One of the tools that enables the assessment of technological development across six key aspects is the KTH Innovation Readiness Level method (https://kthinnovationreadinesslevel.com/). This method was developed at the KTH Royal Institute of Technology in Sweden.
The method facilitates standardized „measurement” of innovation and outlines potential future steps using a scale. It illustrates the development of an innovation from an early-stage idea to a market-ready solution, identifying milestones without prescribing how to achieve them.
The method evaluates progress across six readiness areas: Customer Identification, Technology Readiness, Business Model Readiness, Intellectual Property Readiness, Team Readiness, and Funding Readiness. Each scale consists of nine levels—as the number increases, so does the maturity of the technology and its proximity to market implementation.
The Customer Identification scale begins with forming hypotheses about potential market needs. In the first stage, there is limited or no data-based knowledge about the market or its consumers. Hypotheses about who the customers are and what their problems/needs might be have either not been formulated or are purely speculative without evidence. At this stage, assumptions are based on subjective belief that a potential problem or need might exist in the market.
Stage two involves identifying specific market needs. This includes having a description of the problem/need; there is a basic understanding of the market and potential customers, as well as their problems/needs. Alternative solutions may be identified, and market and customer analyses are conducted—typically based on publicly available reports and data.
In stage three, initial market feedback has been obtained. Hypotheses regarding the problem/need are based on feedback from consumers/users/experts. There is a deeper understanding of potential customers and customer segments. Primary market research is conducted—contacts are made with several potential customers/users or industry/market experts.
Stage four reflects validated needs from several customers or users. At this stage, feedback is actively gathered from at least a few customers or users through established contact.
In stage five, there is established interest in the product/technology, and relationships with target customers have been initiated. These relationships enable the collection of input regarding requirements and early prototypes.
Stage six involves confirming the technology’s benefits through partnerships or initial testing with clients. Partnerships with key stakeholders are in place, allowing users/customers to test the technology and determine its fit with their needs.
In stage seven, customers are engaged in extended product/technology tests, or the first pilot sales take place. Relevant customers and stakeholders participate in the qualification of the product/technology, and contractual agreements with customers begin to be fulfilled.
Stage eight marks the sale of initial products and the scaling up of organized sales efforts. Further buyers are identified, and regular payments for the product/technology are made.
The final, ninth stage, involves large-scale product sales to multiple clients in a repeatable and scalable manner.
The remaining scales for assessing the maturity of technological development will be described in upcoming posts.