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Second Platform Event of the RIM Plus 2015-2016 (Brussels, 8th July 2015) The Second Platform Event of the RIM Plus 2015-2016 organised by Fraunhofer ISI, ERRIN and Technopolis Group took place in the Wales House in Brussels on 8th July 2015. The workshop pursued a double approach building on presentations to the plenary in the morning, parallel breakout sessions in the early afternoon and a concluding panel. Opening the workshop, Dr. Henning Kroll from Fraunhofer ISI outlined that the event seeks to highlight interesting cases how relevant issues in the field of advanced manufacturing have been resolved, prompt a discussion around them and, on that basis, bring in outside perspective from other regions. He outlined that the RIM Plus does not aim to engage in-depth technical discussions but to scout for, identify, and highlight areas of future challenges and new business opportunities. The morning sessions focused on two topics with growing importance for policy makers in the field of advanced manufacturing, notably the issue of skills for advanced manufacturing and the question how the potential of advanced manufacturing can be leveraged in Central and Eastern European countries that may not yet be among the current leaders and natural participants of lead actions but nonetheless crucial to any broad-based success of European Advanced Manufacturing policies. In the first plenary session on skills for advanced manufacturing, Dr. David Bould from Swansea University talked about the ERDF co-funded ASTUTE project that is a joint initiative of all Welsh universities and seeks to bridge the gap between research and innovation (TRL3-6). The project had a volume of £27m of which £14.3m stem from ERDF funds, in addition to £13m coming from other sources. During the project, evaluations demonstrated that, in Wales, shortages in the skills area are among the main barriers to growth. Furthermore, evaluations suggest that the project created 142 jobs, increased business by over £203m, led to additional investment of over £210m, and according to conservative estimates has had a 15 to 1 return on investment. Furthermore, Dr. Bould pointed out that there was a need to support skills development for advanced manufacturing on multiple levels, which the Swansea University supports through different activities like the ‘Materials and Manufacturing Academy’ (academic), the project ‘Skills for Industry’ (vocational) and the METal project (general outreach and awareness).

In the next presentation, René-Paul Arlandis from SEMAPHORE consulting introduced the Compétences 2020 initiative of the Pays de la Loire region. Specifically, he mentioned that the region’s economic strategy focuses on three industrial domains: the wind industry, the aircraft industry, and the shipbuilding industry. The Compétence 2020 initiative is based on the conviction that basic skills between those can be shared and future employees should be able to move between them.

                                                         

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The project started in 2003 with a progressive approach including an emergence (2003-04), consolidation (2005-09), and development phase (2010-2015). The programme pursues four main objectives: to better understand and anticipate the skills of the region’s main firms, to answer skill needs in the short term, to reinforce the attractiveness of the jobs with a currently low image (problem that industrial jobs remain associated with uncertainty and unemployment), to help people with low skills to access to these job with alternative patterns of recruitment. In the following question and answer session, Mr Arlandis underlined that especially the latter one (i.e. vocational training, raising attractiveness of industrial jobs for the lower skills segment) is a priority for the region. In general, Pays de la Loire does not face substantial difficulties in attracting engineers and highly qualified people but has problems to recruit a skilled workforce for the shop floor locally. Concluding, Mr Arlandis elaborated on the IRT Jules Verne Research, Training and Innovation Centre on Advanced Manufacturing with a focus on welding that addresses specific skills gaps in the local workforce. As the last of three presenters in the first session, Paul John from the High Value Manufacturing Catapult, UK presented the concept of the National College for Advanced Manufacturing that is to address what many perceive as a UK skills crisis. To improve the engineering skills based in the UK this new initiative shall encourage more vocational training with a long term strategic focus. It will address generic and specific skills and be based around the seven centres of the high value added manufacturing catapult. It is aimed to follow a modular approach built upon and focusing on individual, demand-based qualification modules that will be developed in cooperation with industrial firms rather than full-fledged training courses or academic curricula that many industrial employees have no time, money or patience to attend. Currently, the NCAM being set up both conceptually and practically and should be fully operational by September 2017. As the first speaker of the second session, Dr. Pavel Krečmer from the NETME Centre at the Brno University of Technology outlined the position of the Czech Republic’s industrial sector vis-a-vis the European average and other Eastern European countries. He underlined that his country is lagging with regard to Europe’s lead manufacturing nations; however, some of regions comfortably meet the 3% target. With regard to Czech companies’ position in the international value chain he pointed out that the situation differs substantially between sectors. While in the automotive industry, the sector is next to exclusively dominated by foreign multinationals, the picture is quite different in the mechanical engineering sector where at least 50% of the relevant firms are domestic. Furthermore, his region is home to renowned software companies that are world-market leaders in their respective fields (antivirus). Overall, the Brno Region has 400 companies which perform R&DI activities. Concluding he introduced the NETME Centre for New Technologies for Mechanical Engineering in Brno that has realised € 3.8m of contracted research during the period 2011-2014. Remarkably, about 40% of that funding has been earned from international customers and the centre has been successful in working with multinational firms through their headquarters abroad.

