Case 3.9.

How to develop, manufacture and market a technologu product in

an outlying European region: The case of “Dobontech”.
By Lucía Dobarro Delgado (Department of Innovation Networks and International
Projects, Instituto Tecnológico de Canarias S.A. ldobarro@itccanarias.org)

Introduction:
The case of Dobon’s Technology S.L. (DOBONTECH) describes the experience of a small team
of entrepreneurs from the Canary Islands – the geographical area of the company has a key role
in this case study-, who managed to carry out research and development activities as well as
manufacturing and marketing their own product in the renewable energy sector.

DOBONTECH was founded in 2001 by three partners, Paco, Julián and Anselmo. The purpose
of this case study is to teach entrepreneurs about the external environmental context and barriers
to an innovative product.

Background:
DOBONTECH is an innovative R&D company specializing in Renewable Energy and
Electromechanical Applications. Founded in 2001, its main activities are focused on developing
innovative and competitive products and achieving technology transfer agreements with
industry. It also provides technology consulting services and develops tailor-made services to the
customer’s specifications.

DOBONTECH’s research activities have been focused specially on the photovoltaic Solar
Energy field. Their most important contribution is the Two-Axis Sun Tracking System, TETRA-
TRACK®, an advanced low-cost two-axis sun tracking system now available on the market. The
research activities in the photovoltaic field also include a Very Low Concentration photovoltaic
system and a Controlled Atmosphere Concentrator module for photovoltaic and thermal
applications.

Due to its intensive research and development activity, and the need to get the device into
production, in 2005 the company promoted the creation of an industrial branch together with
industrial partners, Dobon’s Manufacturing, S.L., devoted to the manufacturing and quality
control of the TETRA-TRACK®.

In addition, DOBONTECH participates in international consortia, promoting R&D projects,

where several of its technologies are being tested or implemented. Their partners and customers
include companies, universities and institutions from various countries.

The company has been very active in training activities, hosting students at national and
international level. The training collaboration agreements reached by DOBONTECH include
different research and training institutions in Spain, Germany and France.

The ‘trip’ to get ‘live’: Paco, Julian and Anselmo are very pro-active and creative persons, with
new product ideas in the field of solar energy. They met in 1998 while working for a Research
Institute in the Renewable Energies field.
Paco was born in Teruel (northeast of Spain) and moved to Tenerife in 1982 to work in a large
Spanish company in the telecommunications sector. He worked for this company for more than
25 years. He is a very creative person, with many patentable ideas and long experience in the
field of electronics and renewable energy. He became an entrepreneur at the age of 50, which
shows that there is no age limit for starting up a company.

In 1998, Julian was working for a Research Institute on Renewable Energies in Tenerife. He was
born in the Canary Islands and has a degree in physics and a high technical profile He is a person
with a proactive attitude, open to cooperation and looking for partnerships. Julian was 28 when
they decided to start up DOBONTECH, and assumed the role of managing director.

Anselmo was working for the same Research Institute as an electronics expert, working on
prototype development and product installation.

In March 2001, they decided to start up the company so that they could develop their ideas freely
and because they felt they had a product in an expanding market niche. All of them had to learn
on the job how to run a business and go ahead with their own resources. The company was set up
in the Canary Islands Institute of Technology (ITC) incubator. This incubator, which has been
running since 1999, aims to help technology based start-up companies in the initial years of
activity. The incubator belongs to the EBN, European Business Center Network36.

The challenge: how to develop, manufacture and market a new product. Since a very early stage,
DOBONTECH’s activities have been focused on research, especially on the photovoltaic Solar
Energy field. The most important contribution is the TETRA-TRACK® an advanced low-cost
two-axis sun tracking system. The advantages of the system are that:

- It captures more solar energy for the same installed power than fixed systems (between 30%
and 48% more energy annually, depending on location).
- It saves space for the same collected energy and a crane is not required for assembly.
- It improves inverter and pumping performance in photovoltaic applications.
- It reduces the number of photovoltaic modules for the same installed power if used under Very
Low Concentration technology.
- It requires less foundation and is more wind stable at lower cost than pedestal tracking systems.
- No foundation is required if installed on rocky ground.

36 EBN is now the leading non-governmental pan-European network bringing together 200+
Business & Innovation Centres (BICs), and similar organisations such as incubators, innovation
and entrepreneurship centres across Europe www.ebn.be

The technology is ready for High Concentration photovoltaic module requirements. However, it
is mainly used with the flat-plate photovoltaic module due to the lack of concentration modules
on the market. Another prototype of 4 sq. m. using the TETRA-TRACK® concept is being
tested with HCPV modules and is obtaining good results.

The promoters of the product intended initially to sell the development of the product to an
industrial partner and
in view of the difficulties that they found, they decided to set up their own manufacturing
company. Between 2001 and 2003, the product began to be developed thanks to a number of
R+D projects, including some European framework programme projects, in which the company
was a subcontractor and a locally-financed project, which made possible the development of
scale models and prototypes until they developed the full-size tracking system.

Thanks to their participation at different international congresses and events, they were able to
make international contacts which allowed them to sell their products abroad, including
installation and training.

Questions (Topics) for discussion:

1. Intellectual Property Rights: In theory it is easier to sell a product with a patent. The
TETRA-TRACK® is an innovative product, what are the advantages and disadvantages
of applying for a patent?

2. And the difficulties of licensing a patent?

3. Manufacturing: Dobontech is based in the Canary Islands, an outlying region of Europe,

located off the north coast of Africa. SWOT analysis of the manufacturing location.

4. Diversification: Taking into account their expertise, what kind of product / services do
you think the promoters can include in their catalogue?

Notes on the real results:

In this section you can find the rest of the story, what the founders of the company decided in
connection with the proposed questions for discussion.
- Intellectual Property Rights: DOBONTECH applied for a patent. For a small company to apply
for a patent is a considerable effort in economic terms. It is important to analyse carefully the
patent application since it could be a two-edged sword. The product should generate income to
cover the cost of maintenance of the patent. The patent process starts at national level and can be
expanded to European and international level. Nowadays TETRA-TRACK® is under copyright.

- Manufacturing: The cost of manufacturing in the Canaries was too high, in terms of logistics,
the raw materials, transport, etc. For the case of metallic structures, which are necessary for
TETRA-TRACK, the Canaries do not have an iron and steel industry, which makes the logistics
enormously more difficult and raises the costs involved. The product is manufactured by the
company Dobon’s Manufacturing S.L., based in Teruel (the city of origin of Paco, in northeast of
Spain) and is 50% owned by DOBONTECH. They used existing facilities adapting them to the
manufacturing of the product. This was possible as this region did have an industrial fabric
related with metal working, which made sub-contracting easier. This industrial initiative was
awarded IDEA'2002 price in the contest organised CEEIARAGON (European Center of
Companies and Innovation from Aragon, Spain).

- Diversification: DOBONTECH expertise is focused on Research and Development projects

and development of new products in the Renewable Energy field, Engineering of Renewable
Energy Systems, Energy Audits and Energy Certifications and Technical Consultancy
developing products for third parties and engineering and development work on commission.
Nowadays, DOBONTECH is an established SME with 6 employees.

More information about DOBONTECH at: www.dobontech.com