're doing just fine.
There is a chance I am familiar with the incubator you refer to and I am a software engineer who has had similar experiences in the past. Please send me an email at hnthrowaway@forward.cat if you'd like to connect and to see if there is any way I can help.
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