Danish ICT Industry Innovation for Society

Transcription

1 Position Paper Danish ICT Industry Innovation for Society PREPARED FOR The Danish ICT Ambassador Taskforce DICTAT SENIOR ADVISER HENRIK VALENTIN JENSEN DANISH ICT AND ELECTRONICS FEDERATION APRIL 2011 Page 1 - Position Paper Danish ICT Industry Innovation for Society

2 This position paper defines ICT research and innovation that Danish ICT and Electronics Federation would propose EU's FP8 future research program should be focusing on. ICT represents an important and valuable contribution to realizing the demand on the European Research Area and for creating growth in Europe. ICT holds the flexibility and is an interdisciplinary approach most needed to seriously address the societal grand challenges. The Danish digital eco system is representing key technologies to propagate growth, innovation and research. This applies in particular when it comes to new technologies for solving societal and user needs. In order to accomplish EU's goals it will be essential to prioritize a furthering of ICT research domains held widely by EU countries as well as Denmark: ehealth Energy technologies Embedded systems Network technology Robotics Sound and Acoustics They are crucial both for finding solution for society, our future technology base and competitiveness. This position paper examines the Danish digital eco system and reports a survey of the specific technological strongholds in the private sector. The paper is part of DICTAT, a project carried out by Danish ICT and Electronics Federation. The project is supported by the Danish Ministry of Science, Technology and Innovation. Page 2 - Position Paper Danish ICT Industry Innovation for Society

3 Denmark is a highly developed ICT nation and is a strong environment for developing solutions addressing social and user-oriented needs such as health and climate related issues. The grand challenges are centered on Health and well-being Secure, clean and efficient energy Green transport Safe food and sustainable agriculture Efficient use of resources Inclusive and safe societies. ICT development is central for all these challenges and ICT thus is a key technology in pursuing growth through research and innovation. The Danish digital eco system, as shown in figure 1, has a strong technological foundation for system development integrating hardware and software - embedded systems. It also comprise one of the most competitive and advanced telecommunications infrastructure and mobile markets. This will be central for the development of new smart products for applications in health, energy and environment and the future internet. Moreover, the ICT industry is strong particularly when it comes to developing solutions for tomorrow's applications across industries and in private-public cooperation. 1 Denmark s digital eco system ICT and innovation capabilities are very well distributed in the ecosystem and specifically within the ICT consulting services and technology institutions apart from the wide-ranging uptake of ICT in population as well as in business. According to an international benchmarking report of ICT clusters, Denmark has one of internationally most developed digital eco system with a strong infrastructure, high market penetration, well-functioning public-private cooperation and strong professional and private 1 The ICT industry, we define as companies offering products and services in electronics, IT, software, telecommunications and Page 3 - Position Paper Danish ICT Industry Innovation for Society

4 users engaging themselves in co-creating content and services. 2 This said global investments in the private sector in recent years have been redirected towards Asia and the US. This means a loss of large investments in a key sector for growth in all other sectors and technologies. Therefore EU's and national private-public efforts to maintain digital eco systems such as the Danish throughout Europe are of highest importance. To do so European collaboration on ICT research will be crucial. Digital lead nation - key figures The research and development effort of the Danish ICT industry is extensive, and in particular the development part is high. The ICT industry is stimulating growth and productivity gains in other industries, and accounts for almost 7 per cent employment in the private sector. From an overall perspective it is primarily the Danish university research that is involved in EU research activities. Strengthening private sector participation in EU s future program for research would thus contribute significantly to ICT innovation. The private sector's focus is primarily on development and less on research. Development accounts for approximately 80 per cent of total private expenditure on R & D and it is primarily customer-centric development. The research part accounts for approximately 20 per cent. 3 In 2007 ICT firms employed almost 14,000 people within R & D of in total 100,000 employees. The industry accounted for almost 10 per cent of all patents obtained from The table below shows the composition of the ICT industry s R & D personnel. ICT industry R & D personnel (2007) R & D personnel in total 13,748 Researchers 9,396 Technicians 3,166 Other R & D personnel 1,186 Source: Statistics Denmark, 2010 Among IT companies almost 60 per cent are innovative. The majority of R & D staff functions are within software and computing with a total of almost 10,000 employees (2008). 4 In terms of ICT services and consulting the Danish ecosystem are well-developed, not least with a number of very large knowledge and advisory firms, which includes consultants such as Ramboll Informatics (CMS), technology companies such as Delta (audio and acoustics) and Alexandra (3D, health, safety). In addition venture firms and seed funds are taking much interest in the business and have significant experience and large ICT portfolios. According to the World Economic Forum's latest ranking from , covering both 2 Hansen and Serin 3 Forsknings- og innovationsstyrelsen 4 VTU 2010 Page 4 - Position Paper Danish ICT Industry Innovation for Society

