Navigating the deep tech landscape presents many challenges due to its inherent technical complexities, extended R&D cycles, and substantial capital requirements. Unlike traditional tech startups, which often focus on software or incremental improvements, deep tech ventures require groundbreaking advancements in science and engineering. This demands a multidisciplinary approach and access to advanced research facilities, which can be difficult and costly to secure, especially for developing countries. Prolonged R&D cycles mean that deep tech ventures must endure lengthy periods of development without immediate market validation, requiring securing patient capital from investors willing to commit to the long haul.

In developing countries, these challenges are further compounded by financial resource shortages, a lack of deep tech talent to drive research, and the global competition for skilled talent. In Latin America and the Caribbean, 65% of deep tech startups are in the early stages of development (pre-seed and seed) and have secured less than $1 million in funding. In some developing countries, this challenge is exacerbated by the fact that a significant portion of investments are relatively small, with 34% of funded startups receiving less than $50,000. In Africa, while universities are powering the deep tech innovation pipeline, they remain limited and constrained to effectively collaborate with the broader ecosystem at both national and global levels.

To navigate these challenges, a holistic approach involving multiple well-coordinated initiatives is needed to create an enabling environment for deep tech venture building. Establishing a strong research foundation and promoting a culture of continuous innovation is crucial. In Singapore, universities such as NUS and NTU, alongside specialized research institutes like A*STAR, take the lead in fields including advanced materials, alternative proteins, and biotechnology, nurturing a robust deep tech talent pool. This evolution was not immediate but a result of strategic investments and policy shifts over the years. Initially, efforts focused on building fundamental research capabilities and attracting global talent. Over time, these institutions have developed tailored support through dedicated incubation spaces like NUS Enterprise’s BLOCK71, NTU’s NTUitive @ Blk 79, and A*STAR Enterprise’s A*StartCentral.

Multistakeholder collaboration, across industries and national borders, is crucial for the success of deep tech ventures. In Singapore, actors within the deep tech venture building ecosystem collaborate closely through joint research projects, knowledge-sharing workshops, and cross-incubation facilities. For instance, the Low-Carbon Energy Research (LCER) is a multi-agency initiative co-driven by the Singapore Economic Development Board and Energy Market Authority, with A*STAR as the implementing agency collaborating with universities including NUS and NTU, as well as private actors.  Furthermore, Singapore’s venture builders extend their efforts globally, integrating with other ecosystems to foster innovation and market expansion. For example, NUS Enterprise’s BLOCK71 extends its presence to eight global incubation centers, including BLOCK71 Jakarta, which serves as a hub for cross-border collaboration. This facilitates overseas tech companies exploring Indonesian market opportunities and helps Indonesian entrepreneurs and investors access NUS research, technologies, and connections to international markets.

Developing a clear commercialization strategy is essential for transforming innovative ideas into scalable, market-ready products. A well-defined go-to-market strategy helps deep tech ventures navigate the complexities of market entry and expansion. In Singapore, research institutes collaborate closely with industry players to establish early market validation, a critical practice for successful commercialization. Large corporations often provide problem statements and organize open innovation calls, inviting startups to submit solutions, pitch their ideas, and compete for opportunities. For instance, the Open Innovation Platform (OIP) by the Infocomm Media Development Authority (IMDA) in Singapore helps corporates diagnose their business challenges and crowd-source for innovative digital solutions from start-ups, technology providers, and research institutes. This corporate-startup matching mechanism has proven highly effective in accelerating the commercialization of deep tech innovations.

Singapore’s approach to fostering deep tech ventures provides inspiring insights that other countries can adapt to their unique contexts. The key takeaway is the importance of creating an enabling environment that integrates robust research foundations, strategic partnerships, clear commercialization pathways, and comprehensive government support. Countries can learn from Singapore's tactics on multidisciplinary collaboration and continuous innovation by building strong networks between universities, research institutes, and industry players. Additionally, facilitating early market validation through corporate-startup engagements and offering tailored funding mechanisms can help overcome the high capital requirements and long R&D cycles inherent in deep tech ventures. By prioritizing knowledge exchange, strategic networking, and investor education, countries can attract investment and accelerate the commercialization of innovative technologies. Furthermore, fostering collaborations among ecosystems can enhance cross-border innovation and market expansion. These strategic initiatives can be of inspiration for other countries to develop their own deep tech ecosystems, driving technological advancements and contributing to sustainable development on a global scale.

This is the fifth blog of the Deep Tech Series. Click here for the full list of blogs.