Why innovations die............................ With 100 billion precious euros invested in the Horizon Europe budget for research and innovation from 2021-2027, the awkward question is always lurking in the shadows, ‘how much of this investment comes to nothing?’ The so-called Valley of Death, the dreaded graveyard of projects where they cost too much to develop and effectively become filed, redundant and forgotten must reveal some clues about why innovation falters. Beyond this, even with prototypes, even with launched products or services – sometimes the obvious is missed when attempting to create for industry. By Richard Forsyth
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hilst the business mantra of the era seems to be ‘it’s OK, or can even be good to fail’ that obviously only rings true if we learn from and use failure. Indeed, failure is intrinsically part of scientific discovery, testing new ideas and trialling new technologies. However, when projects are aiming to reimagine services and products to improve society, failure can be both awkward and embarrassing. What’s more, the truth is that amazing inventions that have failed to make an impact in society are littered throughout history, many caught in that perilous space between the laboratory and the market, the dramatically described Valley of Death. However, the Valley of Death is just one potential trap in an innovation cycle, which is a perilous and long journey, rife with potential to get things wrong. There are many immediate clues to why some innovations do not transcend the boundaries to industrial, commercial or any form of success. Commercialisation, the business world, can often be a leap too far for academia to bridge. So what needs are projects not taking into account, for them to fail to pervade into the world beyond the university bubbles? One statistic claims that only an estimated 1 in 5,000 to 10,000 innovations make it through the Valley of Death to market implementation, and even those that do make it, often fizzle soon after in obscurity, or because they are not marketed, or they are superseded. Innovation can die at many stages, from a realisation it’s not feasible, to failing to create a prototype, to failing to understand its cost, value or even if it will be wanted by industry. We need to take a hard look at those touchpoints where invention dies, because frankly, this is the most likely outcome.
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Falling into the money-pit Innovation is risky financially, and there are rarely open taps of money that don’t at some point need to be turned off to prevent further losses. Commercialisation takes brave and sustained investment and the innovation process itself can often simply run out of cash as investors exhaust their patience and coffers with a project, however brilliant and promising. Development is often measured in years and even if a project makes it to the creation of a viable product or service it can still be tottering on the edge of the Valley of Death’s unforgiving canyon walls for a decade beyond that benchmark. An awareness of a company’s appetite and capability for the long game, coupled with a shrewd understanding of navigating public and government funding will be qualities that could literally pay dividends one day. With just a prototype, the first 3 to 5 years would require investment and there would be no return on that. It’s been toted that around 90 percent of start-ups fail within the first three years, because they lack venture capital backing, and if a business model is lacking, they will fail to reap any kind of return. Deep pockets are more commonly in short supply. It is critical to understand how finances are possible for at least five years and sustained pitching and hustling for investment is recommended whether to business angels, partners or public bodies and the government, as part of the on-going process. There can be ‘tucked away’ grants, but they won’t magically appear, they have to be rooted up and exploited. There is also a point where failure must be accepted if the progress and projections look starkly grim. Sometimes no amount of wishing can make a case for success.
EU Research
There are many immediate clues to why some innovations do not transcend the boundaries to industrial, commercial or any form of success. Commercialisation, the business world, can often be a leap too far for academia to bridge. Bad timing ruins the moment A common reason for stumbling innovation is simply because the market is not ready for it. Take electric cars. The technology is clearly here today and we insist at a government policy level, that they must succeed. However, despite making progress the hard fact is that they rely on the need for a comprehensive infrastructure of charging points – without which they can be limited in range compared to petrol driven vehicles. When the supporting infrastructure is mature, the electric vehicle market can appeal to everyone, not merely a segmented demographic of green-minded consumers or penny-counting fleet operators. In addition, unless there is a pressing need for your innovation to solve a genuine problem, it may be simply a novelty and not a revelation. People and businesses can often get by with familiar clumsier methods and products than your innovation looks to replace, because they already fulfil a basic need and are established. The market must be ready for your solution, for the change it presents. The
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business successes and pivots seen during the pandemic show clearly that the environment for innovation can be key to its success or failure. For a commercial success, market research should not be marginalised. Rather than just looking at the advantages and unique selling points of your innovation, assess the disadvantages compared to existing technology and services. Have an objective view. What market conditions are needed for success, realistically? A difficult trend to accept is also that in the rush to be first with a technology, often the industry is not ready for the flawed first attempts, but the chances are they will be later on with following, matured, better designed and easier to integrate, similar technologies.
Off with the lab coat, on with the suit Finding a route to market involves the right partner or partners, the right plan and considerations for all the business aspects of commercial rollout, from legal and regulatory considerations to sales and marketing. Distribution partners should be in the mix and an understanding of
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