National Capital
Tue, Sep 08, 2026, 21:43
Deep Tech Long‑Term Financing Model: Assessing the Impact on the Economies of the BRICS Countries
2026/08/11, 17:57
New approaches to organizing financing for technological development in the BRICS countries, according to the study by the Central University with the support of the Ministry of Finance of Russia “Knowledge Is Power Again: How BRICS Countries Can Build Financing for the Technologies of the Future,” are capable of generating a cumulative annual economic effect of up to 2.74 trillion US dollars, which corresponds to approximately 8.8 % of the association’s total GDP. The study states that, given the significant demographic and economic base (more than half of the world’s population and about 42 % of global GDP at PPP), the BRICS potential in creating high‑tech solutions has been only partially realized.
The key constraint is the structural imbalance of the current financing model: projects receive support at the early stages of research but face a capital shortage when transitioning to commercialization, scaling, and access to the capital market. This leads to the situation where some developments do not reach industrial application, and mature companies are forced to seek resources outside national jurisdictions.
The study substantiates the need to form an end‑to‑end financing architecture covering the entire innovation cycle: from fundamental research to market expansion. Such a model is of particular importance for the Deep Tech sector, which is characterized by long development cycles, high capital intensity, and the need for long‑term investments.
The proposed system has a two‑tier structure.
At the national level, technological development priorities are formed, funding for science and development is provided, regulatory conditions are created, risk mitigation mechanisms and demand incentives from large companies are established. The state performs the function of a strategic architect, setting a long‑term horizon and providing conditions to attract private capital.
At the international level, it is expected to develop tools that are difficult to build within individual countries: joint selection of technology projects, scientific mobility programs, investments through funds of funds, cross‑border venture capital infrastructure, and support for companies’ entry into markets within the BRICS framework.
Special attention is paid to concentrating resources on a limited number of technology domains and the need for planning over a 20–25‑year horizon, corresponding to the real cycles of complex technologies.
The transition to the new model creates an additional financing market for R&D and venture investments worth 406.5 billion US dollars annually, with at least 65 % of funds expected to come from the private sector. Government instruments remain key at the early stages, while at the stages of commercialization and scaling, the priority shifts towards market mechanisms and corporate demand.
Expected effects include a multiple increase in the number of technology startups, especially in the Deep Tech segment, an increase in the capitalization of the high‑tech sector, an expansion of the share of high‑tech exports, as well as a reduction in the time required to bring complex technologies to market from 7–9 to 4–5 years due to the fragmentation of technology chains.
An important role in implementing the new architecture is assigned to the New Development Bank, which is able to complement national mechanisms, participate in risk sharing, and attract private capital at the stages of late growth, scaling, and entry into international markets.
Author: Candidate of Economic Sciences, Associate Professor at the Department of World Economy and World Finance, Financial University under the Government of the Russian Federation, Moscow Alexey Alekseevich Soluyanov.
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