What is Technology Due Diligence?
Technology due diligence (frequently abbreviated as Tech DD) is a thorough review and evaluation process covering an organization's technological state, infrastructure, software, and technical operations. The main objective of this audit is to pinpoint technical risks, assess system scalability, and confirm that the technology used aligns with declared goals and technical standards.
Significance in Grants and Public Support
Within European programs and public support frameworks, technology due diligence is primarily applied to research, development, and innovation (R&D&I) initiatives, or when applying for venture capital involving public funding. Grant providers and investors need assurance that the proposed technological solution is feasible and innovative, and that the applicant possesses adequate technical capabilities to ensure successful project execution.
Key Areas of Assessment
During a technological evaluation, auditors and technical experts focus on several core aspects:
- Architecture and Design: The overall quality, sustainability, and security of the technical framework and source code.
- Infrastructure and Scalability: The capacity of systems to handle future operational growth and workload demands.
- Intellectual Property (IP): Licensing ownership, patents, and protection of technological know-how.
- Technical Team: Staff competencies, internal capacity, and potential operational dependency on key technical personnel.
- Cybersecurity: Ensuring robust data protection and resilience against external security threats.
Role in Project Administration
When administering complex grant applications, the outcome of a technology due diligence review may be required as a mandatory annex, or it may be performed by independent evaluators as part of the approval procedure. A positive audit result does not automatically guarantee funding, but it serves as an essential prerequisite to demonstrate technical competence and minimize risk for public support providers.
