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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 />

4. Conclusions <strong>an</strong>d recommendations<br />

Technologies close to market entry<br />

Technologies <strong>an</strong>d comp<strong>an</strong>ies close to market entry are very import<strong>an</strong>t <strong>for</strong> the success of Estoni<strong>an</strong> materials<br />

technology in the short term<br />

The comp<strong>an</strong>ies, however, are not that interesting from technology tr<strong>an</strong>sfer point of view as they are<br />

focusing all their ef<strong>for</strong>ts on trying to commercialise their main product.<br />

Comp<strong>an</strong>ies with technologies in this group typically need the following:<br />

Investments in final phases of product development (public/private)<br />

Investments in establishing production (private)<br />

Highly skilled team in technology <strong>an</strong>d business<br />

Business knowledge of technology commercialisation <strong>an</strong>d good international contacts (especially in<br />

the case of materials technologies)<br />

Dedicated experts needed, because this knowledge seldom exists solely in the technology or business<br />

developers<br />

With good support from private investors, public sector, highly determined <strong>an</strong>d skilled team there is a<br />

potential to grow new success stories from comp<strong>an</strong>ies close to market entry in 3-5 years<br />

These may very well become comparable to e.g. Skype<br />

On the other h<strong>an</strong>d they may turn out to be worthless<br />

The first phase to get technologies to market is make prototypes. This is a necessary development phase<br />

very often <strong>for</strong>gotten by public funders. Dedicated funding <strong>for</strong> prototyping is needed.<br />

Prototyping is the next step after <strong>an</strong> R&D project has successfully ended. Without a prototype you c<strong>an</strong>not<br />

sell your idea further to investors. Prototype funding should especially be directed to newly started<br />

high-tech comp<strong>an</strong>ies who need evidence of the per<strong>for</strong>m<strong>an</strong>ce of the product. In materials technology<br />

development projects in particular prototypes c<strong>an</strong> be expensive to make.<br />

Universities could also be encouraged to make “less real” prototypes to check if their ideas work in<br />

reality.<br />

The size of investment needed <strong>for</strong> a materials technology innovation to enter the market is usually very<br />

much higher th<strong>an</strong> <strong>for</strong> <strong>an</strong> ICT innovation, the initial investment being in the order of 1-2Me. A small<br />

country c<strong>an</strong>not af<strong>for</strong>d m<strong>an</strong>y of these <strong>an</strong>d international money has to be attracted too. When calculating<br />

the benefit of the investment the potential amount of working places it produces should be very high on<br />

the scale of criteria.<br />

Applied research<br />

Technologies in the applied research phase typically have the highest potential <strong>for</strong> technology tr<strong>an</strong>sfer<br />

Carbon based n<strong>an</strong>omaterials<br />

Adv<strong>an</strong>ced materials <strong>for</strong> e.g. sensors use<br />

N<strong>an</strong>omaterials in general<br />

Photovoltaic materials<br />

Adv<strong>an</strong>ced coatings <strong>for</strong> metals industry<br />

There is currently a clear mismatch between materials technology inventions in Estonia <strong>an</strong>d requirements<br />

<strong>an</strong>d capabilities of the industry<br />

Very m<strong>an</strong>y adv<strong>an</strong>ced materials inventions do not arise interest among industrial comp<strong>an</strong>ies, which is<br />

very typical internationally too.<br />

One path <strong>for</strong> utilising these technologies is to establish spin-off comp<strong>an</strong>ies, this has already happened<br />

with m<strong>an</strong>y close to market entry technologies but requires highly determined people with<br />

business knowledge, <strong>an</strong>d is more of <strong>an</strong> <strong>an</strong>omaly th<strong>an</strong> a practice<br />

Another path is technology tr<strong>an</strong>sfer to international org<strong>an</strong>isations, which does not currently exist<br />

on a broader level in Estonia<br />

To speed up the adaptation, the technologies should be developed together with industry partners.<br />

Highest potential <strong>for</strong> technology tr<strong>an</strong>sfer exist in the metals industry coatings segment<br />

Large comp<strong>an</strong>y base <strong>an</strong>d university research base me<strong>an</strong> that there is both supply <strong>an</strong>d potential<br />

dem<strong>an</strong>d <strong>for</strong> the technology<br />

Huge global market me<strong>an</strong>s there is a lot of room <strong>for</strong> adv<strong>an</strong>ced coatings (e.g. n<strong>an</strong>ocoatings) in the<br />

market in various niche areas that c<strong>an</strong> the existing industrybut especially new spin-off comp<strong>an</strong>ies

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