                                                         

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Secondly, Angela Fajsi of Novi Sad University presented the Vojvodina Metal Cluster from Serbia. The cluster is based on a triple helix model and has over 120 members including with over 100 SMEs. Currently, VMC is a bronze level cluster but has applied for silver status. Key challenges for local enterprises are access to financial sources, access to markets and capacity building. In the region and the country, the cluster takes on a key role in helping firms with the sharing of software and production facilities. Additionally, it plays a strong role with regard to the design of novel production models, the development of simplified networks and the integration of production plants. The cluster’s objective is to support a ‘community approach’ for setting up intelligent and flexible manufacturing and sustainable manufacturing technologies. Finally, the clusters support activities are aimed at helping small SMEs to enter international value chains. Concluding, she introduced DEVNAME, a new initiative by the VMC with 14 partners in 7 countries in part building on prior, well established international collaborations of the VNC. The project aims to provide a value network for agile manufacturing and has been submitted an INNOSUP 1 Call. After a lunch break the audience split into three parallel groups. In the group addressing the topic of Advanced materials and Industry 4.0, Dr. Giuseppe Acierno from Apulia presented the Apulian Aerospace Business Cluster (Distretto Tecnologico Aerospaziale – DTA). The aerospace cluster is important for the region not only for the staff and added value, but also for the integration and development of skills, processes and technologies, that are essential for the regional economy as a whole. The commitment of the aerospace industry to achieve the strict standards required by the global market, is developing technologies, that are transferred to other production fields. At the same time the needs of enterprises have stimulated the University to carry out R&DI activities. The aeronautical cluster of Apulia is characterised by large and small enterprises, the most part of them is situated in the Brindisi’s province. In particular, Apulia is the only Italian region where the various sectors are represented like fixed-wing (Alenia), rotary wing (AgustaWestland), engines (AVIO) and aerospace software (Space Software Italia). The aero-space research is carried out at the University of Bari, the Polytechnic of Bari and the University of Salento, and also in research centres such as: CETMA, ENEA, CNR-IMM, CNR-ISSIA and Consorzio OPTEL. As indicated next (figure on the following page), the system actions of the cluster refer to technological solutions, innovative methodologies, technology transfer, local policy, funding and market. The main “system-forming actors” are big enterprises and SMEs of the aerospace industry, banks and private VC companies, university department, public and private research centres, the Apulia Region, the Apulian Industrial Association and local agencies. The cluster is managed by DTA as a non-profit making consortium joined by the main enterprises in the aerospace industry, the universities as well as the public and private research centres of Apulia. DTA which is recognised by the Ministry of Education, University and Research (MIUR) as a technological district, operates both in the national and international context to increase the competitiveness of the regional productive system. With regard to advanced materials and industry 4.0., the presentation put emphasis on the changes in the structure of the supply chain due to innovations in the field of new composite-metals, hybrid solutions, advanced design technologies and tools or wingbox composite-titanium integral design. Regarding new aeroplanes developed by Airbus or Boeing for instance, the percentage of composites already amounts to 20% (Airbus A380) and even 50% (Boeing 787). Against this background, the DTA is specialised in certain technologies which are extremely relevant for new generations of aeroplanes (e.g. structures in composite materials, structures and components in metallic and ceramic material for engineering and aerospace

                                                         

