The experts agreed that the tendency for deeptech startups to flee Europe is another pressing concern.

A discussion on the Latitude59 stage entitled ‘Everyone Talks Deep Tech: But How Do We Actually Get It to Market?’ raised the point that although Europe is capable of developing world-class science and innovation, bringing those solutions and technologies to market around the globe remains a challenge, as does finding a commercial application for European science.

Angelo Wille from the European Innovation Council stressed that while the continent has always come up with first-rate ideas, they end up being taken to market elsewhere. “We’re aiming to solve that problem, and there are different ways we can go about it,” he said. “Europe definitely needs to improve when it comes to simplifying things, especially with regard to regulations. Pressure on the European Commission to do that is mounting, and changes are in the pipeline.”

Kati Pärn, the Nordic Partnerships Lead at Startup Estonia who chaired the discussion, agreed that finding a commercial application for European science remains as difficult as ever. “If we’re to bring the research-based innovation emanating from Europe to people and international markets, it’s important that we take bigger strides,” she remarked.

The debate also underscored that Europe must be free to test innovation, since the validation phase is a major stumbling block for startups which needs to be addressed.

Ellinor Bokedal, the Director of Strategic Communications and Policy at SISP (Swedish Incubators & Science Parks), added that even in Sweden, which is at the forefront of innovation, a number of concerns have yet to be dealt with in the field of deeptech. “There are more than 2000 early-stage deeptech companies in Sweden at the moment, but they tend to look for new markets when they reach the growth stage because of the complexity of EU regulations,” she explained. “What we’re aiming to ensure is that those companies not only get their start in Sweden, but also grow there, or at least in Europe.”

The country has just launched an initiative called Sweden Startup Nation whose goal is to develop a data-driven platform that centralises information about Swedish startups and growth companies. “The greater the knowledge we have, the better the decisions we can make when it comes to innovation policy and investment,” Bokedal added. “For instance, since we know that Swedish startups find it difficult to grow on their home market – because they can’t find customers there – it’s important for us to bring them together with corporations so that the big companies are prepared to buy innovation from the startups.”

For his part, Andrew Thompson from the venture capital fund Spring Ridge Ventures is convinced that small countries can compete with the bigger markets in Asia and America. “The advantages that small countries have are their focus on very clear goals and their courage and ability to do what they feel needs to be done,” he said. “You have to have that clarity and courage and ability if you’re to succeed, and there’s a lot of that in the New Nordic region.”

Mart Maasik, a partner in Nordic Science Investments, agreed that a higher rate of capital on its own will not solve the problems of deeptech startups. “Europe as a whole seems to be underestimating the potential of local science and research, and on top of that, the scientists and researchers themselves aren’t necessarily great business people,” he noted. “As such, our aim is to build a bridge between science and business.”

In order to support the internationalisation of Estonian research and innovation, Startup Estonia works with universities and science parks to coordinate the development of the deep-tech ecosystem, forming close ties and creating opportunities for cooperation with the Nordic countries as part of the New Nordic Tech Valley initiative.

Latitude59, which took place for the 13th time in Tallinn, Estonia, was visited by more than 3,500 people, including more than 900 startup representatives and 20 national delegations. Nearly 700 investors participated this year. 170 speakers could be seen on Latitude59’s stages. In total, there were participants from more than 70 different countries worldwide.

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