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Understanding Technology Readiness Levels (TRL): A Guide for Innovators and Investors


At RSC, we are proud to share our tools and methods to support innovation and technological development. One of our key evaluation tools is the Technology Readiness Levels (TRL) scale, a classification system originally developed by NASA to assess the maturity of technologies used in its space programs. Since then, this methodology has been adopted by various sectors worldwide. Here is a detailed guide to understanding and using the TRL scale.

For information, the EU framework program for research and innovation incorporates TRLs as key indicators for project positioning. Calls for projects often specify the required TRL levels for eligibility.


What is the TRL Scale?

The TRL scale assesses the maturity level of a technology from its initial concept to its full integration into an operational system and commercial deployment. It comprises nine levels, each defining a specific stage of technological development.


The Nine Levels of the TRL Scale


1. TRL 1 - Basic Principles Observed

   - At this stage, the technology is conceptual. The scientific principles underpinning it are observed and reported. This is a phase of fundamental research where theoretical concepts are explored.

   - Example: A research team identifies a new material with promising properties for energy storage.


2. TRL 2 - Technology Concept Formulated

   - The basic principles observed are applied to formulate technological concepts and potential applications. The ideas are speculative, based on analytical studies without detailed experimental proof.

   - Example: Researchers develop initial drafts and theoretical models to use this new material in batteries.


3. TRL 3 - Experimental Proof of Concept

   - At this level, experiments are conducted to validate the basic assumptions. It is an active research phase where proof of concept is achieved in the laboratory.

   - Example: Initial prototypes of batteries using the new material are built and tested to validate their energy storage capacity.


4. TRL 4 - Technology Validated in Laboratory

   - The technology is tested in a laboratory environment. Basic technological components are integrated to verify their compatibility and collective performance.

   - Example: Extensive tests are conducted on the prototypes to evaluate their performance under various conditions in the laboratory.


5. TRL 5 - Technology Validated in Relevant Environment

   - The integrated components are tested in an environment that simulates real-world conditions. This allows the technology to be evaluated in more realistic scenarios.

   - Example: The batteries are tested in devices simulating their use in electric vehicles.


6. TRL 6 - Technology Demonstrated in Relevant Environment

   - A prototype or model of the system is tested in an operational environment, demonstrating functionalities close to those expected in real conditions.

   - Example: A prototype electric vehicle using the new batteries is tested on a test track.


7. TRL 7 - System Prototype Demonstration in Operational Environment

   - The prototype is tested in a real operational environment. This stage is crucial to assess the technology's performance in practical conditions.

   - Example: Electric vehicles equipped with the new batteries are tested on the road by users to validate their performance in real-world conditions.


8. TRL 8 - System Complete and Qualified

   - The technology is integrated into its final form and tested to verify it meets the specified requirements. This includes rigorous tests and demonstrations to confirm its reliability.

   - Example: Battery production is finalized, and validation tests are performed to ensure compliance with safety and performance standards.


9. TRL 9 - Actual System Proven in Operational Environment

   - The technology is fully developed, tested, and validated for commercial use. It is ready for large-scale deployment.

   - Example: The batteries are commercialized and used in electric vehicles available on the market.



The Importance of TRLs for Funding and Innovation

At RSC, we understand that TRLs are particularly important for funding organizations and investors as they allow for assessing the risks associated with investing in new technologies. Programs such as Horizon Europe use the TRL scale to define funding criteria and evaluate the alignment of projects with technological development goals.


Crossing the "Valley of Death" from TRL 4 to 7

TRL levels 4 to 7 are often referred to as the "valley of death" due to the financial and technical challenges of moving from concept to marketable product. At RSC, we hold a patent license to cross this critical stage through strategic collaborations and ambitious projects for testing.


The Advantages of the PRL Method

The PRL method offers significant advantages:

- It allows for structuring the different stages of technological project development with clear milestones.

- It also enables the evaluation and management of risks.

- Lastly, it helps structure an economic model and project valuation at its different stages. The TRL scale allows for calculating a Net Present Value (NPV), facilitating investor entry and exit, liquidity, and the evolution of value creation.


Conclusion

The TRL scale is an indispensable tool for technology developers, investors, and regulators. It provides a clear framework for evaluating the progression of technological innovations, allowing for better risk management and more efficient resource allocation. By understanding and properly using TRLs, stakeholders can significantly improve the planning and execution of innovation projects.


At RSC, we are committed to helping our partners navigate these levels of technological maturity to transform innovative ideas into operational and marketable solutions.


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