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  • 1. HORIZON 2020 research and innovation for growth , employment and sustainable development September 2013 - n°29 - 10€
  • 2. Club des Organismes de Recherche Associés A pathway between French Public Research Organisations and European Institutions
  • 3. editorial ................................................................................. Laurent ULMANN Editor-in-chief, The European Files W hile the European Union faces one of the biggest economic crises since it has been created, especially in terms of public finances, it seems more than ever vital to implement an ambitious and coordinated strategy to restart the European machine. In this context and keeping this objective in mind, the European Commission will launch Horizon 2020, the 2014-2020 Framework Programmes for Research and Technological Development. Horizon 2020 is indeed the main instrument for implementing “Innovation Union”, one of the most crucial initiatives of the Europe 2020 growth strategy. With a global budget of more than 70 billion euros, this unprecedented programme of worldwide ambition is split into three pillars: excellence in science, competitive industries and tackling societal challenges. Through these three axes, in a more multidisciplinary and flexible approach than it used to be, the European Commission wants to take up scientific challenges linked to societal themes such as health and demography, food safety and agriculture, clean and safe energy, intelligent and green transports, climate change, raw materials and other resources, safety and protection of liberties, innovative and inclusive societies. This initiative fits into a global context of looking for the best cost/efficiency ratio to reduce pressure on public finances. Indeed, research and innovation being factors of employment, growth and competitiveness, the EU intends to grow a real single market for knowledge, research and innovation. To do so, several key-elements have been targeted. It is for example to simplify, clarify and thus ease the access to financings and innovation for SME’s, which are known to be one of the most significant contributors to economic activity within the EU; or to promote the appearance of new Knowledge and Innovation Communities (KIC) that gather organizations and make them collaborate on long-term projects in order to tackle major social issues, through the European Institute of Innovation and Technologies (EIT). Otherwise at the same time, Horizon 2020 should enable industries to master Key Enabling Technologies (KET) while furthering a coherent and integrated approach on innovative projects, especially on “close-to-market” projects. These technologies are indeed a solid base for innovation and a competitive lever for the European industry. Moreover, Horizon 2020 should contribute to strengthening and increasing scientific excellence in Europe, which is the base of tomorrow innovation. To make Horizon 2020 understandable for as many people as possible, simplifying the rules and procedures would have been a leitmotiv all along the preparation and negotiation phase. Upon this major change in the EU research program framework, this new issue of the European Files allows the different contributors to bring their perspective on the many subjects mentioned.
  • 4. TA B LE O F C O N TE N T S ....................................................................................... EDITORIAL Laurent Ulmann, Editor-in-chief, The European Files Horizon 2020: research and innovation for europe Europe 2020 Strategy: Innovation as a Driving Force for Growth Within the European Union 6 Horizon 2020 – Making Innovation Part and Parcel of EU Research Policy 7 Taking Leadership in the Digital Economy 8 Horizon 2020 and Digital Innovation 9 José Manuel Barroso, President of the European Commission Máire Geoghegan-Quinn, European Commissioner for Research, Innovation and Science Neelie Kroes, Vice-President and European Commissioner for Digital Agenda David Willetts, Minister of State for Universities and Science, United Kingdom KET as Tools to Make the EU More Competitive in Knowledge Economy 10 Unleashing Innovation in Europe 11 Innovation as a Factor of Growth and Employment in Europe 12 Should We Give Priority to Private Innovation in Times of Crisis of Public Finances? 13 Optimising the Benefits of Research Investment for European Jobs, Growth and Society 14 Horizon 2020 16 Geneviève Fioraso, Minister of Research and Higher Education, France Barbara KUDRYCKA, Minister of Science and Higher Education, Poland Dr. Philipp Rösler, Vice-Chancellor, Federal Minister of Economy and Technologies, Germany Jan Vapaavuori, Minister of Economic Affairs, Finland Seán Sherlock T.D., Minister of Research and Innovation, Ireland Carmen Vela Olmo, State Secretary for Research, Development and Innovation, Spain Scientific and industrial innovation Horizon 2020 – Making it Better and Easier! 18 Encouraging Innovation Through “Horizon 2020” 19 The Role of Science and Innovation for Growth and Employment 20 Stairway to Excellence 22 Innovation at the Centre of Economic Activity for Entreprises 23 Research Organisations, From Excellent Science in Europe to Real Innovation 24 The EIT – Powering World-Class Innovation and Entrepreneurship Across Europe 25 The European Research Council: Scientific Excellence Through Frontier Research 26 Horizon 2020 and the Future of SMEs 27 Research and Technology Organisations: Key Players in Horizon 2020 28 Robert-Jan SMITS, Director General, DG Research and Innovation, European Commission Teresa RIERA MADURELL, MEP, Group of the Progressive Alliance of Socialists and Democrats, European Parliament, SD ITRE Coordinator Dominique RISTORI, Director-General Joint Research Centre (JRC), European Commission Maria Da Graça Carvalho, MEP, Group of the European People’s Party (Christian Democrats), European Parliament Daniel Calleja, Director General of the DG Enterprise and Industry, European Commission Amanda Crowfoot, Director of Science Europe Alexander von Gabain, Chairman of the EIT Governing Board Helga Nowotny, President of the European Research Council Philippe Lamberts, MEP, Group of the Greens/European Free Alliance, European Parliament, Rapporteur on the European Institute of Innovation and Technology 2014-2020 and shadow rapporteur on the Horizon 2020 package Muriel Attané, Secretary General of EARTO
  • 5. ....................................................................................... EUREKA, a Key Instrument in the Horizon 2020’s Objective to Complete the European Research Area 30 Broadening the Innovation Landscape to Secure Jobs and Growth 32 How Horizon 2020 Improves the Competitiveness of Our Industry 33 Horizon 2020: From Research to Innovation 34 Kristin Danielsen, Chairwoman of EUREKA Malcolm Harbour, MEP, Group of the European Conservatives and Reformists, European Parliament Chairman of the Internal Market and Consumer Protection Committee (IMCO) Nathalie ERRARD, Senior Vice President, EADS Gerhard Huemer, UEAPME, Economic and Fiscal Policy Director Innovation in energetic evolutions, food safety and agriculture Putting Means in Common to Enhance Research and Innovation Jean-Pierre AUDY, MEP, Group of the European People’s Party (Christian Democrats), European Parliament 36 Maximising the Impact of European RD on the EU’s Energy, Climate and Growth Agendas: an Industrial Perspective 37 Martha Crawford-Heitzmann, Senior Executive Vice President Research, Development and Innovation, AREVA Innovations From Technological Breakthroughs: Keys to a Successful Energy Transition 38 RD and Innovation for “Green Growth” – the CIP Eco-Innovation Initiative 39 Reducing Energy Dependency by Investing in Alternative Energies 40 The Role of KETs (Key Enabling Technologies) in the 2020 European Innovation Strategy 42 The Potential of the Construction Sector for the Energy Efficiency Challenge 44 “Smart Grids”: an Evolution or a Revolution? 46 Science in Support of Innovation 49 Bernard BIGOT, Chairman of the CEA (Commissariat à l’Energie Atomique et aux Energies Alternatives) Patrick Lambert, Director, Executive Agency for Competitiveness and Innovation (EACI) of the European Commission Fulvio Conti, Enel Group CEO and General Manager Antti Ilmari Peltomäki, Deputy Director General of the DG Enterprise and Industry, European Commission Emmanuel Forest, President Energy Efficient Building Association (E2BA), CEO Bouygues Europe Bernard DELPECH, Deputy director of RD of the EDF Group Bernhard Url, Deputising Executive Director, EFSA Innovation for citizens: employment, social inclusion, education and health Putting People at the Centre of the Knowledge Triangle: the Cases of the EIT and MSCA 50 Public Service and Innovation – an Opportunity Brought by Necessity 51 Horizon2020 and the Innovative Medicines Initiative: Promoting Public-Private Partnerships to Improve Public Health EFPIA, IMI, GSK, European Brand Council 52 KIC InnoEnergy in the H2020 Landscape Claude Ayache, KIC Innoenergy, SE, Business Development European Affairs 54 Urban Innovation: a Crucial Stake for Reworking Cities 56 Sunset for Child Poverty on the Horizon? 58 Jan TRUSZCZYŃSKI, Director General, DG Education, training, culture and youth, European Commission Edit HERCZOG, MEP, Group of the Progressive Alliance of Socialists Democrats, European Parliament, Treasurer of the SD Group Julie DE BRUX, Studies and Prospective Manager at VINCI Concessions, Associate Research Fellow at Sorbonne Business School Heather Roy, President, Social Platform Management : The European Files / Les Dossiers Européens - 19 rue Lincoln, 1180 Brussels - - ISSN 1636-6085 - email: Publication Director and Editor-in-Chief: Laurent ULMANN Assistant: Antoine LESSERTEUR
  • 6. Horizon 2020: research and innovation for europe Europe 2020 Strategy: Innovation as a Driving Force for Growth Within the European Union José Manuel Barroso President of the European Commission E urope 2020, our common strategy for sustainable growth and employment, is our compass through the worst financial and economic storm Europe has been through since the end of the Second World War. This long term vision of cleaner, more innovative, more connected and job-rich economy provides us with a clear direction despite the many headwinds we have faced and are still facing. Europe must consolidate its public finances, but in ways that make its economy emerge stronger from the crisis. European Commission’s key message – to focus investment in areas that will support sustainable growth and employment – has been heard. The European Union budget for the next seven years is smaller than its predecessor but increases spending on research and innovation by a quarter – with around €70 billion – and foresees more targeted use of other growth-enhancing funds. This is why I welcome the choice of the Horizon 2020 programme as the focus of this edition of the European Files, which sets out in detail how the research budget will be put to work for the benefit of our citizens. Throughout the crisis, average European Union spending on Research and Development has remained remarkably stable at two percent of gross domestic product. There is a clear consensus across society that this investment is vital for our future wellbeing. Nonetheless, we are still far from the goal set a decade ago of devoting three percent of GDP to research. Our traditional competitors, 6 The European Files the United States and Japan, still spend more than us, and new economic powers, such as South Korea, considerably more as a percentage of GDP. We have great scientists and leadership positions in many industries, but there is evidence that Europe lags in turning cutting-edge ideas into patentable products and services, particularly in the emerging technologies of tomorrow. Much of the difference with our competitors can be explained by lower private sector investments in RD. Under Horizon 2020, we will join forces with industry to invest €18 billion in areas vital to the success of our economies and our Europe 2020 strategy. And there will be a significant share of dedicated European Union funds available for innovative small and medium-sized enterprises. We will support five public-private partnerships in innovative medicines, aeronautics, bio-based industries, fuel cells and hydrogen, and electronics, as well as several public-public partnerships, with a leverage effect amounting to an overall investment of €22 billion over the next seven years. By working together, these research partnerships will boost the competitiveness of European Union businesses in sectors that already provide more than four million jobs. They will also help accelerate the search for solutions to societal challenges such as reducing carbon emissions or providing new antibiotics. But investment is only part of the story. We must also continuously work to improve the framework conditions in which our innovators and companies do business and to make our research systems more efficient, ending wasteful duplication across borders and joining forces where is makes sense. For example, we are committed through the SESAR research programme to reduce congestion in our airspace, a problem which costs airlines and their customers some €5 billion a year. This is why the aim of building a true “Innovation Union” is as valid today as it was when we presented it in 2010 as one of the seven Europe 2020 flagship initiatives. It is about fostering an environment, an ecosystem, that rewards and encourages new solutions for today’s challenges, as well as those we will face tomorrow, as our populations age and global competition increases for finite natural resources. More than 80 percent of the initiatives are on track – from last year’s agreement on a unitary patent to a capital increase at the European Investment Bank, to expand the finance on offer for innovative firms. But we cannot afford to stand still. We must also be alert to new challenges as they arise and stand ready to respond. The 2013 Innovation Union Scoreboard shows that, as a result of the crisis, innovation and growth disparities between some European regions have increased. We need to unleash a fresh wave of reforms to make national higher education, research and innovation systems more effective and close the “innovation divide” between Member States, with the aim of building a true European Research Area. As Europe shows signs of recovery, we need to bring fresh dynamism to its economy. Traditional industries in which Europe excels need to develop new applications and new business models in order to grow and maintain their competitive advantage, while in ICT-based businesses and in emerging sectors Europe needs more high-growth firms and innovation-based entrepreneurship. This calls for and innovation-driven structural change. Horizon 2020 can help drive this process for the benefit of all European citizens.
  • 7. Horizon 2020 – Making Innovation Part and Parcel of EU Research Policy Máire Geoghegan-Quinn European Commissioner for Research, Innovation and Science K nowledge is the currency of the 21st century, but to truly have an impact on our economy good ideas have to be put to good use. That is why when we set out to design a new research programme for the European Union we thought hard about how to support the whole innovation chain, from scientific breakthrough to real-world application. The result is Horizon 2020 – the EU programme for research and innovation. Research aims to generate new knowledge, either to solve specific challenges or simply to satisfy human curiosity. These goals are equally valuable. Intellectual inquiry is a worthwhile pursuit in itself, and science helps satisfy our desire to understand the world around us. It reveals to us the most profound ideas. Innovation is then about creating economic value out of the knowledge gained, by turning it into new products, processes or services or, more simply, new ways of doing things. With Horizon 2020, we have brought both these sides together within a single framework programme. Europe has always been strong at advancing science, thanks to its centuries old university system and the cultural values that have underpinned our society since the Enlightenment. But too often in recent years we have seen our bright ideas taken up more quickly by other regions in the world to the detriment of growth and employment here. It sometimes seems that we are happier dreaming about the future than building it. This is why the European Commission has called for the European Union to become an ‘Innovation Union’, the name of our flagship initiative under the Europe 2020 strategy. Our goal is to create a sustainable economy fuelled by ideas and creativity, capable of linking into global value chains, seizing opportunities, capturing new markets and creating highquality jobs. Horizon 2020 will help us meet these objectives in multiple ways through its three interconnected pillars. Firstly, more money than ever will go to fundamental research, or “blue sky” thinking. Thanks to European Research Council and Marie Skłodowska-Curie grants, introduced in 2007, Europe has slowed the flood of top talent to other regions of the world. Mobility is to be welcomed when it is driven by scientific opportunity, but not when the root cause is personal frustration with one’s career chances at home. This is why in parallel we are determined to put in place a European Research Area founded on more transparent and open opportunities for all. Secondly, significant resources will go to projects that support Europe’s industrial competitiveness. One example is our investment in Key Enabling Technologies. These technologies, such as advanced manufacturing, nanotechnology and biotechnology, underpin innovation across many industries and sectors. We will invest to establish a lead in these areas. We will also build on the industrial partnerships launched in recent years and provide more funding than ever before for small and medium-sized enterprises (SMEs). We need to match our competitors’ level of business expenditure on RD. Through a dedicated SME Instrument we will provide funding for small firms to bridge the gap between research and innovation. Support will be provided for all types of innovation, including service, non-technological and social innovations. We will also expand access to finance for companies through loans, loan guarantees or equity provided by financial intermediaries such as the European Investment Fund. Thirdly, we will encourage cross-disciplinary, innovative thinking to tackle the big societal challenges that confront us, from ageing populations to climate change to secure energy supplies. The European Institute of Innovation and Technology (EIT) – under the Horizon umbrella – will contribute through its Knowledge and Innovation Communities, fostering links between higher education, research and innovation and the creation of start-ups and spin offs. In Horizon 2020, more money will be available for testing, prototyping, demonstration and pilot type activities, for business driven RD, for promoting entrepreneurship and risk taking, and for shaping demand for innovative products and services. We will provide more awards and prizes, encouragement for the most innovative public authorities and the most creative thinkers. Most importantly, we will make participation easier by cutting red tape for our researchers and businesses. We also want to widen participation in Horizon 2020 to bridge Europe’s innovation divide. The Commission’s Regional Innovation Scoreboard for 2012 shows that many countries and regions in Europe need to do more. While research excellence may not be everywhere, I firmly believe that it can develop and thrive anywhere, and Horizon 2020 will lend a helping hand by encouraging links between institutions in strong and under-performing regions. But countries must also use the possibilities offered by the new European Structural and Investment Funds to build up their own RI infrastructures. We all need to think innovatively to thrive in today’s world. No single programme will make this happen alone, but Horizon 2020 is an important piece of the puzzle. The European Files 7
  • 8. Horizon 2020: research and innovation for europe Taking Leadership in the Digital Economy Neelie Kroes Vice-President and European Commissioner for Digital Agenda T he internet is profoundly shaping our modern society and has become a vital infrastructure for the world’s economy. The web only started two decades ago as an important tool for improving communication. Since then it has rapidly transformed society, as well as all sectors of the economy and gave rise to the emergence of new markets. By now it is widely accepted that the growth of the so called ‘digital economy’ not only has a wide impact on the traditional economy, but also has become more and more intertwined with it. One simply does not exist without the other. The secret of its success has been the combination of widespread network coverage, sufficient data transfer capacity, affordable devices for citizens and connectivity options. This has encouraged innovation in digital products and services, with a clear impact on economic growth, social behaviour and addressing societal challenges. Today we cannot imagine our logistic and transport systems, financial services, telecommunications, healthcare, security services, the energy sector or modern agriculture to function without the use of digital technologies and the network infrastructure to support these. From Bosch to Schneider Electric, from Siemens to Alcatel and Telefonica, from STMicroelectronics, ARM to HBSC, Thales or Philips, Danone, Shell or Unilever and media giants like Bertelsmann: the European RD intensive industry, SME’s, research institutes, mass media corporations and telecom operators are all part of the same digital value chain. Further growth and development of the digital economy and society will not only depend on investments in networks and technological progress, but also whether citizens, businesses and research organisations can rely on the internet and feel that their data are secure. All these stakeholders, as one could say, participate 8 The European Files in the digital ecosystem and together they define the future of our European society and economy. The digital economic value chain is part of a digital ecosystem in the broadest sense of the word. And this value chain has the potential to take global leadership in the digital economy in key sectors, under the right conditions. That Europe can achieve this digital leadership has been proven in the 90’s, when Europe held a strong position in ICT – supported by a procompetitive EU telecommunications framework, stimulated by investments in innovation and standards like GSM, 3G and strengthening the position of world leading companies such as Nokia and Ericsson. The situation nowadays, as we all now, is quite different from then. As a result of the digital economy, competition has become more global, faster and much more intense. And Europe is lagging behind, even more so because of the threat that the economic crisis and constraints on investments are eroding European competitiveness. This crisis calls for industry and governments to make structural reforms and at the same time to embrace digital technology to the full. The future of our key economic sectors depends on improving connectivity through the availability of fast, reliable and secure networks for its stakeholders, the use of digital technologies, an open internet and reinforcing cooperation on the whole digital value chain. Why is this important? The development of the internet is entering its third phase. After having evolved from a data network connecting PC’s with wires, currently wireless connections between smart phones or tablets are the key source of recent internet expansions, product and service innovations and an exponential growth of data. For example, the last two years 90% of our existing data has been produced. In two days in 2013 the world produced as much data as in the year 2003. Cloud computing, data mining and big data analytics will increasingly play a decisive role in new business models. In this third phase the rise of the ‘internet of things’ is also expected to play a dominant role, through which devices at home or in public space will be interconnected to assist, for instance traffic management, energy efficiency, healthy ageing, or the retail industry. The European high tech industry holds a strong technological position to play a leading role in the internet of things and together with other partners from the equipment and manufacturing industry in the digital ecosystem they can create the products and services for the near future which serve the whole value chain. These products and services will also generate huge amounts of data. To manage this we need high speed, and secure access to the internet, which requires investments in super-fast fixed and mobile broadband infrastructure. As such the European telecom sector is the backbone of our digital economy. As the OECD recently pointed out in its Communications Outlook, growth in traditional services as SMS and telephony is expected to be limited. The future business models for the telecom sector will be based on large amounts of data. Revenues corresponding to data services are growing at double digit rates in most OECD countries, and transport of data is now the major source of growth for network operators, according to the OECD. And Europe has to be ready for this. Being too late is more costly, than being too early. Being in time is even better. And the moment is now. Just looking at the Cloud Strategy, Start Up Europe, the Micro and Nano strategy or the actions on cyber security: Our European Digital Agenda has all the right building blocks in place to come out of this crises even stronger. The challenge is to step up the actions, to reinforce the coherence of the whole innovative value chain of the European Digital ecosystem and realise its potential. For this, the next logical step is to simplify regulation in order to have an even more competitive telecoms sector, which can serve as the sustainable backbone of our digital economy. In connection, Europe needs more and better coordinated spectrum, standardised access, an open internet, reduced roaming costs and consumer protection. It goes without saying that internet security and more autonomy will become even stronger a priority across the digital value chain: From creating a European cloud to equipment manufacturing, from the chips to the web platforms and operating systems. Where the telecom sector goes, Europe’s digital economy goes.
