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Fraunhofer and Korea - Learning from each other

Dr. Roman GötterDirector Fraunhofer Academy

MOT International Symposium10. Feb 2012 Gwangju, Korea

Agenda

Germany and Korea

About Fraunhofer and Fraunhofer Academy

National Innovation Systems

The Fraunhofer Model of Innovation

Fraunhofer and Korea

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GERMANY AND KOREA

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*According to Wikipedia

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ABOUT FRAUNHOFER

ResearcherDiscovery of the “Fraunhofer lines” in the solar spectrum

InventorNew processing method for lenses

EntrepreneurDirector and partner in a glassworks

Joseph von Fraunhofer (1787 -1826)

Invented by Fraunhofer IIS

Research Creates ValueMP3 - a Fraunhofer innovation

The Fraunhofer-Gesellschaft („NASO“)

The Fraunhofer-Gesellschaft undertakes applied research of direct utility to private and public enterprise and of wide benefit to society.

Our Customers:

Industry

Service sector

Public administration

© Fraunhofer

7 Groups: Information and Communication

Technology

Life Sciences

Microelectronics

Light & Surfaces

Production

Materials and Components

Defense and Security

60 Institutes

more than 18,000 employees

The Profile of the Fraunhofer-Gesellschaft

Fraunhofer in Germany

60 Institutes More than 18,000

employees Budget: 1.8 Bill. Euro

Institutes work as profit centers

One-third of the budget consists of income from industrial projects

Spinoffs by Fraunhofer researchers are encouraged

Fraunhofer worldwide

Subsidiary Center

Representative Office

Dubai

Bangalore

Jakarta

Beijing SeoulTokyo

BostonPlymouthEast

LansingSan JoséNewark

Maryland Cairo

Selangor

Senior Advisor

Project Center / Strategic Cooperation

Santiago de Chile

Singapore

Cambridge

Brussels

Porto

Vienna

Bolzano

Graz

Paris

Budapest

Wrocław

Gothenburg

Thessaloniki

Sydney

Contract Research(2007-2011, in € million)

From a small association to the leading organization for applied research in Europe

2011: preliminary

Constant growth over 30+ years!

© Fraunhofer

Fraunhofer in a Nutshell

professional R&D services to industry

demand driven research combined with scientific excellence

strong integration with academia

autonomy of institutes combined with simple corporate rules and strong brand

FRAUNHOFER ACADEMY

Fraunhofer Academy

Provides excellent professional training for business leaders and experts of our customers

Is based on the advanced applied research know-how of our Fraunhofer Research Institutes

Is a contribution of Fraunhofer to the federal Initiative for Researchand Innovation since 2006

Addressing the shortage of experts in Germany

Reasons for the shortage of Experts

Demographic changes

Faster innovation cycles

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Industry needs Experts for Key Technologies

Bonding technology is essential for manufacturing

Products from hybrid materials

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Main Areas of Expertise

Technology and Innovation

Energy and Sustainability

Logistics

Production and Testing Technolgy

Information and Communication

Part-time programs for working professionals

Part-time study programs1-2 year university degree programs

(Master and Bachelor)

Certificate Programs1 - 8 weeks of training with external certification

Fraunhofer Seminars3-5 days of training with test

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Broad range of part-time programs Technologyand Innovation

Executive MBA for Technology ManagersIMP3rove Innovation*Intellectual Capital Sheet*

Energy and Sustainability

Master Environmental Sciences*

Master Online Building Physics

Master Online Photovoltaics

University Qualification in Environmental Management

WUFI- transient heat and moisture

Logistics

Diploma in Logistics Management

Master Online Logistics Management

Bachelor of Science Logistics Management

Learning factory advanced Industrial Engineering (aIE)

Production Management Digital Factory Value Stream Engineering

Production and Testing Technology

Master for Non-destructive TestingFiber-composite TechnologyIndustrial Bonding Technology*Joining technology in Electronics

Information and Communication

Master Software Engineering for Embedded Systems*

Usability Engineer TeleTrusT Information Security Professional (TISP) Roberta Teacher Training

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Engineers get ready for top

management

Cooperation of 2 leading

Universities

RWTH Aachen

University St. Gallen

Part time program:

100 days in 2 years

Starts every year

Executive MBA for Technology Management

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The Fraunhofer Academy provides additional means for the Promotion of Innovation

Professional Training

Formation of Companies

Contract Research

Promotion of Innovation

Transfer of people

NATIONAL INNOVATION SYSTEMS

What makes a society innovative?

