{"id":10952,"date":"2024-03-21T12:00:00","date_gmt":"2024-03-21T10:00:00","guid":{"rendered":"https:\/\/escp.eu\/thechoice\/?p=10952"},"modified":"2024-03-22T16:35:16","modified_gmt":"2024-03-22T14:35:16","slug":"unleashing-the-potential-of-deep-tech-innovations","status":"publish","type":"post","link":"https:\/\/escp.eu\/thechoice\/tomorrow-choices\/unleashing-the-potential-of-deep-tech-innovations\/","title":{"rendered":"Unleashing the potential of deep tech innovations"},"content":{"rendered":"\n

What do mRNA vaccines, fusion energy and quantum computing have in common? They are all prominent examples of \u201cdeep tech\u201d: technological innovations that are based on substantial scientific or engineering breakthroughs and have the potential to significantly impact various industries and societies.<\/p>\n\n\n\n

Whether playing a pivotal role in the development of the Pfizer-BioNTech and Moderna COVID-19 vaccines (mRNA), producing limitless, zero-carbon power (fusion energy, theoretically) or performing complex calculations at an unprecedented scale and speed (quantum computing), deep tech provides businesses with new capabilities, products and services that can give them a competitive edge in the market.<\/p>\n\n\n\n

So we sat down with Martin Kupp<\/a>, professor of entrepreneurship and strategy at ESCP in Paris and the co-founder of Renaissance Fusion<\/a>, a deep tech startup in the field of nuclear fusion, to devise strategies for harnessing these innovations.<\/p>\n\n\n\n

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For me, deep tech is based on scientific discovery. It\u2019s not an incremental improvement, it\u2019s typically a breakthrough.<\/p>\n<\/blockquote>\n<\/div>\n\n\n\n

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\"Photo<\/figure>\n<\/div>\n<\/div>\n\n\n\n

Defining deep tech<\/h2>\n\n\n\n

First off, what defines \u201cdeep tech\u201d? Kupp points to several specific characteristics that distinguish a technology as deep tech. \u201cFor me, deep tech is based on scientific discovery,\u201d he says. \u201cIt\u2019s not an incremental improvement, it\u2019s typically a breakthrough. So it\u2019s fairly defendable and is typically patented. And it often comes with big technological risks but less market risks.\u201d<\/p>\n\n\n\n

In other words: while the technology involved may be unproven, the potential market demand for the product or service may be more stable. But crucially, deep tech generally contributes to solving complex global problems in different sectors<\/strong>. \u201cA lot of technology is developed in labs, but if it just stays on the shelf, it\u2019s not deep tech. The stuff that gets out and tries to find a market will usually solve a major challenge for an industry such as biotechnology or global energy<\/a>,\u201d Kupp says. \u00a0<\/p>\n\n\n\n

Accessing insights and opportunities<\/h2>\n\n\n\n

But how can businesses and individuals stay informed and engage with deep tech to harness its benefits? The good news, Kupp says, is that there\u2019s a renewed interest in science due to the increasing complexity of problems society faces<\/strong>. In the past, accessing scientific information was more challenging. However, with the advent of technology and the internet, it has become much more convenient and accessible. \u201cTo get a scientific paper 15 years ago you would go to a library; today you just go on Google Scholar and you can basically read any paper you want,\u201d says Kupp.<\/p>\n\n\n\n

Furthermore, he highlights the organisations emerging that cater to people interested in deep tech by organising events. Hello Tomorrow and VivaTech are two of the largest and most influential tech conferences, covering deep tech and a wide range of related topics, such as quantum computing and biotech. Kupp says: \u201cThese events provide opportunities for individuals to come together, network, and learn about the latest developments and trends in deep tech.\u201d<\/p>\n\n\n\n

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A lot of technology is developed in labs, but if it just stays on the shelf, it\u2019s not deep tech. The stuff that gets out and tries to find a market will usually solve a major challenge for an industry such as biotechnology or global energy.<\/p>\n<\/blockquote>\n\n\n\n

The evolution of deep tech research & development<\/h2>\n\n\n\n

In terms of the approaches that businesses and organisations take to cultivating deep tech innovations or harnessing the many benefits, Kupp highlights a transition. Large corporations traditionally housed extensive R&D departments dedicated to developing new technologies and innovations. However, there has been a shift towards R&D being conducted more prominently in public labs and universities<\/strong>. These institutions often generate breakthroughs through research efforts funded by governments or private entities.<\/p>\n\n\n\n