  • 9. Horizon 2020 and Digital Innovation David Willetts Minister of State for Universities and Science, United Kingdom I nnovation in the 21st century will increasingly draw on a wide range of capabilities and skills. If Europe is to be the place where future innovations are brought to the market and the grand challenges of our time addressed we need funding programmes which support RD and innovation all the way from blue skies research to nearto-market development activities. Additionally the insights of the social sciences and the humanities need to be embedded in projects from the outset to ensure that the human dimension of innovation is addressed. Support needs to be available with minimal bureaucratic complexity – nothing discourages innovative businesses, particularly SMEs, more than endless form filling. I am glad to say that Horizon 2020 meets all these criteria. However Horizon 2020 is not the universal panacea – we will still need to ensure the EU has an environment that welcomes innovation. We must have regulatory environments that actively support and promote bringing innovative solutions to market at both EU and Member State levels: without that we are simply wasting our investments. Given their underpinning role in innovation, RD in ICTs will be a key component of Horizon 2020. I welcome support for RDI in the ICT Key Enabling Technologies (KETs) – and for other ICTs that are not KETs, but are nevertheless vital, such as software technologies. Here I will highlight three examples of important activity in ICT for which we need concerted EU-level action of the kind that Horizon 2020 will allow – big data, smart cities and 5G. The challenge of big-data, one of our “8 great technologies”, is an area of massive innovation potential that Horizon 2020 can help us tap. For vast dynamic datasets or simulations requiring millions of compute cycles, we need: world-leading e-infrastructures; software and middleware that can keep up with rapidly evolving scientific methodologies and advances in hardware; and a highly skilled workforce. In the UK we have established the cross-sector E-infrastructure Leadership Council to advise us on all aspects of e-infrastructure including skills. Recently the government invested £37.5M in developing The Hartree Centre, a premier supercomputer embedded within a highly skilled team. We need more such examples to strengthen Europe’s leading position in RDI and to maintain and grow its economic competitiveness. To this end the Public Private Partnership on High Performance Computing provides the EU with an opportunity to promote collaborations between the HPC community in the EU and with the sectors that can and should benefit from it. Support for RD in ICT, more secure systems, and open data need to come together to meet the challenges of smart cities. With urbanisation in the EU around 70%, and higher in the more developed Member States, these challenges are, perhaps, at their most acute in Europe. This is resulting in the search for more innovative approaches to managing our urban systems. We need to make our city environments more sustainable, “liveable” and resilient to economic shocks by linking ICT systems to a modern physical infrastructure and the data generated through the “Internet of Things”. This will provide business and citizens with the information they need, when they need it. In the UK we are working hard to achieve this change in the way that services are delivered. In addition to pilots and demonstrators on smart grids, telecare and intelligent transport systems, we have launched a number of demonstrators on how these services might be integrated. Our Technology Strategy Board has launched a Future Cities Catapult Centre, with support of £50M over five years, to work with cities, business and academia to develop and disseminate integrated approaches to urban services. UK firms, such as Arup, Mott MacDonald and Living PlanIT, are at the forefront of designing future cities, and so I hope that, as we develop further UK experience and capability, UK organisations will be able to play an active role in the European Innovation Partnership on Smart Cities and Communities launched last October. In the UK we are also looking to drive innovation through our Industrial Strategies. For example the Information Economy Industrial Strategy highlights the importance of 5G and describes how the Innovation Centre at the University of Surrey will build on an initial investment of £50M from a combination Government and mobile operators and infrastructure providers to establish a test-bed for 5G. We foresee strong links between this work and the 5G Public Private Partnership. ICT-related investments in Horizon 2020 will have an underpinning role in innovation. We need effective co-ordination between technology development, integration with other RD areas and improvements in human capital combined with strong links to national strategies and investments. This, combined with an environment where regulation pulls-through innovation, can make the EU the ideal environment for innovation to 2020 and beyond. The European Files 9
  • 10. Horizon 2020: research and innovation for europe KET as Tools to Make the EU More Competitive in Knowledge Economy Geneviève Fioraso © Benjamin Chelly Minister of Research and Higher Education, France What would bring the deployment of Key Enabling Technologies (KETs) to the European economy? The road to a more sustainable and wealthier economy requires new goods and services. Whilst significant part of such goods and services that will be available in the markets of the 2020’s are as yet undetermined, driving forces behind their development will be research and innovation and the deployment of Key Enabling Technologies (KETs) defined as micro- and nanoelectronics, photonics, nanotechnologies, biotechnologies, advanced materials and advanced manufacturing systems. Applications of KETs directly or indirectly stimulate competitiveness and generate jobs, growth and wealth in the European economy. We particularly need to concentrate our efforts on economic sectors which are knowledge intensive, bear strong growth potential and will create applications tackling great societal challenges. In fact, many application sectors are already present in EU Member States, e.g. automotive, chemicals, electronics, textiles, energy, environment, pharmaceuticals, health, construction, aerospace and telecommunication. In order to support growth and job creation, we have to reinforce Europe’s manufacturing capacity because we are losing market share. KETs’ pilot lines should help in this path. What is the added value of European Union regarding KET? Key Enabling Technologies (KETs) are some of these key sectors deserving a strong and coherent European industrial strategy, mobilizing all relevant EU policies and the European Commission, together with Member States, leading an extensive strategy aimed at fostering competitiveness of European industries in the knowledge economy. 10 The European Files It has been initiated by the European Commission High Level Group on Key Enabling Technologies (HLG-KETs) under the vision of Vice-President of the European Commission M. Antonio TAJANI and the presidency of M. Jean Therme, Director of Technological Research, CEA, France. It was outlined in the communication on Key Enabling Technologies A European strategy for Key Enabling Technologies – A bridge to growth and jobs proposed by Vice-President Tajani in June 2012 and in the Council conclusions on Key Enabling Technologies of 11 October 2012. This is exactly the vision that we are expecting from the European Union in the current critical economic situation of Europe. France’s priority in this context is to focus European and national policies and funding on the restoration of economic growth and the creation of jobs. This is the priority that the French President has pursued in the Multiannual Financial Framework negotiations. For all these Key Enabling Technologies, which are so critical for the development of applications, our responsibility of national and European decision makers is to ensure Europe’s capacity to gain leadership in development and deployment of these technologies and to establish the most favourable conditions for attracting private investments and strengthen industrial competitiveness. What has been achieved so far and what remains to be done? More than one year after the announcement of the EU strategy on KETs, time has come to look at the first results: - regarding support to RD in KETs, encouraging actions have been already launched under the 7th framework programme, like the ENIAC pilot lines, that should be pursued with Horizon 2020; however, we still need to have a clearer picture on how EU/national/regional funding sources will be combined in support to large scale multiKET projects; - as recalled by Vice-President Neelie KROES on the occasion of the communication on New European Industrial Strategy for Electronics, competition policy matters to properly support KETs: here, we need the Commission to progress on the adaptation of state aid rules to the specific role played by KETs in Europe’s competitiveness. We need urgently to successfully implement the European strategy proposed by the Commission and make Europe “the place” for the future of Micro and Nano Electronics industry! What is your personal involvement in promoting KET? Together with Mr Arnaud Montebourg, French Minister for Industrial Renewal, I took the initiative to organise a ministerial KET Summit on February 7 in Grenoble, within the innovation pole for micro nanotechnologies MINATEC, with the participation of Vice-President Tajani and my colleagues ministers from Germany, Italy, Spain and UK. It provided a unique opportunity to engage and agree upon a series of KETs-related actions for European competitiveness and economic growth. In particular, we agreed on the necessity to ensure the implementation of the recommendations of the High-Level Group and of the KETs strategy as set out in the European Commission’s communication of 26 June 2012. We also called for establishing within Horizon 2020 a coherent and strategic approach to research and innovation programming for KETs. We asked for effective framework to synergistically combine EU funding from Horizon 2020 grants, EIB financial instruments and Structural funds on KETs research and innovation projects. And finally, we asked the European Commission to review the effectiveness of the State Aid framework for Research Development and Innovation, including the impact on industrial investment, in order to make sure that it is consistent with the goal of creating the conditions for European competitiveness vis-à-vis the rest of the world. KET’s strategy has been integrated within the french “Programme d’Investissements d’Avenir” and the Research Agenda “France Europe 2020” I launched in May 21. I am convinced that these technologies are strategic to face future societal challenges as Ageing, Health, Climate Change, Sustainable and renewable energies, security...
  • 11. Unleashing Innovation in Europe Barbara KUDRYCKA Minister of Science and Higher Education, Poland T he whole world held its breath when Felix Baumgartner jumped from more than 38,969 meters above the Earth, breaking the speed of sound before releasing his parachute. What makes a man want to jump out of space and free fall at supersonic speeds kilometres down to earth? Without knowing if he could land safely or not. Money and fame may have nothing to do with it. The most important is the desire to do something that no one else has done before. This is exactly what links Felix Baumgartner and world top innovators. In Europe, we need people who are willing to risk creating what was once thought impossible, people who are willing to build new, innovative technologies. We should motivate them and focus on giving them the best working conditions possible. For several years now, Polish government and the Ministry of Science and Higher Education has been building a system aimed at fostering innovation. Compulsory maths exam at the end of secondary education, promotion of engineering studies, increased funds on research, construction of ultra-modern laboratories, tax deductions for research, transition of property rights to scientists – these are only few examples of what new regulations have to offer. People – long-term investment Since 2007, the number of graduates from faculties of key importance for knowledge-based economy has grown by 20%. This is the result of the special government program. We have spent almost 1.2 billion PLN for modernising engineering studies and granting scholarships for SMT students. What is more, outstanding students receive grants for their research projects – 7 million PLN Future Generation Programme and Diamond Grants of more than 30 million PLN. The world’s media – The Guardian, Financial Times and NBC News – have recently reported that young talented Poles, speaking English and other foreign languages fluently, are the main attraction for investors. During the last few years, we have built from scratch a system to support young scientists. They can receive grants from multiple institutions: the Ministry, the National Research and Development Centre and the National Science Centre. The latter is obliged to spend over 30% of its budget for grants dedicated to young researchers. Funding for applied research has been steadily increasing. While applying the modern approach to research funding, we are implementing the public-private partnership programmes. The PPP model is applied in a number of highly-funded projects focused on delivering innovative solutions in energy sector, aviation and medicine. The best way to increase the effectiveness of publicly funded projects and investments is to define research agendas in cooperation with business. In that way they can really meet the needs of business owners. All Across Europe – including Poland – we are still lacking people who can move easily between two worlds: science and economy. This is why we are mostly proud of our 500 Top Innovators Programme. It’s a 2-month intensive course at the top world universities (Berkley, Stanford, Cambridge) aimed at training by 2015 up to 500 best Polish scientists and representatives of innovation centres. We believe that the participants, inspired by the experience and knowledge gained from the greatest innovators of modern science and business, will bring new inspirations to help build culture of innovation in Poland. After returning from Silicon Valley winners of the programme told me that they had caught a virus of innovation. Now it infects their universities and research institutes. Education outcomes will translate into innovation in the next few years. And what about now? Create the right conditions for science and do not disturb Perhaps this is what matters the most, good working conditions for those who create innovations: scientists. Over the last 6 years Poland has massively invested in research and innovation sector. Thanks to European funds we have invested more than 26 billion PLN in over 200 new laboratories, reconstruction of another 2000 and top-class research equipment. Poland today has one of the world’s most modern RD infrastructure that is ready to welcome top-class researchers and ambitious international projects. The small number of patents or limited level of research commercialization is not a result of low creativity among scientists in Poland, but it’s because they work in an environment that doesn’t encourage them enough to explore and to think about their own financial matters. We’re trying to change that by many new instruments, first of all by transferring property rights to inventions to the scientists. This process will be enhanced by new proinnovation tax regulations we are going to implement in a close future. Private companies will be allowed to donate 1% corporate income tax to chosen academic institution. This will help us in promoting stronger cooperation between business and science in Poland. A new system for assessing quality performance of scientific institutions will rate the level of research commercialization and the number of inventions. This could be a good hint for investors on where to invest their funds. Moreover, we are liberalizing the law on public procurement in order to facilitate researchers’ investments in research equipment. We estimate that this legislative change will accelerate research outcomes by up to one year. To help scientists and business to carry out applied projects we want to finance the final stages of research commercialization in order to overcome so-called valley of death that is blocking the progress of scientific innovations from the laboratory to commercially successful businesses. If we look at research outcomes from the demandsupply perspective, we can clearly see that the innovation market depends strongly on growing (or not) demand. If the supply is created with a large share of the state budget, the demand depends strongly on economic sector. I believe that Horizon 2020 will help Europe strengthen the bridges between science and the economy. The European Files 11
  • 12. Horizon 2020: research and innovation for europe Innovation as a Factor of Growth and Employment in Europe Dr. Philipp Rösler Vice-Chancellor, Federal Minister of Economy and Technologies, Germany E uropean innovation and economic power are essential to ensure future prosperity for all Europeans. In addition to a lack of fiscal discipline, it is principally the problems of competitiveness of individual countries that have led to the emergence of the euro crisis. In the face of global competition the task now is to re-strengthen growth and competitiveness in Europe. There is no magic formula here; each country faces its own challenges. Important areas for action are an efficient public administration and constitutional structures, a modern infrastructure, a wage policy based on productivity, a sound public financial policy and optimal conditions for education, research and innovation. New products and services are the key to strengthening long-term growth and prosperity. With innovation we can successfully overcome societal challenges – I need only 12 The European Files mention climate change or demographic development. All EU Member States, and we in Germany, are challenged to further improve the business environment and to boost research and innovation in these times of a much-needed high-level consolidation policy. This applies particularly to those euro countries needing to address weaknesses in competition with structural reforms following the loss of their own monetary policies and flexible exchange rates. It is possible that these countries need the solidarity and support of currently economically stronger states. I particularly welcome, therefore, research and innovation that play in important role in the financial framework of the EU: Increased budgets for European research funding, particularly through the ‘Horizon 2020’ programme, are being provided. In European funding, it is all about tackling global challenges and developing key European technologies. But this can only be a small contribution. The largest share of research and innovation funding must come from the private sector. The EU has already decided since the turn of the century to invest 3% of GDP on research, development and innovation, but we are currently only at 2%. With an EU gross domestic product of 13 trillion euros, this means a gap of about € 130 billion. This demonstrates that neither the EU budget or the national budgets alone are able to fill this gap. First and foremost, we must provide a framework to allow companies to significantly increase their research and innovation efforts. This includes allowing the greatest possible freedom for creativity and entrepreneurship, but also stable and proper cost arrangements, such as for the protection of intellectual property. We need a social environment that is open to new technologies. We should not only look at the technological risks but also at the opportunities. This applies for example in genetic engineering, with its capacity to cure diseases thanks to its further development. Finally, we should also allow those with new ideas and products to achieve the social recognition they deserve, including incidentally, those who have to have a second go at establishing their businesses. For that is the essence of innovation: You never know where you land. We should continually be embracing renewal as we go forward.
