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Barriers to Technology Commercialisation

Barriers to technology commercialisation and acceleration

Technology is not Emerging Market Ready

Numerous technology companies, especially those originating from developed nations, encounter difficulties when attempting to effectively introduce their solutions to emerging markets like India. These challenges arise due to a failure in adapting their commercial offerings to the unique economic conditions prevailing in the target market. The key factors contributing to this issue are:

 

  • Failure to adapt to local standards, policies and regulations

  • Over-reliance on importing capital equipment and machinery that leads to higher costs

  • Not adapting to local market economics

  • Neglecting to develop local talent and delivery mechanisms

No Reference Site in Country

Having a reference site is very critical to establishing confidence amongst all key stakeholders including clients, investors and lenders. The reference site also helps the technology company assess their in-country costs and commercial price offering. However, establishing a commercial reference site in country is not easy for companies. The factors leading to this situation are:

 

  • Government clients cannot offer a commercial site on a nomination basis. This can only be done via a policy or a else the only other way is a “project-tender”

  • Companies do not have any local presence to be able to qualify for a tender

  • Companies do not also have local delivery set-up or partners

Inability to demonstrate how to scale

The final and a significant barrier that companies face in their pathway to technology acceleration is their inability to establish a structure that allows them to receive investments for scaling up. The factors contributing to the situation are:

 

  • Not being able to distinguish or separate the technology engineering/innovation process from “projects – technology deployment”

  • The engineering teams and project teams require different structures and skill-sets

  • Project entities are balance-sheet heavy that require significant equity investment

  • Engineering processes also require capital investment for being able to provide performance-guarantees

How the ETV Programme removes the barriers

Conduct EM Ready TRL / CRL /
IRL Scoring

  • Conducting the
    > Technology Readiness Level (TRL),
    > Commercialisation Readiness Level (CRL)
    > Impact Readiness Level (IRL) assessment from an emerging markets perspective

  • Identifying the gaps and making recommendations to boost TRL/CRL/IRL scores

  • Help with securing local supply chain

  • Help with finding with and entering a collaboration model with local delivery partners

Establish the First of a Kind (FOAK) Reference site in country

  • Identifying the first commercial reference site

  • Securing government (or client) permission and project award

  • Developing KPIs for project success

  • Developing the project financing model and helping secure funding

Establish a pathway to NOAK to scale

  • Creating a PPP/BOOT/Leasing model for technology solution

  • Developing commercial off-takes and partnerships

  • Developing technology license partnership model

  • Providing a framework for separating technology engineering and

  • Developing the project financing model and helping secure funding

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