Why BRL is Essential for Sustainable Innovation

The missing half in innovation : Why BRL Matters

For decades, the innovation world has navigated by a single star: Technology Readiness Levels (TRL). Originally developed by NASA, TRL measures how close a technology is to working in the real world. It answers the question: « Can we build it? »

But in the era of Challenge-Driven Innovation—where we are trying to solve complex societal issues like climate change and healthcare access—TRL is no longer enough. We are increasingly seeing « successful » projects that reach TRL 9 (fully functional technology) yet fail to deliver any impact. They die in the « Valley of Death » not because the engineering failed, but because the business logic was never tested.

To fix this, we must adopt Business Readiness Levels (BRL).

The Danger of TRL Tunnel Vision

TRL provides a dangerously incomplete picture. A project can be an engineering marvel (TRL 9) while having zero commercial viability (BRL 1).

Focusing solely on TRL leads to common pitfalls:

The « Grant Trap »: Startups optimize for winning subsidies rather than winning customers.
Solutionism: Engineers build sophisticated tools for problems that don’t actually exist or for users who cannot afford them.
Scaling Failure: A prototype works perfectly in a pilot but collapses under the weight of supply chain logistics, legal regulations, or unit economics when scaled.

What is BRL?

Business Readiness Levels (BRL) measure the maturity of the venture, the market fit, and the operational capacity. It runs parallel to TRL, moving from a hypothesis to a validated, scalable business.

While TRL is about feasibility (Physics/Code), BRL is about viability (Economics/People).

The Power of the Matrix: TRL + BRL

The true value emerges when you map projects on a matrix using both scales. This reveals the « health » of an innovation portfolio:

Scenario	TRL Status	BRL Status	Diagnosis
Research Project	Low (1-3)	Low (1-3)	Basic Science. Needs long-term patience and R&D funding.
The « Money Pit »	High (7-9)	Low (1-3)	The Danger Zone. Great tech looking for a problem. Needs urgent business pivot or it will die.
Market Pull	Low (1-3)	High (7-9)	Demand-Driven. The market is screaming for a solution, but the tech isn’t ready. High potential if engineering succeeds.
Scalable Innovation	High (7-9)	High (7-9)	Ready for Impact. The « Sweet Spot » for investors and regional scaling.

Why BRL is Critical for Regional Innovation

For regions and intermediaries trying to solve societal challenges, BRL is the operational tool that enforces discipline.

It directs the right support: A project with High TRL/Low BRL doesn’t need another R&D grant; it needs a sales team, a legal framework, or a pivot. BRL diagnostics tell intermediaries exactly where to intervene.
It forces early market engagement: By asking BRL questions early (e.g., « Who pays for this? »), innovators are forced to leave the lab and talk to stakeholders before they have burned through their budget.
It ensures sustainability: Societal impact requires longevity. A solution that requires constant public subsidy is not a solution; it’s a liability. BRL ensures that the mechanisms for financial survival are built alongside the technology.

Here are the specific Business Readiness Levels (BRL) definitions, structured to parallel standard Technology Readiness Levels. This scale moves a venture from a « paper idea » to a « proven market leader. »

The Business Readiness Level (BRL) Scale

Phase I: Conceptualization (The « Why » & « Who »)

Focus: Identifying the problem and the potential customer.

BRL 1: Basic Idea / Hypothesis.
- The initial concept is formulated. An abstract idea exists for a product or service, but no specific market or customer has been engaged.
BRL 2: Need Identified.
- Market research confirms a potential need. The « pain point » is clearly defined, and potential customer segments are identified conceptually.
BRL 3: Solution Concept & Market Assessment.
- A theoretical business solution is mapped to the identified need. Initial competitive analysis is conducted to understand existing alternatives.

Phase II: Validation (The « How »)

Focus: Testing the value proposition and business model.

BRL 4: Business Model Drafted.
- First draft of the business model (e.g., Canvas). Key assumptions about value proposition, revenue streams, and cost structures are documented.
BRL 5: Problem-Solution Fit.
- Validation with early stakeholders. Potential customers confirm that the proposed solution addresses their specific problem. « Will they use it? » is answered.
BRL 6: Business Model Validated (Pilot).
- Pilot or beta testing in a relevant environment. Early feedback helps refine the pricing, distribution channels, and partnership requirements.

Phase III: Commercialization (The « Scale »)

Focus: Revenue, growth, and sustainability.

BRL 7: First Commercial Sales / Traction.
- The product is sold to early adopters. Initial revenue is generated (or funded service delivery begins), proving willingness to pay.
BRL 8: Scaling & Proven Economics.
- Sales are repeatable. The « Unit Economics » work (Customer Acquisition Cost < Lifetime Value). The organization has the capacity to deliver at increasing volume.
BRL 9: Full Commercial Scale.
- The business is fully established and sustainable. It has a significant market share, stable revenue streams, and is ready for expansion into new markets or regions.

Conclusion

We cannot solve 21st-century challenges with a 20th-century metric. TRL tells us if a rocket can fly; BRL tells us if the mission is worth the fuel. By integrating Business Readiness Levels, we move from funding inventions to building sustainable innovations.