  • 13. Should We Give Priority to Private Innovation in Times of Crisis of Public Finances? Jan Vapaavuori Minister of Economic Affairs, Finland H orizon 2020, the EU Framework Programme for Research and Innovation 2014-2020, comes into effect at a time when Europe faces the most severe economic challenges it has experienced during the industrial era. Europe is losing its competitiveness, an increasing share of global research and development is moving to Asia, and European industries face enormous pressure for structural change. In my view, the timing of Horizon 2020, and how it has been designed towards strengthening the innovation capacity of Europe, will provide us with ample tools for meeting these challenges. Horizon 2020, the Innovation Union and the European Research Area are set to respond to the economic crisis, invest in future jobs and growth, address great societal challenges and help us reach the goal of strengthening the EU’s global position in research and innovation. It is important, particularly in times of crisis of public finances, that public funding leverages investment and engagement of the private sector in innovation in the most effective way. There are several features in Horizon 2020 that facilitate and encourage such engagement by enterprises. Some of them may serve as good practices for Member States that also need to streamline their research and innovation funding programmes, not only to save administrative costs but also to attract businesses on a wider basis as key players in the programmes . Horizon 2020 will bring a host of initiatives and programmes together, and offer a more simple access to funding compared to previous programmes. Reducing the number of sets of rules and leveling differences of funding rates both between and within projects will facilitate participation of enterprises in research and innovation projects. Furthermore, I warmly welcome many of the changes that increase the attractiveness of research projects to businesses, including the widening of the concept of innovation to new forms of innovation and extending funding to cover the whole innovation cycle with funding instruments ranging from pre-commercial procurement to inducement prizes, dedicated loans and equity funding. Finland has been the top performer in the EU in business RD spending (2.67% of GDP in 2011 and some 70 % of the overall national RD expenditure). However, business RD investments have concentrated in a rather small number of large firms and are currently affected by the difficult economic situation. The Finnish Government’s introduction of RD tax incentives to complement direct RDI funding is expected to increase the number of enterprises carrying out RDI activities. However, we still face the challenge of getting more SMEs to engage in innovation activities. Also at the European level, I find it important that SMEs are provided with simple access to Horizon 2020 projects. Large companies often have better resources to work their way through the selection process than smaller companies, and they may also have a longer term research and innovation strategies. To mobilize the innovation potential of SMEs, Horizon 2020 needs to offer innovative SMEs clear strategic objectives and benefits gained by networking of companies. A clearly stated objective in the Finnish innovation policy is to give the business sector a greater responsibility in defining strategic goals for their long-term research efforts. Six Strategic Centers for Science, Technology and Innovation (SHOKs) were established in nationally important fields of research to provide funding and a platform for companies, universities and research institutes to work together in the spirit of open innovation. The SHOKs in Finland are expected to be natural partners for the European Institute of Technology at national level. In Horizon 2020, we should also expect the business sector to assume greater responsibility in defining long-term research goals. The Competitive Industries objective in Horizon 2020 is set to make Europe a more attractive location to invest in research and innovation by promoting activities where businesses set the agenda. It will provide major investment in key industrial technologies, maximise the growth potential of European companies by providing them with adequate levels of finance and help innovative SMEs to grow into world-leading companies. A key prerequisite for Europe’s attractiveness to business investment is that Horizon 2020 succeeds in its goal to make Europe a leader in industrial technologies. Major research efforts focusing on key enabling technologies will provide a strong basis for this. Responding to increasingly complex societal challenges requires that all actors in the society participate in innovation. This includes the public sector. Public-private partnerships and public procurement of innovative solutions to public sector challenges will provide useful tools for encouraging businesses to help the public sector fulfill its tasks more efficiently in new innovative ways. All in all, we cannot afford leaving the power of the business sector to innovate untapped, when striving to meet our goals for 2020. The European Files 13
  • 14. Horizon 2020: research and innovation for europe Optimising the Benefits of Research Investment for European Jobs, Growth and Society Seán Sherlock T.D.1 Minister of Research and Innovation, Ireland I t is my strong belief that the political agreement that the Irish Presidency helped to secure between the Council, the Commission and the European Parliament on the EU’s €70bn research and innovation programme, Horizon 2020, will boost jobs and growth across the European Union. The Irish Government’s priorities for the Presidency of the Council of the EU were Stability, Jobs and Growth. We are convinced of the massive role that Horizon 2020 has to play in helping the EU achieve these objectives. That’s why we worked hard since January, through lengthy intensive negotiations, to secure political agreement on the new research and innovation programme for the period 2014-2020. Research and innovation are key drivers of growth and job creation. The strategic approach to research and innovation contained in Horizon 2020 will develop, diffuse and drive research across the European Union. I know from our experience in Ireland that research and development drives exports and profitability and helps to secure and grow jobs. The increased support for SMEs within Horizon 2020 will help to increase the economic benefits and job creation flowing from the research conducted. I would like to pay tribute to Commissioner Geoghegan-Quinn and her team in DG Research for their huge personal commitment and creativity in championing within the Commission, a framework programme for research that will be the engine of the Union’s recovery. Great credit is also due to the rapporteurs 14 The European Files and negotiating team of the European Parliament who showed great integrity and commitment in their approach to this challenging dossier. It was a very complex process to reconcile the various interests of all the parties involved. However, I welcomed the shared commitment among all the parties concerned in advancing these negotiations. The programme will use a simplified funding model which means that a greater number of businesses and research providers – small medium and large – can access the programme with less bureaucracy. This in turn means greater diversity in research, greater opportunities for business and greater benefits for the economy at large. The inclusion of specific measures for widening of participation will also further enhance a diverse range of research and research bodies. Importantly, funding, via the European Institute of Innovation and Technology, for projects in the areas of healthy living and active ageing, raw materials, food and added value manufacturing was also included. The Irish Presidency has also focused hard on measures to progress the European Research Area (ERA). Europe needs a unified research area to attract talent and investment. Remaining gaps must therefore be addressed rapidly to create a genuine single market for knowledge, research and innovation. Our aim was to focus attention on and secure substantial progress towards meeting the target set by the European Council in February 2011 to complete the European Research area by 2014. As Presidency, we tabled a policy debate at the Competitiveness Council in February on the issue of better access to scientific information. We also focused on how best to ensure coordinated public investment in research and innovation across Europe through Joint Programming. To this end, we hosted a major conference on the lessons from the experience to date of Joint Programming and the way forward. Following on from this, I chaired a policy debate on joint programming at the May Competitiveness Council, which was informed by the report of the Presidency conference. Enhancing and focusing international cooperation in research and innovation is an essential, cross-cutting and integral part of the European Research Area. It plays a vital role in contributing to the quality of European research and the strengthening of the economic, industrial and technological competitiveness of Europe. At the May Competitiveness Council, we discussed Council conclusions to endorse the new strategy for developing international cooperation in research and innovation, as proposed in the Commission’s ERA Communication, and in the Communication from the Commission on “Enhancing and
  • 15. focusing international cooperation in research and innovation.” We also hosted a key conference on how best to promote an open labour market for researchers. One of the core objectives of the European Research Area is to make Europe a more attractive location for researchers through better career opportunities. The Researchers and Career Mobility conference provided the opportunity to gauge progress in achieving these objectives and how to make further advances through the interaction of researchers and policy makers. Through interactive workshops and discussion fora, delegates developed practical initiatives to help Europe overcome the well-known barriers to mobility (between countries and/ or employment sectors) and to improve the career prospects for researchers. The conclusions of the conference will target measures that will help achieve the ERA objectives of better career opportunities for researchers. During June, the Irish Presidency hosted three major research conferences. The Week of Innovative Regions in Europe (WIRE) Conference 2013 was held in Cork from 5-7 June. The WIRE Conference series is now recognised as a key element in facilitation of the European regional agenda. EuroSME 2013 brought together hundreds of entrepreneurs, policymakers, SME support organisations from the private and the public sector, and other intermediary bodies providing their energy and ideas on how to improve the EU eco-system for innovative enterprises. Furthermore, it introduced SME-specific measures in Horizon 2020 to this community. The EuroNanoForum 2013 Nanotechnology Innovation: From research to commercialisation – the bridge to Horizon2020 conference was held in Dublin from 18-20 June. The main focus of the conference was the commercialisation of nanotechnology, exploiting its potential for new applications, pushing it from an enabling technology through to development and on to use in end products. With Horizon2020 beginning in 2014, the conference looked at how nanotechnologies will fit into the new structure within the key priority areas of Excellent Science, Industrial Leadership and Societal Challenges. 1. During the Irish Presidency of the Council of the EU, Minister Sherlock chaired the meetings of the Research Council as part of the Competitiveness Council and led efforts to secure agreement on Horizon 2020. The European Files 15
  • 16. Horizon 2020: research and innovation for europe Horizon 2020 Carmen Vela Olmo State Secretary for Research, Development and Innovation, Spain H orizon 2020 is an ambitious program, not only in terms of its budget, but also for incorporating Research and Innovation for the first time in the same initiative. A change that targets providing coherent and unwavering funding from knowledge’s creation to its transfer to the market. A change that is inspiring to make Research, Technological Development and Innovation the true driving forces for European growth. Horizon 2020 holds its resources along three axes that reinforce one another: Excellent Science’s impulse to consolidate global first level investigation in Europe. Industrial Leadership’s promotion to make the EU a more attractive place for investing in RTD and innovation, allowing firms to determine the agenda, and with support for helpful technologies like biotechnology or ITC (Information and Communications Technologies). And finally, a program focused on searching for solutions to the great, which will face the citizen’s major concerns, like health and ageing, food safety, clean energy, integrated transportation, action over climate and resource efficiency, by setting to work in a joint way resources and knowledge from different disciplines and technologies I have been involved in the consecutive Framework Programmes since the year 1987, when the European Union launched its 2nd Framework Programme. Since then, I took part in all the Programmes in one way or another. When I say that they offer a real chance to make big Science, stir up competitiveness and excellence on research activity, I know what I am saying. For that reason, European Programmes 16 The European Files have been a priority since the State Secretariat for Research, Development and Innovation was established. Just some days after taking up the post we met with a delegation from Denmark’s Ministry of Science, Technology and Innovation – when they held the Presidency of the Council of the European Union – to talk about the situation and perspective of the new program Horizon 2020; our situation and our future in it. Since then, we have been working on it, taking part intensively in the different Competitiveness Councils. And we were able to get involved in Horizon 2020’s with no “red lines” to restrict Spanish researchers, firms or institutions’ aims. Spain stands up for, among other matters, a bigger coherency of the great initiatives funded in Horizon 2020 and recognising the efforts of the Commission to simplify the administrative processes; efforts that should be extended to facilitate new research groups and firms’ participation, thus easing the European research and innovation prospect. Our commitment with Horizon 2020 is steady, so much that the Spanish Strategy for Science, Technology and Innovation, and the State Plan that implements it, have its spirit, and match, with a few national adaptations, its priorities and targets of excellence and business leadership. Both Strategy and Plan are considered – in the same way as Horizon 2020 – an unwavering road from the idea to the market; a road pivoting around solving the great global challenges of the society. Our intention is increase in value science, technology and innovation’s ability to contribute and stimulate knowledge, employment, growth and Spanish competitiveness. Spain increased its participation in the Seventh Framework Programme in relation to the previous. Spanish researchers, teams and firms took part actively and, at the moment, they represent more than 8% of European Framework Programme’s participants. That put us already in the group of countries with bigger participations, like Germany, United Kingdom, France and Italy. About the priorities of Spain for the new program H2020, they are focused especially on the social challenges, although we are not forgetting the science excellence, a fundamental aspect of research, and business leadership, also a key part to impulse innovation. We consider as one of our obligations giving back to society the effort made for contribution and development of science and want to do it by giving answers to the day to day problems. Therefore we focus our efforts on issues such as energy, with particular emphasis on renewable energy, where we are industrial leaders, on solar and wind, and water, where we have been participating actively in European initiatives that are currently underway. We lead the water JPI and I myself am a member of the High Level Group EIP on Water as well as the EIP on Raw Materials, with great potential to develop this field and specialized companies. In a country like Spain, where more than three quarters of its territory is bordered by sea, everything related to marine and maritime resources, coastal management, environmental sustainability and transportation, are a priority for us in such that as a peripheral country this forces us to develop an efficient and non-polluting transportation. Health and healthy aging is another of our priorities. It is well known that Spain is a retreat country for many Europeans, so we have to work to improve the quality of life in all stages of life which is a challenge for innovation activities. I am trying not to be exhaustive, as all the challenges are close to us and we will try to respond to all, although the potentiality of the country requires us to prioritize over others, to optimize yields. The goal is not other but taking part in the most active possible way in Horizon 2020; this is, definitively, the program which Europe – and Spain alongside – should stand out with and gain in competitiveness.
  • 17.           The budget distribution (in percentage) for Horizon 2020 is foreseen  as follows:  I. Excellent Science:         II. Industrial Leadership:       III. Societal Challenges:               Spreading excellence and widening participation Science with and for society European Institute of Innovation and Technology (EIT) Joint Research Centre: non-nuclear direct actions Total 31.73 %     22.09 %    38.53 %        1.06 % 0.60 % 3.52 % 2.47 % 100% Source: Council of the European Union The European Files     17 
  • 18. Scientific and industrial innovation Horizon 2020 – Making it Better and Easier! Robert-Jan SMITS Director General, DG Research and Innovation, European Commission H orizon 2020, with a budget of around €70 billion, will be roughly 25 percent bigger than the previous framework programme and we are determined to make every euro count. In our legislative preparations, we listened carefully to those who criticised EU research funding as being too bureaucratic. The result is a programme that will be simpler for all, with the clear aim of freeing up participants’ time and resources so they can focus their effort in laboratories and not on filling out forms. Simplification is not an aim in itself; behind it lies the clear policy objective of «widening» participation in EU research. Through the various initiatives we are taking within the context of Horizon 2020, we want to encourage new players (i.e. end users) and research institutes in regions less accustomed to tapping EU funding to take part; lever-in private sector investment; and increase international cooperation in areas that are strategic to us. The recalibration of the balance between trust and control, between risk-taking and riskavoidance, has not been undertaken lightly and there will be no relaxation in our fight against fraud. It was recommended by all the experts we consulted, supported by the Court of Auditors and endorsed by European Union leaders in February 2011. What does it mean in practice? Above all, simpler funding rules, with greater use of lump sums and flat rates to cover participants’ costs. Experience has taught us that the calculation and justification of eligible costs was one of the greatest sources of error in previous framework programmes. Therefore, Horizon 2020 will cover up to 18 The European Files 100 percent of actual costs linked directly to participation in a project, or up to 70 percent in the case of profit-making companies and costs linked to innovation actions. But for other costs, participants will get a 25 percent flat rate sum. In addition, we will strive for shorter administrative procedures. Lengthy times to grant – which businesses have told us is one of the biggest barriers to their participation – have steadily been reduced during the current framework programme. Now we will go further. Our goal is a maximum eight months from start to finish, except in the case of complex projects. In parallel, we are doing away with some burdensome requirements, such as the need to file paper copies of every supporting document with us. Greater use of electronic means of communication and a redesigned Participants Portal will take us towards paperless grant management. Alone these are small steps; but they all add up: the savings in postage alone in communicating with outside experts and evaluators will be around €4 million a year. As stated, our goal is greater participation, notably from the side of industry and SMEs. Already there has been a positive response from industry, which has indicated its clear desire to continue the public private partnerships launched after 2007. The five Joint Technology Initiatives that have been proposed are expected to mobilise total investment of over €17 billion, of which the EU budget contribution will be up to €6.4 billion. This will provide vital funding for large-scale, longer-term, risky research and innovation initiatives. We plan to build on our successful risksharing partnership with the European Investment Bank which, since 2007, has helped mobilise some €9 billion in EIB loans to over 90 beneficiaries, supporting a total investment in research and innovation of some €30 billion. We will also build on our relationship with the European Investment Fund to provide venture capital to innovative firms via specialist intermediary funds or funds-of-funds and will explore new ways to foster start-ups, for example through a technology transfer financial facility that would provide financing of both proof of concept projects and the subsequent launch of companies to exploit these technologies. When we launched our seventh framework programme in 2007 we said we wanted small and medium-sized enterprises (SMEs) to eventually capture 15 percent of grant finance available through our collaborative projects. We are now at 17 percent and under Horizon 2020 aim to lift that to at least 20 percent – or nearly €8 billion over the life time of the programme. Some €2.5 billion will be distributed through a dedicated SME Instrument, providing grants for proof of concept studies and other close to market activities. Of course, the proof of all this pudding will be in the eating. Only after the first calls for funding are published this December will we know exactly whether what we now have on offer is what the market wants. That is why we have committed to review all the main novelties of Horizon 2020 by the end of 2017, and make adjustments if necessary. Nonetheless, I am confident that the changes being introduced will make a real difference to our shared goal of driving Europe down a more innovative path and produce results that will bring real solutions to some of society’s biggest challenges.
