At Vinnova, we define deeptech as ground-breaking technology that requires intensive research and development with large time and capital requirements to go from idea to market application.
What differentiates deeptech companies from regular startups?
Deeptech companies, also called research-intensive companies, are companies with long development cycles. They are often behind the most ground-breaking ideas and have potential to solve the major societal challenges of our time. Deeptech companies play an important role for the future economy, competitiveness and labor market.
Deeptech is ground-breaking technology that requires intensive research and development with large time and capital requirements to go from idea to market application.
Innovations based on deeptech require a lot of capital combined with specialized technical and commercial expertise, even in the early development phases. The innovations also have a higher risk and greater uncertainty – both technically and commercially. They also need significantly longer to go from research results to market breakthroughs.
The companies therefore take great risks, but at the same time often have problems with raising capital. Therefore, it is especially important to create the right conditions so that the companies can survive and remain in Sweden and the EU.
Vinnova report on using deeptech's strengths
On October 4, 2021, the government commissioned Vinnova and Tillväxtverket to analyze and propose improvements for the conditions for research-intensive companies to be able to scale up and grow in Sweden, with a focus on deeptech companies.
During implementation, the government assignment has had an ecosystem perspective and demonstrated several strengths in academic research, intangible assets, start-up companies and established businesses. At the same time, the work has shown certain shortcomings in the ecosystem that need to be addressed so that Sweden can benefit from these strengths in the future and in international competition.
In the report, Vinnova and Tillväxtverket highlight three important points that can improve deeptech companies' conditions.
- Sweden needs a national deeptech strategy as a basis for investing in power
- Development of financing instruments and public risk sharing
- Development of the deeptech ecosystem