Deep Tech Ecosystems
In this series of posts on deep tech, I wanted to write about Deep Technology Ecosystems. Unlike regular and mature technologies, such as digital technologies, which can be built from anywhere around the world due to democratized digital infrastructure, deep technology companies require a different kind of infrastructure and other factors to develop and thrive. Most deep technology companies originate out of ecosystems that provide this environment for them to thrive.
In this post, I will discuss the important environmental factors that ecosystems need to provide for deep tech companies to emerge and scale, and showcase some of the world’s top deep technology ecosystems. Studying and engaging with the ecosystem in Cambridge, UK, has helped me understand the ecosystem factors holistically.
Important Factors for Deep Tech Ecosystems to Thrive
Science and Technology Research and Development (R&D)
Deep technologies emerge from scientific breakthroughs and research. The heart of deep tech ecosystems lies in ahead-of-the-curve research and innovation. These encompass the latest technologies, such as AI, quantum computing, bio-life sciences, materials, semiconductors, and many more. Most of the deep tech ecosystems in the world are centered around leading science and technology universities, institutions, or corporate R&D hubs, which play a crucial role in the diffusion of innovation.
Capital
Access to funding is a huge factor for deep tech ecosystems to thrive in churning out companies and commercially successful products for the world. Access to government and institutional funding, grants, and venture capital is crucial for the derisking of technologies and for their development into impactful products, commercialization, and global scaling. Deep technology ventures have a longer timeline for commercialization and require more capital upfront, as they must first derisk the technology, shape it into valuable products through technology maturation, and find innovative routes for manufacturing and scaling.
Steady access to capital backed by patient and long-term view-based investors is very important for the ecosystem and the ventures.
Talent
Having great highly skilled talent is one of the most important resources for any venture to thrive, deep tech companies are no different. But they also need highly specialised people in STEM talent which are important for developing the technologies and bringing them from labs to production. While technology talent is crucial, there is a big need for visionary entrepreneurs, venture operators and innovators to mould and craft these technologies into solutions for global problems and markets, and build viable ventures around them.
Infrastructure
The existence of adequate laboratory spaces, incubators, connected supply chains and other physical workspaces is critical for deep tech. Given most of the product development happens in laboratory-type settings with great instrumentation, easy access to such plug-and-play scientific environments helps deep tech companies enormously and cuts down the costs of establishing their own lab spaces and equipment.
Commercialization: Market Access & Partners Network
Industry linkages, partners with access to global markets and connections with potential customers would offer great support for these new technologies to diffuse and get commercialized. A network of mentors, advisors, and proven entrepreneurs who have built, scaled and exited companies will provide the much-needed and valuable wisdom and pathways for more deep tech entrepreneurs to become successful.
TOP GLOBAL DEEP TECH ECOSYSTEMS :
According to Deal Room which has tracked thriving deep tech ventures and science hubs in the world benchmarking them across multiple parameters, the top ecosystems are as follows
