Here we share our views on when technology scouting is necessary and provide a simple framework for you to follow.
of companies report focusing on acquisitions as means of capability development.
Sectors for innovation opportunities
Technology scouting (or innovation scouting) is part of the acquisition process of missing capabilities when a company wants to develop a minimum viability product (MVP). It is often a logical step after innovation strategy has been set, as time to launch is drastically reduced if missing capabilities do not have to be developed in-house.
Depending on the desired TRL of the technology, scouting can focus on research groups, patents, early-stage start-ups, and established vendors. The format of capability acquisition can be purchasing of of-the-shelf products, licensing, and full acquisition of the target entity. Irrespective of the format, the important part of the process is technology due diligence, as exaggeration of claims and overpromising by the party that is to be acquired is widespread.
Of corporations have engaged in some form of CVCs.
Venture-backed startups are acquired on average per year globally
Of acquisition targets fail to bring a return on investment
This step is crucial, as identifying the right innovation partners has a direct influence on the quality of the final product and speed of development.
There is no one framework that fits all, and every company has to work out what works in their own context. At CamIn, we work with clients to help them with technology scouting through our Expert Consulting Model. Here are the general steps you should follow:
