SME and start-up access to the market
From INVESaTWIKI
SME and start-up access to the market
Due to their flexibility and innovative power start-up companies and SMEs are expected to play an important role in creating new GNSS related
products and services. What can be done to facilitate their access to the market, e.g. by helping them to adopt GNSS technology, create the
critical mass required for product and business development, or establish appropriate financial and management capacities?
SMEs are only rarely the ones creating new mass volume markets, their strengths are in adopting new technologies and adapting and customising
them for new or specific applications, user groups, or market niches. Typical examples since civil availability of GPS may be found in professional
applications, telematics products and services, or LBS applications for special user groups.
In order to benefit from the expected market perspectives of downstream GNSS applications notably SMEs and start-up companies are faced
with some crucial challenges that are generally valid but show some specific problems as far as adoption of GNSS technology and development
of associated products or services is concerned:
- In most cases SMEs are already operating on markets being relevant for GNSS application, thus having access to both the application area concerned and the (potential) customer. To benefit from the technical opportunities provided by GNSS when developing improved or new products and services a detailed and up- to-date knowledge about the technology, its requirements and limitations is required. Many SMEs are only vaguely familiar with GNSS which hinders firstly to recognise GNSS as a possible solution that may lead to new and competitive products, and secondly to sufficiently prepare the required research and development.
In addition, as far as GALILEO is concerned, any decision on new products and associated development is currently strongly hindered by the variety of uncertainties regarding the future technical, legal and economical features of GALILEO. Without having a clear and reliable picture of the requirements to be met notably SMEs will be very cautious or even reluctant to invest in this area; - The core competencies of SMEs usually cover only some elements of GNSS. That is particularly true for those SMEs operating as system integrators. Such SMEs have to rely on co-operation with others providing the required elements both regarding specific GNSS features and those facilitating applicability of the entire system. The need for technological co-operation does not only apply to internal product development, it is required as well to participate in publicly funded RTD programmes. A critical mass of partners is needed to provide an appropriate breadth of technical expertise and to meet contractual requirements such as national diversity in a project consortium;
- Access to other technologies and elements not covered by the core competencies of the SME is frequently hindered by a lack of information on suitable partners, preferably other SMEs. On national level industrial associations may provide support for finding partners, on European and notably on global level SMEs quite often are faced with serious difficulties in finding appropriate partners;
- Development and market launch of new products, notably those based on new technologies such as GNSS, requires financial resources that frequently exceed the capability of SMEs and start-up companies. Obviously, this is a general issue for all SMEs but it is even strengthened in the case of GNSS and notably GALILEO due to partial uncertainties and long planning periods. Due to these specific risks involved Venture Capital firms or banks may hesitate to provide the required financial resources. Such institutions need to be sensitised with respect to GNSS markets to improve availability of external financial resources for SMEs and start-up companies. [1]
References
[1] G.Dippel-Hens (GALILEAN working group report)
"GNSS business issues".
