What's Driving Deep Tech?

Deep tech is no longer confined to elite laboratories or well-funded corporations. Today, it's equally driven by visionary teams and passionate entrepreneurs. A fascinating European survey revealed that over 60% of startup founders didn't have a technical background, proving that innovation can come from anyone, anywhere.

Innovation has shifted gears thanks to new platform technologies. Remember when silicon chips and the internet changed everything?

Now, we're seeing similar disruptions with AI, quantum computing, and CRISPR. These technologies are not only groundbreaking on their own but also synergize to create exponential growth. For instance, the fusion of AI, robotics, and genetic sequencing is revolutionizing synthetic biology.

Technological advancements are more accessible than ever. Powerful computing is available through cloud services, and software is often open-source. This democratization means that startups can innovate without needing massive upfront investments. Take 3D printing, for example—it has turned prototyping from a costly endeavor into something affordable and efficient.

Innovation is no longer a linear path.

Big corporations are diversifying their approaches with corporate venture capital (CVC), incubators, accelerators, and M&A. This fragmentation means more startups are exploring new ideas in more places.

The challenge? Harnessing this dispersed knowledge requires new collaboration models.

Deep tech is seeing unprecedented funding levels. Since 2017, deep tech startups have consistently attracted more capital than other tech sectors. Despite potential economic shifts, the enthusiasm for funding innovative solutions remains strong. In fact, the global venture capital market was valued at $334 billion in 2023, according to KPMG.

Governments worldwide are taking varied approaches to R&D. In the US, federal R&D spending has decreased, while China has increased its R&D investment by 400% over the past two decades. This competition, especially in fields like AI, is pushing boundaries and driving innovation globally.

Meanwhile, the EU's Horizon program is setting ambitious R&D investment goals, aiming to bolster scientific and industrial advancements.

As executives and professionals, understanding these drivers is crucial. Deep tech isn't just shaping the future—it's already here.