Startups and science: EU businesses will increase their competitiveness by linking closely scientists and startups.

Traditionally, business and science have been regarded as two distinct domains linked by a lengthy and time-consuming process known as ‘Transfer of Research Results’. However, in Europe, a new wave of innovation linking closely science, startups and big industry is challenging this long-held belief.

In the past ten years, the process by which new discoveries reach our homes, desks, and factories has shifted.

The new paradigm entails a direct transition from the lab to the business world. Deep tech startups are founded by scientists, either alone or in collaboration with experienced startup founders.

That is where EU businesses must keep their eyes open.

Europe leading by example…

There is a new generation of entrepreneurs who are innovators from the start. Currently, we can equate the terms 'entrepreneur' and 'innovator.' Entrepreneurs who, as part of the new wave of innovation, are launching science-related startups. Similarly, scientists are increasingly developing a passion for entrepreneurship in addition to science. In Europe, we have outstanding examples, such as Bulgarian Professor Martin Vechev, who is Full Professor of Computer Science at ETH Zürich and has founded three deep tech startups (DeepCode (The Software Revolution) by Snyk.io, ChainSecurity and LatticeFlow).

With Martin Vechev, during the launch of INSAIT - Institute for Computer Science, Artificial Intelligence and Technology (11 April 2022)

Numerous examples are visible all over our continent. Cases in point include BioNTech SE, which was founded by Ugur Sahin, Ozlem Tureci, and Christoph Huber. Ugur is a former European Research Council (ERC) Advanced Grantee. They progressed from scientists to leading founders of a multibillion-euro company.

…and mastering the new reality of science and business

This paradigm shift presents new challenges for scientists, investors, and end users of innovations, particularly businesses.

Enterprises need to bring new talents into their companies. As stated in my first LinkedIn post, ‘businesses collaborating with innovators and scientists is a must for their future’. This necessitates businesses being able to work in close collaboration with this new breed of scientists and founders. Using new mechanisms, such as venture clients, to benefit strategically from top deeptech startups co-founded by scientists.

Similarly, there are difficulties for risk capital investors. They will need to hire people who understand highly scientific startups. This is why managers of European VC funds are now collaborating closely with the European Innovation Council (EIC) to bring these capabilities into their businesses. Because of its close relationship with the ERC, the EIC offers an excellent curated deal flow for investors interested in deep tech startups. As a result, the EIC recipients are also receiving private specialised investors who will assist these startups in expanding into new markets.

Furthermore, universities must also adapt to the new reality ,to become engines of regional innovation and boost genuine ecosystems. We have excellent examples in the EU, such as Munich Urban Colab that I am visiting today. It serves as a one stop shop of all programs and resources of the Technical University of Munich for the successful launch and development of new startups. Innovative research, infrastructure, incubator space, scientific mentors, access to co-founders, grants, or coaching are all examples of the services provided by this center launched less than one year ago. Their services are provided free of charge to academics, researchers, staff, students, and recent graduates.

At the Technical University of Munich Incubator.

Finally, this paradigm shift calls into question the traditional understanding of innovation in public and private organisations tasked with stimulating innovation. Public officials in charge of science, education, and innovation must understand that these three domains are inextricably linked.

Towards a new European Innovation Agenda for Europe

Thinking in terms of Research, Education and Innovation (R&E&I) is the new model. The European Commission will soon release the New European Innovation Agenda, which will include concrete actions and programs to be implemented in collaboration with national and regional authorities to ensure that Europe becomes a global powerhouse for innovation and startups. The New European Innovation Agenda will allow EU businesses to fully capitalise on the new wave of deep technology innovation.

With deep tech startups quickly translating scientific results into innovation, our deep societal challenges will be resolved much more quickly than in the past.

And, to name a few, we urgently require innovative solutions in energy, mobility, construction, agriculture, food, space, and chips. As the work done by Hello Tomorrow demonstrates, there is a direct link between deep tech startups and the Sustainable Development Goals (SDGs). 

While digital startups have made our lives easier and increased the efficiency of business processes, the new wave of innovation centered on deep tech startups will assist our societies, and thus all citizens, in addressing the upcoming pressing societal challenges.