Research and technology organisations urge the Commission to not rely solely on unicorn counts as a measure of success in deep tech.
“In an era marked by rapid technological advancements and intensifying international competition, Europe’s ability to nurture deep tech startups and leverage its scientific excellence for economic gains is not merely a strategic opportunity, but an imperative for the continent’s long-term growth and industrial sovereignty.” This quote stems from a freshly published report by the European Commission’s scientific arm, the Joint Research Centre (JRC). It sheds light on the significant role of research and technology organisations (RTOs) in the field of deep tech entrepreneurship, notably through the work of their Technology Transfer Offices (TTOs). This report was written in cooperation with the European Association of RTOs (EARTO) and collecting evidence from the TTO Circle members – an initiative bringing together the TTOs of 35 leading RTOs in Europe, and their respective spin-offs.
The methodology combined literature review and stakeholder consultations (interviews and webinars) with data from two surveys. The first survey was conducted among TTO Circle’s members, which includes Swiss-based institutions such as CERN, the ETH Zurich and the Paul Scherrer Institute. The second survey was addressed to RTO spin-offs with an impactful industrial and deep tech footprint. Among the 49 companies surveyed, two of them were Swiss, namely ANYbotics AG – an ETH Zurich’s Robotics spin-off providing autonomous robotic inspection solutions – and Terapet SA – a CERN MedTech spin-off that has developed a novel gamma ray detection system for imaging in nuclear medicine.
Taking a step back, it is worth mentioning the role of RTOs as examples of how to create this pipeline to produce high-risk, high-impact spin-offs. The study reveals several best-in-class solutions provided by the different RTOs and their respective TTOs. On the one hand, RTOs – besides generating cutting-edge technologies themselves – provide, for instance, expertise, infrastructure, and early-stage funding for deep tech start-ups. On the other hand, TTOs help form teams, protect IP, and connect start-ups with industry and investors. Those services are directed either to employee creating their spin-offs or through “Venture Builder” support (a structure that helps a startup project emerge and develop (‘builder’) with the ability to finance it (‘venture’), or to external start-ups that can benefit from RTOs’ experience to develop their technology.
As part of the extensive input collection, the surveyed spin-offs were able to provide some suggestions to policymakers. Some of them were sector-specific and mainly addressed regulatory issues that hindered market deployment. However, general suggestions were made, such as (i) improving the collaboration with large European corporates, (ii) providing specific funding for productive manufacturing fixed assets since deep tech start-ups usually deploy expensive infrastructure settings, and (iii) derisking investments for the initial uptake of innovative industrial deep tech products.
The report outlines ten interlinked policy recommendations to realise the full potential of deep tech spin-offs. These span the creation of deep tech venture builders, equity-for-services schemes to connect RTOs with early-stage startups, industrialisation platforms linking startups to regional value chains, improved governance through professional boards, and European programmes for entrepreneurial talent mobility. Additional proposals include dedicated RTO financing instruments, better involvement of large corporates (scouting and venturing), fostering deep tech-focused venture capital, and supporting pan-European knowledge transfer. Together, these measures aim to professionalise the deep tech pipeline and scale innovations born in research labs into market-shaping industrial ventures.
Among the most striking recommendations is a call to rethink how we evaluate success in Europe’s deep tech ecosystem. The report urges a shift from simplistic and vanity metrics like the number of unicorns – privately held startups valued at over €1 billion – towards a composite framework that reflects deep tech’s broader economic and societal value. This would include indicators such as job creation, the emergence of new industrial supply chains, and long-term valuation growth. Such an approach better captures the capital intensity, time-to-market, and systemic impact that characterise deep tech innovation, offering a more meaningful picture of Europe’s innovation performance and guiding smarter policy and investment decisions.
As the European Commission currently drafts the Startup and Scaleup Strategy, due on 28 May, the authors’ recommendations offer valuable insights for policymakers. By implementing these recommendations, Europe can better translate scientific excellence into industrial success and economic resilience. Critically, it aligns with the EU’s broader innovation agenda: moving quickly to support deep tech start-ups will help Europe reclaim technological leadership in emerging industries. As the JRC report concludes, a concerted effort now will position the continent at the forefront of global innovation, fostering high-value industries, high-quality jobs, and long-term growth.