Innovation in EU Policy Innovation concepts and innovation policy

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1 Innovation in EU Policy Innovation concepts and innovation policy Webinar May 4th 2017 German Aerospace Centre - Project Management Agency, (DLR-PT) Heinrich-Konen-Str Bonn, Germany Speaker contact details: Daniel Stürzebecher Patrick Hartmann NCP SME Germany NCP SME Germany Tel: +49 (0) Tel: +49 (0) Daniel.Stuerzebecher@dlr.de Patrick.Hartmann@dlr.de

2 NCP Academy aims to bring together NCP Coordinators and NCPs for Legal and Financial aspects of Horizon 2020 develop and implement training courses on cross-cutting issues for Horizon 2020 advisors address quality standards and good practice as well as routes to feedback and communication for this community significantly enhance the performance of NCPs and does so by harnessing the knowledge base already existing within this community

3 Agenda Innovation in EU policy 1. What does innovation mean? 2. The EU Policy Innovation Journey how did the relevance of innovation evolve over time? 3. Projecting the next step the EIC 3

4 Please Answer the Polls How many years of experience do you have as NCP? What kind of NCP are you? 4

5 1. What does innovation mean? Definition by John Kao (author of Innovation Nation and strategic advisor): My definition of innovation is the capability of continuously achieving a desired future. ( Copyright (cc-by-sa) World Economic Forum ( Norbert Schiller) What I have learned is that innovation creating what is both new and valuable is not a narrowly defined, technical area of competence. ( ) Rather, innovation emerges when different bodies of knowledge, perspectives, and disciplines are brought together. (Innovation Nation, 2007, p. 9) DLR-PT 18 October

6 Performance 1. What does innovation mean? Definition of Disruptive Innovation by Clayton Christensen: A process by which a product/service takes root in simple applications at the bottom of a market and then moves up market, eventually displacing established competitors. PACE OF TECHNICAL PROGRESS sophisticated Average user needs basic Source: Clayton Christensen: The Innovators Solution TIME DLR-PT 18 October

7 1. What does innovation mean? Chat question: Can you give an example of Disruptive Innovation? 7

8 1. What does innovation mean? Chat question: Can you give an example of Disruptive Innovation? historical examples: the pocket calculator digital photography the mobile phone Skype the ipad the micro-finance model, etc. Source: SME Instrument, FAQ 8

9 Source: 1. What does innovation mean? Approach to define innovation by Hutch Carpenter (Senior Consultant, HYPE Innovation) 25 definitions of innovation with 5 major patterns of thought Business Model Definition of Innovation Unmet User Needs Applied Invention Creativity Problem- Solving DLR-PT 18 October

10 Agenda Innovation in EU policy 1. What does innovation mean? 2. The EU Policy Innovation Journey how did the relevance of innovation evolve over time? 3. Projecting the next step the EIC 10

11 /09 12

12 Basis for EU politics: OECD Frascati Manual 2002, p. 30/33 Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge [ ] In the Oslo Manual (OECD, 1997a), [other innovation activities] are defined as all those scientific, technical, commercial and financial steps, other than R&D, necessary for the implementation of new or improved products or services and the commercial use of new or improved processes. [ ]

13 /

14 Legal Basis of the EU: Treaty of Lisbon Poll: How many references to the word innovation are there in the Treaty of Lisbon? DLR-PT 18 October

15 Legal Basis of the EU: Treaty of Lisbon References to the word innovation: 1 DLR-PT 18 October

16 Treaty of Lisbon two main areas covering innovation Article 173 TFEU - industrial policy - guaranteeing conditions for competitiveness of the industry Articles TFEU - research policy in accordance with a system of open and competitive markets, their [Union and Member States] action shall be aimed at: speeding up the adjustment of industry to structural changes, encouraging an environment favourable to initiative and to the development of undertakings throughout the Union, particularly small and medium-sized undertakings, encouraging an environment favourable to cooperation between undertakings, fostering better exploitation of the industrial potential of policies of innovation, research and technological development. - realisation of the European Research Area (ERA) - coordination of activities concerning research and technological development amongst EU and the Member States - the European Commission can set out guidelines and indicators for monitoring and evaluation of the progress in cooperation with the Member States (Art. 181 II TFEU) long-term framework programme

17 2007/

18 5 Targets 7 Flagship initiatives 3 Priorities 2. The EU Policy Innovation Journey Europe 2020-strategy Smart growth Sustainable growth Inclusive growth Innovation Union An industrial policy for the globalisation era An agenda for new skills and jobs Digital agenda Youth on the move Resource efficient Europe European platform against poverty 75% of the year-olds to be employed 3% of the EU's GDP to be invested in R&D Acheiving the climateprotection objectives Rates of early school leaving below 10%; >= 40% of year-olds completing 3rd level education At least 20 million fewer people in or at risk of poverty and social exclusion DLR-PT 18 October

19 5 Targets 7 Flagship initiatives 3 Priorities 2. The EU Policy Innovation Journey Europe 2020-strategy Smart growth Innovation Union Sustainable growth An industrial policy for the globalisation era Inclusive growth Poll: How many references to the word innovation are in the Innovation Union? Digital agenda An agenda for new skills and jobs Youth on the move Resource efficient Europe European platform against poverty 75% of the year-olds to be employed 3% of the EU's GDP to be invested in R&D Acheiving the climateprotection objectives Rates of early school leaving below 10%; >= 40% of year-olds completing 3rd level education At least 20 million fewer people in or at risk of poverty and social exclusion DLR-PT 18 October

