Simply stated, there are three stages to introducing new technology into the market:
- Innovation. Universities, government labs and some companies willingly and energetically take the technology risk of exploring new ways of doing things, and work on proving a concept. In this specific situation, we are talking about creating energy.
- Go To Market. When a specific technology has been developed and its concept proven, the focus moves to figuring out the best way to develop a prototype that can be manufactured and sold in the marketplace. Angel investors and venture capitalists typically fund this stage.
- Expansion. Once a specific technology has reached the market, it needs to be developed into a real, growing product that is both used and useful, thus crossing over into adoption by the public. Venture capitalists and private equity provide investment for growth in these stages.
One of the greatest strengths in America is innovation. It is a long and rich tradition for the U.S. to lead the world in innovation. Government currently plays a key role in providing funds to many companies in the proof-of-concept stage, as well as to national labs and universities developing new technologies. Steps two and three should be left to private investors.
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