5 businesses and private home use of ICT, Denmark is in top of uptake of ICT. For example, virtually all Danish companies have broadband, there is a very high proliferation of cell phones and penetration of smart phones is among top three per capita. The Danish Government has recently allocated 75 million euro for development of ICT for primary and secondary schools while IT is taught in high schools. The following describes the Danish ICT sector's strongholds, i.e. technology areas where companies, universities and public sector are representing strong capabilities and development potential of international high standard. The private sector's strongholds are also found at the Danish universities. Altogether there are, apart from the ecosystem s ability to develop user-and community solutions, six strongholds, where Danish ICT is internationally remarkable. SIX DANISH ICT STRONGHOLDS ehealth Energy technology Embedded systems for tomorrow's smart products Network technologies and software Robotics Sound and Acoustics The identified strongholds are defined through several iterations. Initial assumptions were tested through interviews with senior managers responsible for research and development from 20 companies, 15 within ICT and 5 within venture capital firms. This was finally substantiated with a wide range of industry analysis, a public web hearing of the report and a validation in the governing board of the Danish ICT and Electronics Federation. The survey comprise 20 companies Danfoss TDC Ericsson NKT Cables Kamstrup B&O Terma KK Electronics Contex Migatronic Automation Microsoft Nokia IBM Simcorp Triax Vækstfonden DTU Symbion CAT NOVI Innovation Øst Together the ICT manufacturers represent a turnover of more than 3 billion euro, they employ more than 2000 people within R&D and invest well above 300 million euro each year. The venture and seed firms all together have a portfolio of over 75 companies in which they have invested 1.5 billion euro. The 20 companies thus represent a large share of the Danish ICT industry and it s R&D. Page 5 - Position Paper Danish ICT Industry Innovation for Society

6 Danish Health Research has in general an international outstanding position. Resource wise, health research is the largest scientific area, both in public and private research. ICT research is strongly integrated in the private sector health research and its technological development. The health-related Welfare Technologies and solutions are defined here as technologies and processes for their use, which can help to solve health-related welfare jobs with less labor input than before - or eliminate the tasks. That is solutions, which are increasing efficiency of the public health system. In the following they are described under two headings: Welfare Technology Medico Technology Market Growth in Welfare Technology is extremely high and has positive effects for the citizens giving them control over their own lives as they grow older and become more dependent on assistance. The EU market is expected to increase by more than 50 billion euro over the next ten years, and in Denmark construction of new super hospitals for more than 6 billion euro offer room for specific development and testing of future welfare technologies. 5 Politically there is close attention to welfare technology and the Danish government put up for large prospective ventures. For example, before 2015 the government will invest 400 million euro the Danish Public Welfare Foundation (ABT Fonden). The welfare technology market will, by engaging citizens in their own monitoring and care, be paving the way for significant savings and gains in efficiency. Projects that will connect Internet of things with care technology are a major focus area for private-public projects. Industry provides the skills to deliver the technological development, while public actors provide the medical expertise for care. For example Telemedicine is a growing welfare technology. The Medico Technology industry, including devices for measurement, is largely the result of a strong co-operation between technicians and engineers, doctors and nurses. The industry is built around collaboration between practitioners in diagnosis and treatment and technology companies. Currently, Denmark has a number of major companies with global success within medico technology. It is characteristic that most companies are operating within their own niches and segments of the medico industry. This industry has gathered especially around the metropolitan area, which together with the south of Sweden often is referred to as Medicon Valley. Medicon Valley has over 200 companies with a primary focus on medical solutions. Established businesses include Radiometer, Ambu, BK Medical, ConvaTec, Origio and Unisense and there is an environment that supports the growth of new businesses. Among the international companies in Denmark, there are several subsidiaries of large global corporations such as Siemens 5 DI, 2010 Page 6 - Position Paper Danish ICT Industry Innovation for Society

