We call Impact Tech the intentional use of science and technology to benefit people and the planet. Around the world, that emerging sector is growing, under the influence of several factors: i) a talent convergence between the tech and impact worlds, ii) a feeling of emergency in regards to global challenges, iii) economic incentives, iv) the growing influence of new generations as consumers, workers, and investors, and v) the possibilities offered by emerging technologies.
Impact Tech entrepreneurs could put us on course toward the ultimate moonshot. The various transformative solutions they provide include bio-based materials, animal-free meat, AI for faster diagnosis, satellite imagery to protect human rights, zero-emissions transportation, mobile payments for financial inclusion, and many more. Impact Tech takes many shapes—some strategies may seem contradictory, but are in fact complementary.
Tech-push vs demand-pull
Impact Tech innovations result either: i) from a technological advance which allows new applications with a positive impact for society, or ii) from the intentional response to social and environmental issues using available technology. In both cases, success depends on a deep understanding of the problem.
Root causes vs symptoms. While a long-term cure requires to address the root causes of an issue, one should not dismiss the need to reduce harm on the short term. For instance, cleanup technologies and the circular economy are both needed to tackle ocean plastic pollution.
Impact depth vs impact scale
Impact Tech innovators constantly juggle between impact depth (the degree of change) and scale (how many people experience it). Corporate sustainability efforts often occur at scale but lack depth, while the opposite is common for social enterprises. Achieving both depth and scale is hard, but possible.
The Frontiers of Impact Tech
Innovation vs replication. Technological breakthroughs and new business models can be instrumental in addressing wicked problems. However, innovation should not get all the credit—the high-quality replication of the best ideas also deserves some. Project Drawdown attempts to balance both methods, by featuring 80 existing solutions to the climate crisis, while also listing 20 potential game-changers.
Startup vs systemic initiative
Startups excel at solving well-defined problems with a scalable tech solution, such as better water purification. Systemic collaborations, on the other hand, create momentum across multiple stakeholders to achieve collective impact on wicked problems like climate change and inequality. The system entrepreneurs driving those efforts can be companies, non-profits, or international organizations.
Low-tech vs deep-tech. While low-tech refers to simple tools that are frugal in resources, deep-tech pushes technology frontiers like AI and synthetic biology. Impact Tech opportunities exist across the spectrum, from solar concentrators to mobile payments, to biofabrication. The key is to choose wisely which tech is the most appropriate in a given context.
Platforms vs applications
Impact Tech mostly stems from the direct use of technology to address specific social and environmental issues. However, those applications rest on platform technologies, from the Internet to AI and CRISPR. The development of those platforms will likely influence our capacity to address the ultimate moonshot.
Impact-first vs finance-first
There may be times when Impact Tech innovators need to prioritize between their mission and financial returns. Strategies to balance both include business models where profit is tied to impact, the definition of impact and financial “floors,” and mission lock-in in the company charter.
Impact Tech could unlock the future of global development
Development actors are embracing Impact Tech. Development institutions and international organizations have recently increased their focus on technology and innovation. Many have launched dedicated programs, such as the British, French, German, and US cooperation agencies, the World Bank, and various UN agencies. Meanwhile, tech firms and philanthropists have entered the space—from the Gates Foundation to Airbnb to the many startups profiled in our report.
For entrepreneurs in the Global South, Impact Tech offers an opportunity to leapfrog old solutions and move straight to advanced ones. Some can replicate proven leapfrogs like mobile banking for financial inclusion. Others innovate with the drone delivery of medical supplies, or blockchain records to secure land rights for the poor. Moreover, such endeavors could also unlock the tremendous economic rewards mentioned above, and “leapfrog old capitalism” by channeling entrepreneurial energy toward social good. These new development stories should give us hope, but beware of pitfalls. Among them, the fetishization of innovation in the form of “development gadgets,” and the over-reliance on digital leapfrogs at the expense of long-term investments—in infrastructure, academia, and capacity building.
Tincq, B., Cunha Brito, M., & Sinet, L. (2019). The Frontiers of Impact Tech: moonshots worth taking in the 21st century. Paris: Good Tech Lab.