  • 19. Encouraging Innovation Through “Horizon 2020” Teresa RIERA MADURELL MEP, Group of the Progressive Alliance of Socialists and Democrats, European Parliament SD ITRE Coordinator A fter lengthy and intense negotiations over the last months, a political agreement has been reached between the Parliament and the Council on Horizon 2020, the new EU Framework Programme for Research and Innovation. Therefore, the new Programme is set to start on time, in January 2014, once the agreement is definitively approved by both legislative institutions. Horizon 2020 comes at the right moment, with the European economy in turmoil and when Europe needs more than ever to take the necessary measures to create the economic opportunities for the future. Certainly, much of the thinking so-far has been short-term, reacting to the immediate financial and economic crisis through fiscal consolidation and structural reform. Now this thinking proved to be insufficient to ensure Europe’s growth and global competitiveness, smart investment aiming at advancing towards a knowledgebased economy arises as the only feasible way out for Europe. This is precisely what Horizon 2020 is meant to do during the coming period 2014-2020. By generating knowledge and pushing forward its frontiers, and also by transferring this knowledge into the productive system, investment in Research and Innovation through the new Horizon 2020 is an essential mean for boosting Europe’s prosperity while reshaping its future. This goes completely along with the Europe 2020 Strategy, which has set the objectives of smart, sustainable and inclusive growth for Europe. The Strategy accurately highlights the role of Research and Innovation as key drivers of social and economic prosperity and environmental sustainability. Furthermore, for years now, scholars have demonstrated the strong link between research, innovation and economic development and have consequently attached the explanation for the present underperformance of the EU to the weakness of this link. Horizon 2020 is specifically aimed at remedying this inadequate European link. To do so, the new programme will gather under a single Common Strategic Framework for Research and Innovation (i) the successor of the 7th Framework programme, (ii) the current Competitiveness and Innovation Programme and (iii) the European Institute of innovation. Therefore, Horizon 2020 will support the whole innovation chain, from basic research to market uptake. This joint research and innovation support will be structured in three distinct but mutually reinforced priorities: Excellent Science, Industrial Leadership and Societal Challenges. First, Excellent Science will raise the level of excellence in Europe’s science base and ensure top research to secure Europe’s long-term competitiveness. It will support the best ideas, develop talent within Europe, provide researchers with access to infrastructure, and make Europe attractive for the best researchers. Second, the Industrial Leadership priority aims at making Europe a more attractive location to invest in research and innovation, by promoting activities where businesses set the agenda. It will provide major investment in key industrial technologies, maximise the growth potential of European companies by providing them with adequate levels of finance and help innovative SMEs. Third, the Societal Challenges priority is meant to address major concerns shared by European citizens. A challenge based approach will cover activities from research to innovation in areas of social concern such as health, climate, food, security, transport and energy. The final agreement includes also two new priorities that have been defended by the Parliament since the beginning of the negotiations. Both of the new priorities are aimed at reinforcing the research and innovation system in Europe. First, Horizon 2020 will support the spreading of excellence and the widening of participation in order to amplify the range of participants in the programme. The main idea is to support excellence wherever it exists. Widening this excellence is a way to maintain and attract the best researchers to Europe, avoiding a brain drain that Europe is suffering in favour of some of their most direct competitors in the global economy. Second, the new priority Science with and for Society will gather different measures to foster a genuine dialogue between science and society in order to advance towards a more responsible European research and innovation. Attracting women and young people to scientific and technological careers will be also among the objectives of this new priority. We cannot forget that Europe will need at least 1 million new research jobs in the near future to meet its ambitions of being one of the most innovative regions of the planet. With all these features the new Horizon 2020 presents itself as a key instrument that can return Europe to the path of economic and social progress. However, returning to this path requires an ambitious and shared investment in research and innovation that cannot be anymore dependent on the political and economic cycles. With a budget of around 70bn budget – the ITRE Committee in the Parliament had asked for 100bn – Horizon 2020 is ready to do an essential part of the job. However, if at least 3% of the EU’s GDP is to be invested in research and innovation by 2020, national governments will have to subscribe, from now on, a commitment that was lacking in their proposal for the new EU’s Multiannual Financial Framework 2014-2020. If we want to really boost innovation in Europe, it is time to replenish the rhetorical European commitment to innovation with tangible political and economic support. The European Files 19
  • 20. Scientific and industrial innovation The Role of Science and Innovation for Growth and Employment Dominique RISTORI Director-General Joint Research Centre (JRC), European Commission A s Europe seeks to shift to a more sustainable economy and to drive forward competitiveness, it is time for science and innovation to play a bigger part in restoring growth and creating skilled jobs. This can be achieved first of all by getting good ideas – scientific advances and innovations – to the market. Equally, we need responsive policy-making, informed by good science. These two elements are at the core mission of the Joint Research Centre’s (JRC), the European Commission’s in house science service. Europe remains one of the strongest global science and innovation players. Much of our basic research is excellent, and we are doing well at the kinds of multidisciplinary research that defines today’s innovations. Moreover, we are among the global leaders in renewable energies, green technologies, information technology, pharmaceuticals and biotechnology. But despite these successes, the rest of the world is investing heavily, catching up quickly, and they are creating the right conditions to turn scientific discoveries into innovations. To keep up with competition from the US, as well as increasingly from China, and other emerging economies, Europe must make good investments in science, research and innovation in order to reap future economic returns. This is also an investment in our quality of life and long-term sustainability. The big challenge is to achieve these objectives despite the economic crisis still affecting Europe, and especially the Euro area. This is currently felt in the record high unemployment levels, low GDP growth rates and tough constraints on most EU countries’ public finances. However, we must also recognise that Europe can benefit enormously from stimulating a real single market for science and innovation, by reducing the duplication of effort and creating better synergies between policies and initiatives. Our combined 20 The European Files efforts should go into targeting innovations in key sectors focusing on specific market needs, which can result in concrete solutions and new jobs. In doing so, Europe will make more effective use of its resources and act with greater coherence and influence on the rapidly changing world stage. To be successful, Europe also needs to develop and better exploit all its interconnections, by bridging the spheres of science and research, industry, policy-makers, and citizens. There should be structured co-operation among the main actors. And better synergies and interconnections should encompass not only European and national levels, but also regional and local levels. The JRC is already active in this endeavour in two ways in particular. First of all, by directly operating the Smart Specialisation Platform, we can assist European Member States and regions in the development, implementation and review of their ‘Research and Innovation Strategies for Smart Specialisation’. Indeed, this will be the basis for European Structural Funds investments in the field of research and innovation from 2014 until 2020. It should serve to concentrate resources on key priorities in the regions based on their specific economic potential. Secondly, through the new Science Parks Initiative, the JRC in collaboration with the International Association of Science Parks and Areas of Innovation (IASP) aims to foster links between science, academia, business and industry recognising that science parks are essential intermediaries in the innovation chain. By bringing scientific research organisations and the business community, as well as universities and local administrations together in one location, science parks ultimately support the take-up and diffusion of science-driven innovation into the economy. Political support, backed by financial commitments will help to make the Europe 2020 strategy for smart, sustainable and inclusive growth a reality. But we must all work more closely together in fulfilling its goals. The EU’s investment in research and innovation through the new Horizon 2020 programme (2014-2020) remains high, and strategically focused on tackling today’s major societal challenges such as climate change, cleaner energy and healthy ageing. As part of this programme, Commissioner Máire Geoghegan-Quinn just recently unveiled the Innovation Investment package, worth over 22 billion euro for the next seven years in medicines, cleaner skies, bio-based industries, transport and energy and electronics manufacturing. Most importantly, the initiatives combine financial resources from industry and public funds to tackle complex issues at European level. These new public-private partnerships should give us results in terms of growth, and also provide skilled jobs and better living standards for European society as a whole. Another ambitious target set by the European Union aims to increase the share of EU GDP coming from industry from the present 15%, up to 20% by 2020. Here, European industry should not only look at the quantitative side, but also for high-quality achievements, through a long-term competitive and sustainable industry. Two approaches should be followed at the same time. Europe should first keep on investing
  • 21. and strengthening its high-growth and hightechnology manufacturing industries. One of the reasons is that here, performance during the financial and economic crisis continues to be the best, with a production increase of 26% between 2005 and 2012, while for industry as a whole the level of production in 2012 was almost the same as in 20051. On the other hand, the more mature industries must innovate so as to increase their competitiveness in the worldwide arena. Let us take the building sector as a good example: investments to improve the energy efficiency of the older stock of dwellings could leverage a series of important cross-sectorial benefits and spill-over effects. These include re-vitalising the sector, going a step further in meeting the EU2020 environmental targets, not to mention lowering energy costs for private households, which would have a positive impact on the economy. Furthermore, these investments in science, research and innovation and the improved interconnections will benefit small and medium-sized enterprises (SMEs), which still account for 99% of EU companies and employ 67% of the private sector’s workforce. For instance, the market for the so-called ‘Key Enabling Technologies’ (KETs) – micro and nano-electronics, nanotechnology, photonics, advanced materials, industrial biotechnology, and advanced manufacturing technologies – is forecasted to go up from € 646 Billion (2008) to over € 1 Trillion in 2015. This expanding market could offer an extremely rich and varied platform of innovative solutions to help our SMEs, and Europe should be ready to reap the rewards. Our involvement in standardisation activities at European level is vital too. Making sure that standards take into account economic productivity, social needs and environmental sustainability, the JRC plays a key role in increasing the worldwide competitiveness of EU businesses and SMEs in particular. The JRC, as the in-house scientific service, is well placed to continuously inform EU policies so that the right policy solutions are provided at the right moment. More than ever before, the science-policy nexus plays an important role in tackling, for example, the major climate change challenges now and in the future. I would especially like to underline JRC scientific work that takes place on a global scale to monitor extreme weather events and floods and assess their economic and societal impacts. We live in a time when information is key and the JRC will therefore continue to play its part by providing evidence-based support to EU policies, as well as to science and industry stakeholders. Along with the much needed investment in topquality science and work to foster the connections that enhance innovation, we can remain on track to kick-start sustainable growth and revitalise employment in Europe. 1. Eurostat – Statistics in Focus: High-technology versus low-technology manufacturing, January 2013: http://epp. High-technology_versus_low-technology_manufacturing The European Files 21
  • 22. Scientific and industrial innovation Stairway to Excellence Maria Da Graça Carvalho MEP, Group of the European People’s Party (Christian Democrats), European Parliament E uropean research and innovation policy aims to promote European excellence in science whilst stimulating industrial performance. These goals simply cannot be achieved without scaling up the environment in which research is conducted to at least a European level. Consolidating a common research area involves enabling as much cooperation as possible – at a European, national and regional level – so that structural capacities are enhanced, research networks are extended and individuals and ideas are able to circulate more freely. Horizon 2020 – the new, European framework programme for the period from 2014 to 2020 – is the single largest funding instrument of its type in the world. In general terms, the programme aims to meet the goals defined above as this involves building a sustainable economy based on knowledge and innovation across the whole Union. 22 The European Files If the programme will equip Europe to deal with a number of major challenges – such as the ageing of the population, the fight against climate change or the security of energy supply – an adequately funded research programme is also essential to ensuring future prosperity. A central goal, in this respect, is that of improving Europe’s research and innovation performance. Excellence – without geographical constraints – is the primary criterion for participation in Horizon 2020. Against this background, a significant innovation is the creation of “stairways to excellence” concept. This involves teaming initiatives whose objective is to establish and reinforce partnerships between regional research units, countries and leading international counterparts. This will enable Europe to foster units of embryonic excellence, such as small research groups and highly innovative start-ups. Such stairways to excellence will be able to lever support from the Cohesion Funds and this will contribute significantly to the creation of critical mass from existing seeding grounds. More generally, with regard to how widening excellence will be fostered, six initiatives stand out. These are: - the teaming of excellent research institutions and low performing RDI regions with the aim of creating new (or of significantly upgrading existing) centres of excellence in low performing RDI Member States and regions; - the twinning of research institutions in order to significantly strengthen a given field of research in an emerging institution through links with at least two other leading institutions at an international level; - establishing ‘ERA Chairs’ to attract outstanding academics to institutions with a clear potential for research excellence, in order to help these institutions fully unlock this potential and, hence, create a level playing field for research and innovation in the European Research Area. In this respect, a number of possible synergies with ERC activities should be explored; - a Policy Support Facility (PSF) to improve the design, implementation and evaluation of national or regional research and innovation policies; - supporting access to international networks for excellent researchers and innovators who, at the moment, lack sufficient involvement in European and international networks; - strengthening the administrative and operational capacity of transnational networks of National Contact Points, including through training, so that they are able to better provide support to potential participants. In parallel with these measures, it is also necessary to ensure greater complementarity between Horizon 2020 and various European, national and regional financial instruments. In particular, we require a multi-fund approach and a strengthening of the bridges that link Horizon 2020 and other, available funds and most particularly the structural funds. In this respect, the structural funds have a complementary role to play with regard to what Horizon 2020 seeks to achieve. Upstream from Horizon 2020, the structural funds can be used for capacity building. Downstream from Horizon 2020, the structural funds will help smooth the passage from conception to market. These measures, designed to widen participation, and the successful implementation of a multi-fund approach will certainly contribute to maximize European potential to produce science and technology of excellent standards.
  • 23. Innovation at the Centre of Economic Activity for Entreprises Daniel Calleja Director General of the DG Enterprise and Industry, European Commission I f enterprises are the driving engine of European economy, then innovation is their fuel, the key ingredient that propels them forward. Those who do not innovate and do not keep up with technological developments will gradually lose market share and eventually risk going out of business. The European Union possesses extraordinary potential for innovation. European researchers are world leaders in many sectors and file many cutting edge patents, but our record in translating scientific leadership into industrial advantage has not always been so good. Lithium batteries provide a clear example: European firms hold more than 30 per cent of the relevant patents, but no Lithium batteries are produced in the EU. Innovation efforts remain patchy and unevenly spread across the EU. The latest European Commission’s annual innovation scoreboard reveals a widening gap between the most innovative countries (such as Sweden, Germany and Denmark) and those lagging behind. This clearly illustrates how the economic crisis has negatively impacted innovation activity in some parts of Europe. As Europeans, we can do more and we can do better. Investment in innovation is more crucial than ever if we want to maintain our global competitiveness and restore growth in Europe. Without innovation we will not achieve our goal of raising industry’s contribution to GDP to 20 % in 2020, a target we have set in our new strategy on industrial policy. This makes it increasingly urgent to coordinate innovation policies at the European level. Innovation should become a common goal for all EU Member States, through coordinated national efforts. To make this happen, the Commission has launched plans for a genuine Innovation Union and proposed a common strategy to promote investment in specific innovative sectors, the ones that drive innovation in the wider EU economy. The Horizon 2020 programme will give SMEs new opportunities to innovate. They will be able to take part in research actions and there will be dedicated support for SME innovation. Compared to previous framework programmes for research and development, Horizon 2020 will be much more accessible for SMEs – we have taken on board the experience of more than thirty years of these programmes in order to lighten the administrative burden for SME participation. If we want to continue being globally competitive – and it is important to emphasise this – we have to focus above all on quality and not just the quantity. This is why we emphasise providing support to European low- and drivers of innovation and the green economy. The global market for KETs is forecast to increase by over 50 per cent by 2015 (from € 646 billion to over € 1 trillion), equivalent to around 8 per cent of the EU’s GDP. Yet manufacturing linked to KETs is continuing to fall in Europe. We must reverse this trend and in doing so we can no longer think along national lines – our response must be European. So we have been working on concentrating our efforts and coordinating our policies and measures to produce a European response. Finally, we must make sure we produce a climate that encourages innovation. As regulators we can set policy goals which provide opportunities for enterprises to bring innovative products to the market, as we have for example in the field of energy efficiency. This is also a medium-tech SMEs, who develop innovative products that are usually the results of decades of small improvements on existing technologies. Europe sits on a technological goldmine, being one of the most technology-advanced and technology-dominated regions of the world. Little additional efforts can yield enormous results, building on our huge technological capital. One area we are focusing on in our efforts is Key Enabling Technologies (KETs). They are the technological building blocks that will be used to construct any new technology or innovative high-tech product in the next few years – the true part of our 2020 Entrepreneurship Action Plan, developing new channels to encourage more Europeans to become entrepreneurs. In addition, we must help open the doors to new markets for entrepreneurs with world class products. We have been doing this through Missions for Growth which have already seen European businesses promoted in China, Brazil, the United States and several other countries. Furthermore, we must ensure that innovative SMEs can access the finance needed to develop products and bring them to the market. From 2014, the new COSME programme will be doing just that. The European Files 23
  • 24. Scientific and industrial innovation Research Organisations, From Excellent Science in Europe to Real Innovation Amanda Crowfoot Director of Science Europe S cience Europe is an independent association of European Research Funding Organisations (RFO) and Research Performing Organisations (RPO), established with the aim of increasing collaboration between, and promoting the collective interests of, its Members. Together, the members of Science Europe represent a substantial proportion of the European research resources, in terms of funding, performance capacity and exp-erience. Part of the rationale of Science Europe is to engage constructively with the European Commission and other EU institutions, as well as with national governments, where there are common interests, whilst retaining its independence and unique voice, which is informed by all scientific communities. Producing excellent science and research has historically been Europe’s key asset for sustainable growth and maintenance of a leading position in a highly-competitive global economy. Horizon 2020 will be a Framework Programme designed and adopted during a period of financial and economic uncertainty in Europe. It is essential that the adopting institutions and the stakeholders involved avoid short-sighted visions of research purely as a provider of ‘quick gains’. Tackling societal and economic challenges and making breakthrough discoveries is not a linear process. Therefore, what is needed is support for science and innovation as a holistic system. The principle of excellence is already deeply rooted in dedicated parts of the Framework Programme, such as the European Research Council, but Science Europe is convinced that it equally has to be applied, in whatever way is appropriate, across the rest of 24 The European Files the programme and along the entire innovation chain. Similarly, Science Europe believes that basic research in all disciplines should be supported within all three pillars of Horizon 2020, including the ones which are perceived as being closer to the market. Simplicity – that is, a set of simple rules, governance, objectives and instruments – should be at the core of Horizon 2020, in order not to obstruct researchers and other stakeholders of innovation. The European Commission has to make sure that introducing new rules for a new Framework Programme, on top of a new structure, does not lead to a less transparent and increasingly complex landscape. Efforts should be made towards clearer communication about the changes which will occur in the structure and practicalities of the new programme if it is to become, as intended, more accessible to all players of innovation. For this, accessible, timely and user-friendly guidance should be provided to all types of participants. In order for Horizon 2020 to reach its goals in terms of research and innovation, the programme must be surrounded by the right policy environment at national and European levels. By bringing influential organisations together, Science Europe has an important role to play in improving policies on various issues which are essential to research, and contributing to the realisation of a strengthened European Research Area. The excellent science which produces real innovation happens on a borderless, globalised scale. Science Europe offers a platform to its members to help them reach critical mass and to facilitate the circulation of information between themselves. Models and tools are being developed with the aim of making crossborder collaborations more successful and more efficient. In order to maximise Europe’s chances, its full potential must be unleashed. Science Europe is exploring new ways of guaranteeing equal opportunities, regardless of gender or other factors, and that human resources are managed with diversity in mind. Thanks to its geographically diverse membership, Science Europe also contributes to bridging the gaps between traditionally stronger scientific countries and those with less developed research systems. Innovation is often the result of associations between applied and fundamental research and between different disciplines. Selection and evaluation mechanisms are likely to be more complex in such contexts, and therefore these mechanisms must be made fit for purpose. Science Europe is pursuing policy foresight on such issues. Policy foresight is also essential for open access to data, in order to guarantee optimal circulation of new knowledge among all potential users, while making sure that strategic interests are preserved. The quality of the management of research infrastructures and their networks is instrumental in key areas of European innovation and industrial success. This is true for all areas, and for facilities of all sizes. When addressing research careers, mobility of researchers is often envisaged in terms of geographical mobility. While this is extremely important, Science Europe also aims to explore further mobility between public and industrial sectors, as this greatly contributes to the fluidity of the innovation chain. Moreover, the dialogue between science and society at large could be improved with better interactions between sectors on scientific issues. A shared acknowledgement of the possibility of negative results could, for example, constitute an important step towards the necessary sharing of risk. Evidence shows that innovation thrives best in a context of risk-friendly research support, where early failure is tolerated and long-term success rewarded. Confident about the strengths of its stakeholders, and through its current and planned policy activities, Science Europe has the ambition of stimulating innovation by strengthening European research.
