KETs: A Competitive Advantage for
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1 KETs: A Competitive Advantage for European Regions Seminar on Smart Specialisation Strategies In Czech and Slovak Regions Brno, 14 May 2012 Gabriel M. Crean, VP for Technology, CEA Technology, CEA & Member S3 Mirror Group 1
2 Message 1 Message 2 Outline KETs are crucial to smart, sustainable and inclusive European economic growth Europe s regions must leverage their KETs expertise and turn science into product, market share and employment Message 3 Refocus and Rebalance European, National and Regional Research and Innovation strategies Message 4 Accelerate Deployment of KETs in regions using synergies between Innovation & Structural Funds
3 Nanotechnologies Micro and nanoelectronics KETs are essential to develop and manufacture advanced products Biotechnology Photonics Advanced materials Definition of Key Enabling Technologies Knowledge-intensive High R&D intensity Rapid innovation cycles High capital expenditure Highly-skilled employment 6 Key Enabling MULTIKETS Technologies BOX Advanced manufacturing systems 3
4 KETs are essential to develop and manufacture advanced products Advanced materials substrate Societal Challenge Microelectronics Chip Nanotechnologies Mems Digital Society Photonics Camera
5 KETs can revolutionize traditional products World first! ELIOT, the first plastic pipe that communicates and is detectable 5
6 KETs can revolutionize traditional products Life-Jacket Antenna
7 KETs can revolutionize traditional tourist product offerings Geo-localisation of the Bonelli Eagle ISERE
8 From product to societal challenge From KETs to final product (Multi) KETs are strategic all along EU value chains Car industry Lighting Nanoelectronics Material Biomass GaN SOI material KETs: -Advanced materials -Nanotechnologies -Biotechnologies Equipment Biolsoprene MOCVD reactor Litho scanner KETs: -Advanced manufacturing Systems -Biotechnology Component Biobased Synthesis rubber, Adhesives, elastomers LED Nano component (Low power) KETs: -Nanoelectronics -Photonics Product Car tyres Lamp Mobile phone Solutions & services Biobased tyres Lighting Nomadic communication Societal challenges CO2 reduction Energy efficiency (Climate change) Energy efficiency (Climate change) Knowledge society 8 8
9 Triggering a virtuous cycle from manufacturing IMPACT on the local ecosystem including SME s Global Fab (+ embedded pilot line) ST Microelectronics + IBM Alliance Equipment suppliers Material and consumable suppliers Services Over 100 SME s 24/02/ CEA Tous droits réservés
10 Triggering a virtuous cycle from manufacturing IMPACT on the local ecosystem including SME s + 30 spin-off s and start-ups Global Fab (+ embedded pilot line) ST Microelectronics + IBM Alliance Equipment suppliers Material and consumable suppliers Services Over 100 SME s 24/02/ CEA Tous droits réservés
11 Triggering a virtuous cycle from manufacturing IMPACT along value chain Large companies SME s + 30 spin-off s and start-ups Global Fab (+ embedded pilot line) ST Microelectronics + IBM Alliance Equipment suppliers Material and consumable suppliers Services Over 100 SME s Technological Research Global Partnership Along the value chain 2010 Under contract Under instruction 500 Companies Including Over 300 SME s 24/02/ CEA Tous droits réservés
12 Message 1 Message 2 Outline KETs are crucial to smart, sustainable and inclusive European economic growth Europe s regions must leverage their KETs expertise and turn science into product, market share and employment Message 3 Refocus and Rebalance European, National and Regional research and innovation strategies Message 4 Accelerate Deployment of KETs in regions using synergies between Innovation & Structural Funds
13 Concerning patent activity Europe is still in the KET s race Shares of EPO/PCT patents by regions (percent) All KETs cumulated % 40% 35% 30% 25% East Asia Europe North America 20% 15% 10% 5% 0% '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 RoW 2008 priority patents (published) Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), TKM
14 Disconnect between EU patent base and EU manufacturing share Examples from three dedicated KETs case-studies 1 - Lithium-ion batteries for low-carbon electric vehicle 2 - Bioethanol production 3 - PV cells for solar renewable energy 14
15 Disconnection between patents share and manufacturing share Case Study: Li-ion battery production % Li-ion battery cell production share in 2008 % Advanced Material Patent Share USA 1% 30% Europe 0% 31% Asia 87% 35% 12% Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), CGGC, Lithium-ion Batteries for Electric Vehicles : THE U.S. VALUE CHAIN, October % Others 15
16 Aggressive US federal and regional (state) action to attract foreign firms BASF invests significantly in lithium-ion cathode materials research and development BASF breaks ground for North America's most advanced production facility for Lithium-Ion battery materials in OHIO $200 million production facility $95.5 million grant from the US DoE $50+ million production facility $24.6 million grant from the US DoE under the American Recovery and Reinvestment Act. October 27, 2010 in Elyria, Ohio March 15, 2010 in Jacksonville, Florida 2006 SAFT forms a joint venture with Johnson Controls 2009 SAFT America to Build New Advanced Battery Plant in Jacksonville, Florida The new plant will manufacture lithium-ion cells, modules and battery packs for military, industrial, and agricultural vehicles 1. Argonne National Laboratory Source: BASF.com, SAFT.com, chemweek.com, prnewswire.com
