Although they are intangible, networks of peers and professionals are critical resources for start-ups. While their needs change as they mature and grow into larger SMEs, they remain reliant on open flows of knowledge, access to expertise and connections with investors and customers. Investors and incubators often also have limited funds to buy services and research, which can create a system of reciprocity to help networks flourish.

In addition to easy access to laboratory and other testing facilities, strong knowledge networks are a central pillar of successful innovation ecosystems. Governments have long been important in establishing collaborative platforms that enable interactions among diverse participants, especially for pre-commercial technologies, and ongoing efforts continue to enhance cross-disciplinary expert networking to achieve key societal objectives.

In fact, network funding is a core component of some initiatives, with governments treating networks as quasi- public goods, and in other programmes networking has emerged as a key beneficial outcome. From our case studies, we identified four types of networking services helpful for start-ups:

• peer-to-peer connections
• investor and potential customer connections
• policy connections
• international connections.

The benefits clean energy technology start-ups can gain from interacting with other start-ups are multiple, and can be maximised by good programme design (at a relatively low cost). The advantages of peer-to-peer networking derive from:

• Technical exchanges and collaboration on mutual problems or opportunities to develop complementary products.
• Sharing information about potentially relevant contacts, based on understanding one another’s needs.
• Sharing ideas on how to tackle business challenges, based on recent experience with similar situations.
• Solidarity, emotional support and reassurance from others grappling with similar obstacles.

In the Women in Cleantech Challenge, the six finalists followed a joint programme, including in-person training sessions in Toronto, which created a tight bond. The finalists rate this “cohort effect” as one of the core benefits of participating in the programme, an advantage that would not have been delivered by other government funding schemes. The finalists connected very effectively because their cohort size was small, they were at the same level of development (all were early-stage start-ups) and they shared similar experiences as women facing common (and often overlooked) female-entrepreneur challenges. Even though the programme has ended, the finalists expect to continue sharing challenges, experiences and opportunities with one another.

Meanwhile, a novel element in some of the challenges of the American-Made Challenges is the offer of small monetary rewards to network members that voluntarily support a team, usually one that goes on to win one of the prizes. The sums are relatively small – rarely more than USD 10 000 each, once the available pot is divided – but are intended to publicly acknowledge and encourage support within the innovation ecosystem. Network members receiving these rewards are called Connectors, and eligibility is extended not only to start-ups but to academics, corporate experts, investors and other service providers. However, any start-up competing in a given round cannot be a Connector for that round.

While the reward sums may be inferior to both the value of the Connector’s time and the benefit to the recipient, we learned from one participant that the formal offer of a financial reward stimulated peer-to-peer exchanges that would not otherwise have happened. NREL has tweaked the structure of these rewards as the programme’s design has evolved in different technology areas, integrating them mostly into the prizes for solar technologies.

Like a number of other initiatives, Start-Up Chile facilitates networking among the start-ups it has supported from different countries during its ten years of existence. In 2021, it established the Female Founder Factor programme for women in entrepreneurship and innovation. Furthermore, in response to the absence of a network for energy companies specifically, a group of start-ups in Chile has formed ClimaTech to address gaps in the innovation ecosystem for environmental technology entrepreneurs in Chile today.

Obtaining introductions to networks of investors and of relevant large corporations is widely recognised as being crucial for gaining access to financing and markets. Most incubators therefore offer investor connections for start-ups as part of their standard programmes and tailor their offerings to the companies’ maturity. However, the nature of connections can range from induction into online start-up and investor communities, to group pitch sessions and one-on-one meetings.

American-Made Challenges has an online platform through which participating entrepreneurs can interact with registered investors seeking investment opportunities. The platform also facilitates interactions with other experts, including companies and potential mentors. In Germany’s Start Up Energy Transition, dena enables each year’s top 100 entrants to connect with one another and various partners, including companies and potential investors, through regular telephone calls, emails and a LinkedIn group. In addition, Start Up Energy Transition arranges “matchmaking” events at which start-ups can circulate among stations hosted by prospective investors and industry partners. Participants in EIT InnoEnergy Highway, co-funded by the European Commission, benefit from access to the many connections managed by EIT InnoEnergy among stakeholders from the education, research, industry and investor communities. The EIT InnoEnergy model is notable for the way in which it embeds reciprocity in its agreements with partners, who commit to in-kind support to start-ups in return for participating in events and accessing knowledge and talent, including students, graduates, start-ups and potential project partners.