7 Healthcare and GE Healthcare. Technologies such as Medical image processing and Electronic Patient Record technologies are progressing well and markets are growing. 6 Danish companies have particularly strong capabilities in the most crucial areas of biomedicine, that is, technical knowledge and clinical expertise, not least the design and user interfaces. CASE: GAINS IN SURGERY TIME Horsens Regional Hospital has with a new solution from the company Cetrea increased utilization of operating rooms from 82 percent to 88 percent. Likelihood of cancellations has been reduced by 33 percent. The solution helps employee s awareness and visibility around the settlement of the day's work and colleagues activities. Cetrea s solution ensures this by having interactive displays, centrally positioned and small screens placed in surgery rooms and distributed throughout the hospital. Cetrea Surgical combines many different technologies, developed to address planning and processes at the Central Surgery Department. Information about day surgery program, staff, patients, surgical equipment, surgical status, etc., can be viewed on screens. Cetrea has today expanded the product to include emergency units and emergency optimizing logistics in the entire hospital. Cetrea currently operates in 10 hospitals spread across North Jutland, Jutland, Southern Denmark and Copenhagen. ICT is fully integrated in the energy industry and form the core of the creation of the European strategies on green growth. The OECD highlights ICT as the key technology promoting green growth in all sectors of the economy. Within energy technologies Denmark holds a strong position in the following: Energy, wind power, renewables and power electronics Energy efficiency, green buildings and smart homes Smart grids and smart city The private sector has a number of internationally strong market players among others companies such as Vestas, Siemens, Danfoss and Grundfos. In Power electronics Denmark are among the market leaders with more than 2% of the world market. The segment includes, besides wind turbines, major players such as Danfoss Solar Inverters, Danfoss Power Electronics, kk-electronic and Grundfos. Moreover a large number of Danish niche businesses 6 Mandag Morgen Page 7 - Position Paper Danish ICT Industry Innovation for Society

8 are fast approaching in this innovative area across intelligent control, conversion, production and storage of electrical energy. Danish energy technology is marked by a number of global companies acting as catalysts in the field, which together represent approximately 1100 companies and with a large pool of small and innovative companies. 7 Energy companies are exporting to a considerable extent, where the largest companies have export shares above 75 %. The field is strong in the Copenhagen region and the region around Aarhus. Industry has an extensive cooperation with Danish technology and science institutions - more than 80 percent collaborate with knowledge institutions. In practice all Danish developers of energy technology have R & D activities, in which ICT are a key technology. CASE: WIRELESS WATER SUPPLY Asnaes Water Supply has wells and pumping stations physically far apart. Previously, the water utility was controlled via cables. Now this is managed by a wireless technology. The new technology offers savings since the plant no longer have to pay rent of the cables. In addition the wireless management has given more opportunities. Tele module from Signalix A SIM card with fixed IP addresses is used. From approved mobile phones via SMS, for example pumps are started and halted and is sending queries of operating levels. This without physically visit to the distributed installations. The wireless technology provides new opportunities, particularly for surveillance. Error messages are sent via SMS. Via the cell phone for instance a second pump can be put in place of the defective. Wireless solutions can be used in both new projects and the expansion of older traditional installations. Robot technology are spreading dramatically in these years. In principle robotics cover all economic sectors apart from health and welfare, agriculture, manufacturing and biotech. While other countries robot industry is highly dependent on the automotive industry, there are high expectations for the need for robots in welfare and care. Here there is a strong interdisciplinary development capabilities and established collaboration across sectors to 7 DI, 2009 Page 8 - Position Paper Danish ICT Industry Innovation for Society

9 ambient assisted living, in which Denmark hosted the European Conference September 2010 in Odense. Robotics is, measured by the number of companies, one of the smaller clusters but has a very high international standing in its research and development. The Danish robot industry is characterized by robot manufacturers skilled at customizing solutions for a small and flexible manufacturing sector. They must be able to constantly change their operations. Robots has for more than 40 years been used for the automation of manufacturing. The robots are used for many different production tasks, in particular to improve productivity, product quality and safety. Internationally robots prevail in the automotive industry. In Japan, for example the ratio is 2,100 robots per employees, in Germany it is 1.439/ employees. In Denmark there has been a growth of over 10% in the number of industrial robots. The density is 140 robots/ employees, similar to other countries, without considering the automobile industry. 8 Grundfos is the largest Danish user of industrial robots and is involved in a number of R&D activities and is challenging their many Danish suppliers to develop and deliver advanced automation equipment. Companies such as Rinas, TriVision and NOVOTEK are spin-offs from these activities. Other companies are Universal Robots and systems integrators such as Migatronic Automation RoboTool, DanRob and ProInvent. Also in this area, Siemens is a great actor. Cooperation between industry and academia has led to participation in several EU projects. For example, Aalborg University s participation in two EU projects related to programming of painting robots resulted in a spin-off company Inropa A/S. Robotics in Denmark is characterized by developing other systems than would be found in the automobile industry. It is made for general Industrial purposes as well as welfare technology, which now is a new growth area for Danish robotics. Danish companies ensure high added value by developing embedded systems for their own or others' solutions within well-defined global niches. An embedded system is a combination of hardware and software that together form an integrated (embedded) computer, which normally is not visible in itself, and to which you have no physical access. Embedded systems are used in all market and sectors and have a universally applicable option. Danish companies are especially active in health, energy, environmental, construction materials, food, IT, logistics, transportation and telecommunications. This niche market approach is well suited for embedded systems because it is a technology deve 8 Prof. Ole Madsen, Aalborg Universitet Page 9 - Position Paper Danish ICT Industry Innovation for Society

