Boosting the clean technology space requires building a robust startup ecosystem that can support new players as well as providing support for early adopter customers.
This is according to Frans Nauta, founder of ClimateLaunchpad, who identified design principles that can bolster the solar and wind energy and electric vehicle (EV) industries in “The Global Startup Ecosystem Report: Cleantech Edition” report by Startup Genome.
Clean technology, or cleantech for short, refers to processes or products that promote and facilitate environmental sustainability.
To help this flourish, Nauta cited the need to back the startups so they can introduce new green solutions that can potentially change the game.
“Startups are the turbo booster for deployment-led innovation. They supercharge change in industries by threatening existing players,” he said.
He said the startup ecosystem should provide entrants access to investment funds and a “good legal setup,” which covers intellectual property, stock compensation and bankruptcy laws.
In relation to investment funds, Cycle Momentum CEO Patrick Gagne, in the same report, agreed that the funding for startup support organizations (SSOPs) like incubators and accelerators is key to developing the cleantech startup ecosystem.
“To accelerate their development, SSOPs need to increase corporate involvement in the cleantech sector,” he said, noting that they have been generally “more reliant on public funding” given that establishing startups is “capital-intensive.”
Among the initiatives suggested by Gagne include sponsoring ecosystem events, establishing a residency in a cleantech hub, developing a startup-corporate matchmaking program and launching an open innovation program.
The programs and partnerships, he said, will allow quicker commercialization of innovations, provide access to in-depth knowledge in key sectors and create value, including additional revenues and investments, among others.
“To maximize benefits, corporations need to onboard their key employees and executives and go beyond a financial commitment in their collaborations with startups,” Gagne added.
Meanwhile, providing support or incentives to early adopter customers can also help the growth of the cleantech industry, Nauta said.
An example cited is establishing charging stations near the residence of an EV owner. These kinds of infrastructure, he said, can be installed quickly with government subsidies.
Nauta also noted the need to improve the applied research funding and education for the sector.
“Applied research can dramatically boost the learning of industries, speed up innovation, increase efficiency, and reduce costs. Education provides a fresh talent pool for new, fast-growing industries,” he said.
In the same report, it was revealed that advanced manufacturing and robotics; blockchain; agriculture technology and new food; artificial intelligence; and big data, which are collectively known as “deep tech,” are the fastest growing group in the startup landscape. Financial technology also showed “substantial growth” in the last five years, it added.