Nokia Launches Venture Studio to Incubate Startups from Bell Labs Research

Nokia is undergoing a significant transformation, leveraging its renowned research arm, Bell Labs, to foster innovation and incubate startups. As Bell Labs celebrates its 100th anniversary, Nokia is turning lab research into new ventures, launching a formal venture studio in New Jersey, and spinning out startups. This strategic move is part of Nokia's broader effort to reposition itself for the future, following a series of acquisitions and a renewed focus on AI and space communications.

Bell Labs, now part of Nokia since 2016 following the acquisition of Alcatel-Lucent, has been the birthplace of many transformative technologies, including the transistor, UNIX, information theory, and cellular technology. Nokia's Chief Strategy and Technology Officer, Nishant Batra, highlighted the importance of incubating startups from lab research, aiming to launch two or three impactful startups within two years. The first spinout, Astranu, focuses on non-invasive imaging technology for ear diagnostics, developed in partnership with Celesta Capital. Nokia Bell Labs will continue to supply lab resources and R&D expertise to this venture.

Nokia's approach to startup incubation involves various tools, including its corporate venture firm, NGP Capital, which focuses on market expansion and synergization rather than direct acquisitions. The company has also made strategic acquisitions, such as the purchase of Fenix Group for tactical-communications solutions and Infinera for optical-networking equipment. These acquisitions align with Nokia's priorities in defense, dual-use technology, AI, and data centers. Additionally, Nokia acquired Rapid, an API startup, to help developers connect more easily to telecom networks.

Nokia's involvement with startups extends beyond its current role, with Batra advising two startups in radar tech and IoT, and serving as the chairman of the board of spacetech startup ReOrbit. The company's startup incubation efforts also include the development of the Lunar Surface Communications System (LSCS) in collaboration with Axiom Space and NASA, aiming to establish a 4G LTE network on the moon. Although the landing did not go as planned, the mission validated key aspects of the network's operation.

Nokia Bell Labs' new Bell Labs Venture Studio, launched in April, will be operated by the Nokia Ventures team and supported by the New Jersey Economic Development Authority. This venture studio, along with the NJ Nokia Bell Labs Innovation Center, will focus on helping startups commercialize intellectual property from Nokia Bell Labs and local universities, particularly in AI, communications, cloud computing, and optical and wireless networks. Nokia plans to build a similar studio in Europe, given its historic home in New Jersey and its global research centers.

Nokia's support for entrepreneurship is not new. The company implemented the Nokia Bridge program to provide seed funding to redundant employees, contributing to the creation of at least 400 businesses. Although Nokia Bridge no longer exists, the company continues to support employees transitioning to startups, even during workforce reductions aimed at cutting expenses. Nokia's incubation program encourages internal employees to become entrepreneurs, with a budget of around $10 million a year. The success of these initiatives remains to be seen, but if they become the new meaning of the Nokia effect, it would be a significant win for the 160-year-old company that has repeatedly reinvented itself.