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employments, data gathering and analysis, intelligent engineering systems). These new developments in the field of advanced materials results in significant changes of the supply chain as indicated in the right figure below. In the future, suppliers will more and more become system integrators for the OEMs – in contrast to today’s structure as system integrators belonging to the OEMs itself. Regarding the region of Apulia and its aerospace cluster, this development offers many chances but also risks. The overall objective of the region and its suppliers lies in transformation of 2nd stage manufacturers of complex goods to a 3rd stage system suppliers which functions integrating design, innovation and assembly. This transformation of the value chain represents the highest, most value added intensive stage for any supplier. Based on the presentation from Dr. Acierno, the discussants pointed to parallels between the recent developments in the aerospace industry and industries like the automotive industry where OEMs sub-contract system integrators already for quite a long time. The aerospace industry copied the specific configuration of the value chain to a certain extent. A discussant from the Business Agency of Lower Austria (ecoplus) referred to the mechatronics and plastics clusters in Lower Austria and confirmed the transformative potential of advanced materials for existing clusters and whole value chains. Mechatronics for instance is regarded as a cross-sectional discipline that unites mechanics, electronics and computing. In addition to the transformation of value chain, challenges in the field of skills were also highlighted among the discussants. Many regions, companies and universities therefore introduce new qualification measures and programmes of study. Furthermore, advanced vocational training is more than ever associated with industry 4.0. Finally, the digitalisation of the economy (and society as a whole) is regarded as the most urgent challenge for an aging workforce. Regarding additional policies or consulting support, the discussants point to the importance of a combination of both technology policy and education policy. In this regards, regions or regional clusters have to play their role as the specific needs of the business sector can be transferred into concrete actions more easily. A regular exchange of experiences between different regions and clusters in terms of “policy learning” should be practiced.

In the group addressing issues related to the Bioeconomy, Isabel Poli, from the Region of Värmland’s European Office, illustrated the development and recent trends of advanced manufacturing in bioeconomy in the region of Värmland. That region is largely covered by forests and has a long tradition in wood-based paper and pulp production, along with competences in engineering, machine production and services. Strongly driven by the paper and pulp industry, the Paper Province Cluster relies on strong cooperation between regional companies and the University of Karlstad, whose background is a technical college. The cluster has commercial partners in Finland, Norway or Holland, and also regional

                                                         

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co-operations, for instance with Norway. In the region, the paper and pulp industry developed towards a focus on non-fossil materials and a target on high-value products. Accordingly, the Värmland RIS3 strategy includes the forest-based bioeconomy alongside advanced manufacturing and complex systems as strategic priorities. Recent developments in the bioeconomy have various impacts on industrial value chains and the business population in the Värmland region. These are for instance in packaging, in the field of lignin or in bioplastics. Further examples are in woodchip dehumidification (lowering transportation costs), cardboard-based studs, fibre beddings, fossil-free and compostable food pads, etc. In general, these developments lead to new value chains, new business models and new ways to organise industrial production processes. As representatives of other European regions confirmed, sustainability aspects, the forest-based bioeconomy, and the link to the circular economy (from bio waste to bio products) are pertinent aspects related to bioeconomy and advanced manufacturing.

Subsequently, Ms Poli presented Ligno City as an example for a project in this field. It has the aim to compose high-value products out of lignin and to thus open up new markets. Ligno City offers favourable conditions for start-ups and established companies; start-ups have for instance access to lignin at fixed prices and premium specialists, access to relevant networks and to means for lean production. Concerning skills and education, Värmland benefits from good cooperation activities between the local industry and several chairs and institutes at Karlstad University whose work is linked to the paper cluster. Nonetheless, the region loses parts of its skilled personnel to the neighbouring Oslo region and Värmland faces a need for new engineers. A further challenge results from gender issues. Consequently, it remains important to retain skilled people and diversify the jobs sector in the region. In the discussion, other regions reported similar challenges resulting from the advancement (and transformation) of the bioeconomy and a lack of knowledge and capabilities needed to implement new technologies. Furthermore, the group agreed on the need for awareness-raising for bioeconomy products. On the side of local producers, an improved understanding of circular processes should be conveyed as this helps to avoid conflicts of interests (for instance concerning land use). With a view to existing and potential cooperation with other European regions, the audience highlighted various cooperations that are already in place. Värmland cooperates for instance with Norway (Oslo region), Finland, Sweden, South Holland, and is engaged in the ERRIN bioeconomy working group. In addition to that, the region is interested in initiating cooperations with regions that are engaged in the use of biomass for high-value products, and in chemical production (use of lignin). Representatives of other regions explained their cooperation activities and expressed their interest in further collaboration activities, related to the respective strengths and activities in their local environment. The discussion referred

                                                         

