A practical perspective on the difference between the smart specialisation domain and the sectors in which an innovative solution can be used
Article written by Ana-Maria Paraschiv – External Relations Expert & EEN Advisor, Magurele Science Park Association
In research, development and innovation projects, there is a question that seems simple: what domain does the project fall under? In practice, the answer is more complex. An artificial intelligence-based solution may be developed within a specific technological domain, but used in healthcare, agriculture, transport, or in all of these sectors.
This difference between the technology we develop and the markets in which it can be used is important not only for projects financed through European funds. It is a strategic question for any innovative company: are we developing a product for a single sector, or a technology capable of solving the same category of problems across multiple sectors? The answer can radically change the commercial potential of an innovation.
The technological domain Is not the same as the sector of activity
A very clear example appears in PoCIDIF Action 2.1 – “Development of New Services/Applications/Products through Innovation and the Adoption of Advanced Technologies”. The Guide establishes that innovative solutions developed by SMEs in the ICT field must fall within a smart specialisation subdomain under the National Research, Innovation and Smart Specialisation Strategy 2021–2027 (SNCISI): for example, microelectronics for smart products, communications and IoT, XR technologies, artificial intelligence, traceability technologies, or robots and cognitive agents.
This is the project domain. Separately, the Guide defines the targeted sector of activity as the economic or industrial sector for which the solution is intended: healthcare, agriculture, construction, energy, transport, etc. The Guide explicitly states that “the targeted sector is distinct from the Project Domain (SNCISI subdomain).”
In short: the smart specialisation domain tells us WHAT technology we are developing; the sector of activity tells us WHERE and FOR WHOM that technology creates value. A company may develop a single artificial intelligence solution applicable to industry, transport and agriculture. We do not have three technological domains, but one technology and three possible sectors of application.
We should not look for sectors. We should look for similar problems.
In my consulting work, I frequently encounter companies that define their product through their first customer or the first problem they solve. If we develop an AI system for detecting defects on a production line, it is natural to call it a “solution for the manufacturing industry”. But this describes the first application of the technology, not necessarily the technology itself.
The more useful question is: what does the solution actually do? If the system analyses images and sensor data in real time, identifies anomalies and generates alerts, the same capability could be used to monitor infrastructure, identify problems in agricultural crops, or oversee logistics flows. The initial product may be industrial, but the technological capability is cross-sectoral.
The same reasoning applies to an IoT platform. If its first application is monitoring temperature and humidity in agriculture, the market appears to be a single one. However, if we define the technological function as the real-time collection, transmission and interpretation of data from a sensor network, other applications emerge: smart buildings, energy, transport, logistics or industry. Even the description of the “Future Networks, Communications, IoT” subdomain in the Guide points to very different applications, ranging from smart cities and disaster response to vehicle-to-vehicle communications and patient monitoring.
A practical five-step test
1. Remove the sector from the product description. Instead of “AI platform for agriculture”, describe what the technology does: it collects data, recognises images, detects anomalies, makes predictions, automates decisions or ensures traceability. This is the core technological capability.
2. Identify the fundamental problem. Not “it helps farmers”, but, for example, “it automatically and early identifies deviations which, if left undetected, generate losses”. Then ask: where else does this problem exist?
3. Identify what remains unchanged. The algorithm, software architecture, AI engine, IoT platform or analytical model? The more the technological core can be reused, the stronger the cross-sector argument becomes.
4. Identify what needs to be adapted. Different datasets, sensors, interfaces, integrations, certifications or regulatory requirements may be needed. Cross-sector does not mean an identical product in every market, but a common technology that can be adapted without becoming a completely different solution.
5. Demonstrate that a market exists. The fact that a technology could work in a sector does not automatically mean that a market exists. The real problem, the users, the implementation model and, ultimately, the willingness to pay for the solution must be identified.
Cross-Sector doesn’t mean adding sectors to a table
In funded projects, this distinction becomes very concrete. Under the evaluation grid for Action 2.1, the applicability of the solution across multiple sectors can bring up to 10 points: one targeted sector receives 0 points, two sectors – one of which is the main sector – may receive 5 points, while more than two sectors may lead to the maximum score.
But simply listing sectors is not enough. The Guide requires the sectors to be demonstrated through the operationalisation and/or commercialisation plan and through the technological coherence of the solution. For each sector, we must be able to answer: what problem does it solve? Who is the user? How is the technology applied? What remains common? What needs to be adapted? How does the product reach the market? This is the difference between a statement and a market strategy.
From product-market fit to technology-market fit
In business, we frequently talk about product-market fit – the match between a product and the needs of a market. In R&D&I projects, it is worth adding another question: across how many different markets can the same technological capability generate value?
This perspective can influence the very design of the product. If we know that a platform must operate across multiple sectors, we can build from the outset a modular architecture, APIs for integration, configurable mechanisms, adaptable AI models and interfaces for different categories of users. In this way, the cross-sector nature of the solution is no longer a justification added at the end of the project, but a design feature embedded from the research and development stage.
From one technology to a portfolio of markets
An innovative company should not view its technology exclusively through the product it sells today. A traceability technology developed for the food industry may be relevant to logistics or manufacturing; a computer vision system for quality control may have applications in infrastructure or agriculture; an IoT platform for a factory may generate applications for energy, smart buildings or transport; an XR technology for training industrial personnel may be adapted for education and professional training.
The strategic question therefore becomes not only “What product are we developing?”, but also “What technological capability are we developing, and in how many different economic contexts can it create value?”
The role of the Enterprise Europe Network
Identifying cross-sector potential is not only a technological exercise, but also one of accessing markets and ecosystems that the company does not yet know. An IT company may know its technology very well, but know far less about healthcare, agriculture, energy or logistics.
Here, the Enterprise Europe Network can support connections with technology partners, potential customers, research organisations and innovation ecosystems. Internationalisation and cross-sector applicability can therefore meet at a particularly valuable point: a technology developed for a specific sector and a specific market may discover a new use in another sector and another country.
Conclusion
An innovation project usually begins with a concrete problem, but it should not stop there. Once we identify the problem and develop the technology capable of solving it, it is worth asking: where else does this problem exist?
This question can transform a solution intended for a single sector into a technological platform applicable across multiple industries. In a funding project, this may mean a higher score and a stronger commercialisation plan. In business, however, the stakes are higher: moving from developing a product for one market to developing a technology with potential across multiple markets. For an innovative SME, this can be the difference between a good project and the beginning of a truly scalable business.
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