Getting any new technology to market is a perilous endeavor, but the complexity and long timescales involved in getting so called cleantech technologies to market are especially challenging. A new study from the University of Cambridge underlines the important role government can play in supporting such development.
The research shows that patenting activity in the US grows by 73% whenever the startup collaborates with a government agency. What’s more, technologies that had been developed with a government agency saw twice as much funding as those from other sorts of arrangements.
This is notable as collaboration with governments didn’t just beat working independently on a technology, but also beat collaboration with universities and private firms.
“Our findings suggest that some of the signs commonly used to track innovation and business success, such as patents and financing, increase when new cleantech companies partner with US government departments or labs,” the researchers say. “Government research laboratories have a major role to play in the climate challenge but also the growth of small businesses — twin objectives at the heart of many policy discussions, such as the Green New Deal in the United States.”
Valuable partners
The research, which examined over 650 US cleantech startups, who were collectively engaged in over 2,000 partnership, found that in addition to benefits in areas such as investment and patenting, those startups working with government were also more equitably distributed outside of the core tech hubs.
The authors believe that government and state agencies provide unbeatable scale, facilities and a long-term perspective that is difficult to find elsewhere. This provides a natural compliment to startups able to respond in an agile way to changes in both technology and the market.
“Governments can and should have longer-term perspectives when compared to the private sector, and thus play a critical role in energy innovation,” they explain. “Beyond grants and supporting the early markets, it is the joint development and transfer of knowledge that government agencies are able to foster with startups that makes a difference.”
The authors argue that in light of these findings, government agencies should do more to test out various policy interventions to provide better support for collaborative projects. This could involve investing more in tech transfer capabilities, or starting entrepreneur in residence programs.
What’s more, they believe that the findings are not just relevant to the United States, but would apply to any country around the world.
“Our findings should be taken into consideration whenever funding for public research into sustainable energy is being debated. Cleantech that comes from public-private partnerships will be essential for meeting global climate and sustainability goals,” they conclude.