  • 25. The EIT – Powering World-Class Innovation and Entrepreneurship Across Europe Alexander von Gabain Chairman of the EIT Governing Board I n these challenging times we are facing, innovation is widely perceived as the key to growth, competitiveness and social well-being in the 21st century. The capacity of a society to innovate is crucial in an ever more knowledge-intensive economy. Set up in 2008, the European Institute of Innovation and Technology (EIT) aims to enhance Europe’s ability to innovate, which translates into adapting quickly to the fast pace of development, being one step ahead in providing solutions to rapidly emerging societal problems and turning them into entrepreneurial opportunities in terms of products and services that meet the demands and desires of consumers. The EIT is an independent EU body whose mission is to: - increase European sustainable growth and competitiveness; - reinforce the innovation capacity of the EU and its Member States; and - create the entrepreneurs of tomorrow and prepare for the next innovative breakthroughs. The EIT creates an unprecedented level of strategically structured collaboration between excellent higher education, business and centres with the aim of boosting the innovation process: - from lab to market; - from idea to product; and - from student to entrepreneur. The EIT aims to achieve its mission by fully integrating all three sides of the so-called ‘knowledge triangle’, i.e. higher education, research and business, in Knowledge and Innovation Communities (KICs). By bringing together major innovation players on a long term basis from all these dimensions to co-operate within the KICs, the EIT is able to promote pan-European innovation ecosystems in Europe. The first three KICs were selected end 2009 and established themselves in late 2010: - Climate-KIC: addressing the field of climate change mitigation and adaptation - EIT ICT Labs: addressing the field of information and Communication Technologies - KIC InnoEnergy: addressing the field of sustainable energy. The EIT is dedicated to fostering favourable environments and frameworks for entrepreneurship-driven innovation adding value to the existing EU innovation landscape. Creating and enabling such ecosystems to flourish is at the heart of KICs’ mission as many excellent higher education institutions, research centres and businesses can be found in Europe yet collaboration and integration between these three sectors together is rare. Working in such ‘silos’ leads to dispersed innovation efforts and in order to make the most of its innovation potential, Europe must go beyond its traditional approaches to innovation. And this is exactly why the EIT was set up. It is thus crucial that a ‘critical, open and creative mass’ of human and physical resources is built; attracting, seeding and retaining private sector investment into the KICs. While the EIT Headquarters are situated in Budapest, Hungary, the EIT and its activities are not concentrated in one campus as a traditional institute, instead operating through the KICs. Each of the KICs operates across a limited number of innovation hotspots called ‘co-location centres’. There are currently 17 co-location centres spread across Europe. Climate-KIC additionally operates through six regions, working closely with regional or local governments in their Regional Implementation and Innovation Communities (RICs) facilitating regulation conducive to innovations with lead public adopters in local and regional governments. KICs carry out a whole range of activities, covering the entire innovation chain – including training and education programmes, reinforcing the journey from research to the market, innovation projects and business incubators. The KICs’ governance model has been conceived so that they are able to react in an effective and flexible way to changing environments through their partnerships with the EIT. Each KIC has been set up as a legal entity and has appointed a CEO to run its operations – a first for an EU initiative. Europe needs to embrace a true entrepreneurial culture, which is essential for capturing the value of research and innovation, for setting-up new ventures and actual market deployment of innovations in potential highgrowth sectors. The EIT is doing just this by integrating education and entrepreneurship with research and innovation and operating according to business logic and a resultsoriented approach. Indeed, the EIT and its KICs are driven by a pursuit of excellence in all of their activities and are established with the aim of reaching the necessary critical mass to achieve systemic impact, including the creation of new businesses and new jobs, and the promotion of new skills and entrepreneurial talent in the economy. In its next chapter, the EIT will contribute strongly to the objectives set out in Horizon 2020, in particular by addressing societal challenges in a complementary way to other initiatives in these areas. Horizon 2020 is a key pillar of the Innovation Union, a Europe 2020 flagship initiative aimed at enhancing Europe’s global competitiveness. Investing in excellent innovation is one of the key elements of a quick economic recovery and a sustained long-term gain in wellbeing. The EIT is one of the main instruments to achieve these objectives. This is why the Commission has put forward a proposal strengthening the EIT and supporting investment in innovation. In the Proposal for the EIT’s Strategic Innovation Agenda (SIA), the European Commission has presented a proposal that defines the framework for the EIT’s operations for the period 2014-2020. The proposal includes the consolidation and further development of the three existing KICs as well as the creation of new KICs. The European Files 25
  • 26. Scientific and industrial innovation The European Research Council: Scientific Excellence Through Frontier Research Helga Nowotny President of the European Research Council S even years after its inception, the European Research Council (ERC) has dedicated more than 7 billion Euros to frontier research projects across Europe, stimulating excellent researchers to turn on the most exciting questions in their field, and enabling them to conduct cutting-edge research projects. For European universities, the ERC has become the most significant benchmark within the European Research Area. And for policy makers, the ERC is a model: some European countries have in the meantime adopted the ERC model of panel evaluation, and some have even established intermediary organisations for funding fundamental research in order to make their researchers competitive at European level. In many places outside Europe, the ERC has become the envy of policy makers and researchers alike. In a nutshell, the ERC has become a vital facilitator for establishing a competitive European market of scientific ideas, a prime example of the often-mentioned “European added-value”, and an exclusive instrument in boosting European sciences at the international level. We are absolutely convinced that the investment into frontier research will yield enormous benefits for Europe in terms of people, ideas and innovation. No one would have expected the huge success of the ERC a decade ago. The decision of the European Council on the multi-annual financial framework, and on the Horizon 2020 budget in particular, will enable the ERC to continue its vital crusade for European research, and to lay the ground for innovative ideas, innovative products and innovative new procedures through the findings of frontier research. We expect another 12.5 billion Euros dedicated to the ERC over the next seven years. While this does not allow for expansion, it ensures that the ERC can continue its current 26 The European Files program of running three major funding schemes, Starting and Consolidator Grants for young researchers, and Advanced Grants for senior established researchers. It may also leave leeway for the Synergy Grant, an ambitious, experimental funding scheme bringing together a small research group of PIs but, unlike other Commission programmes, with no strings attached. The scheme of ‘proof-of-concept’ will certainly be maintained. Over the last years, all application numbers keep rising with each call. The ERC will remain highly competitive, with an overall success rate of 10-12 per cent. As it stands now, the ERC is a European success story par excellence. And here is where I want to turn to a cautious outlook for the coming years. From its inception, the ERC was struggling to make an appropriate governance structure function, one which gives it the freedom from political meddling which is indispensable for such an organisation, while giving it the organisational and financial stability, equally needed to develop its program. While it soon became clear that the ERC’s home realistically must be within the European Commission’s multi-annual research programme framework the legal construction of its dual governance with the ERC Scientific Council in charge of all strategic decisions and the Executive Agency responsible for its implementation, initially proved difficult to implement in practice. However, with the help of everyone involved, and after some start-up difficulties, the ERC has evolved into a highly professional and efficient organisation. Partly this is because the ERC Scientific Council was determined to take the lead in all matters of strategic development of the ERC while accommodating as much as possible the legal constraints that come with the general rules and regulations under which the Commission operates. So, over the past years, the scientific community, represented by the Scientific Council, and the Executive Agency, supervised by the DG Research and Innovation, found a ‘mode de vivre ensemble’. With Horizon 2020, this coalition has to be renewed. The legal framework changes formally, as does the governance structure of the ERC. The most significant change is the fact that the ERC President is no longer elected amidst the Scientific Council, but identified by an independent identification committee in a short-list and appointed by the Commissioner. He/she is expected to reside in Brussels. Thus, the President has to gain acceptance from the Scientific Council, and at the same time to keep the right balance between distance and engagement with the European Commission bureaucracy – a position that needs strong leadership. Not only does the structure change; so do the people involved. The renewal of the Scientific Council is already on-going, and by the end of 2014, all founding members of the Scientific Council will be replaced due to rotation. Likewise, DG Research and Innovation will also have a new Commissioner by then. In this transition phase, we have to avoid that those coming in need to go through the same learning process as we did. The Scientific Council will have to make sure that the operation of conducting three major calls a year, with thousands of applications, does not lead to a mechanical review process. The negative effects of the well-known “reviewers’ fatigue” have to be avoided at all cost. The ERC Scientific Council and the Executive Agency together must ensure that the ERC will continue to support thrilling, and extraordinary, out-of-the box ideas and approaches. This can only be achieved by a peer review process of the highest quality and conserving the dynamic spirit of frontier research. The ERC will have to continue to deal strictly and pro-actively with scientific misconduct and fraudulent behaviour. It will have to make sure that selfish, disciplinary or other narrow national interests do not creep back into the evaluation process. In other words: The role of the Scientific Council will be somewhat different from what it was during the previous seven years. It must remain the central body of setting and monitoring the scientific strategy development; thus steering the entire organisation. Only if this is respected and guaranteed, the ERC will continue to be the gold standard for research across Europe, thus prolonging the success story.
  • 27. Horizon 2020 and the Future of SMEs Philippe Lamberts MEP, Group of the Greens/European Free Alliance, European Parliament, Rapporteur on the European Institute of Innovation and Technology 2014-2020 and shadow rapporteur on the Horizon 2020 package T hat SMEs are the backbone of the European economy is a well-known mantra in the European circles. But what SMEs need and what concrete policies can improve their participation in the innovation system is often less well understood. Firstly, SMEs are often seen as entities that are by and large dependent of larger industrial players rather than autonomous enterprises, where new ideas can be generated. This vision of SMEs has often led to policies and programmes providing for SMEs involvement only through participation of large industry players, not taking enough into account their specific needs and their real innovative potential. SMEs, from start-ups to mid-caps, in technological and non-technological areas, can be and often are leading innovative activities on their own initiative. Successful examples exist of innovative SMEs being fastgrowing start-ups in new technological areas, or more traditional manufacturing companies participating in complex supply-chains. It is therefore essential that, in order to successfully participate in the innovation system, SMEs are put in the driving seat of their innovative activities and that support be better tailored to their real needs. The second common misunderstanding is that what SMEs mostly need is financing. However, SMEs find it extremely difficult to access the money that is made available to them without getting the intangible, non-financial support to develop their project and ultimately make their case to the financial investors. Small businesses and new entrepreneurs need flexible and targeted support, including administrative simplification, access to information, access to business networks to find the right partners, support for risk assessment and intellectual property management, financial education and help for developing credible business plans. The experience under the Competitiveness and Innovation Programme 2007-2013 (CIP) has recognised these needs and has provided the backbone for the SME Instrument put forward in Horizon 2020 by the European Commission. The instrument will be targeted to all types of SMEs that have an ambition to grow and internationalise, and supporting all types of innovation, including non-technological and social innovation, in a bottom-up manner. It will provide this targeted flexible support in 3 phases: (i) support for feasibility and assessment of project potential (ii) support for research and development activities (iii) support for commercialisation through access to debt and equity. The Parliament has been adamant to strengthen the SME Instrument by insisting that a clear share of the budget (at least 4%) would be dedicated to it. It also insisted that for ensuring coherence, visibility, accessibility and administrative simplification it should be implemented by a dedicated “SME agency”, the European Agency for Competitiveness and Innovation, that has successfully led the implementation of the CIP programme so far. The deal struck in July between the Parliament and the Council on the Horizon 2020 programme should ensure that at least 2,7bn€ would be allocated to the SME Instrument within the duration of the programme. The Parliament expects now from the Council that it will stand by the deal during the upcoming negotiations of the 2014 and successive European Union budgets, and in particular honour its March 2014 Council Conclusions where it promised emphasis on research, innovation and SMEs. The Parliament now needs to ensure that the Commission will keep its commitment to implement the instrument in the most SME friendly way, through a single dedicated structure, allowing for a real “bottom-up” submission of projects. Judging from the reluctance of the Commission representative during the negotiations, we do have concerns about this. Indeed, however well the SME instrument is designed, its implementation by different Commission directorates will lead to fragmentation, narrowed down scopes and ultimately also administrative complexities for SMEs, which would be counter-productive. As the Green negotiator of Horizon 2020, I found myself in the rather unexpected position of being at the forefront of the fight for carving out significant money and an effective and efficient channel to allocate it within the programme. We will now see what the Commission will make out of it. The European Files 27
  • 28. Scientific and industrial innovation Research and Technology Organisations: Key Players in Horizon 2020 Muriel Attané Secretary General of EARTO R esearch and Innovation Commissioner Geoghegan-Quinn has insisted since almost her first day in office that the next EU Framework Programme will be a different kind of programme from the ones that went before. It will be an innovation programme aimed at producing practical impacts that help tackle societal challenges and build and sustain economic competitiveness. That ambition implies a clear break with previous EU Framework Programmes. It is worth emphasising that they began in the mid-1980s as innovation programmes – although the word wasn’t used then – targeted in particular at developing and deploying the new ‘information and communication technologies’. Soon, though, the academic research community began to crowd out the industry players and the programmes lost their initial innovation focus. They became science and technology funding programmes. So, in a sense, Horizon 2020 brings us back full circle. But will the new programme succeed where the earlier ones drifted off-course? There are good and bad signs already in the overall design of Horizon 2020. The ‘Fast Track to Innovation’ and the new ‘SME Instrument’, for example, are both novel elements compared to earlier programmes and are both clearly focused on getting products, processes or services to market. That is a good sign. It is striking, though, that it was largely at the insistence of Parliament, rather than of the Commission or the Member States, that they won their place in the programme. Not so encouraging is the fact that around 30% of Horizon 2020’s budget is allocated to Pillar One’s ‘scientific excellence’. The argument is not that excellent, curiositydriven research is irrelevant for innovation; it is rather that the limited resources available for Horizon 2020 would have been better invested by being concentrated on programmes and projects 28 The European Files promising significant real-world impacts, not just excellent science. Whether Horizon succeeds as an innovation programme will depend critically on the Commission’s ability to keep it on track. That will mean resisting strong pressure from entrenched academic interests which will tend to push it in the direction of science for science’s sake. It will also mean the Commission taking a much more managerial approach than previously, including for example a willingness to employ industrialstyle research management techniques, such a stage-gating, to kill off unpromising projects and avenues of research. The Commission will, of course, need to ensure that industry participates widely in Horizon 2020, but also that Research and Technology Organisations (RTOs) are able to contribute fully their considerable and highly relevant skills. Indeed, RTOs will have a major role to play in Horizon, for they bring together a rare and longestablished array of capabilities and activities – from basic and applied research to advanced engineering, design and development, measurement, testing and prototyping – that have been making a major contribution to social and economic innovation in Europe for more than half a century. Particularly important in the context of Horizon 2020 is RTOs’ long experience of networking public and private actors across the innovation value chain and of building and managing largescale innovation programmes and projects. RTOs and their role in supporting innovation merit greater visibility, which is what prompted their European trade association, EARTO, to commission from Technopolis Group a study on their economic and social impacts1. The study shows clearly that RTOs are key actors in the European innovation system, with a combined annual turnover of around €20bn annually, which would put them in the top 100 of the FT European 500 if they were organised as a European multinational. Their economic impact is estimated to total between €40 and €50bn annually – and up to €100bn when account is taken of cumulative social returns (spillover effects). Different RTOs are organised in different ways – which is one reason why they are not as visible as they should be – but they generally share a focus on mission-oriented research and their typical business model is a mixed one combining public core funding, public competitive funding and enterprise income in roughly equal proportion. Underpinning all they do is a pragmatic focus on solving real-world problems and delivering innovations that have real-world value. That is why they have so much to contribute to Horizon 2020 and to helping it succeed as the innovation programme for jobs and growth that Europe so badly needs. 1. Reference Technopolis Report ‘Impacts of European RTOS’, October 2010.
