Gituzh: Applying technology readiness rating scale is step in right direction

Application of the technology readiness assessment scale within the framework of the pilot development competition is a step in the right direction to stimulate specific, targeted R&D works and development of the R&D sphere in Armenia, cryptographer, co-founder of Firo company and member of Gituzh initiative Aram Jivanyan told NEWS.am Tech.

The Committee for Science of the Ministry of Education, Science, Culture and Sports of Armenia announced a call for proposals for Experimental Development Projects. For the first time in Armenia, in order to evaluate the end result, the method of determining the technology readiness level (TRL) will be used. One of the main terms of the contest is that the technology should have a readiness level of at least TRL 4. The maximum grant size is AMD 30mln, private investments have to be attracted from AMD 6mln as well.

Aram Jivanyan noted that the estimation of the readiness level of technology is important not only for the state, which funds the development of the technology, but also for the scientists themselves, who from now on will speak about their work in a certain professionally recognized language, which operates with clear criteria of quality and readiness level. Previously, according to him, Armenia had not adopted a single formal language which would be spoken by scientists and customers, as well as by the media covering research work.

Aram Jivanyan explained that there is a big difference between the levels of readiness, for example, TRL 4 – technology tested in the laboratory, and TRL 5 – technology tested in the relevant environment.  According to him, a technology that has reached TRL 4 may not make it to the next level, or it must undergo serious refinement for that transition. And scientists need to understand that a laboratory sample cannot be presented as a finished product.

"This can be clearly demonstrated by the example of drones. A small laboratory drone can be assembled in three months, but when tested in the field it can go up in the air and not come down. And you have to refine it until it successfully lands, but even that won't mean finished technology. And the further the work gets, the more complicated it gets," he said, adding that as the work gets more complicated, the financial costs go up as well.

"A grant of 30 million drams may be enough to develop a laboratory prototype, but much more funding will be required as we move to each next level. But if the product is to be built according to this scale, it should not remain solely on government funding. When reaching the last levels, it is already a business product, and more private capital is needed, the participation of venture capital funds. The primary task of the state is to stimulate the transition of technologies from the TRL 4 to TRL 5-6 readiness scale. And to prepare the team in this process, so that further they can communicate with venture investors," he noted.

Aram Jivanyan explained that in order to get 10 ready technologies it is necessary to have at least 100 developments of TRL 4 level. Even more, since 10% in this case is a fantastic success. Venture capital funds invest in 10 developments above TRL 7, so that one of them becomes a successful business project and recoups the cost of the other 9.

"It's like a funnel: you have to have a lot of TRL 4-level research projects at the input to get a few TRL 9-level developments at the output. Between TRL 4 and TRL 7 there is what's called the valley of death, and 90 percent of developments die in that valley," he said.

The member of Gituzh initiatives believes that this system will also help Armenian researchers develop business skills, and their ability to network with the business community.

According to Aram Jivanyan's assessment, this model can be taken into account by different structures for forming a state order in the sphere of research and development, including the Military-Industrial Committee. He noted that the main function of the state is to set tasks for scientists, i.e. form a state order in various strategic spheres.

But in Armenia, the system of state order in the sphere of research and development is not developed yet, and the Gituzh initiative has repeatedly expressed the inadmissibility of such a situation, since it is a matter of national security.

"This step is an attempt to stimulate the growth of skills in specific spheres - natural sciences, technical, medical. But there is no state order as such, there are no formulated tasks yet, and a formulated task is half the solution. We are just wandering around without clearly defined tasks," he said.