Anders Flodstrom, vice-chair EIT, Industrial Technologies, Aarhus June 19, 2012

Valley of Death

Productivity

• The obvious – low salaries do not mean high productivity

• Effectiveness and Innovation• Robert Solow and Paul Romer• Innovation can be anything that improves

function and the perception of function – real or not

Common Sense and socio-economic analysis

• Ray Bradbury - the need for a vision!

• Impact – public good and commercial value

• Innovations – social, business,

technological, ..

• Competent people – creativity, risktaking,

values, ..

Grand societal challenges

• No longer scientific or technology challenges, instead problems created by us – to be solved

by us

• New infrastructures, business innovations, business and public good in synergy

• New legal entities? Present healthcare and schooling debate! Innovation procurement?

• Horizon 2020 and Innovation Union, ERC and EIT

Grand challenges – a few!

• Demography - not only ageing or longevity

• Logistics - not only urbanization – take the train to China

• Genetics and proteomics - not only pharmaceuticals

• Carbon - not only energy and climate

• Learning or human enhancement - not only teaching - neurology, computer science and nanotechnology

• Reindustrialization of Europe

The Role of Technology

• Policies, regulations and legislation

• Contemporary technology and new systems solution

• New often science based technology

Europe is old and getting older

• Population as compared to Middle East, Africa, India and Pakistan

• Companies as compared to US, China and India

Nobel, Citroen, Siemens, Reuter, Merrieux - history? Boyer, Gates and Zuckerberg - US-reality!• HOW TO MOTIVATE KIDS TO SET UP GARAGE COMPANIES IN

EUROPE?

wanted

• One definition of entrepreurial innovation:

“A Grapefruit is a lemon who took a chance”

Age distribution of companies’ contribution to innovation: Europe v. US and others

Bruegel policy briefMarch 2009Reinhilde Veugelers

US: approx. 21%EU: approx. 2%

Biotech as an example: EU has strong assets to support a strong entrepreneurially driven industry

HOW TO CAPITALIZE ON THE ASSETS?

• High level of education

• Solid academic base

• Top science at many historical power houses of research: EMBO, Pasteur, Karolinska, Cambridge, Oxford, Max Planck, VBC etc..

• Increasing number of Centers of Excellence

• Long tradition of pharmaceutical development and industry

• Excellent clinical institutions with the potential to carry out studies

• Growing interaction between the national bio-medical scenes

• Scientific output in biotech is even larger than in the USA

Biotech example: Does European biotech exploit its chances?

Europe Bio Report for 2007

CREATING VALUE - CREATING JOBS

Europe USA

No. of employees

63,000 172,000

Average Investment per year

EUR 6 bn EUR 18 bn

Public listed <10% >30%

Total value ofcompanies

EUR ~30,000 bn

EUR ~300,000 bn

The Ways to increase Innovation

• New R&D• Improved processes for turning R&D into

innovations and innovations into business• Universities will not alone solve the

productivity crisis• Slovenia• Much more emphasis on Companies and

especially SMEs and their innovation processes

Where will it happen – in the companies!

• New products rule the market• Innovation is a driver of productivity• Industry needs to become more entrepreneurial• EU and national industrial research and

innovation programs are driven to a very high degree by universities and research institutes

• EIT will make a difference through stakeholders integration

Value Systems

• Research for research – the result is more funding. Measured by citations and prizes!

• Research for innovation – the result is society and business impact. How to measure?

• From scientific goals to grand challenges• Is it real or a fake• Open innovation

SIA for EIT

• Knowledge Triangle• Entrepreneurship• Stakeholder Integration• Cohesion• Smart Investor

EIT Label

• Competencies for the Future• Creativity, Innovative, Entrepreneurial,• Taking calculated risks• Values - Intergenerational fairness• Geographical and sectorial mobility

Stakeholder integration

• Legal entities – CEO and common Board• Networks and colocation centers• Research and innovation – universities,

research institutes, companies; SMEs and major, production and services; veture capitalists

• Higher education – universities, labor market and students

New Member States

• Regional Innovation Communities

• EIT Label Educations• Regional Colocation Centres• Scholarship Schemes• Researcher Sharing• From Aid to Intelligence

Major Changes

• New innovation/business infrastructure for Europe – not a new research or higher education infrastructure

• Knowledge triangle• Investing not funding!• Catalyst – Carrier model• Educational programs for creativity, innovation

and entrepreneurship

KICs

• Climate KIC – climate mitigation and adaptation – new industry

• KIC Innoenergy – sustainable energy – major companies industry

• ICT Labs – future ICS ( Information Communication Society) – open innovation

• 400 million € and 2500 “staff” and 1500 students

New KICs

• Healthcare - divided• Natural resources management• Food 4 Future• Mobility and smart cities• Added value manufacturing -

reindustrialization• Security and safety – divided• ??? +++

Horizon 2020

• 3 billion euro• Two Waves new KICs; 3 + 3 or all at once• 2014 and 2018• Shared equally between existing KICs, Climate

KIC, KIC Innoenergy, ICT Labs, and the new ones

Timeline

• Right now; draft proposal from EP and EC (Denmark)

• Autumn; decisions on themes (Cyprus)• December; GB decisions on Call for proposal• Early spring 2013; decision on budget

(Ireland)• Winter 2013; new KICs