10 loped for that exact environment it must fit in - weight, size, power, robustness in a very complex technological frame. That is, the market and technology approach is complementary, and makes it possible to maintain a dominant position based on research and innovation. The Danish ecosystem comprise companies with expertise in embedded systems and ranging widely from entrepreneurs to large companies such as GN ReSound, Danfoss, Vestas, Grundfos, Velux, FOSS and Terma. Much of the research is left to companies that are developing platforms for embedded systems, and universities such as AAU and DTU. Technology transfer to Danish enterprises, therefore, mainly takes place as embedded in 'building blocks' and through qualified staff. Denmark holds a strong position to take part in the development of future embedded systems with leading universities contributing to develop new building blocks for embedded technologies and companies with innovative approach to application-specific use of embedded systems. CASE: Embedded technology in building materials Cembrit has with its RFID technology found a solution that gives large gains in logistics and inventory management. Through a series of tags embedded in building materials a handheld scanner access information on individual components quickly. Embedded RFID tags in the building materials that can quickly read on a hand scanner As a part of implementing Digital Construction Cembrit needed to deliver digital materials beyond the physical part. A solution that created strong links between digital and physical products was required. The prototype is a model of a complete wall construction with a newly designed exterior renovation system where individual components are labeled with RFID tags. When scanning 3D examples, product data, installation instructions and maintenance manuals are shown at monitors. The next planned step in the process is starting full-scale pilot projects to test the labeling of facade panels associated with the 3D model, assembly instructions, product info, and operation and maintenance information. All the data can be read by the craftsman by sweeping a handheld scanner over the wall plate. The Danish audio industry has a long and extensive industrial history. It embraces a wide range of companies with remarkable achievements in research and international markets. Industry counts the following internationally renowned Danish companies like Oticon and B&O. Hearing aids also includes the headset and equipment for the telecommunications sector as one Page 10 - Position Paper Danish ICT Industry Innovation for Society

11 area and speaker technology targeted at the market for private homes. They are also directed at aircraft manufacturers and the military complex. Sound and acoustics industry is particularly developed around two areas: The hearing aid industry The Loudspeaker Industry The hearing aid industry has three major businesses, GN Resound, Oticon and Widex. All three are active in research and product innovation, and together they account for approximately 40 percent of the world market. Within the loud speaker industry and other signal processing B&O together with Brüel & Kjær and Sonion are prominent. They are internationally recognized contributing to research and helping to start new development projects and ventures - such as ICEpower, which arose out of a close cooperation between B&O and Denmarks Technical University. ICEpower is developing very compact and high performance audio power electronics. In addition to the two main areas, many niche areas and industries have a great number of highly specialized suppliers and knowledge enterprises, such as Terma and Reson in the defense industry. Network - and mobile technologies is an area where the Danish telecom industry as of the early 80s laid the foundation for what today is offered of the services of fixed line, broadband and mobile technology. The telecom industry makes up four percent of GDP, or about 9 billion euros (2007). The Industry is mainly concentrated around Aalborg and the Copenhagen region. Overall it is estimated that there are around R&D positions in the telecom industry. Growth was in total - before the financial crisis - 5 percent a year and had 10 percent annual growth in employment. In addition to traditional telecommunications solutions (voice, SMS, MMS, VoIP, etc), Denmark has also had a spearhead tradition in digital emergency communication solutions - TETRA. The solution TETRA is developed by Dansk Beredskabskommunikation, a Danish Motorola-owned company, and is today a global development center for emergency communications solutions for Motorola worldwide with a few hundred developers in Glostrup. In addition Denmark - through companies such as Thrane & Thrane and Triax holds a strong global position in satellite, telephony and communications solutions. Further a wide range of mobile solutions and applications are developed globally in Microsoft Denmark and other software solutions for enterprise and finance including companies such as IBM, Simcorp and Edlund. Researchwise Microsoft s, Motorola s and Thrane & Thrane's development centers in Denmark, Page 11 - Position Paper Danish ICT Industry Innovation for Society