20 5 Targets 7 Flagship initiatives 3 Priorities 2. The EU Policy Innovation Journey Europe 2020-strategy Smart growth Sustainable growth Inclusive growth Innovation Union Digital agenda Youth on the move An industrial policy for the globalisation era Resource efficient Europe An agenda for new skills and jobs European platform against poverty IU: 305 References to innovation 75% of the year-olds to be employed 3% of the EU's GDP to be invested in R&D Acheiving the climateprotection objectives Rates of early school leaving below 10%; >= 40% of year-olds completing 3rd level education At least 20 million fewer people in or at risk of poverty and social exclusion DLR-PT 18 October

21 Science Idea Invention process Innovation process Economy Invention/ profound knowledge Innovation/ successful product, process, service

22 Science Idea Invention process Innovation process Economy Invention/ profound knowledge Innovation/ successful product, process, service

23 Science Idea Invention process Innovation process Economy Invention/ profound knowledge Innovation/ successful product, process, service

24 Innovation chain Fundamental research Feasibility Validation (lab scale) Demonstration (large scale) Commercialisation Research Development Innovation Commercialisation DLR-PT 18 October

25

26 Innovation chain Fundamental research Feasibility Validation (lab scale) Demonstration (large scale) Commercialisation Research Development Innovation Commercialisation DLR-PT 18 October

27 Innovation chain Fundamental research Feasibility Validation (lab scale) Demonstration (large scale) Commercialisation Poll: How many references to the word innovation are in Horizon 2020? Research Development Innovation Commercialisation DLR-PT 18 October

28 Innovation chain Fundamental research Feasibility Validation (lab scale) Demonstration (large scale) Commercialisation Research Development Innovation Commercialisation DLR-PT 18 October

29 Source: HORIZON 2020, WORK PROGRAMME , 7. Innovation in small and medium-sized enterprises - Innovation for SME 2. The EU Policy Innovation Journey Definition of Innovation in H2020 ( ) Europe ( ) requires a competitive industry that builds its competitiveness on innovation in all its forms: Development and application of technologies at the technology frontier, new business models and organisational models reaching out new geographic markets. 30

30 Definition of Disruptive Innovation in the context of H2020 Disruptive innovation encompasses any innovative concept, product and service that create new markets by applying new sets of rules, values and models which ultimately disrupt and/or overtake existing markets by displacing earlier technologies and alliances. The Blue Ocean Strategy by Clayton M. Christensen suggests that 'an organization should create new demand in an uncontested market space, or a Blue Ocean, rather than compete head-to-head with other suppliers in an existing industry'. (Source: SME Instrument, FAQ) 31

31 The new EU innovation policy with Horizon 2020 Innovation as commercialization of new competitive ideas Broad innovation concept Covering the entire value chain Accelerated application and implementation of innovations Ideal: growing cycle of knowledge and innovation

32 H2020: 572 References to innovation DLR-PT 18 October

33 Different approach towards research results Quicker exploitation of research results for new technologies, products, procedures, and services Valley of death : market uptake of good ideas needs to be improved beneficial for companies and society Coupling research to innovation Intensify cooperation between science and economy Reduce obstacle for companies to bring good ideas to the market Stronger linkage with Technology Readiness Levels

34 Fundamental research Feasibility Validation (lab scale) Demonstration (large scale) Commercialisation Research Development Innovation Commercialisation DLR-PT 18 October

35 Innovation Leaders Strong Innovators Moderate Innovators Modest Innovators European Innovation Scoreboard 2016 EU Member States innovation performance 36

36 European Innovation Scoreboard 2016 EU Member States innovation performance Source: 37

37 European Innovation Scoreboard 2016 Benchmarking with global competitors Source: EIS 2016, p. 30 DLR-PT 18 October

38

39 40

40 Open Innovation mechanisms 41

41 Agenda Innovation in EU policy 1. What does innovation mean? 2. The EU Policy Innovation Journey how did the relevance of innovation evolve over time? 3. Projecting the next step the EIC 42

42

43 3. Projecting the next step the EIC EIC Background Launched by EU Commissioner Moedas on 22 Juni 2015 Groundbreaking ideas and talents New markets in Europe Closing the innovation gap Mid-Term Review of Horizon 2020 (2017) EIC Idea related to European Research Council (ERC) Term is not new: 2002, Bruegel- ThinkTank; proposed for implementation in

44 3. Projecting the next step the EIC Chronology Idea launched on 22 Juni 2015 Public consultation Feb-Apr 2016 Workshop in Brussels July 2016 Oct 2016: 12 experts panel 2017: H2020 Mid-term evaluation 2018: test of EIC envisaged (WP in H2020) 2021: proposed official start 45

45 3. Projecting the next step the EIC What are potential components in the H2020 EIC work program ? 46

46 You have to be willing to be misunderstood if you are going to innovate. Jeff Bezos CEO, Amazon

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