  • 29. EARTO EUROPE IMPACT DELIVERED RTO’s Three-Stage Innovation Dynamic and Funding Model The European Files 29
  • 30. Scientific and industrial innovation EUREKA, a Key Instrument in the Horizon 2020’s Objective to Complete the European Research Area Kristin Danielsen1 Chairwoman of EUREKA Ms. Danielsen could you explain to us what is EUREKA? EUREKA, like Horizon 2020, is a European platform for research focusing on turning new technologies into marketable products. EUREKA is practically as old as the European Framework programmes, the predecessors to Horizon 2020, which started in 1984. EUREKA was launched one year later, at the initiative of 17 European countries, including not only current members of the EU but also countries such as Turkey, Switzerland and my own country Norway. The European Commission itself is a founding member of EUREKA, and the same people within the Commission who worked on the definition of the very first framework programme also worked on the creation of EUREKA. Both instruments were created not in opposition but to complement each other, and continue today to work in synergy as many of EUREKA’s support instruments complete Horizon 2020 or are even directly integrated in the flagship programme. How exactly does EUREKA help in the realisation of Horizon 2020’s objectives? Where EUREKA can help the most in the accomplishment of Horizon 2020’s objectives is in the completion of what is called the European Research Area. It might not be the most debated point in the Commission’s proposal for Horizon 2020 but the European Research Area is nonetheless mentioned in it about 15 times. Launched in 2000, the European Research Area is to European Innovation what the European Single Market is to the European economy: one of its purposes is to enable researchers, research institutions and innovative businesses to increasingly circulate, compete and cooperate across borders. The aim is to give them access to a Europe-wide open space for knowledge and technologies in which transnational synergies and complementarities are fully exploited. 30 The European Files There are a number of European-level structures and programmes within the ERA: the forthcoming Horizon 2020 programme, programmes related to European agencies, as well as a number of intergovernmental bodies. EUREKA is one of the longest-established of these intergovernmental infrastructures and this is why it has such an important role to play today. This is related to the second ERA objective: ‘optimal transnational cooperation and competition.’ Exactly, so far the vast majority of research programmes in Europe are run in an isolated way, leading to inefficacy. Using national funding and support capabilities for international cooperation, is also the reason of existence of EUREKA. EUREKA took-off twenty-eight years ago and has so far permitted the realisation of 5440 research projects using national research funds for a total budget of 32 billion euros. Still today in the European Union, an estimated 88% of the public funding for research is managed entirely at national level and invested into companies, universities and research institutes within a state’s own borders. Scientists, innovators but also politicians from all parties and all over Europe have often called for a greater coordination and allocation of national funding for transnational projects. Their arguments are diverse, from the fragmentation of research, to the possibility of much more advanced and larger RD projects involving the industry. In the aftermath of the financial crisis, for many European governments, transnational research funding is now also seen as a way to do more with less. Several actions have been taken by the EU with the aim of sharing national funding, but EUREKA and its funding instruments being one of the most advanced and longest standing of all those initiatives, has a key role in bringing together innovation funding agencies from all over Europe. Which specific programmes see EUREKA being directly involved in Horizon 2020? Eurostars is a European funding programme specifically dedicated to Small and Medium-sized Enterprises (SMEs) focusing on innovative technologies. It is an essential part of the offer for small businesses in Horizon 2020, Types of organisations participating in EUREKA-EU joint programme Eurostars, for innovative SMEs
  • 31. in complement with the future SME instrument. Eurostars is a joint programme between the European Commission and EUREKA, both involved in the funding of the programme. I believe that in the midst of the other joint programmes Eurostars holds a particular place, first of all because it is a programme targeting SMEs, which are the backbone of the European economy, and secondly because it has already proven its success and popularity with small and medium-sized companies under the Framework Programme seven. What was originally a pilot project has in fact been so successful, receiving many more applications than originally foreseen, that in Horizon 2020 the budget of the programme has been tripled. Our objective with Eurostars under Horizon 2020 is to help small companies grow to middlesized ones, and to become internationally-open businesses. I strongly believe that supporting this type of companies will be key in the enhancement of European competitiveness. Also, this will by a mechanical effect foster employment in Europe: under Horizon 2020, Eurostars is set to create 30.000 jobs. So far, one of the main findings of our impact assessment studies is that SMEs will on average employ four new staff members three years after completion of their project. Along with you there are a few women part of this edition of the European Files, all hold important position in the European political sphere: Commissioner Geoghegan-Quinn, French Research Minister Fiorasi and ITRE Chair Ms. Sartori to name only a few. You are yourself the first woman to chair EUREKA. Does being a woman make a difference? No, it should not make a difference. But of course on a personal level I will bring a different style: I will not try to imitate the men that were my predecessors. Also, one of my best personal skills is said to be diplomacy, and I think that diplomacy is the best skill that I can bring to EUREKA, independent of my gender. Removing barriers preventing women from pursuing successful scientific careers is actually another objective of the European Research Area and Horizon 2020, and I think that what this is about is making sure that whether you are a man or a woman you are still judged on the basis of your skills before any other criteria. 1. Ms. Kristin Danielsen is currently the high level group chairperson of EUREKA, a network of national offices based within research ministries and Innovation agencies across 44 countries. Those offices are supporting and funding market-oriented and collaborative research in Europe. Ms. Danielsen works at the Research Council of Norway (RCN), host to the Norwegian EUREKA office, as International Director. Her country is currently holding the chair of EUREKA for one year. Impact of public investment in terms of leverage private investment, jobs created and turnover achieved by companies involved in EUREKA innovation projects The European Files 31
  • 32. Scientific and industrial innovation Broadening the Innovation Landscape to Secure Jobs and Growth Malcolm Harbour MEP, Group of the European Conservatives and Reformists, European Parliament Chairman of the Internal Market and Consumer Protection Committee (IMCO) O pportunities are available across the EU to encourage and finance innovation in both the public and private sector. At the same time, these opportunities will provide a springboard for jobs and growth. The European Parliament has been acting as a political advocate, supporting moves by the Commission to change the way public procurement is handled. Updated Directives shortly to be agreed by the Parliament will improve opportunities for entrepreneurs and help to deliver more choice and better quality for citizens. Sweeping simplification and more flexibility in applying the rules and new tools to boost innovation and new growth opportunities have been agreed. Especially welcome is a new tool to foster the creation of Innovation Procurement Partnerships which will encourage public buyers to set ambitious outcomes and work with suppliers to develop and implement new solutions. 32 The European Files Public bodies will now have to look at whole lifecycle costs in public procurement and consider factors other than the lowest price in award criteria. It is imperative that public bodies trust innovative enterprise to come up with the answers, rather than attempting to micro-manage and specify every detail in isolation, particularly now that, shortly they will have a clear European legal framework to rely on. This legislative reform, accompanied by new European and national schemes to support innovation in public markets, will open a new era in EU public procurement. The new Directives clearly support good procurement, and should no longer be a constraint on good practice. Public markets must now open the doors to new technologies and not shelter behind outdated administrative practices. A preliminary agreement on a new programme for the Competitiveness of Enterprises and SMEs (COSME) will see more than €2 billion allocated to SMEs with the aim of strengthening their competitiveness and sustainability from 2014 - 2020. The package, which still awaits final Parliament and Council approval includes: - Improved access to finance for SMEs including an equity facility to provide venture capital for start-ups through financial intermediaries and a loan facility to provide SMEs with direct or other risk-sharing arrangements to cover loans. These instruments will receive approximately 60 per cent of the COSME budget. - Improved access to markets for SMEs through services provided by the Enterprise Europe Network - Measures to improve entrepreneurial skills and attitudes COSME is expected to contribute to an annual increase of €1.1 billion in the EU’s GDP and adds to the ongoing efforts with Horizon 2020, the research and innovation framework programme which strongly supports SMEs. COSME will, together with the Horizon 2020 research programme, replace the current Competitiveness and Innovation Framework programme. The Horizon 2020 deal recently struck between MEPs, the Commission and the Council is great news for universities, research institutes and innovative companies. With a €70 billion package on offer, starting in January 2014 and running to 2020, Horizon 2020 will be a main contributor to increasing innovation in the real economy. The funding model for Horizon 2020 has been radically simplified, with a simplified reimbursement model of 100 per cent of direct costs plus a 25 per cent flat rate for indirect costs. This move towards simplification allows for a greater degree of access to funds for a greater number of institutions, ensuring greater access to EU funding based on the principle of excellence. The Public Procurement Directives, in particular the push towards Innovation Procurement Partnerships, COSME and the progression of Horizon 2020 all help to bridge the gap between research, innovation and the markets. Everyone involved with these flagship programmes must work together to ensure these tools really do act as drivers of innovation and ensure that, with appropriate funding, the true rewards that innovation can bring are realised.
  • 33. How Horizon 2020 Improves the Competitiveness of Our Industry Nathalie ERRARD Senior Vice President, EADS1 ADS is an example of what Europe can accomplish by bringing together some of the brightest minds in science and engineering. We have 49 production sites, employ over 140,000 people and plan to hire 5000 permanent employees this year on top of last year’s 7000. We know that any investment in RT delivers lasting benefits and opportunities across a huge of the European aeronautics sector is largely due to our capacity for innovation, supported by a constant effort in RD. Clean Sky – as one of the major public-private initiatives financed under FP7 – is a prime example of how industry and public institutions can cooperate to reinforce Europe’s leadership role in driving sustainable aviation. More than 500 industry partners across 24 countries have actively participated in the Clean Sky programme as the largest aeronautical research programme ever launched in Europe, with the aim of developing breakthrough technologies to significantly improve the environmental performance of the air transport sector in Europe. To date, over 20 large-scale demonstrators are in the process of being developed at high maturity level to test range of sectors. In fact, with aerospace RT alone, every 100mn Euros invested generates another 70mn Euros elsewhere in the economy, year-after-year. Therefore, we should be focusing on those RT programmes delivering obvious and rapid benefits to the European Economy. Innovation is in particular crucial for the Aviation industry to remain competitive, and retain its position as a world leader: the success new aviation technologies such as new engine and wing technologies. Hopefully a Clean Sky 2 will continue this trend. As EADS, we are ready to join forces to boost investment and to tackle some of the biggest challenges we face as a sector. These investments are aimed at securing future growth, greener air transport and ultimately highly skilled jobs in Europe. Clearly, as the demand for air travel continues to grow, so E does our commitment to develop game changing technologies to reduce emissions. A further example: we also need to concentrate the efforts of all relevant industries in modernisation in order for us to avoid fragmented research in Air Traffic Management (ATM) in Europe and to obtain the necessary commitment of all stakeholders such as airports, airlines and the manufacturing industries. This is why the SESAR programme is so crucial for European competitiveness. All the aviation players are involved in the definition, the development and the deployment of this pan-European modernisation project, which will increase the overall efficiency of ATM. We need furthermore to continuously reduce our environmental footprint by creating long-term roadmaps such as Flight Path 2050 and ACARE SRIA. The challenges ahead are clearly outlined and entail highly ambitious targets. We are working hard on: - reducing emissions (75% reduction of CO2 emissions, 90% reduction of NOx emissions, and 65% reduction of perceived noise), - recyclability (at design and manufacturing) and on - alternative and sustainable fuels. Overall, there is a need for a smoothing out of the innovation cycle, from upstream collaborative research to technology demonstrators. We would like to provide best practice to other transport modes and contribute to meeting societal needs with regard to security and services. Horizon 2020 funding is likely to represent a slight increase from the 2007-2013 period. Despite the fact that the budget levels agreed upon by the Heads of State and Government are below what we consider desirable, the eventual deal can still be an important and necessary catalyst for growth and jobs. 1. In July 2013, EADS announced its wish to rebrand itself in Airbus Group and its reorganisation into 3 divisions: Airbus, Airbus Defence Space and Airbus Helicopters. The new structure should be implemented in 2014. The European Files 33
  • 34. Scientific and industrial innovation Horizon 2020: From Research to Innovation Gerhard Huemer UEAPME, Economic and Fiscal Policy Director I n the current Framework Programme for Research and Development (FP 7), the participation of businesses in collaborative research and in the thematic areas went down from 40% (FP 6) to about 25%. This means the current programme is very much taken up by Universities and Research Institutions. Therefore, it is no surprise that the general assessment of the situation in Europe is that we are very good in fundamental research, but have serious shortcomings in bringing results to the markets. Universities and Research Institutions are mainly interested in receiving funds to finance their infrastructure and staff, but are too often not interested in making money out of their projects. This is also proven by the results for the “Research of behalf of SMEs” part of FP 7: Most of the projects are driven by research institutions, where SMEs participate more as an alibi, and the projects stop after the research phase, which means there are not enough attempts to bring research to innovation and to create welfare for the society. In this context, the successor programme for FP 7 has been challenged by the EU 2020 Strategy and its “Innovation Union” flagship initiative. The responsible Commissioner Máire Geoghegan-Quinn, as well as most of the stakeholders such as UEAPME (the European Craft and SME Association), started the debate by demanding a new programme which brings excellent research to markets and supports innovation rather than research on behalf of researchers. Three years later, at the end of this political process, I would say that the new programme, now called Horizon 2020, has the potential to achieve its political goal. There are 34 The European Files two reasons to be optimistic: 1. Next to the pillar “Research for Excellence” (first pillar), which never has been challenged, the second (leading technologies) and third (societal challenges) pillars of Horizon 2020 are better designed to answer the needs of businesses (2nd) and society (3rd), which should attract proposals rather driven by their ideas and needs than by the interests of research institutions. Such projects have a much higher potential to result in innovation and to improve welfare and competitiveness. The crucial point will be who will decide about the annual work programmes, because the concrete calls have to be interesting and attractive enough to motivate societal organisations and businesses to participate. Therefore, a proper involvement of business and societal organisation in the preparation of work programmes is decisive for the success of this new approach. 2. Horizon 2020 includes a new SME instrument, which is designed as a pure innovation programme and starts with support for a feasibility phase, where not only the technical feasibility has to be proved but also the commercial potential of an idea. In a second phase (project implementation) the instrument supports the innovative part of the processes, which may include research, but not necessarily. This phase covers access to technology, process innovation, innovation support services and should end with market application. Successful projects from this second phase also have the possibility to access supported financial instruments for investments and commercial roll-out. The two most important features of the instrument are that only SMEs can apply for projects – which means the project will be rather businessdriven than research-driven – and the project has to have a commercial dimension as from the beginning. This instrument should ideally be used by all areas of leading technologies and societal challenges and should ensure a sufficient SME participation in Horizon 2020. Therefore, it may be no surprise that this new approach, which has a much stronger focus on innovation, was very much welcomed by business stakeholders and the European Parliament, but less positively received by universities, research institutes and “their” Ministers for Science. Nevertheless, in the final negotiations and with strong support from the European Parliament, the new innovative approach of Horizon 2020 could be kept. Furthermore, UEAPME achieved some improvements for the SME instrument such as a dedicated budget with bottom-up calls, a higher target for SME participation (20%), and a specific and simple management structure for the SME instrument. Furthermore, the new programme will be better interlinked with RD and innovation support provided by Structural Funds. This is especially important for SMEs, which act mainly on national regional levels and less so with a European dimension. However, at present the Horizon 2020 Programme is only on paper and the concrete implementation will prove if the initial ideas will become a reality or not. This means, the success of the new approach will very much depend on the ability and willingness of the administrations and agencies responsible for implementation to achieve the new aims and to sufficiently involve the relevant stakeholders.
  • 35. The European Files 35
  • 36. Innovation in energetic evolutions, food safety and agriculture Putting Means in Common to Enhance Research and Innovation Jean-Pierre AUDY MEP, Group of the European People’s Party (Christian Democrats), European Parliament R esearch and innovation are important parts of the solution to big societal challenges facing Europe: ageing population, health, energy, space, industry, sustainable development, climate change, etc. Europe is the right level to intervene as Member States can no longer lead programmes on their own, especially programmes which deal with the limits of knowledge. One of the other objectives of research and innovation policies is to make Europe the most competitive and efficient continent in the world. We are currently in competition with “Continent States”: the United States, Brazil, China, India, Russia… These States did not wait for us; they are already looking for innovative ideas and have become tremendous competitors. However without funding, we will not be able to fulfil these objectives or support our industries, SME’S, universities, etc. which are the basis of our future competitiveness. We may also lose our know-how. After agriculture, research could be one of the major European policies, keeping in mind that the objective is going beyond the limits of knowledge as well as finding industrial applications. Putting European capabilities in common is one of the best answers we have in times of crisis. A better coordination and a step towards mutualisation of resources would allow us to lead a realistic and efficient policy, essential for the future of our continent. While going through a crisis, we have to find a fair balance between what we can ask of Member States and what is necessary to enable the implementation of a real European research and innovation policy. That is why, apart from obtaining a significant budget, it is more than crucial to reflect upon the benefits of mutualising and coordinating funding, especially in times of public money scarcity. The 7th Framework Program for Research and 36 The European Files Technological Development (FPRD) from 2007 to 2013 currently funds research and innovation in Europe. A new research program called “Horizon 2020” will finance research and innovation for the next budgetary period (2014-2020), which for the first time will gather all the European funds together. This budget is one of the biggest in the world: more than 70 billion euros for Horizon 2020, while the 7th FPRD was of 50 billion (53 billion with EURATOM). However, research and innovation are not only financed by the EU, but also by Member States and regions, which can lead to efficiency loss in public spending. I have in fact suggested many times that we should audit these expenses and funds in order to rationalise expenditures. National Accounting Offices and the European Court of Auditors should lead this human resources, etc.) and downstream to ease the transition between conception and market. In fact, this was debated and further approved during the Horizon 2020 negotiations. More globally, I am convinced that mutualisation and coordination could be useful in many fields. This 21st Century offers us a curious paradox: it poses major scientific challenges and the impact of science and technology is felt throughout our daily lives, and yet the sciences have never seemed so distant, inaccessible and troubling - Claudie Haigneré, President of universcience, former Minister for Research (2002-2004) and former Minister for European Affairs (2004-2005) of the French Republic, doctor and astronaut. We know that Humanity will solve its challenges mainly by the scientific genius. It is in this audit. It is unacceptable that some projects are financed several times on the same basis without coordination: this represents an efficiency loss in public money spending. Likewise, synergies have to be found between European programs. Indeed, some activities from structural funds, thus enabling a larger support and follow-up of the projects, could complete activities related to Horizon 2020. As an example, structural funds could be used upstream to reinforce capabilities (in terms of equipment, particular context of transition between the end of the old world and the birth of a new one that Europeans must work together to face their own future.
