In 2009, the European Union (EU) identified Key Enabling Technologies (KETs) as instrumental in strengthening the pace of innovation. The term encompasses a group of six technologies: micro-/nano-electronics, nanotechnology, industrial biotechnology, advanced materials, photonics, and advanced manufacturing systems. KETs are viewed as a key plank of future competitiveness and innovation in Europe.
In March 2016, InnovFin Advisory conducted a study on Access to finance conditions for KETs companies. The study highlights that despite the exceptionally good market conditions in the financial markets, not all companies benefit from such conditions the same way. The first study showed that the financing needs of KET’s companies with revenue below €50m are generally not met.
Broadly speaking, this market failure arises from two major differences between KETs companies and other innovative and/or small companies. (a) KET projects/companies are capital-intensive and require large investments and long-term loans. (b) The complexity of the “deep technology”2 and products they offer makes it difficult for lenders and investors to understand and assess the market potential.
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https://www.eib.org/attachments/pj/study_on_financing_the_deep_tech_revolution_en.pdf