Clean technology entrepreneurs need help to make their low-carbon brainwaves succeed commercially
Garry Staunton, guardian.co.uk 15 Jul 09;
The UK has a great track record in innovation. A quick look through the history books reveals an illustrious history of invention, from the telephone and the jet engine through to genetic fingerprinting and the internet.
When it comes to tackling climate change, the diversity of the ideas in this week's Manchester Report shows there is certainly no lack of British ambition or creative thinking. With suggestions such as cheap biomass cooking stoves to harvesting the oceans for energy, many readers might have been wondering why these ideas aren't already widely deployed. Particularly given their potential to deliver such great rewards for the planet, entrepreneurs, investors and the economy as a whole.
Sadly, the truth is that great ideas alone are not enough to transform the way we generate energy or the carbon-intensive industries that underpin modern living. Serious blood, sweat and tears are needed to ensure that ideas become commercial reality. Investors speak of the journey from "lab to listing", and finding the right path on this journey is essential if low-carbon entrepreneurs want to see their ideas succeed.
The bottom line, of course, is that the technology needs to work. And this means both in the lab and in the world outside. Having tested the initial concept, the much bigger challenge is then to prove that the technology can be scaled up and replicated on a much larger, commercial scale.
Solar energy from photovoltaic cells is a case in point. The technical potential of generating electricity from the sun's rays is well-recognised. Making the technology cost-effective when deployed at scale, however, is an issue that must be overcome. To make this a reality, it is vital that we develop advanced photovoltaic technology that can be manufactured at large scale and low cost. That is why the Carbon Trust is currently running a major R & D project to make this vision a commercial reality.
And this gets to the crux of the matter, because development of the technology is only half the battle when it comes to its success. The clean tech sector, like any other, is governed by the basic market principles of supply and demand. There needs to be an appetite for the product and it must be possible to deliver it on the scale required, at the quality required and at an acceptable price.
For this reason, the innovators behind any great low-carbon idea must build a thorough understanding of the market from the outset. Understanding who the key players are and establishing relationships with them is essential - both to build credibility and to understand the needs and wants of the organisations that may well be the customers of the future. Innovators also have to show they understand their final customers, and what they want. This requires a focus on moving them from a state of indifference (we know you exist, but… ) through curiosity, and on to where they have a genuine desire to purchase your product.
We have seen this sort of transition with fuel cells. Over the past five years, UK fuel cell companies have moved from small research-focused organisations to companies with listings on the Alternative Investment Market, partnering with household-name utilities and maintaining order books worth tens of millions of pounds.
Finally, the ability to build a capable and financially stable company as the organisation grows is a key factor in determining whether a technology lives or dies in the real world. The reality is that the best inventors aren't always the best business leaders, so pulling in the right skills from a commercial and production perspective and attracting significant, private, external funds to fuel growth, is key.
Not all clean tech brainwaves will see the light of day but, with the UK on the cusp of a clean tech revolution which could generate fantastic economic opportunity, it is imperative that we speed up the process of commercialising new ideas. As the Manchester Report demonstrates, there is a wealth of innovative thinking ripe for the picking. The key will be to provide flexible but targeted support for these companies, to help them navigate the innovation journey. They can then emerge from the lab and grow into successful commercial businesses that will sit at the heart of the low-carbon economy.
• Garry Staunton is Technology Director at The Carbon Trust
