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Anja Hoffmann

The World of New-Business Building is Facing a Wicked Battleground

If you are wondering how to make an impact and invest in deep tech to build new ventures, wonder no more.


By joining forces within an ecosystem for deep tech, business partners can drive innovation together, tackle each other's biggest challenges and complex problems, and share both risks and opportunities to create solutions for the most pressing issues.


Deep tech, often cloaked in complexity and misperception, represents a frontier of innovation with transformative potential across industries. It transcends mere technological advancement, offering groundbreaking solutions to global challenges and driving commercialisation and competitiveness.


These advancements are shaping the world we navigate today. The winners will be putting deep tech at the heart of their new-business building.


Catalysts for New-Business Building and Innovation

The impact of deep tech on economic growth is immense. For example, artificial intelligence (AI) is anticipated to inject an extraordinary $13 trillion into the global economy over the next decade, according to McKinsey & Company. Similarly, advancements in nuclear fusion and cancer treatment promise unparalleled economic and societal benefits. These technologies are not only fascinating scientific milestones but also powerful engines for economic development and societal progress.


The European Union has recognized deep tech’s transformative potential and has made significant investments to enhance its ecosystem. Despite these efforts, questions remain about whether Europe’s current strategies are enough to sustain its competitive edge and entrepreneurial dynamism. The EU’s challenge is to deeply understand the evolving landscape of deep tech, identify current limitations, and develop robust policies to compete globally and achieve strategic objectives.



The Dynamic Nature of Deep Tech

Deep tech is not static; it continuously evolves, reshaping industries and redefining what is possible. Technologies that were once considered revolutionary, like Large Language Models (LLMs), are becoming part of the mainstream. This rapid evolution requires constant reevaluation of what constitutes deep tech and how these technologies can be seamlessly integrated into the economic and social fabric.


Deep Tech Startups: Balancing Risks and Rewards

Deep tech startups face unique challenges. They often deal with higher technological risks and need substantial capital and time to achieve market viability compared to traditional startups. However, these challenges are balanced by the startups’ robust competitive advantages, including cutting-edge technologies, valuable intellectual property, and specialized expertise. My work in this field has focused on developing go-to-market strategies and innovative business models that leverage these strengths to create new, sustainable ventures.


Europe’s Opportunity in Deep Tech

Europe is home to numerous deep tech successes, with many startups emerging from academic institutions. However, a significant portion of European patents remains untapped, indicating a gap between academic innovation and market application. Bridging this gap is essential for Europe to maintain its competitive edge and technological sovereignty. My efforts in this area have centered on building ecosystems that connect academia, industry, and government to foster innovation and bring new technologies to market. It's not easy, but it's worth it.


Navigating the Investment Landscape

Despite economic uncertainties, deep tech in Europe continues to attract considerable investment. Yet, as startups mature, there is a growing reliance on funding from outside Europe. This trend highlights the need for stronger internal funding mechanisms to ensure Europe’s technological independence.


Some may be surprised to learn just how competitive Europe’s tech landscape actually is. According to the IIMD GmbH - International Institute for Management Development’s annual World Digital Competitiveness Ranking, 4 out of the top 10 countries are European. Another global study, INSEAD’s Global Talent Competitiveness Index, reveals the same: 4 out of the world’s top 10 countries are in the EU.

These four countries are Denmark, Finland, Sweden and the Netherlands. They are the birthplace of global tech leaders, like the chip manufacturer ASML and music streaming pioneer Spotify, as well as home to technologically advanced entities in traditional industries, such as healthcare giant Novo Nordisk — Europe’s most valuable company.


A Roadmap for Building Deep Tech Businesses

For business executives looking to build new ventures based on deep tech and innovation, the following steps are critical:


  1. Identify Transformative Technologies: Focus on emerging technologies with the potential to disrupt industries and solve significant problems.

  2. Foster Collaborations: Develop ecosystems that connect researchers, startups, established companies, and policymakers to encourage innovation and collaboration.

  3. Secure Strategic Funding: Ensure access to diverse funding sources, both public and private, to support the long-term development of deep tech ventures.

  4. Bridge the Gap Between Academia and Industry: Facilitate the transition of academic research into commercial applications through partnerships and incubation programs.

  5. Adopt a Long-Term Vision: Embrace a strategic approach that balances immediate goals with long-term sustainability and impact.


Europe at the Forefront of Deep Tech

Deep tech ventures in Europe stand at a pivotal moment. With targeted investments, supportive policies, and a focus on connecting academia with industry, Europe can solidify its position as a global leader in deep tech. The potential to drive economic growth, create high-value jobs, and address global challenges is enormous. By nurturing this ecosystem, Europe can advance its technological leadership and contribute significantly to global progress in the coming decades.


My work has been dedicated to fostering innovation and growth, developing new business models, and creating collaborative ecosystems that harness the full potential of deep tech. Together, we can build a future where innovation drives prosperity and solves the pressing challenges of our time.

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