12 still provides a large accumulation of both national and international telecom qualification. Despite a strong employment decrease in the last 3 to 5 years in the telecom industry, Denmark still has world class expertise in networking technologies and mobile communications together with research in both technology and business development respectively. Aalborg University, Engineering, ITU and CBS - ensures a significant foundation - which prospectively can create new successes, that will follow up on big successes such as ZYB, SKYPE, GIGA and STORNO. There is a large pool of sme's that provides Denmark s eco-system with outstanding R&D skills. This applies to companies like e.g. Anritsu equipment manufacturing for measuring, testing, navigating, LitePoint Europe A/S in computer programming, Napatech A/S that is a manufacturer of computers, OFS Fitel Denmark manufacturer of optical fiber cables and Ethertronics Europe producing communications equipment. Generally, highly skilled manpower is available and the industry has a strong research and development base. Moreover, Denmark has a good IT infrastructure and is a good test market. CASE: EFFECTIVENESS OF ONLINE MEETINGS NIRAS saves money with the solution from Futurecom, for instance for transportation, while decisions can now be taken more quickly. The whole investment has earned itself within three months. The solution is a web meeting where consultants have meetings via the internet. Futurecoms Web conferencing makes NIRAS consultants hold many meetings online. This saves time, money - and CO2. The Web conferencing from Futurecom NIRAS has activities in many different countries. It gives a great need for communication from headquarters to local offices, as well as between local offices internally. Similarly, consultants who are on client assignments throughout the world, needs to communicate and cooperate with each other. The solution strengthens the communication and cooperation in projects Employees have embraced Web conferencing. They can watch the same elements simultaneously, whether it is spreadsheet data, applications, websites or slideshows or similar. And they can make changes on the spot. The plan is to integrate it more into the daily activities of NIRAS 'employees and get even more people to use Web conferencing. NIRAS desire to use the web solution in its other companies to strengthen communication and collaboration globally and bring the company closer together. Page 12 - Position Paper Danish ICT Industry Innovation for Society

13 Based on the mapping in this position paper there is a clear need for collaboration in Europe in the six examined areas of technology. They are not only important for Denmark but for the European ICT industry as a whole and numerous other industrial areas, which are now digitalizing their existing technologies for products and manufacturing. Efforts to enhance solutions aimed at societal challenges are in this context of highest priority. Demands for projects that promote collaboration on technology development, with both private and public actors and different professions, will be very important. ICT development has enormous potential in all areas of society and is the foundation for the next decade s innovation. This underpins the importance of ICT for ensuring success for Europe s future research program and ICT s central role for the ability of the private sector to collaborate and deliver innovation for society Page 13 - Position Paper Danish ICT Industry Innovation for Society

14 CEES: "A Sustainable Innovation Program for Electrical Energy Systems", 2008 Danmarks Statistik: Forskning og udvikling i IKT 2007, 2009 Danmarks statistik: Statistikbanken Danmarks statistik og Patent- og Varemærkestyrelsen: Når viden bliver til aktiver, 2008 DI: Cleantech - guldægget i dansk økonomi Kortlægning, 2009 DI: Udviklingshjælp til Danmark Vækstudredning 2010, 2010 (a) DI: Offentlig privat samarbejde, 2010 (b) DI ITEK: Digital effekt it på bundlinjen, Forsknings- og innovationsstyrelsen: IKT-forskning - En undersøgelse af dansk forskning, 2008 Mandag Morgen: Sund vækst 2020, 2010 Nyt fra Danmarks Statistik: Produktivitetsudviklingen , 2009 OECD: Information Technology Outlook, 2010 (a) OECD: Greener and Smarter: ICTs, the Environment and Climate Change, 2010 (b) Hansen, Povl A. and Serin, Gôran: The European ICT clusters an overview of selected ICT clusters in Europe, Roskilde University 2010 VTU ministeriet: Forskningsbarometer, 2010 og 2009 Vækstfonden: ABC til internationalisering og vækst- Perspektiver for venturekapital til danske cleantech-virksomheder, 2008 (1) Vækstfonden: Mobile teknologier i Danmark, 2008 (2) Vækstfonden: Medico-sektoren i Danmark, 2009 World Economic Forum: The Global Information Technology Report , 2010 World Economic Forum: Digital Ecosystem Convergence between IT, Telecoms, Media and Entertainment. Scenarios to 2015, 2007 Page 14 - Position Paper Danish ICT Industry Innovation for Society