“What defines deep tech is that the solution is in the technology — not just in the business model.”
Invested by Europe explores the forces shaping the European economy. In each episode, we hear from experts tackling the most pressing challenges—from housing and energy to innovation and infrastructure, security and defence. We look at what’s changing, what the solutions are, and how Europe is investing in its future.
What this episode is about
Deep tech is often described as the opposite of conventional or “shallow” technology. Rather than focusing on incremental improvements in software or business models, deep tech is driven by scientific breakthroughs aimed at solving real-world problems that persist over time.
In this episode of Invested by Europe, Jussi Hätönen, head of European Innovation Council Fund investments at the European Investment Bank, explains:
- what deep tech really means
- how it differs from traditional tech innovation
- why it takes longer and costs more to develop
- why getting deep tech right is essential for Europe’s competitiveness, resilience and sovereignty.
The conversation in brief
Deep tech typically combines intensive research and development with significant capital expenditure. It involves creating entirely new technologies rather than applying existing ones in new ways. Unlike software-based innovations, deep tech projects often start at very early stages of scientific maturity, which leads to longer development cycles and higher technological risk.
Because the science drives the timelines, deep tech investments can take many years — sometimes more than a decade — before outcomes become clear. In some cases, the technologies remain binary for long periods: those working on the tech don’t yet know whether the science is going to work or not. This makes financing as critical as the research itself, and creates challenges at the scale-up stage, when companies may need to raise hundreds of millions of euros despite limited commercial validation.
Deep tech is already visible in everyday life. Advances can be seen in:
- transport, such as electric and self-driving vehicles
- healthcare, where new treatments are improving quality of life and enabling cures that were not previously possible
- robotics, where technologies like exoskeletons can help warehouse and hospital workers lift heavy loads safely while keeping humans at the centre of processes.
Beyond individual applications, deep tech plays a strategic role in Europe’s future. It drives productivity, creates spillover effects across the economy and helps build innovation ecosystems. Control over key technologies is also essential for sovereignty, allowing Europe to secure strategic parts of value chains and to remain competitive in a world where technology is increasingly a traded commodity.
The risks are significant. If financing fails while the science remains valid, promising technologies can stall. If Europe fails to support deep tech through its long development cycles, it risks becoming dependent on breakthroughs developed elsewhere. Getting deep tech right is therefore not optional — it is central to Europe’s economic future.
Key takeaways
- Deep tech focuses on solving real-world problems through scientific breakthroughs.
- Development cycles are long, capital-intensive and driven by the science.
- Financing challenges often emerge before commercial viability is clear.
About the guest
Jussi Hätönen serves as head of the European Innovation Council division at the European Investment Bank, where he oversees strategic equity, venture capital and quasi‑equity activities aimed at strengthening Europe’s deep tech innovation landscape. Since joining the EIB in 2009, Jussi has held leadership roles in venture debt and growth capital, and now manages the EIC Fund, the largest European deep tech venture capital fund launched by the European Commission to support early stage technology companies. He holds a doctorate in economics from the Turku School of Economics and started his career in technology consultancy and advisory roles for start‑ups and growth companies.
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