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Feasibility study for an Estonian Materials Technology Programme

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<strong>Feasibility</strong> <strong>study</strong> <strong>for</strong> <strong>an</strong> Estoni<strong>an</strong> <strong>Materials</strong> <strong>Technology</strong> <strong>Programme</strong><br />

2. <strong>Materials</strong> technology in Estonia<br />

The projects are funded by the commission <strong>an</strong>d the research is done in, i.e. subcontracted from, a couple of<br />

universities. Esfil Techno gets the IPR. Also the Europe<strong>an</strong> partners in the projects are seen as very import<strong>an</strong>t contacts.<br />

Esfil Techno has tried to collaborate with Tallinn Technical University but has not found the right partners.<br />

Lessons learned/key success factors from the interview<br />

Currently the comp<strong>an</strong>y suffers from the machinery getting old <strong>an</strong>d inefficient – large investments are<br />

soon needed.<br />

Sales <strong>an</strong>d marketing of the technology also requires more ef<strong>for</strong>t.<br />

The technology is almost too good <strong>for</strong> the current products. How to successfully find new partners <strong>an</strong>d<br />

applications?<br />

Contact <strong>an</strong>d more in<strong>for</strong>mation: Araik Karapetj<strong>an</strong>, CEO esfiltehno@esfiltehno.ee<br />

2.5<br />

Adv<strong>an</strong>ced materials technologies: Commercialisation <strong>an</strong>d technology tr<strong>an</strong>sfer<br />

2.5.1 Overview<br />

There are several interesting comp<strong>an</strong>ies in Estonia developing <strong>an</strong>d m<strong>an</strong>ufacturing high technology products<br />

based on adv<strong>an</strong>ced materials <strong>an</strong>d a lot of relev<strong>an</strong>t activities are on-going at universities that may result in new<br />

adv<strong>an</strong>ced materials inventions in the future with signific<strong>an</strong>t potential <strong>for</strong> technology tr<strong>an</strong>sfer. In addition to<br />

research <strong>an</strong>d development activities, there are already some well-established areas related to materials technologies<br />

in Estonia.<br />

This section discusses the state of various adv<strong>an</strong>ced materials technologies in Estonia taking into account<br />

research <strong>an</strong>d development activities per<strong>for</strong>med at universities <strong>an</strong>d research institutions as well as technology<br />

development done at start-up comp<strong>an</strong>ies <strong>an</strong>d more established enterprises. The section is org<strong>an</strong>ised according<br />

to the estimated <strong>Technology</strong> Readiness Level of the Estoni<strong>an</strong> materials technologies. <strong>Technology</strong> Readiness<br />

Level is a tool <strong>for</strong> measuring technology maturity <strong>an</strong>d assessing technology related risks. It is used by several<br />

international org<strong>an</strong>isations such as NASA <strong>an</strong>d ESA.<br />

<strong>Technology</strong> Readiness Level scheme used <strong>for</strong> this <strong>study</strong> is based on five levels <strong>an</strong>d the scheme is currently<br />

implemented by EU FP7 fin<strong>an</strong>ced project ObservatoryNANO that uses it <strong>for</strong> assessing the readiness <strong>an</strong>d impact<br />

of various n<strong>an</strong>otechnologies <strong>for</strong> the Europe<strong>an</strong> economy. The levels in the scheme are:<br />

Fundamental research (TRL 1)<br />

Applied research (TRL 2)<br />

Prototype (TRL 3)<br />

Market entry (TRL 4)<br />

Mature markets (TRL 5)<br />

Fundamental research is typically conducted at universities <strong>an</strong>d research institutes <strong>an</strong>d focuses on <strong>study</strong>ing<br />

e.g. materials properties <strong>an</strong>d characterisation. From fundamental research phase, it may typically take 5-20<br />

years to reach the market with a new product.<br />

Applied research is done in the interface between comp<strong>an</strong>ies <strong>an</strong>d universities. It focuses on <strong>study</strong>ing <strong>an</strong>d<br />

developing materials <strong>for</strong> <strong>an</strong> already identified application <strong>an</strong>d the work typically results in, e.g., components<br />

or materials that solve some problem in the industry or offer a new material <strong>for</strong> <strong>an</strong> industrial application.<br />

Depending on the material <strong>an</strong>d industry application, it may take 2-10 years <strong>for</strong> a technology to enter the<br />

market from applied research phase.<br />

As the name suggests, prototype products me<strong>an</strong> industrially applicable products that are very close to the<br />

final solution to be sold in the market. <strong>Technology</strong> development activities focus on improving the products<br />

properties but most ef<strong>for</strong>t needed in the prototype phase is establishing the business <strong>an</strong>d starting sales activities.<br />

When the first prototypes have been produced, it typically takes 1-3 years to start commercial production.<br />

Market entry c<strong>an</strong> be considered to happen when the comp<strong>an</strong>y starts selling its products on a larger scale<br />

<strong>an</strong>d the business is expected to be profitable. Development activities are related to the improvement of the<br />

technology. In case of a completely new technology, there are often signific<strong>an</strong>t differences in the products of<br />

competing comp<strong>an</strong>ies.

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