What can a research organization like Fraunhofer contribute?

Key Questions:

Fraunhofer als Harvard Business School Case Study

Learning Objective:Teach about how to organize research, in particular applied research…

The Fraunhofer Innovation Model is used as Case Study in the standard MBA course in Harvard Business School

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Fast Economic Growth of Korea

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The GlobalCompetitiveness Report2011–2012

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Measuring performance of 140 Nations

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Gross domestic outlays for R&Das a share of GDP 2009 (or most recent available year) in %

Quelle: OECD 2011

Global Competitiveness Index 2011–2012 rankings

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Switzerland, Singapore

and Sweden are leading

in many reports

Germany is in the top

10 (but slowly losing

ground)

Korea is still improving,

but slower than before… out of 140 nations

•Germany’s business sector is highly sophisticated (production processes and distribution channels

•German companies are among the most innovative in the world, spending heavily on R&D (5th)

•strong capacity for innovation (3rd)

•Germany’s labor market remains rigid (125th)

•deteriorating availability of scientists and engineers (down from 27th to 41st this year)

may erode the country’s major competitive advan-tage in innovation if it remains unaddressed.

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•Korea’s outstanding infrastructure (9th)

•stable macroeconomic environment (6th)

•primary education (15th) and higher education (17th) are accessible and of high quality

•high degree of techno-logical readiness (18th)

•Korea’s performance is very uneven across the 12 pillars of competitiveness

•rigid labor market (76th)

•inefficient financial market (80th).

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© Fraunhofer

THE FRAUNHOFER MODEL OF INNOVATION

R&D Services: What is better Make or Buy?

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Source: Prof. Cassiman, IESE Business School, Barcelona

Most successful companies combine own researchand external research!

Core Elements : Fraunhofer Model of Innovation

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Cooperation with Industry

ZV-A3/ May 06

Direct contract research

Joint research within public funding programs (e.g. EU, BMBF)

Fraunhofer spin outs (e.g. Concentrix)

Technology licensing (e.g. MP3)

Fraunhofer Customer Structure

Fraunhofer provides R&D services to a large number of customers (6000-8000*) every year

Customers return to the same institute frequently

The customers come from a broad range of industries

Majority of projects (>70%) is relatively small in size (<50.000€) but this allows also small companies to use our services.

* Depending how you count customers

Societal challenge as future markets - being ready for global competition

Universities perform excellent

scientific research

Research cycle

Innovation cycleRTOs bridge the

innovation gap with technological R&D

Innovativecompanies create

new products

Intensive exchange with society

Fraunhofer’s Position in the Innovation System

benefits Industry

fundamental research challenge of efficient light emitting diodes

innovation of luminescence-converter by Fraunhofer: absorbs blue light and converts it in yellow light -> combination of blue and yellow appears white

successful commercialization of white light LED in lighting, car lighting etc by OSRAM

© Fraunhofer

Fraunhofer electromobility systems research

Funding from the Federal Ministry of Education and Research as part of Germany’s second economic stimulus program

Total budget: EUR 34.5 million

Energy storage technology

Technical system integration /

socio-political issues

Function, reliability, testing

and implementation

Energy generation,

distribution and conversion

Vehicle concepts

© Fraunhofer

Technical system integrationDemonstration vehicles for personal transportFraunhofer E-Concept Car Type 0 – FrECC0

© Fraunhofer

Technical system integrationDemonstration vehicles for personal transportFraunhofer E-Concept Car Type 0 – FrECC0

Fraunhofer components (cutaway)

Energy generation, distribution and conversion

Charging unit

Energy storage technology:

Battery system

Vehicle concepts:

Crash-proof battery integration

Wheel hub motor with integrated power electronics

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Inventions disclosed by and patents issued to the Fraunhofer-Gesellschaft

