In today's business environment, firms must navigate labor shortages, market shifts, geopolitical tensions that strain supply chains and manufacturing, and mandates to adopt sustainable practices. Meeting these demands will require innovation rooted in breakthrough science and engineering. Even companies in less R&D-intensive sectors will need to look to science-based innovators - so-called deep-tech startups as they seek solutions to their key challenges.
Deep tech describes a category of solutions rooted in atoms rather than bits — such as new materials, synthetic biology, fusion energy, and quantum computing-and grounded in cutting-edge research. Deep-tech ventures are startups dedicated to taking ideas from the lab bench to scaled global impact. And although these companies have great promise, adopting their breakthrough developments requires patience, a tolerance for risk, and capital.
Deep tech can benefit businesses across a range of sectors, including industries such as financial services, infrastructure, and retail, where R&D spending has traditionally been low, roughly 4% or less of sales revenue. Quantum computing, for example, presents significant opportunities for the financial services sector, particularly in terms of data analysis and security enhancement. The emergence of new eco-friendly cement and steel holds promise for transforming the sustainable footprint within the historically carbon-intensive construction industry. And the introduction of innovative materials in the fashion sector offers substantial potential to enhance customer experiences while reducing waste.
This story is from the Fall 2024 edition of MIT Sloan Management Review.
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This story is from the Fall 2024 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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