  • 37. Maximising the Impact of European RD on the EU’s Energy, Climate and Growth Agendas: an Industrial Perspective Martha Crawford-Heitzmann Senior Executive Vice President Research, Development and Innovation, AREVA I/ Horizon 2020: Good signals and high hopes for European industry Recent efforts made by European institutions to guarantee an ambitious budget for European RD from 2014 to 2020 and to prioritise excellence in science and industrial leadership are good signals to the European industry and research communities. In particular, the streamlining of EU research and innovation funding instruments under Horizon 2020 is an important step towards efficient allocation of resources and towards greater involvement of industrial players. But participation of European industry could be further enhanced by focusing on H2020 resources on innovation, developing of dedicated instruments for demonstration and deployment of first-of-a-kind technologies. II/ Energy and climate, jobs and growth objectives: Let’s ensure that RD priorities are aligned The European Council has set the objective of decarbonising the European economy by 2050. AREVA considers that decarbonising the EU energy system by 2050 is possible given the mature technologies available to initiate this transition. But targeted and efficient European RD priorities will be necessary for the EU to fully meet these challenges and to recover economic growth and create jobs. Priority 1: Contribute to the EU energyclimate strategy for 2030 and beyond. The European electricity system is confronted with difficult challenges of reliability and stability. European support to RD on low carbon technologies must also ensure the quality and flexibility of the European grid: Energy storage will be a key enabler. For AREVA, in order to tackle the increased intermittency resulting from significant penetration of renewables in the mix, substantial RD effort must be undertaken to develop storage solutions which are economically competitive and scalable. Complementarity between dispatchable low-CO2 generation and renewable energy is also a RD challenge for Europe. Crosscutting RD efforts (e.g. on materials, simulation and modelling, environmental and health impact mitigation techniques and assessment methodologies, decision-support systems for more complex energy systems) are needed to create and capture complementarities between dispatchable low-CO2 generation capacities and renewables. Network infrastructure and demand-side management solutions must be developed to guarantee that increased intermittency will not jeopardize the EU decarbonisation objectives by increasing reliance on more flexible fossil-fired generation capacity. Priority 2: Orient EU RD towards the development of a sustainable European renewable energy industry. Efforts should concentrate on a few areas where the development of such industrial capability and supply chain is most realistic. AREVA considers that European financial RD support should be streamlined towards those technologies with an important development potential likely to grant a level of economically sustainable technological leadership to energy companies by 2030: - Offshore wind energy: RD priorities include increasing the power capacities of the current turbines, to reduce unit costs, and developing floating turbines to lower environmental impacts and installation costs, while raising efficiency. - Concentrated Solar Power (CSP): Innovation could offer gains in technology efficiency through new materials, and greater autonomy, through associated thermal storage. - Bioenergy: Integration with pre-treatment technologies, such as torrefaction, will permit to gain higher energy density, significantly improved grindability and reducing costs of transport. - Electricity storage: RD funding priority should be given to demonstration projects for hydrogen solutions, as well as thermal and electrochemical storage solutions. To encourage emergence of an economically viable solutions priority should be given to multi-technology calls to demonstrate solutions in different contexts. - Marine energy: RD priority should go to developing viable solutions and securing future market share through targeted intellectual property development Priority 3 – Maintain the technological leadership of the European nuclear industry and continuously improve nuclear safety In the area of nuclear fission, the Euratom Program has historically focused on installation safety, advanced systems (reactor systems and fuel cycle), remediation technologies and radiation protection. EU research projects on nuclear safety have covered issues which are particularly relevant in the present context. They must be continued. At a time when other countries (e.g. Korea, China and Russia) are adopting aggressive industrial and RD strategies on nuclear, the EU should not abandon its technological leadership and must prioritise financing for: Activities under the SET-Plan: ESNII will lead RD for GEN-IV and nuclear systems designed for increased safety, fuel flexibility and continuous optimisation of the nuclear fuel cycle. Assuring appropriate funding for cross-cutting transverse expertise relating to health, environment and international safeguards must remain a priority. Implementation of the strategic research agendas of the three major European cooperative initiatives in coherence with Horizon2020 1) Sustainable Nuclear Energy Technology Platform (SNETP) and its three RD pillars, namely: ESNII for GEN IV, the NUGENIA association for Gen II-III, and NC2I for process heat application; 2) Implementing Geological Disposal Technology Platform (IGDTP); 3) Multidisciplinary European Low-Dose Initiative (MELODI). III/ Like most Europe-based companies active in the energy sector today, AREVA growth and diversification strategies rely to a large extent on RD and innovation. In 2012, the group dedicated a total of € 448 million to RD and technology demonstration, equal to 4.8% of revenue for the period. The Group employs more than 1 000 persons working on RD in both nuclear and renewable energy domains (wind, bioenergy, solar, energy storage). Within its strong and diverse RD portfolio, AREVA is committed to participating in European RD projects to contribute to achieving the EU’s ambitious energy, climate and growth objectives. The European Files 37
  • 38. Innovation in energetic evolutions, food safety and agriculture Innovations From Technological Breakthroughs: Keys to a Successful Energy Transition Bernard BIGOT Chairman of the CEA (Commissariat à l’Energie Atomique et aux Energies Alternatives) 38 The European Files the management of large intermittent energy production: the recovery of fatal heat, the use of biomass and the production of flexible energy sources (2nd generation biofuels, biogas, hydrogen and methane), capture, recycling and storage of CO2. The exercise led by ANCRE can attest to the (theoretical) feasibility of a division by a factor close to 4 of the French CO2 emissions related only to energy by 2050 in the three scenarios. However, for each of them, achieving this objective is based on a two dimension assumption: on one hand, the sustainability of the required effort (economic and financial, organizational, societal) and, on the other hand, except if the 50% share of nuclear energy in the national electricity production is expected to be reached after 2040, the necessity to remove technological bottlenecks in a near horizon. In conclusion, the study carried out by ANCRE to reach the “factor 4” shows the need for: - significant changes in behaviors - a massive deployment of new technologies, assuming their economic and social feasibility, - the implementation in each scenario of at least a disruptive technology. In all cases, these ambitious objectives cannot be reached without a sustained effort of RD at national and European levels. © M any states are concerned about the development of their energy mix with the key issues of energy independence, energy costs and environmental impact. Many visions of a possible energy future for France or Europe are proposed, but few of them identify the paths to follow and obstacles to overcome to achieve those constraining and mandatory objectives. ANCRE, the French Alliance Coordination of Research for Energy, that brings together public research organizations in the field, wanted to contribute to the French debate on the Energy Transition by developing different scenarios taking into account the technological dimension to describe the ways to go. In this collective work, ANCRE took into account the objective of achieving a factor 4 of reduction in CO2 emissions by 2050 and the assumption of the present French Government on a 50% share of nuclear energy in the national electricity production from 2025. Two of the major issues raised by this study are the sufficiency of currently available technologies versus the need of a technological revolution to achieve the factor 4. Three scenarios were developed by ANCRE describing three contrasting visions of a lowcarbon energy future for France in 2050: - The enhanced sobriety based primarily on the extensive sobriety, increased energy efficiency and development of renewable energy - The decarbonization by electricity based on the combination of a strong energy efficiency efforts and an increase in the uses on the part of electricity - The diversified vectors leveraging on energy efficiency and an important part of integrated energy systems developed locally. The presentation of the first results of the work helped to identify, for each scenario, a trajectory regarding changing demand and energy mix and the challenges to achieve the goal of factor 4. This analysis was conducted in the following three areas, the transportation, the residential associated with tertiary and finally the industrial sector. In any case, a break in the evolution of energy demand is necessary to achieve the factor 4. On final energy consumption, the transportation and residential service are key contributors to this decrease in demand: - In the transport sector, the decrease in demand is carried in all three scenarios by improving energy efficiency, in particular with the prospect of placing on the market very low power consumption passenger cars by 2025. - The tertiary residential sector saw its final energy consumption down in 2050, largely thanks to the renovation of the old buildings and the energy performance of new buildings. Each scenario highlights a particular technology to meet the challenge of managing intermittency: - Smart grids for the enhanced sobriety scenario, - The electrical storage with large power capabilities for the decarbonization by electricity scenario, - Cogeneration for the diversified vectors scenario. On energy production, several technological bottlenecks are identified in relation to Aerial view of MYRTE platform for storage of electricity, combining photovoltaic equipment and production of hydrogen (Corsica, CEA-University of Corsica)
  • 39. RD and Innovation for “Green Growth” – the CIP Eco-Innovation Initiative Patrick Lambert Director, Executive Agency for Competitiveness and Innovation (EACI) of the European Commission Economic benefits I t is possible to create a profitable business by developing smart eco-friendly solutions. The Phobior project, for example, is ‘closing the carbon cycle’ by using CO² to grow algae producing omega-3 rich fatty acids. These fatty acids are essential to the human metabolism and are currently sourced from fish oil, despite concerns about over-fishing and pollutant contamination such as mercury. By commercialising an innovative photo-bioreactor, Phobior is harnessing a natural source of omega-3 which avoids exploitation of fish stocks and puts CO² to good use. This is just one project that is co-financed under the Competiveness and Innovation (CIP) Eco-innovation initiative. A recent study has shown that the initiative has been successful, leading to concrete results. Looking at projects funded in the first three years of the initiative, 126 projects received total funding of €86.8 million from the EU, matching investment provided by the projects. Some of the findings are that co-operation across several countries is a key component for obtaining the desired results. Moreover small and medium-sized enterprises (SMEs) are the main actors in this initiative. In figures, around 70% of the projects involve partners from more than one European country; and projects comprise on average 4 partners. Partners operate in the manufacturing sector (37%), the environmental services sector (34%) and technical and scientific activities (25%). The study confirms that the programme in the first three years offers good value for money based on the projected environmental, economic and employment benefits which far exceed the public resources spent on supporting the projects. Employment benefits The grant targets innovation projects that can be quickly turned into successful businesses, generating new income from existing or new markets. The study found that most of the projects have a good potential to generate income. It is estimated that the 126 projects are generating additional business sales (within the company and among partners) of around €260 million by the end of the projects, and rising threefold to €840 million two years after project end. If the anticipated business revenues materialise as planned, each €1 of EU grant funding will have generated €20 in additional European business revenue over a five-year period. Gross profits on average are estimated to be some 18% of sales, confirming the commercial potential of the projects. The Initiative is important to make these innovation projects economically viable by shortening the payback period for the investment and thus mitigating risks. SMEs expect that the grant will shorten the payback period by around 20% on average. The EU’s financial commitment also works as a catalyst – a quality stamp – for accessing additional funding. Apart from being a source for growth and profits, the eco-innovation projects supported by the Initiative also generate employment. The new business activities have led to the creation of 8 jobs, on average, in each project! Environmental benefits The aim of the Initiative is to reduce environmental impacts through the use and application of new, commercially viable products, processes and services. The environmental benefits correspond to the annual consumption/waste generation of a city in the EU of about 125,000 people and water savings of a city of 350,000 people. So even this small group of 126 eco-innovation projects can have a very significant environmental benefit. As we know, the use of energy and materials, as well as the emission of greenhouse gases and the disposal of waste, generate environmental impacts, such as global warming and contamination of air and water. The environmental savings generated by the projects are estimated at approximately €40 million at the end of the projects, rising to €833 million after two years (and further after five years). This is almost ten times the amount paid out to these projects from the EU budget. Benefits to SMEs Because of their size, SMEs usually have more difficulties to obtain EU grants. It is another success of the eco-innovation initiative, that most project partners are small and medium sized companies. The grants are particularly important to SMEs given that the smaller the company, the more difficult it usually is to secure external financing for innovation. In addition, two thirds of projects that sell their innovative products or services to other businesses expect that this demand will be mainly from SMEs; with consequent benefits to the competitiveness of SMEs. Conclusions The analysis of the results show that the CIP Eco-innovation Initiative is money well spent, as the expected environmental, economic and employment benefits outweigh the costs to the public purse by far. Public funding is very important for businesses, especially SMEs, to bridge the financing gap that is frequently present between the development and testing of the innovation and bringing it to the market. The operation and funding of the Initiative has supported promising European developers of eco-innovations by providing the risk capital that would otherwise not be accessible. It is also helping to create future innovation options for Europe through demonstrating successful innovations to other companies which can further develop and deploy these. The European Files 39
  • 40. Innovation in energetic evolutions, food safety and agriculture Reducing Energy Dependency by Investing in Alternative Energies Fulvio Conti Enel Group CEO and General Manager As we foresaw this trend, we have invested heavily in renewables, becoming a world leader, with 8.7 GW of installed capacity through Enel Green Power, and with a well-balanced generation mix, which includes wind, solar, hydro, geothermal and biomass across Europe and the Americas. “ When there is no energy, there is no colour, no shape, no life” said Caravaggio some four hundred years ago. Although the illustrious painter was born in a period when the gift of power, gas and oil had yet to be seized and tamed for the benefit of humankind, he managed to brilliantly describe the preciousness of this gift: in art, as in life, without energy there is only darkness. In the past century, energy has been fundamental for the economic, social and civil development of humanity around the world. However, to keep going on lightening the darkness also today, the electricity sector has to face new and tough challenges such as widening access to energy, including to the 1.3 billion of people who still live without electricity, ensuring energy supply security, issue particularly relevant in Europe, and address impacts on the environment, a problem of global scale. The above mentioned challenges are pressing on our industry for the need of innovative investments. New energy sources are emerging and expanding rapidly, changing the old status quo. Enel, as a leading player operating in 40 countries across 4 continents, serving 61 million customers and interacting everyday with 500 million people all around the globe, feels the responsibility of tackling these issues by finding new and innovative solutions to provide abundant, cheap and environmentally friendly energy sources. This is particularly true in EU where the power system is moving away from the dominance of coal and gas, to a situation where new capacity is directed towards new renewable energy sources – biomass, wind, solar, which have increased more than five times in the generation mix, from 2 percent in the year 2000 to 11 percent in 2011. 40 The European Files Enel Green Power’s geothermal-solar plant “Stillwater”,USA In addition to the increase in large-scale renewables, the European power sector has started moving towards a more decentralised model of power production. In fact, the generation, trading, transport, distribution, and retail scheme will deconstruct, as distributed generation becomes increasingly prevalent and consumers become “pro-sumers”, who both consume and produce energy. Smaller generation units have created a new realm of ownership for electricity generating capacity; there are 3.5 million households in Europe that have started to produce their own electricity. At the same time, an increasing number of communities are building their own generating capacity disconnected from the grid. Small generation units below 10 MW of capacity have grown significantly, from around 10 GW in the year 2000 to about more than 70 GW currently installed. The strongest factor behind this change has been clearly the boom of distributed solar. At the end of 2012 Europe had 59 GW installed, 70% of the global total. This new pattern requires a change in how electricity networks are designed and operated, evolving from passive to active “smart grids”, able to flexibly integrate and manage electricity flows that differ in quantity, origin and programmability. In order to optimize the use of these intermittent generation units, they must not only be connected to the network, but they also have to be integrated, monitored and managed. New tools and technologies have to be developed and interconnected in order to drive the evolution of networks towards this new “smart” paradigm. Enel started this process in 2001, with “Telegestore”, an unprecedented Smart City Monitoring Centre in Buzios, Brazil
  • 41. remote meter management system project, which led Enel to install so far 34 million of “digital” smart meters to its Italian customers, enabling remote and real time reading and management of the accounts. The “Telegestore” still represents the only smart metering solution currently in operation on a large scale worldwide. Following the successful deployment of the Telegestore system in Italy, Enel is extending in Spain (Barcelona and Malaga), Italy (Bari, Genoa, Turin, Cosenza and L’Aquila) and Latin America (Cidade Inteligente Búzios, in Brazil, and Smartcity Santiago, in Chile). Enel is also working on two smart grid models on the islands of El Hierro and La Graciosa in Spain with a view to establishing systems that help isolated islands become energy self-sufficient, therefore reducing dependence on imported fuel. The city of Malaga has become a show case window for all cities which support Enel technologies and strive for sustainability, thanks to the successful conclusion of the smart grid implementation. Our smart system in Malaga achieves the optimal grid integration of renewable energy sources, bringing power generation facilities closer to end-users through the use of micro solar and wind power generation systems. Storage systems were also employed so that renewable energy could be subsequently used for building air conditioning, public lighting, e-mobility and grid back-up. The concept of electricity as the cleanest and more efficient energy vector takes an even more evident demonstration when it comes to the electric vehicle (EV). Enel is very active in charging infrastructure, using a model based on a multi-vendor approach and interoperable systems. Over the last four years, pilot projects have demonstrated the feasibility of a new energy management model for cities, allowing energy savings, reduction in CO2 emissions and the enhanced integration of renewables within the distribution grid. Electricity, being the most efficient vector, holds more promise of further extending its reach to other uses and areas. The immense potential of powering economic development by a common (and clean and efficient) energy vector such as electricity, is what is driving the intense technological advancements within Enel and the passion for improved services to all of our customers. This has become an irreversible mission to all our employees. The Enel smart meter its application to other distribution grids within the Enel Group. In particular, in Spain and Latin America, Enel is investing approximately €1.4 billion in innovation and smart grids over the next five years. Specifically, 13 million smart meters will be installed in the distribution grid of Enel’s Spanish subsidiary Endesa by 2018. Smart grids will change the way electricity is transmitted and distributed, expanding the ability to control and manage a larger number of components across the entire network. Smart grids will also contribute to the advent of smart cities, in which innovative technologies are employed in all dimensions of the urban context, using state-of-the-art tools supporting the quest for secure energy supplies with a low environmental impact. The term “smart city” refers to an urban environment in which intelligent solutions for sustainable development are implemented. Enel is a global pioneer in the development of smart cities and already has projects under way Enel-powered electric car The European Files 41