Excellent Research

Health and nutrition Affordable healthcare

Challenges – ”The Markets Beyond Tomorrow”

Safety and security Disaster prediction and management

Information and communication

Mobility and transportation Low-emission, reliable mobility in urban areas

Energy and living Low-loss generation, distribution and use of electricity

Production and environment Life-cycle production

Imag

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JOSEPH VON FRAUNHOFER PRIZE 2011FLEXIBLE FILMS FOR PHOTOVOLTAICS

Dr. Sabine Amberg-Schwab Fraunhofer-Institute for Silicate Research andDr. Klaus Noller Fraunhofer-Institute for Process Engineering and Packaging

4 Reasons for the Fraunhofer Success

1. Clear focus on applied research Creating products and not only ideas

2. Close cooperation with industry Industry success is rewarded the most

3. Attracting best researcher only world-class talent creates world-

class products

4. Cooperating in networks and clusters Successful Applied Research is a team

sport

FRAUNHOFER AND KOREA

Fraunhofer worldwide

Subsidiary Center

Representative Office

Dubai

Bangalore

Jakarta

Beijing SeoulTokyo

BostonPlymouthEast

LansingSan JoséNewark

Maryland Cairo

Selangor

Senior Advisor

Project Center / Strategic Cooperation

Santiago de Chile

Singapore

Cambridge

Brussels

Porto

Vienna

Bolzano

Graz

Paris

Budapest

Wrocław

Gothenburg

Thessaloniki

Sydney

© Fraunhofer

Fraunhofer goals of internationalization

1) Fraunhofer seeks to maintain and improve its position asa professional partner for contract research throughan increasing international track record of successful cooperation

2) Fraunhofer seeks to gain scientific excellence in international cooperation

3) Fraunhofer seeks to attract and retain international talent and research capacity worldwide

4) Fraunhofer wants to be the driving force for a successful European Research Area (ERA)

5) Fraunhofer wants to jointly tackle the global grand societal challenges and support a sustainable development

Fraunhofer Representative Offices and Senior Advisors in Asia

SeoulBeijing

Xiaoding Han

Dr. Lorenz Granrath

Joohwan Kim

Dr. Ida-Bagus Kesawa Narayana

Bangalore

Selangor

Anandi Iyer

Dr. Ahmad B. Ibrahim

Senior AdvisorRepresentative Office

Tokyo

Jakarta

© Fraunhofer

Service Areas of the Representative Offices

The Representative Offices Korea is the local presence of overall Fraunhofer. It acts as a point of contact for local firms andproject partners and gives advice and support for the institutes as well as Fraunhofer headquarters, for example when setting up strategic partnerships with local institutes, government agencies and businesses.

The Representative Offices

Initiate and support scientific collaborations by helping to establish ties with local universities and research organizations

Conduct project acquisition on behalf of the institutes by identifying strategic markets, offering assistance with finding a suitable industry partner and facilitating communication during the acquisition process as well as during the project

Organize events and marketing activities

Help to find selected visiting scientists for the institutes

Joohwan Kim

Project cooperation

Strategic partnership

Rep. Office Fraunhofer

Project Center at xy

Fraunhofer subsidiary

cooperation on project by project base

Prime partnership

Sequential project cooperation

Identification of strategic complementarities

Local advisor andrepresentative

Fraunhofer Senior Advisor

R&D unit embedded at a partner university

Legal entity for Fraunhofer Centers

Cooperation on project basis via joint marketing and acquisition

R&D unit abroad with close ties to "mother" institute in Germany

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Add staff with scientific background at Fraunhofer

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Fraunhofer roadmap to Asia

Successful Cooperation is based on Understanding

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Prof. Hans-Jörg Bullinger

President FraunhoferExpert for Asia

Prof. Wan DangMinister for ResearchStudied in Germany

Contact Information

Dr. Roman GötterManaging Director

Fraunhofer AcademyHansastraße 27c80686 München

Fon: +49 89 1205 1500roman.goetter@fraunhofer.de

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www.academy.fraunhofer.de

Thank you for your attention!