Navigating the Innovation Process: Challenges Faced by Deep-Tech Startups

Abstract This study examines the challenges faced by deep technology (deep tech) startups in the innovation process, with a focus on the financing of their long and capital-intensive development processes. Two case companies were studied—Alpha Robotics and Beta Robotics—to analyze how their different approaches to the innovation process affected their ability to secure financing and commercialize their products. Results showed that Alpha Robotics’ product had widespread market interest, but difficulty charging a high margin on the product, while Beta Robotics had a more specific market, making it more difficult to secure customers. The research further highlighted the need for an effective innovation system that provides support for deep-tech companies in terms of funding, access to human capital, and resources for industrialization processes. To better support deep-tech startups, the innovation system should invest in innovation environments that have the breadth and depth of knowledge needed to identify any deficiencies in human capital and reduce information asymmetry. Finally, close cooperation with the startup company is essential to reduce the risks associated with the financing of deep-tech projects.