  • 42. Innovation in energetic evolutions, food safety and agriculture The Role of KETs (Key Enabling Technologies) in the 2020 European Innovation Strategy Antti Ilmari Peltomäki Deputy Director General of the DG Enterprise and Industry, European Commission E urope is struggling to recover from the persisting financial and economic crisis that has caused an unprecedented drop in economic activity and raised concerns about the competitiveness of the European economy as a whole. In order to do so, a renewed focus on the competitiveness of the EU, and in particular of its industry, is necessary. In an increasingly open and integrated world economy, the ability to innovate and adapt to rapidly changing conditions are the strongest determinants of the EU’s growth potential. Stimulating investments in new technologies and especially in technologies with a high potential for growth such as Key Enabling Technologies (KETs) is therefore a must for Europe. KETs comprise nanotechnology, micro and nanoelectronics, industrial biotechnology, advanced materials, photonics and advanced manufacturing technologies. The six KETs have applications in multiple industries such as the automotive, food, chemicals, electronics, energy, pharmaceuticals, construction, and telecommunications, and more applications in a variety of other industries are expected. The current global market volume in KETs is estimated at € 646 billion and is forecast to increase by over 50% to over € 1 trillion by 2015, which is equivalent to around 8% of the EU’s GDP. All together KETs have a huge potential for growth and that is why they are one of the key priorities of our industrial policy. Only those nations and regions mastering KETs will be at the forefront of future advanced and sustainable economies. To achieve this ambitious objective we must increase the share of industry in the economy, from its current 15.2 to 20% of GDP 42 The European Files by 2020. And Key Enabling Technologies are an essential pillar in our road to achieving this target. The Commission has proposed an all-encompassing and long-term strategy for KETs in 2012. The strategy marks a move away from individual action towards a coordinated approach across different policy fields with the aim of boosting the deployment of KETs. For that reason, activities under Horizon 2020 (the new EU Research and Innovation framework programme), the EU’s cohesion policy and the activities of the European Investment Bank (EIB) are being adapted and closely coordinated so that they contribute to the European KETs strategy. Horizon 2020 has been rebalanced towards closer to market activities and one of the main goals of the programme is to help capture a larger share of the rapidly expanding markets of KETs. There will be dedicated support for pilot lines and demonstrator projects in order to facilitate industrial take-up and commercialisation. In collaboration with stakeholders, four potential test cases (smart structures, embedded energy, highperformance production and innovative processes using renewable resources) for pilot lines based on KETs and of high industrial interest have been identified to demonstrate the feasibility of implementing ambitious industrial projects and of bringing together different funding sources and instruments. The RDI activities of the four test cases will be prioritized in the Horizon 2020 Work Programme. The future Cohesion policy framework (structural funds) will promote the adoption and diffusion of KETs for the benefit of industry: KETs are now defined as priority investment areas in which the Structural Funds can finance projects that are much closer to the market, all the way up to first production, and it is also possible to combine research and innovation funds with Structural Funds. This opens up wider opportunities for regions to support all the crucial stages of technology and product development. Already today, following the signature of the Memorandum of Understanding between the European Commission and the European Investment Bank (EIB) in January this year, the number of KETs projects supported by the EIB has been increasing. In the first half of 2013, EIB lending has almost reached the amount lent for the whole of last year: € 2.6 bn. An important element of the European approach is to foster the access of SMEs to technology platforms. The Commission will support KETs technology platforms of European dimension that are open to SMEs to test the feasibility of their ideas and projects. It will be an excellent way to ensure that SMEs can fully exploit their innovation capacity. But it is not only a matter of technologies, the human factor is critical for the success of our policy, since high knowledge intensity requires also highly specialised staff. An integral part of our strategy is to identify multidisciplinary skills, to assess the industrial needs in terms of competences and to boost partnership between industry, academia and education systems in order to train students with the required skills. To conclude, KETs are a priority on the EU’s agenda. Because of their systemic relevance to Europe’s capacity to innovate and modernise its industrial base, the Commission believes that the full exploitation of KETs will ensure a social return on investment and the creation of jobs in the EU, in line with the Europe 2020 strategy for smart, sustainable and inclusive growth.
  • 43. KETs Race:KETs Race: of EPO/PCT patentsregion region (all KETs) Share Share of EPO/PCT patents by by (all KETs) Source: Status Implementation Report, HLG on KETs, July 2013 KETs Race: Applied and development research funding funding KETs Race: Applied and development research public public Source: Status Implementation Report, HLG on KETs, July 2013 / European Commission Source: Status Implementation Report, HLG on KETs, July 2013 1
  • 44. Innovation in energetic evolutions, food safety and agriculture The Potential of the Construction Sector for the Energy Efficiency Challenge Emmanuel Forest President Energy Efficient Building Association (E2BA), CEO Bouygues Europe T © Eric Sempé he construction sector is one of the major components of the European economy representing a share of nearly 10% of the EU’s GDP. It is furthermore responsible for providing citizens and the overall economy with a built environment (buildings and most infrastructure), which is our living milieu and serves a lot of other industries and services. Therefore the quality of construction works directly impacts the quality of life and the performance of many other sectors. The responsibility continues to grow in line with new and paramount challenges such as energy, climate change and sustainability. Created in 2004, the European Construction Technology Platform (ECTP) has launched so far three RDI initiatives to contribute to strategic EU challenges with potentially huge impacts: - Energy Efficiency in Buildings (E2B); - Research for Future Infrastructure Networks in Green Office Meudon 44 The European Files Europe (REFINE); - Active Ageing in the Built Environment (AABE). Concentrating here on the global issue of energy, E2B was the first initiative launched in 2009 by the sector in partnership with the European Commission. To put the challenge into perspective, it is useful to remind that buildings represent 40 % of total EU energy consumption, and generate 36 % of greenhouse gases emissions. The construction sector therefore offers a considerable potential to contribute to the EU’s critical path to decarbonise the European economy by 2050, reducing CO2 emissions by at least 80 % and its energy consumption by as much as 50 %. As the EU’s current replacement rate of the existing building stock is very limited (only 1-2 % per year of new buildings), acceleration of replacement combined to large retrofitting programmes for existing buildings is urgently needed. Such a strategy would represent a unique opportunity for sustainable business growth, provided that products and related services needed for both new and refurbished buildings are innovative, of high quality and yet sustainable and affordable, in line with European Directives. The construction industry vision of becoming a high-tech industry, turning energy efficiency into sustainable business, cannot be achieved by the industry alone as it requires: - Breakthrough multidisciplinary and crosssectoral research efforts across different domains; - The mobilization of a critical mass and the creation of innovative chains to speed up the development, demonstration and deployment of new technologies; - A proactive approach between research and demonstration activities and innovative demand side measures in full synergy with EU wide policy initiatives, including among others the need to address EU business models, innovation friendly procurement, interoperability and standardisation to create a unified market. Within this framework the Energy Efficient Buildings Association (E2BA) acknowledges the proposal of the European Commission to include research and innovation activities in the Horizon 2020 proposal, in continuation with the current Research Public Private Partnership on this issue, the EeB PPP. Based on the successful achievements so far, its extension over 2014-2020 would allow to: - Develop technologies and solutions enabling to speed up the reduction in energy use and GHG emission in line with the 2020 goals, e.g. through a higher renovation rate of the building stock at lower cost and to meet regulatory needs; - Develop energy efficiency solutions in order to turn the building industry into a knowledge-driven sustainable business, with higher productivity and higher-skilled employees; - Develop innovative and smart systemic approaches for green buildings and districts, helping to improve the competitiveness of EU building industry by providing cost-effective, user-friendly, healthy and safe products for smart cities. This would ultimately create a solid foundation for continuous innovation in the building sector through sustainable partnerships, fostering an innovation eco-system across value chains. This is why E2BA is taking part to other ongoing initiatives of the Commission aiming at integrating RDI between various industrial sectors, like the Smart Cities and Communities European
  • 45. - Valuing not only energy performances but also environmental, aesthetics, historic value, acoustics, safety, accessibility or comfort as purchase criteria for end users; - Committing to long term performance guaranteed contracts on the energy bills. The E2B Agenda introduces specific Research and Innovation objectives based on a clearly identified set of priorities to develop, integrate © L. Zylberman Innovation Partnership (SCC EIP, through its members Bouygues and CSTB) or the High Level Group on Key Enabling Technologies (HLG KET). By 2030, increased and faster collective research and innovation would allow the European building sector to mutate into a mature, innovative and energy efficient enabling industry: - Delivering new or refurbished, user centric and affordable buildings/districts in line with Australia building, ETDE’s new headquarters in Montigny-le-Bretonneux, HQE certified (High Environmental Quality) and BBC-effinergie (Low energy building). Architect : Hubert Godet EU2020 and national strategic objectives and commitments towards 2050; - Working safely according to quality standards that encompass the whole life cycle of any building, thus guaranteeing durable building performances; and demonstrate: - Innovative construction e.g. building envelope, multi-target design, materials and prefabrication methods, approaches adapted to public buildings or commercial/private-housing ones; - Systemic, cost-effective, mass-customised, high-performing, and minimally invasive buildingretrofitting solutions integrating innovative energy equipment and storage, to multiply at least by 2.5 by 2020 the yearly energy efficient and high quality renovation rate with tangible benefits for users; - Interactive sustainable buildings for energy neutrality/positivity in a block of buildings, for a further 15% reduction at district and city scale in energy and emissions by 2020; - Performance monitoring tools to ensure energy efficiency during the service life, by providing the full performance predicted at the design phase and long-lasting quality to the end-user, in combination with durable components. Within the broader EU strategy towards a more energy efficient built environment and sustainable construction, industry led research and innovation activities should be complemented with effective public mechanisms, such as, lean and innovation friendly public procurement mechanisms, adoption of EU wide standards and promotion of regulations, as more flexible regulations would improve the market adoption of innovative technologies. Although they are inherently complementary to the PPP, actions to convince and stimulate users to invest in energy efficiency are critical to make innovation happen and fulfil the ambition of a European building stock consisting of Zero-CO2 and energy positive neighbourhoods by 2050. In this way, a new interpretation to the meaning of the acronym PPP can be suggested: implementing People (job creation, quality of life), Planet (energy, CO2 and climate) and Profit (a dynamic and competitive economy) as the leading principle. The HORIZON 2020 RDI programme will undoubtedly prove as a key European framework to encourage innovation and fasten its adoption in a newly competitive economy. The construction sector is ready to take its part of the challenge and develop new partnerships with all other concerned stakeholders. The European Files 45
  • 46. Innovation in energetic evolutions, food safety and agriculture “Smart Grids”: an Evolution or a Revolution? Bernard DELPECH Deputy director of RD of the EDF Group S ince inception, electricity generation has required intelligent networks. In the beginning, when power was a strictly local affair, networks were operated with the aim of controlling the frequency In short succession, links were created between different grids in order to provide greater security and reduce the cost of electricity. Networks, by design as well as definition, became increasingly complex which led to the development of a sort of “intelligence” that has become more sophisticated over time. For evidence of this evolution we need merely cast a glance at the state-of-the-art in system design in terms of security and transmission lines Without this built-in intelligence modern networks could never meet the current demand. The idea of intelligent networks therefore did not arrive yesterday. The current outlook on power grids is shadowed by two considerable clouds weighing just on the horizon: a lack of investment and the increasing role of renewable sources of energy. These two elements have heightened the need for greater flexibility in getting electricity where it needs to be. These two challenges will have a huge impact determining whether power grids can evolve at the required scale. The first challenge is the level of investment required. Investment in electricity generating infrastructure is entering a major growth phase. In emerging economies such as China investment will be required just to keep pace with demand and is projected to approach 200 billion dollars for the period 2010-2020. In more developed countries the sums demanded are still colossal, even when making estimates based on a low annual growth rate of 46 The European Files 0.7%. Existing infrastructure is aging and needs to be updated, a process that is made more urgent by new environmental regulations (coal plants). Europe witnessed 540 billion dollars of investment in the period from 2000-2010 and could see $1.136 trillion for the period 2010-2020. With such huge stakes the natural tendency has been to limit spending only to what is strictly necessary. Many have chosen to favor a process which weighs the benefits of investment in infrastructure and attempts to balance them by reducing demand, especially during peak periods when the grid reaches saturation point. This has certainly been the case in France where at the initiative of Marcel Boiteux dynamic pricing was introduced to encourage consumers to adjust their consumption habits to favor off-peak hours. Under current conditions the policy has excited renewed interest but to fully harness its power more flexibility will have to be added, specifically at the level of demand. The second challenge is to significantly increase the role of renewables in power generation. Europe could raise the contribution made by renewables by as much as 30% around 2020 through the efforts of countries like Germany where plans are afoot to boost this figure to 80% by 2050. Fears over greenhouse gas emissions have provided the political will to make such statements and rapid progress is being made. When making a distinction between renewables and more traditional energy production methods two points are key: - they are often intermittent (wind, solar), - they demonstrate more geographic variation than conventional sources of energy. Either they are located far from major population centers (off-shore wind farms or deserts for solar arrays) or are actually integrated into living environments (solar roof panels and micro-wind turbines). The massive arrival of intermittent renewables (wind and solar) will undoubtedly create stress on the current infrastructure unless flexibility is sharply increased. This could be accomplished in a number of ways. One idea is to build more traditional power stations to pick up the slack Part of the wind, off-shore and solar energy in the energy mix for different countries – 2009-2020
  • 47. when intermittent supplies are absent. Another is to create energy storage devices (batteries, hydraulic accumulators, balloons for storing hot water). Going another route, more flexibility could be created on the demand side (limiting supplies when the wind disappears and easing up when it starts to blow). Managing the need for flexibility: making the grid smarter Worries over whether investment is being structured intelligently and increases in the use of clean-energy technologies are placing strain on electricity grids to deliver enough flexibility, especially in relation to demand. Whether development occurs on the existing infrastructure or through the creation of new technologies the need for action has become urgent. Without these flexibility the massive development of renewable energy will reach an impasse. This flexibility has to be mobilized at each level of the value chain (generation, transmission, distribution, customer), so we need to put a new intelligence in the grid to manage this: such a grid is what we call a smart grid. The emergence of smart grids entails innovations representing a sharp rupture with past practices in three primary domains: - technical and technological - the role of customers in the electricity grid - industrial policy A rupture in techniques and technology: a novel approach to networks and the path ahead to the devices that will mark the new grid (storage...) The early stages of development will unfold at two ends of the production chain, impacting on high voltage networks at one end and low voltage networks at the other. High voltage networks have benefited from developments in High Voltage Direct Current (HVDC) technologies and are absolutely essential in the transmission of electricity from off-shore wind farms and solar installations in faraway deserts. The entire domain is ripe for development and represents an important element in the future of high voltage networks. At the other end, it is in the distribution networks that some of the most meaningful developments are likely to occur and this is due to a number of reasons. These networks have been connected to renewable energy producing devices (notably rooftop solar arrays) although they were never designed with this usage in mind. Questions over voltage regulation and an adequate system of safety and assurance require a response. Currently, in the south of France, issues over the interaction between photovoltaic installations and the low voltage network have led to the devices being disconnected altogether during certain periods. Customers connected to the low voltage distribution network will need to see more flexibility if the promise of the system is ever to be realized and at present the infrastructure has come up rather short. With the transformation of the energy value chain a number of innovations should begin to appear across networks, particularly in terms of storage devices where RD is occurring at a feverish pace. Electrochemical storage is promising for both large capacities, with NaS batteries (sodium sulfur) installed at the source or on a more modest scale (lithium ion) to be distributed to customers. The picture is rounded out by technologies that harness energy in forms that can later be used to either heat or cool (by for example, creating ice when energy is cheap and abundant to cool later, when energy is expensive such as when wind turbines slow down). A rupture with the past and the evolving role of the customer at the heart of the grid: the transition from passive consumer to partner in energy production. Are we witnessing a break with previous roles in the relationship between utilities and their clients? As the energy value chain becomes increasingly flexible and undergoes a process of decentralization, the customer is becoming more of a partner in the system. Individuals can wear many hats, taking in power generation (rooftop PV) as well as storage (using electric vehicles), and can modulate demand according to need (using accumulators of hot water balloons or a dual-energy heating system using for gas and electricity for example). Consumers contribute at a number of levels and spread generating capacities across the entire spectrum of demand and/or lift any restrictions due to limitations on regional or local infrastructure. