Photo: Róbert Hegedüs
Joakim Scheffer
30/08/2024 06:00
As the CEO of SGInnovate, a government-owned innovation platform based in Singapore that focuses on Deep Tech startups, could you provide more insight into what Deep Tech encompasses and the specific areas on which SGInnovate is concentrating?
Our definition of deep tech would be anything that comes from relatively recent research and has a defensible intellectual property position. The primary question is what prompts us to make an investment? We closely monitor the activities of the private sector. If the private sector is already active in a particular area, we choose not to invest in that area and instead focus our efforts elsewhere. Currently, our focus areas include food technology, biotechnology, energy technologies, and advanced manufacturing. In the past, we invested in artificial intelligence and machine learning (AI/ML), quantum technologies, and the first generation of digital health companies. However, when private investors began to enter these fields, reducing the need for our involvement, we shifted our focus to other areas. However, the cycle never stops. As we speak, we are looking at making a comeback in digital, but in new areas. For instance, we are interested in the infrastructure that supports Web3. Additionally, we aim to continue our work in quantum technologies, which we believe are of great importance. Furthermore, we are exploring advanced fields such as nuclear fusion.
What are the most successful areas?
I would say quantum is super successful. We measure success in two ways: the actual increase in value and the amount of money we can catalyse from the private sector. Specifically, we look at how much additional funding our companies can raise from the private sector after our initial investment. In this respect, quantum is clearly a success, all of our companies have raised subsequent funding. Similarly, biotech, although we are new to this area, I think Singapore's track record in biotech is getting better and better. There have been a couple of flagship deals with Big Pharma coming out of Singapore recently. This makes me very optimistic about biotech. We also have a lot of investments in energy research, especially in hydrogen.
Singapore has traditionally been highly prosperous in the areas you mentioned. What could be the reasons behind this?
Well, I think part of the reason is because we also serve as a hub in Southeast Asia, we’re historically a trading port. We're strategically located at the tip of Malaysia, Indonesia. It's a shipping route that people need to take if they want to go from East Asia to Europe. I think that our role as a hub significantly contributes to our success. Of course, the other reason is we've been lucky, we genuinely have good leaders. For better or worse, those leaders have been in power for a long time, so there's a lot of stability. It allows us to set and achieve long-term goals. This is what makes Singapore’s democracy unique. We have regular elections, and I am convinced they are fair. However, the government has a remarkable track record, and people vote for them because of this record. With such confidence, winning elections becomes more likely, enabling the government to implement long-term plans effectively.
What makes Singapore attractive for startups?
In Southeast Asia today, many startup accelerators default to instructing their startups to incorporate in Singapore. This is simply because it is much easier. Incorporation in Singapore can be completed in hours, not days, weeks, or months, and the entire process is conducted online. Additionally, there is strong legal protection. As a former British colony, Singapore inherited the British Commonwealth legal system, which is well-understood and widely accepted. Our legal system is very well-developed, with centuries of testing making it robust and reliable under British law. Intellectual property protection is highly prioritised, making us a clear leader in Asia in this regard. We are impartial, and there are numerous ways to arbitrate and pursue legal action. It is a thoroughly developed system. Moreover, Singapore has a highly educated workforce. For instance, 36.6 per cent of the total population are university graduates. Among those aged 20 to 30, that number rises to almost 57 per cent. This makes it easy to find well-trained and talented employees.
In the world of innovation, connectivity is extremely important. Do you think it’s in danger in our times?
Yeah, clearly it is. Great power tensions are forcing people to take sides. Singapore is a small country. We've always wanted to be friends with everyone. We have no choice. We're not in a position to pick and choose. So that's what we continue to do. We work with both sides of this struggle without any biases. And if anything, we hope that platforms like ours will bring the two parties together. I mean, the reality is business to business, people still want to connect. Right now it's the politics that are keeping them apart. We offer a neutral ground where this kind of business can take place.
The author is an editor at Eurasia