The Technology Transfer Valley of Death: A 2D Bridge Model…

What is the Technology Transfer Valley of Death?

The 'Valley of Death' in technology transfer refers to a critical phase where innovative technologies struggle to transition from basic research (TRL 1-4) to commercial products (TRL 7-9). This gap is characterized by a lack of funding and resources, making it difficult for inventions to progress.

This valley is often filled with high risks and low returns, deterring investors and slowing down the development process. The 2D bridge model simulates this journey, highlighting the financial challenges faced at each TRL stage.

Why Does It Matter?

Understanding the Valley of Death is crucial for policymakers, researchers, and investors to develop strategies that can help navigate these challenges. By identifying where funding gaps occur, stakeholders can work on bridging them with targeted support.

Moreover, this model helps in designing more effective grant programs and venture capital investment policies, ensuring a smoother transition from research to market.

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How the Model Works

The 2D bridge model represents the journey of an invention through different Technology Readiness Levels (TRL) on a financial scale. Each TRL is associated with increasing costs and decreasing funding availability, creating a valley where many innovations stall.

By adjusting sliders for government grant rates, VC entry thresholds, and funding rates, users can see how these factors influence the cash reserve and TRL progression of an invention.

Real-World Examples

In many industries, such as biotechnology and clean energy, the Valley of Death is a common challenge. For instance, developing new drugs often requires significant investment in clinical trials before they can be approved by regulatory bodies.

Similarly, renewable energy technologies face similar hurdles when scaling up from pilot projects to full commercial deployment.

Frequently asked questions

What is TRL?

Technology Readiness Level (TRL) is a scale used to describe the maturity of a technology. It ranges from 1 (basic research) to 9 (full-scale production and use).

How can policymakers help bridge the Valley of Death?

Policymakers can provide targeted grants, create public-private partnerships, and establish regulatory frameworks that support early-stage innovation. These measures can reduce risks and encourage investment.

Why is there a funding gap in the Valley of Death?

The funding gap arises because early-stage research has high uncertainty and low return on investment for investors. As technologies mature, they become more risky to fund due to increased competition and higher costs.

Can this model be used for other industries besides technology transfer?

Yes, the principles of the Valley of Death can apply to various fields such as healthcare, agriculture, and environmental technologies. The specific parameters may vary but the underlying financial challenges remain similar.

Try it live

Everything above runs in your browser — open Technology Transfer Valley of Death: 2D Bridge & Cash-Flow Model and change the parameters while it is running. Nothing is installed, nothing is uploaded, the whole model lives in one tab.

▶ Open Technology Transfer Valley of Death: 2D Bridge & Cash-Flow Model simulation