Leading Edge "Deep Science And Technology" Into New Industry Outlet, China Led Investment Growth In Related Fields

With the development of artificial intelligence, robotics, block chain and other cutting-edge technologies, investment in various countries is also surging.

In October 15th, Boston consulting company (BCG) and international organization Hello Tomorrow jointly launched the latest research report entitled "dawn of science and technology in deep science" in Beijing. The report shows that from 2015 to 2018, the 7 frontiers of "deep technology", including high-tech materials, artificial intelligence, biotechnology, block chain, UAV and robotics, photonics, electronics and quantum computing, absorbed nearly $18 billion of global private investment, rising by more than 20% a year.

Among them, China's investment is very dynamic. "Although the United States accounts for half of the deep technology market, the countries and regions headed by China are catching up," said Li Maohua, the BCG partner and the core member of the BCG accelerator of Greater China. "In terms of government investment in scientific research, China occupies an important position both in absolute value and annual growth rate. In the past three years, private investment in the field of science and technology has increased by an average of more than 80%, while the United States has only about 10%."

With the development of artificial intelligence, robotics, block chain and other cutting-edge technologies, investment in various countries is also surging. - Gan Jun photo

"Deep science and technology" investment outlet

At present, "deep science and technology" has become a hot pursuit of investment all over the world.

The "deep technology" mentioned in the high-tech research report is not only highly innovative, but also far ahead of current applied technology. It often requires a lot of R & D input to create practical business or consumption applications. BCG will be defined as "deep science and technology" in 7 areas, including new materials, artificial intelligence, biotechnology, block chain, UAV and robotics, photonics, electronics and quantum computing.

BCG believes that the development of "deep technology" has three characteristics in the commercial environment. One is that "deep technology" can have a significant impact. The two is that "deep science and technology" takes a long time to mature and push to the market. Three, there is a huge demand for funds for "deep science and technology". "Investors are pouring money into enterprises that are engaged in original technology research, and the investment in deep technology is full blossom in breadth and depth." Xu Qin, managing director of BCG and global partner, pointed out.

According to the report data, from 2015 to 2018, the total private investment in the 7 major areas of "deep science and technology" enterprises has reached nearly 18 billion US dollars, and its annual gross domestic product has soared more than 20%. Among them, China and the United States account for 81% of private investment in the world's "deep technology" enterprises, and domestic investment amounts to close to US $14 billion 600 million and US $32 billion 800 million respectively. The United States occupies a leading position in most categories and is the center of investment.

In the same period, private investment in "deep science and technology" enterprises far exceeded that of non "deep science and technology" enterprises. Taking the field of quantum computing as an example, the report shows that at present, there are only eight "deep technology" enterprises in the field of quantum computing, of which two have raised 64 million dollars in 2016 and 2017 respectively. In addition, "deep technology" companies have more private investment activities than non "deep technology" enterprises.

Forming an ecosystem

It should be noted that because of "deep technology" covering many links from R & D to industrialization and commercialization, it has also formed a huge ecosystem in the process of continuous evolution, involving a wide variety of participants.

BCG pointed out that there are many types of participants in the "deep technology" ecosystem, and the sources are more diverse, including start-ups, enterprises, investors, universities and research centers, governments and promoters. The enablers include incubators and accelerators, laboratories that assist and promote functions, and organizations that organize competitions, activities and communities. Such a multi-agent alliance is not only based on short-term commercial purposes, but also focuses on the subversion and social responsibility of an industry.

At the same time, compared with other types of ecosystems, the "deep technology" ecosystem is more dynamic and mobile. With the growth of emerging technologies and emerging industries, the relationship between stakeholders in the ecosystem has gradually deepened. From basic research to commercial promotion, the roles and expectations of all sides are changing and evolving.

"It is not a tight coupling, relatively loosely coupled, but a dynamic interleaving system." At the same time, Xu Qin, director of BCG digital accelerator DAS Greater China, said so.

In addition, the "deep technology" ecosystem has a flat and decentralized structure. The coordinator of "deep technology" ecosystem is not an individual manager who controls the whole situation. It is more like a magnet, and every partner will affect the overall trend of the ecosystem.

This means that the participants with large size and abundant financial resources can, to a certain extent, be able to control the direction, such as setting the direction of research and market development, but the combination of other participants can also have a significant impact on the power comparison in the ecosystem.

These characteristics have led to the fact that in the "deep technology" ecosystem, traditional financial indicators such as revenues and profits are not always the best means to assess the value realization. "Deep technology ecosystems often need to build consensus through indirect, non-traditional, non-financial relationships such as data and services." Xu Qin said.

China becomes locomotive

It is worth mentioning that although the United States is the center of investment in the field of "deep technology", China is the locomotive to increase the investment of "deep science and technology".

According to BCG, in the 8682 enterprises covered by the report, although the number of enterprises in the United States accounts for 53% of the 4198 enterprises, in recent years, both the number and the market share of the "deep technology" market in the US have declined.

In contrast, China has shown strong growth momentum. Data show that at present, the number of "deep science and technology" enterprises in China is 746, ranking second in the world, surpassing many developed countries such as Germany, Britain and Japan. From 2015 to 2018, China's investment in "deep science and technology" maintained an average annual growth rate of 81%. The average annual investment growth of us enterprises in the same period was about 10%.

According to the data compiled by the economist, in terms of purchasing power parity, China's R & D expenditure has soared by about 400% over the past 20 years, and now it has exceeded 400 billion US dollars a year, which is close to the level of Europe and the United States. In terms of specific areas, China's investment in AI, block chain, photonics and electronics is very dynamic. According to BCG's analysis, from 2016 to 2018, China's total investment in these three areas reached US $8 billion 880 million.

Among them, artificial intelligence has become the most potential "deep technology" unicorn enterprise in China. According to the data of "2018 horun Greater China Unicorn index" and BCG analysis, in 2018, China has 28 Unicorn enterprises in the seven areas of "deep science and technology", with a total valuation of about 499 billion yuan. Among them, there are 12 Unicorn enterprises in the field of artificial intelligence, with a total valuation of 159 billion yuan.

However, what we need to see is that a large amount of capital investment can really promote the development of deep science and technology enterprises on the one hand, and on the other hand, it may give rise to bubbles.

"The development of industry is a dynamic process, and the elimination mechanism of the market will shuffle the industry." Around the bubble phenomenon in the field of deep science and technology, Li Maohua told reporters on twenty-first Century economic report. In his view, the formation of bubbles has certain natural laws, and the survival of the fittest exists in the development of deep science and technology enterprises.

Although foam is hard to avoid, Li Maohua believes that building a virtuous cycle of deep science and technology in the global and Chinese environment is expected to compress the bubble process. "If we make full use of the existing customer resources, technology and capabilities of mature enterprises, supplemented by the talents of colleges and universities, and fully support the government's support and proponent to form a deep technology ecosystem, we will be able to promote the healthy and rapid development of deep technology enterprises."

Around China's "deep technology" in the world's future development prospects, Li Maohua expressed full confidence. "China's deep technology enterprises are rooted in China's local market, and there are lots of scenarios. According to the natural law of the development of deep science and technology, more and more excellent enterprises will gradually come to the fore.