From there, Kupp says technology transfer offices play a crucial role. These offices facilitate the transfer of intellectual property from academia to industry by licensing out the technology to companies, granting access to cutting-edge innovations without investing in their development from scratch. \u201cYet, despite the advantages of technology transfer agreements, there are potential drawbacks,\u201d points out Kupp. \u201cFor instance, companies may acquire licences for promising technologies but then shelve them without further development.\u201d<\/p>\n\n\n\n

To address this inefficiency, he says governments are increasingly focusing on fostering deep tech entrepreneurship<\/strong>: \u201cBy encouraging the creation of startups, governments aim to create a third pathway for the development and commercialization of deep tech innovations, combining the innovative capacity of public labs and universities with the agility and market orientation of entrepreneurial ventures.\u201d<\/p>\n\n\n\n

Strategies for success<\/h2>\n\n\n\n

For startups and corporations alike, Kupp stresses the importance of thoroughly understanding the value chain and the needs of customers when transitioning a technological innovation into a marketable product. \u201cRather than solely focusing on market size or potential markets, the primary considerations should be the value chain and customer requirements,\u201d he says.<\/p>\n\n\n\n

Understanding the value chain involves mapping out the entire process from raw materials to the end consumer, identifying each step involved in delivering the product or service to the customer. This understanding helps identify potential areas for optimization, cost reduction, and value addition.<\/p>\n\n\n\n

Similarly, understanding the needs and preferences of customers is crucial for designing a product or service that meets their expectations and addresses their pain points<\/strong>. This involves conducting market research, gathering feedback, and iteratively refining the product or service to ensure it aligns with customer needs.<\/p>\n\n\n\n

From there, Kupp says the focus shifts to building a business model that effectively delivers value to customers while also ensuring profitability and sustainability: \u201cThis involves designing a revenue model, defining pricing strategies, and identifying key partners and stakeholders in the value chain.\u201d<\/p>\n\n\n\n

Addressing the key challenges of deep tech<\/h2>\n\n\n\n

Beyond this, there are notable challenges or roadblocks that organisations will face in developing deep tech innovations and monetizing them:<\/p>\n\n\n\n

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  • Long time horizon<\/strong>: They often require extensive research, development and testing, leading to longer timeframes for bringing the technology to market compared to other types of startups. \u201cThis extended timeline can be a barrier for companies seeking faster returns on investment or facing pressure to demonstrate progress quickly,\u201d Kupp says.<\/li>\n\n\n\n
  • High capital requirements<\/strong>:\u00a0Developing deep-tech products typically involves significant investment in research facilities, equipment and experiments. As a result, deep tech startups often require substantial funding, which can be challenging to secure, particularly in the early stages when the technology is still unproven.<\/li>\n\n\n\n
  • Limited talent pool<\/strong>: Deep tech industries often require highly specialised expertise in areas such as physics, engineering and computer science. However, Kupp says the pool of talent with expertise in these fields is relatively small, \u201cleading to intense competition for skilled professionals among deep tech startups\u201d.<\/li>\n<\/ul>\n\n\n\n

    To overcome these challenges, strategic planning and a long-term vision are essential, as are realistic milestones and timelines. Securing diverse funding sources, including government grants and venture capital, is also crucial for supporting research and development efforts. Building a talented team and fostering a supportive work culture, meanwhile, are vital for attracting and retaining top talent. \u201cStrategic partnerships and collaborations with industry players and government agencies can provide access to expertise, funding and market opportunities,\u201d Kupp adds.<\/p>\n\n\n\n

    Deep tech innovations hold immense potential for driving innovation, addressing global challenges, and creating value for society<\/strong>. By adopting strategic approaches and leveraging partnerships and collaborations, businesses can harness the power of deep tech to achieve long-term commercial success and a positive impact on society.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

    To devise strategies for harnessing the potential of deep tech innovations, we sat down with Martin Kupp, professor for entrepreneurship and strategy at ESCP.<\/p>\n","protected":false},"author":1,"featured_media":10951,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[62,16,27],"class_list":["post-10952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tomorrow-choices","tag-innovation","tag-strategy","tag-tech","category-14","description-off"],"acf":[],"yoast_head":"\nUnleashing the potential of deep tech innovations - The Choice by ESCP<\/title>\n<meta name=\"description\" content=\"To devise strategies for harnessing the potential of deep tech innovations, we spoke with Martin Kupp, professor for entrepreneurship and strategy at ESCP.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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