Also in Europe, the French government launched Greentech Innovation in 2016 to connect climate-related start-ups with one another and with incubators and investors. To this end, it organises annual Meetup Greentech conferences to provide a networking and promotional focal point for cleantech innovation in France. The initiative gives particular attention to three elements of its networking service: the opportunity to connect with over 30 public institutions involved in environmental technology research; creation of a recognisable label that confers trustworthiness and prestige on its members (215 so far); and the promotion of female entrepreneurs.

In the United States, in 2012 the Department of Energy recognised that insufficient interaction among incubators was restricting start-ups’ ability to secure opportunities and investments. In response, the government awarded a grant to NREL and the Electric Power Research Institute (EPRI), a private members’ organisation for electric utility and associated companies, to launch and manage a network connecting incubators and accelerators for clean energy technologies. Between 2014 and 2018, the Incubatenergy Network was a source of information about US clean energy incubators, fostering engagement and communication among them and providing rich expert and mentor resources. While public funding expired in 2018, EPRI’s members elected to continue operating the network with their own funds and it is still an active resource with around 30 incubators and connections to laboratory facilities.

Notably, EPRI’s involvement enables direct contact with potential customers at utility companies, including for pilot and demonstration projects, and the Incubatenergy Network is therefore a channel for these firms to learn about innovative new technologies themselves. This is particularly evident in Incubatenergy Labs, an EPRI initiative operational since 2020 that selects start-ups to work jointly with several EPRI members on demonstration projects to accelerate their introduction into the electricity sector, or to identify unforeseen technical or regulatory challenges. Additionally, as the Incubatenergy Network has evolved it has expanded beyond the US market to now include EIT InnoEnergy as a member and is establishing a European base.

The Incubatenergy Network illustrates two additional dimensions of networking: incubators co‑operating to identify and support start-ups; and companies in incubator and start-up networks reaping reciprocal benefits. While many policy measures portray networking as a means for start-ups to connect with potential customers, networking also presents larger companies with learning opportunities and the chance to help distribute knowledge of emerging technologies and products throughout the value chain, which can benefit the clean energy innovation ecosystem as a whole.

The energy sector’s high level of regulation can be an entry barrier for start-ups, especially those whose business plans may disrupt the status quo, as incumbent technologies and business practices are often the basis of regulations that stipulate:

• Which companies are eligible to participate in the marketplace and own certain types of assets.
• The operating parameters for equipment to ensure interoperability and safety.
• The level of remuneration and contractual conditions for delivering certain types of services.
• Who can access the data necessary to test new technology and business ideas, and at what cost.

Some proposed business models for clean energy innovations are therefore uncompetitive under current regulations. This can be the case for technologies that involve the participation of end users in the electricity market (e.g. net metering, demand response, virtual power plants and decentralised trading), but independent owners of electricity storage or electrolysers for hydrogen in certain jurisdictions are also affected. In some cases, the regulatory environment presents a barrier simply because of its complexity, necessitating substantial resources to navigate the various requirements.

Few government programmes build the policy networking dimension into policy design, but Start Up Energy Transition is an exception. The programme’s annual networking event at the Berlin Energy Transition Dialogue includes dedicated interaction sessions for policymakers and selected start-ups. Plus, dena and the Federal Ministry for Economic Affairs and Climate Action (BMWi) launched the programme’s SET Hub initiative in 2021 to create a forum for the government, start-ups and incumbent stakeholders to identify and address challenges and opportunities related to the regulatory environment and the added complexities of decentralisation and digitalisation.

Government policies and programmes for clean energy technology start-ups vary as to whether they allow overseas entities to participate and whether they facilitate access to overseas markets. From a global perspective, international co‑operation on innovation is critical to accelerate energy transitions. In fact, IEA analysis indicates that the transition to net zero emissions could be delayed by several decades if innovation remains regionally isolated.

While inter-firm competition always drives innovation, sharing knowledge internationally, aligning niche markets and enabling cross-border allocation of risk capital will also stimulate invention rather than stifle it. Increasing the chances of innovation success in emerging market and developing economies is especially important given their enormous importance in the future deployment of clean energy technologies, which will need to be tailored to local contexts and will be favoured if local entrepreneurs stand to benefit.