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for instance to the Vanguard Initiative and the bioeconomy pilot and possible relations with RIM Plus. In terms of political or consulting support, different needs were articulated. Concerning general development in the field of biotechnology, the need for funds for demonstration installations was brought forward. In terms of framework conditions, a reliable regulatory framework and coherent national strategies for the bioeconomy were considered important and necessary to advance concrete developments at regional level. Finally, the group discussed aspects related to social acceptance and customer behaviour that differ strongly between regions. In environments with an industrial tradition, openness towards new developments is typically quite high whereas in other regions more reluctant attitudes prevail, e.g. due to the influence of environmental protection movements. Consequently, awareness-raising concerning the bio-based economy and its potential benefits is considered necessary. In addition to that, the need for local networking support was brought forward. In the group addressing the topic of De- and Re-manufacturing, Dr. Giacomo Copani from ITIA-CNR presented the technological advances achieved by his institute and its consortia partners with regard to de- and re-manufacturing in the field of mechatronics. ITIA-CNR is a national R&D institute that develops technological solutions for various industrial sectors and engaged in various national and European initiatives such as “Fabbrica del Futuro”. In recent years, it has developed a Pilot Plant for De-Manufacturing of Mechatronics. The initiating momentum for these activities was the increasing recognition that Lombardy as a centre of the mechatronics industry in Italy was foregoing substantial gains by shipping off used products to Asia thus giving away much of their residual value. Against this background, the region of Lombardy made dedicated funding available from 2009 onwards and ITIA-CNR launched a multi-disciplinary, cross-departmental effort that, beyond the funding provided by the region also drew on additional sources. The aim of these activities was to explore how used products could be re-used or at least recycled locally and fed into existing production activities. In particular, the SME-based and in part fragmented structure of Lombardy’s mechatronics cluster called for new solutions that were so far not available. To close this gap, ITIA-CNR has developed different modular solutions. The pilot plant has a robotic disassembly, a remanufacturing and a recycling cell. At the moment, its main target product are printed circuit boards that, either through automatised processes or through man-machine interaction, can be de-manufactured on a scale that is relevant for SMEs. Beyond obtaining further scientific insights, all activities were from the beginning clearly aimed at developing concrete applications and viable business propositions. Dr. Copani pointed out that the small pilot plant (300 m²) had been developed in close interaction not only with master and PhD students but, more importantly, with a local community of enterprises and, by now, was making a clear business proposition already. He estimated that the solution would be market ready in about two years, and due to the close interaction during its development with great likelihood be implemented by local enterprises first. He presented a concept how a future facility for de-manufacturing could be positioned with regard to its users (SME) on the one hand and related facilities, such as laboratories licensed to dispose of certain materials, on the other. In the following discussion it was highlighted that many current business models in the field of de- and re-manufacturing continue to suffer from manifold challenges such as high labour cost and unfavourable regulations. Hence, they often have to be subsidised to a substantial extent. Regarding these challenges, Dr. Copani pointed out that with regard to the development of a market for de-manufacturing, he sees the greatest challenge in the field of regulation rather than money. If SMEs acquire additional knowledge and capabilities and have leeway to act according to their needs, the de-manufacturing business model developed by ITIA-CNR should be viable in Lombardy. However, interventions from the audience suggested that in sectors other than mechatronics regulatory challenges may still be more

                                                         

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daunting. Also, a tour de table suggested that few regions had so far developed business models to the same extent than Lombardy. Besides funding and regulation, several members of the audience pointed out that it remains difficult to estimate the size and scope of future markets for de-manufacturing so that it remains difficult to develop concrete business propositions accordingly. Also, it was pointed out that technological shifts or unfavourable developments in world market prices for certain materials will continue to challenge the sector in the future. Nonetheless, the audience was positive that different types of viable de-manufacturing business models can eventually be developed for different sectors in Europe and that activities like the Vanguard initiative pilot involving Norte (PT), Tampere, Saxony, the Basque Country, and Scotland can help to further the exchange of opinions and experiences in these area. Finally, it was discussed that the Region of Lombardy had played a pivotal role in prompting the ITIA-CNR’s strategic decision in the first place and thus created crucial momentum for the initiative around the pilot plant – even if further national and European sources of funding have in the meantime proven essential to maintain operations at their current scale. Furthermore, it was pointed out that the existing, dense landscape of regional clusters (supported by the region and its RIS3 strategy) has played an important part in creating the community of potential users that ITIA-CNR is so successfully working with. In this context, it was mentioned that in sectors other than mechatronics, de-manufacturing may be closely related to issues related to the circular economy and industrial symbiosis.

Following the three parallel sessions, the participants of the workshop reconvened for a Final Panel Session moderated by Jacek Walendowski from Technopolis Group to conclude the workshop. Firstly, he asked the Panellists about their key impressions from the presentations and discussions which during the plenary and parallel sessions. Mark Nicklas from DG GROW noted that new value chains and networks are emerging fast and that, in this context, technologies, skills and business models can be both drivers and obstacles for advanced manufacturing. A recent speech by Commissioner Bieńkowska has argued for the need to integrate value chains and also to develop the people dimension – i.e. build a relevant skills base for the manufacturing activities of the future. Dr. Manfred Kircher from KADIB pointed out as remarkable how Värmland strives to move to a chemical industry based on the wooded nature of the region. In his view that seems a sensible as long as the forests are managed sustainably. Additionally, he pointed out that sustainability monitoring and evaluations are important in the management of projects in the bio-based and circular economy as well as other fields of advanced manufacturing. Hence, respective skills should be developed. In his view, it will be among the key challenges of the coming years to ensure that advanced manufacturing is and remains sustainable and our

                                                         

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societies’ current dependence on carbon is reduced. In this regard, efforts to establish a (more) bio-based economy will be of crucial importance. Marta Marin from the Basque Country emphasised that the Basque Country has suffered substantially from the crisis but has been successful in leveraging S3 inspired activities to transform the regional economy. In the Basque Country, a focus on education and training has always been present but in the context of the S3 activities has been further developed and become more integrated. Training has now become a more important aspect of the regional strategy across 14 project areas. In the last two years, moreover, specific training activities have been developed (or adapted) to enable local SMEs to better and more seamlessly assimilate advanced manufacturing technologies. Željko Pazin from EFFRA highlighted the need to address the skills challenge and get young people interested in engineering and industry and suggested that different European regions should exchange best practices in this area. In the fast moving markets based on and related to advanced manufacturing, continual training will be needed, not least at SME level and in a manner that SME can make practical use of. To that remark, Jacek Walendowski from Technopolis pointed out that RIM analysis shows that dedicated policies for human capital development or attraction were in the past not very common among European regions or at least not considered an integral part of regional innovation policy. Pavel Krečmer from the Brno NETME Centre pointed out that the business model in Advanced Manufacturing is changing, posing substantial challenges for firms large and small. In particular, however, Europe’s SMEs are facing issues of funding and investment which in his view could be helped by the creation of suitable public-private partnerships and increased support through clusters. Jacek Walendowski underlined that there is indeed merit to support SMEs at the regional level through those institutions knowing them best and that the challenge for SMEs is to diversify their activities and tap into new markets. Carlo Gianelle from the RIS3 platform (JRC-IPTS) stated that a common denominator can also be a dual problem. In his view, successful Advanced Manufacturing requires new technological solutions as well as innovative business models and market strategies. Consequently, additional skills are required for both the development of technologies and that of business models and regional strategies should incorporate both elements. In practice, however, the S3 experience suggests that there are lots of policy narratives on technologies but less on business models. Concluding, Jacek Walendowski asked the Panel which are the business innovative project ideas in the area of Advanced Manufacturing - Industry 4.0, New Materials, New Processes and Systems, KETs, etc. – that can have an impact on the entire value chain. Željko Pazin cautioned that Brussels needs to be careful not to do too much or venture too far in the direction of picking winners. Instead, the European Commission should make appropriate support programmes available, connect people and then let the market decide. Marta Marin added that, from the perspective of the Vanguard Initiative this second step will gradually develop as enterprises follow first movers that lead by example. Hence, one role of policy could be to facilitate this coming together of companies around new emerging ideas. Dr. Manfred Kircher reiterated that carbon is the fuel of the economy and not enough is being produced so that one major point of emphasis must but on activities to recycle carbon and to use recycled carbon. Against that background, the European Commission should be vigilant to actually prompt transformation rather than to inadvertently support status quo technologies through inadequate regulation or even nominally future-oriented programmes.

                                                         

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Concluding Jacek Walendowski noted that Advanced Manufacturing means different things so that besides the in-depth pursuit of different topics and broad-based approach will remain needed. To help scope future activities under the Regional Innovation Monitor, he invited the audience to respond to the Questionnaire on the RIM Plus website and to add their own good-practice cases to the RIM Plus tool on Exchange on Advanced Manufacturing.1 In his closing remarks, Dr. Henning Kroll thanked the audience for their participation, underlining that it is and will remain the ambition of the RIM Plus initiative to support a dialogue between different strands of advanced manufacturing, identify areas for fruitful collaboration and encourage thinking outside of the box. While pursuing some of the currently most relevant cross-cutting themes, the project’s broad-based activities will continue to scout for early signals of new trends and relevant initiatives at the regional level. Against this background, he invites the audience to join the upcoming RIM Plus Workshops in October and November (exact dates t.b.a. on the RIM Plus Website).

                                                                                                                         1  See: https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor/advanced_manufacturing/instructions