17 Disconnection between patents, Science, Manufacturing and Market Case study: PV Cell production % PV cell production share in 2010 % Photonics Patent Share Europe = 79 % of global market USA = 5 % USA 5% 27% Europe 13% 29% 67% ASIE = 11 % 42% Asia 15% 2% Others Source: Photon International Mars 2010, European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW) «JP Morgan, PV News, Oliver Wyman Analysis 17
18 The European valley of death Knowledge Market The valley of death 18
19 Message 1 Message 2 Outline KETs are crucial to smart, sustainable and inclusive European economic growth Europe s regions must leverage their KETs expertise and turn science into product, market share and employment Message 3 Refocus and Rebalance European, National and Regional research and innovation strategies Message 4 Accelerate Deployment of KETs in regions using synergies between Innovation & Structural Funds
20 Technological research Product development Competitive manufacturing European three pillars bridge to pass across the valley of death Technological facilities Pilot deployment Pilot line Globally competitive manufacturing facilities Knowledge Market Research & technology organisations Industrial consortia The valley of death Anchor companies 20
21 Rebalancing of EU RDI funding programmes Asia and US federal R&D funds mainly go to applied Development whereas Europe has the highest share of Basic Research Funding Development Applied FP7 Basic % 44% 48% 46% 32% 28% 33% 19% 45% CIP - 6% EIT - 2% FP7 92% % 11% 24% 24% 22% 36% China Korea US Japan Sum of Member States EU Note : The selection of the 12 member states has been done dependant on the size and the availability of data. The result should not differ much when the other 15 countries are added since the biggest R&D budgets are taken into account. Note : For all countries are displayed the latest figures available. Source: Key Science and Engineering Indicators, National Science Board, 2010 Digest, NSF, OECD Research and Development Statistics, Own analysis
22 US Accelerating Focus on Industrial Leadership
23 Message 1 Message 2 Outline KETs are crucial to smart, sustainable and inclusive European economic growth Europe s regions must leverage their KETs expertise and turn science into product, market share and employment Message 3 Refocus and Rebalance European, National and Regional research and innovation strategies Message 4 Accelerate Deployment of KETs in regions using synergies between Innovation & Structural Funds
24 Aggressive US federal and regional (state) action to attract foreign firms BASF invests significantly in lithium-ion cathode materials research and development BASF breaks ground for North America's most advanced production facility for Lithium-Ion battery materials in OHIO $200 million production facility $95.5 million grant from the US DoE $50+ million production facility $24.6 million grant from the US DoE under the American Recovery and Reinvestment Act. October 27, 2010 in Elyria, Ohio March 15, 2010 in Jacksonville, Florida 2006 SAFT forms a joint venture with Johnson Controls 2009 SAFT America to Build New Advanced Battery Plant in Jacksonville, Florida The new plant will manufacture lithium-ion cells, modules and battery packs for military, industrial, and agricultural vehicles 1. Argonne National Laboratory Source: BASF.com, SAFT.com, chemweek.com, prnewswire.com
25 Combination of funding to promote RDI investments in KETS Combination of funding Member States + Regions EU DG DG DG Combination of funding Public driven Private driven Technology competitiveness Manufacturing capacity competitiveness
26 Implemented actions: Combined Financing European Commission Enterprise and Industry
27 Conclusion : building a bridge to success for Europe Public Financing Development of Technology building Re-industrialisation of Europe: KETs Pilot Lines & blocks within DG INFSO, Deployment financed by DG Res & Inv, H2020 and Structural Funds Capacity Build-out on a level playing field: KETs industrial Policy Private Financing CEA. All rights reserved 27
28 Smart Specialisation: Evolution of the semiconductor manufacturing landscape in Europe from 1980 to Production sites > 25,000 wspm 200mm eq Ev ol ut i on de l a pr oduc t i on de semi - conduct eurs en Europe ( k wspm é q ) <100mm 100/125/ mm 300mm 300mm RTO pilot line Greenock Glenrothes Kista-Stockholm Σ 299,953 wspm 200mm eq. Oldham Chippenham Swindon Bedford Stadskanaal Nijmegen Hamburg Vilnius Zelenograd Moscow Rennes Nantes Tours Toulouse Freising Munich Cornaredo Genoa Zarnovica Bucharest Kiev Weight of semiconductors production sites with respect to total semiconductor production in Europe Catane For each year, the relative weight of a given site in the European wafer production The histogram in the right corner shows the evolution of the total wafer production in Europe The Source: Gartner, different Own analysis colours indicate the wafer size 28
29 Message 1 KETs are crucial to smart, sustainable and inclusive European economic growth Message 2 Europe s regions can leverage their KETs expertise to turn science into product, market share and employment Message 3 Refocusing and Rebalancing of Regional research and innovation strategies can be successful Message 4 Conclusions Accelerate Deployment of KETs in regions using synergies between Innovation & Structural Funds
30 Thank you for your attention
KETs: A Competitive Advantage for Europe Presentation to IMCO Committee EP, Brussels, 20 March 2012
KETs: A Competitive Advantage for Europe Presentation to IMCO Committee EP, Brussels, 20 March 2012 Gabriel M. Crean, VP for Technology, CEA Technology, CEA Chair HLG KET Sherpa Group 1 Outline Message
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