Methodology

How do we scale industrial technology companies?

Our methodology starts with a simple observation: the companies that scale fastest do not necessarily have the best idea, the most advanced technology, the strongest management team or the most capital. They scale because they are organised around problems that matter in the industrial value chains — to nations, industries, capital and research.

Why should a system developer of value chains or major industrial customer choose you as a long-term strategic partner — and what makes that choice difficult to reverse?

We identify where strategic need meets technological opportunity, then mobilise the structures, partnerships, competence, capital and market access required to turn that opportunity into scalable commercial value.

Two logics of innovation

Supply-driven vs. demand-driven

Every innovation system is built on one of two underlying logics. Norway's system — like most of the West's — is supply-driven. The countries that scale industrial technology fastest, from Israel to Sweden to China, are demand-driven.

Supply-driven — Norway today
  • Start: an idea, a researcher, or a founder
  • Middle: support schemes evaluate and fund the project
  • End: hope of finding a paying customer
  • The entrepreneur is the centre of gravity. Everyone and everything around the company — capital, technology, competence, research, industry and market access — exists to accelerate the journey from idea to market and from market to scale
Demand-driven — the model that scales
  • Start: a defined problem or need from a larger industrial actor, sector, or national priority
  • Middle: the people, capital, technologies, partnerships and environments needed to solve it are mobilised around it
  • End: entrepreneurs, researchers, capital, technology and industry are mobilised around solving a problem that matters — creating the alignment and resources needed to turn technological potential into scalable value
  • The problem is the centre of gravity. Entrepreneurs, researchers, capital, technology and industry become resources mobilised to solve it

The Norwegian innovation eco-system is well-funded and well-intentioned, but too often organised around helping entrepreneurs and companies develop ideas in the hope of eventually finding a paying customer. Scaling requires a different logic: start with a problem that already matters to industry, capital and society, and mobilise entrepreneurs, technology, research and resources around solving it. That is the gap Scaling Lab exists to close.

Comparative research

Four national models

A decade of fieldwork across four economies that sit at very different points on the supply/demand axis.

USA

Supply-side, capital-led

Deep capital markets, a strong university system and a culture of risk drive a highly effective supply-driven model for digital, scalable technology — with one striking exception: US defence innovation, which is almost entirely demand-driven.

China

State-orchestrated demand

National and provincial plans define which value chains to build. State enterprises, infrastructure spending and selective market-opening mobilise entrepreneurs and capital around those chains — with competition intensifying only once a chain matures.

Israel

Demand-driven, private capital in the lead

The Yozma programme replaced idea-support with problem-support: the state co-invests in venture funds without taking a return, giving investors double the upside and half the downside — while industry and defence define the problems worth solving.

Sweden

Industrially orchestrated market economy

Long-term, competent industrial owners — the Wallenberg sphere among them — work in close, trust-based coordination with the state on major technology programmes, from automation to defence.

Our methodology

Build the equity story before designing the structures to scale the company.

A technology company does not scale simply by selling more technology. It scales when it has a clear answer to three questions: What business are we really? Where should we play in the value chain — strategic position and role? How do we create and realise equity value, and when? We call this the "equity story" — the strategic blueprint connecting value creation, strategic position and role in the industrial complex, capital, growth and exit. It is the starting point for every Scaling Lab engagement.

01

Deep understanding of the industrial complex — and how to fit in

We map the industrial system to find where the real margin — and the real power — actually sits. Then we determine where the company can build the strongest position to capture value, defend its advantage over time and scale.

02

What value configuration to choose

What business are we really? And how do we build it accordingly? The value configuration a company chooses shapes how it develops — and the valuation it can command.

03

Strategic position and role

We identify the strategic position the company should take within the industrial system, and the role it should play to become an indispensable part of it. This means understanding where the company creates unique value, who needs that value, what role it should own, and how it can build a position that is both scalable and defensible.

04

What exit — and when

Build the company into a scaled industrial business? Create strategic value for an industry player? Build an investable platform for financial investors? Scale toward public-market value creation? How should the company be built, and toward what outcome — drawing on frameworks such as the 24 steps of disciplined entrepreneurship. Bottom-up analysis then tests, challenges and validates the assumptions behind the equity story: the technology, economics, market, value chain, competitive position and scaling requirements. Only when the underlying case stands up to scrutiny do we take the equity story to investors, industrial partners and the market.

05

Industrial orchestration

We identify and engage the system partners the company needs to execute its strategy, and help position the company to become a long-term strategic partner to system developers, industrial players and major customers. We prepare the company for the industrial dialogue — sharpening the proposition, defining the negotiation position, and preparing management for presentations, discussions and negotiations with potential partners and customers. We also support the transaction and contracting process, from initial LOIs and MoUs through SPAs, SHAs, strategic partnerships and other transaction structures — ensuring that commercial, strategic and equity interests remain aligned.

From our research

Six principles for a demand-driven innovation system

Drawn from our white paper on Norwegian industrial policy — the same principles we apply inside every portfolio company.

01

Demand-driven innovation

Shift the centre of gravity from funding ideas to solving defined, strategic problems.

02

National priorities aligned with competence

Choose a small number of sectors where a global top-3 position is realistic, and align research, education and capital behind them.

03

Strategic capital, not lead investment

The state's role is to share risk with private capital — not to pick winners or make commercial decisions itself.

04

A mandate for large & state-owned companies

Big companies should act as anchors for external innovation — formulating needs, not just optimising existing operations.

05

Simpler, more consistent architecture

Fewer, larger programmes with a clear line from research through piloting to scale — not dozens of fragmented schemes.

06

A body for strategic direction

A small, technocratic, non-politicised function to set direction and coordinate mission-oriented programmes over time.

Read the full white paper →

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Building an industrial technology company? Exploring international growth, strategic partnerships, or looking to unlock new capital or market opportunities? Let's talk about how we can accelerate your next stage of growth.

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