A look ahead: Predictions for Puerto Rico’s technology sector
Experts predict innovation in deep tech, service-as-a-software 2.0 and clean energy.
Puerto Rico’s technology ecosystem will see more entrepreneurs developing and commercializing intellectual property and innovating in the life sciences, energy and aerospace sectors, as well as more service companies switching to the service-as-a-software (SaaS) model.
These are the predictions of Héctor Jirau, executive director of Parallel18, the business acceleration program of the Puerto Rico Science, Technology and Research Trust (Science Trust), and Oscar Misla, co-founder of Equiply.io, a local SaaS designed to help hospitals make smarter investments in medical equipment, and manage and optimize it more effectively throughout its life cycle.
Deep tech and intellectual property
Jirau expects more growth in Puerto Rico’s deep tech sector. Deep tech involves creating and developing proprietary technology, while redundant tech involves using existing technology. Both facilitate and implement viable, more efficient solutions to problems.
“The intellectual property (IP) side of technology is growing faster than ever in Puerto Rico,” Jirau said. “The island has a rich portfolio of IP, most of it linked to academics, biotech and pharma.”
Academia used to box in entrepreneurship because it often meant inventors stopped researching and developing to commercialize their inventions, he explained.
“The institutions didn’t think that you could do both. You had to focus on one or the other,” Jirau said. “Now, academia is more open to innovators inventing or creating proprietary technologies. So, we’re seeing a boom in the number of people applying to Science Trust programs to obtain funds to create tech-based businesses.”
Jirau emphasized that most tech ecosystems that move forward in the long term are sustained by intellectual property.
“Puerto Rico is understanding that starting a business is not just about selling books or cars, but also about commercializing science and knowledge. That’s how Silicon Valley developed and created such a strong ecosystem,” he said.
Life sciences
There is a “huge boom” in entrepreneurs tapping the life sciences sector, Jirau said, noting that Parallel18 recently completed its first life sciences incubator, BioLeap.
“We had a startup that raised more than $1 million, which is extremely difficult to do here in life sciences,” he said. “Five years ago, we didn’t see that. Puerto Rico has excelled in this area because it’s where we have been the most innovative.”
Energizing the sector are employees and university faculty who are choosing to commercialize their own ideas by seeking help from business-savvy people.
Clean energy
Puerto Rico is joining the rest of the U.S. in the clean energy boom, Jirau said.
“We have received multiple unsolicited requests from companies and ecosystems asking if we would be willing to collaborate on clean energy projects,” he said, adding that Parallel18 recently completed its first Challenge to Innovate: Project Switch, a mentoring and training program for businesses in the clean energy sector.
Aerospace
This is yet another tech industry that is growing in Puerto Rico.
Jirau mentioned companies like Lufthansa and Honeywell investing in or expanding their local operations “because we have the talent, the workforce” to support that growth. He noted that the Science Trust is approving entrepreneurs with ideas that have an aerospace component.
“Initiatives always follow demand, and these tech sectors are the ones in highest demand in Puerto Rico: biosciences, clean energy and aerospace,” added Jirau. “And if I were to start over, I would bet on these.”
Service as a software
Misla noted another trend that is expected to gain ground: “Everyone knows software-as-a-service (SaaS), but now there’s going to be a shift to service-as-a-software (SaaS 2.0), in which service companies will turn into platform companies and provide their services entirely through their own software applications.”
Instead of providing access to software tools, SaaS 2.0 focuses on delivering outcomes as a service. In this model, instead of offering software for users to perform tasks themselves, artificial intelligence-driven systems assist in automating the tasks, shifting labor tasks from humans to AI, thus increasing efficiency and scalability. Businesses pay based on results or services delivered.
Misla envisions businesses that provide accounting or human resources services, for example, making the switch.
“AI is going to make it easier for them to change the way they provide and bill their services,” he said.
Click here for part two of this report.