Among the programmes open to participants from all countries, Start Up Energy Transition stands out for having few restrictions. Others, such as EcoLabs-COI, EIT Innovation Highway (for its publicly-funded services), the Clean Energy International Incubation Centre, Innovation Norway,1 and Canadian government initiatives, require that international applicants either have a local subsidiary or commit to establish themselves in the funding country if they are successful. In some cases, support is available to assist with establishment of a local business. Start-Up Chile targets also international applicants, supporting their relocation to Chile and securing their visas.

Meanwhile, although not dedicated exclusively to clean energy, the Polish government’s Poland prize, launched in 2021, is notable because only non-Polish start-ups can apply for funding and incubation support to establish themselves in Poland. The funding, which is complemented by EU and corporate support, is channelled through a private accelerator.

Locational eligibility requirements have led some start-ups, especially those from countries with less mature energy innovation systems, to leave their home countries permanently to follow funding opportunities. In the best-case scenario, start-ups can benefit from interactions in several countries' innovation ecosystems before settling in the most appropriate market. For instance, Fohat, a Brazilian electricity trading start-up, accessed funding and contacts in Australia and the United Kingdom before opting to grow from its São Paolo headquarters.

Several programmes also help start-ups access overseas markets. The Swedish Energy Agency has market entry programmes in six countries,2 and Innovation Norway helps start-ups registered in Norway undertake global market research through their international offices.

Other government programmes focus on bilateral agreements to share knowledge and market access. Under India’s Technology Business Incubator programme, Indigram Labs collaborates with incubators in Uganda, while in Morocco IRESEN (which runs Green Innoboost) helped establish the Green Energy Park in Ivory Coast to develop solar energy technology for tropical climates. IRESEN supports innovation activities, including R&D, through knowledge sharing and joint funding from both Morocco and the Ivory Coast.

In Germany, dena (the backer of Start Up Energy Transition) leads energy dialogues to enhance clean energy innovation in emerging market and developing economies. For example, dena has worked with Kazakhstan to help it establish incubators that can be self-sustaining (e.g. by taking equity in start-ups) once German funding has ceased. Dena co-operates with the German Corporation for International Cooperation (GIZ) and has also worked with Mexico, Morocco and Tunisia.

Meanwhile, EcoLabs-COI in Singapore has developed practices to exchange expertise with other national government agencies and higher-education institutions to give its own start-ups the best chance of overseas success. It offers public-supported start-ups from Canada, India and Korea the opportunity to receive on-the-ground incubation support in Singapore, for example to access Asian markets. To boost international market access, EcoLabs-COI has cultivated relationships with government agencies and companies in Germany, Israel, Korea, Norway, Chinese Taipei and the United States. Collaboration typically involves finding a potential customer in one of these countries to provide a test bed for a project in its commercial and regulatory environment, and in several cases this has led to joint project funding by two or more governments.

Notably, Evercomm and V-Flow Tech, two start-ups supported by EcoLabs-COI, were accepted into the Eureka GlobalStars funding programme in which Singapore has participated since 2020. GlobalStars, a call-based initiative of Eureka, supports projects that involve co‑operation between an SME from one of the 14 Eureka Network countries and an SME from the target country of the call. Funding comes from the home governments of the two SMEs, depending on their independent evaluations and resources. For instance, Evercomm applied to the GlobalStars programme jointly with UK firm IONATE, after having previously won a prize with the Israeli company Natergy, co-sponsored by the governments of Israel and Singapore. V-Flow Tech applied with a Korean SME that it had been introduced to by EcoLabs-COI.

Another programme designed to be globally inclusive is Climate Launchpad, a prize-based initiative operated by EIT Climate KIC (an EU-funded body) since 2014. The decentralised organisation has more than 50 national offices handling entries from each country and supporting regional finals and boot camps. Climate Launchpad targets very early-stage entrepreneurs, ranging from those with an idea but not a company, to those less than one year old that have not raised significant financing. Successful entrants can access financing and coaching over the course of the 12-month competition.

In India, the Minister for Science and Technology announced a new collaborative global initiative in June 2021 called the CleanTech Exchange as part of the second phase of Mission Innovation. Its aim is to share country-need assessments, run joint scouting activities and conduct innovation exchange programmes to help innovations have a “soft landing” in international markets.