Hard tech — the key to next round of innovations

As a tech reporter, I have heard executives of private equity and venture capital firms say over the past few years that internet and related sectors are their investment priority. But, in recent months, the narrative has changed. My interviews with them revealed that everyone seems to be pivoting to new opportunities in hard technologies and fundamental R&D.

For the uninitiated: hard tech, also known as deep tech, includes optoelectronic chips, artificial intelligence, aerospace, biotechnology, information technology, new materials, new energy and smart manufacturing. The term was coined to denote areas that rely heavily on advanced scientific knowledge, long-term R&D and continuous investment.

According to the annual rankings of the All-China Federation of Industry and Commerce, a national body serving the private sector, in terms of R&D investment, Huawei Technologies topped the 2022 list with a staggering R&D investment of over 160 billion yuan ($21.87 billion).