Workshop on Enabling Technologies in CSF for EU Research and Innovation Funding

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1 Workshop on Enabling Technologies in CSF for EU Research and Innovation Funding Rapporteur Professor Costas Kiparissides, Department of Chemical Engineering, Aristotle University of Thessaloniki Brussels, June 6, 2011

2 Enabling Technologies as Part of CSF Common Strategic Framework (CSF) Convergence and closer coordination of Framework Programme (FP), Competitiveness and Innovation Programme (CIP), European Institute for Innovation (EIT) and other relevant European initiatives. Establishment of coherent set of funding instruments (from basic research to market uptake). Smart, sustainable and inclusive growth of European Economy. 3% of Europe s GDP invested in R&D. Innovation Union Flagship initiative. Focus of R&D objectives on major societal challenges; European industry needs; competitiveness; and strengthening the science base of ERA. Key Enabling Technologies (KETs) are recognised as a crucial factor in increasing the competitiveness and innovation capabilities of Europe s Economy.

3 Question 1 : How to enhance innovation with key enabling technologies Type of R&D initiatives, industry-academia collaboration, specific innovation elements, links to societal challenges, industrial needs and market requirements Question 2 : How to choose R&D priorities in key enabling technologies EU vs MS priorities (coordination activities) Scope / size of international cooperation Issues addressed elsewhere: Questions to be Addressed Simplification of procedures a crucial but generic issue Specific R&D topics and technologies to be supported

4 Definition of Key Enabling Technologies KETs are knowledge and capital intensive technologies associated with high research and development (R&D) intensity, rapid and integrated innovation cycles, high capital expenditure and highly-skilled employment. Their influence is pervasive, enabling process, product and service innovation throughout the economy. They are of systemic relevance, multidisciplinary and transsectorial, cutting across many technology areas with a trend towards convergence, technology integration and the potential to induce structural change.

5 Key Enabling Technologies (KETs) It has been recognized by the High Level Group (HLG) that those nations and regions mastering KETs will be at the forefront of future advanced and sustainable economies integrating cutting-edge technologies into their manufacturing and service industries and managing the shift to a low carbon, knowledge-based economy, and ensuring the welfare, prosperity and security of their citizens. A special emphasis should be given on the "Valley of Death" problem in the innovation chain. Photonics Six Key Enabling Technologies have been identified: Manufacturing Nanotechnologies Biotechnology Advanced Materials Micro/Nanoelectronics

6 Key Enabling Technologies (KETs) It is necessary to identify the constraints restricting the deployment of KETs in Europe and to make recommendations how to enhance technological research in the relevant fields and how to enable subsequent stages of "proof of concept demonstrators, large scale deployment of innovative R&D results and technologies for the production of innovative products and services in Europe. In this respect, the following issues should be considered in relation to the deployment of KETs: KETs are research & development-intensive KETs are capital-intensive KETs require a highly-skilled work force KETs are subject to rapid innovation cycles

7 Key Enabling Technologies Key conclusions from the SWOT analysis on KETs 1. EU is a strong contender in KETs but the involvement of EU industry is insufficient. Thus, there is a drift of innovation away from EU. 2. KETs are particularly susceptible to Valley of Death problem in the innovation chain from knowledge to market.

8 Death Valley in KETs

9 Disconnection between patents and manufacturing shares Case Study: PV Cell production % PV cell production share in 2009 % Photonics Patent Share Europe = 77% of global market First Solar 12% 27% Europe 13% 29% Japan China/Taiwan 42% 15% 18% 2% Others 42% Asia Source: Photon International Mars 2010, European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW) JP Morgan, PV News, Oliver Wyman Analysis 9

10 Technology Readiness Levels (TRL) TRL1 : Basic principles observed TRL2: Concept / application formulated TRL3: Analytical & experimental POC TRL4: Validation in lab environment TRL5: Validation in relevant environment TRL6: Prototype demo in relevant environment TRL7: Prototype demo in operational environment TRL8: Completed through test and demo TRL9: Qualified through successful operations

11 How to Enhance Innovation with KETs The new CSF needs to address the following issues: Need to broaden R&D definitions (including Science, Technology, Pilot Lines and Demonstrators). Address the advancement of European Technology Platforms. R&D activities need to cover the whole value chain, from science and technology to products and production. Remove the barriers regarding the transfer of R&D results to products, services and to European industry, in particular, to SMEs and to society/market under the new Framework Programme. Improve coordination between EU and National innovation programmes ( reduce present fragmentation of R&D activities). Reduce unnecessary duplication of R&D priorities within the various sub-programmes of the FP through better coordination of the calls.

12 Industry-Academia Partnerships NMP Expert Advisory Group input from orientation papers Companies are capable of bringing their products to the market faster by forming partnerships with universities, which result in obvious benefits for both parties. The industry gains expertise in areas they need the most, and they have a hand in producing graduates who are better equipped to enter the business world. Universities gain needed funding, financial benefits, and more recognition from society. Students gain real-life experience.

13 Industry Perspective Access to base scientific competence developed through public funding. Access to knowledge developed in a research setting. Access to world-class academics that are scientifically and industrially knowledgeable of the state of the art technology. Acquire competitive advantage. Access to rich sources of highly skilled researchers. Industry return on investment (would the collaboration increase it or be neutral?) Dooley and Kirk, European Journal of Innovation Management, Vol. 10, , 2007 CTSA Industry Forum, NIH, February 17, 2010

14 Open Innovation A number of different open innovation models have emerged within Europe that are showing promise which are relevant to the industrial sectors served by NMP : Large industry model Regional Industry-led Open Innovation Centre Model Regional University-Industry Open Innovation Centre Model All three offer distinct advantages for both large industrial companies and SMEs. The first naturally favours large innovative companies. The two regional models are particularly effective in providing a range of support measures for emergent technology SMEs.

15 3-Level Innovation Ecosystem and its Actors Inventor Entrepreneur Venture Capitalist Manager

16 How to Choose R&D Priorities in Enabling Technologies

17 Fundamental Principles Industry-driven Programme (but innovation cycle should also be fed upstream) Innovation from basic research ideas Innovation from multidisciplinary research and technologies initiatives Innovation from transforming R&D results to products, processes and services => Need to work with all the stakeholders => Need to integrate the whole cycle of TRLs Support high-risk multidisciplinary innovation programmes

18 Industry-driven Programme Different types of supported activities under the same innovation target (e.g., photovoltaics, batteries, etc.) R&D Technology Pilot-lines Products / Market 3-4-year programme 2-3-year programme 2-year programme

19 EU Industry Needs: Sustainable Production / Manufacturing / Raw Materials Societal Needs: Energy Food Health Water Environment Sustainability Market Needs: Selection of R&D Priorities Combined industry, society and market needs - Selection should satisfy the following requirements: New Smart Products New Services Customers Requirements Competitiveness

20 Proposed Collaborative Partnerships Industry-driven open innovation SME-driven open innovation Academia-industry innovation Public-private partnerships Large projects (alliances)

21 Implementation Criteria Integration of all TRLs along the value chain of the innovation process One-stop shop financing Innovation impact as evaluation criterion (more input from entrepreneurs) Management of innovation risk Business plans regarding exploitation of innovation results Shorten the exploitation time of R&D results

22 Ancillary Issues Safety, especially in nanotechnology Societal acceptance Simulation and Modelling for materials, nanotechnologies and production systems Standardisation Metrology Coordination and Clustering of similar R&D projects for maximizing the industrial impact. Upgrading the role and importance of Technology Platforms

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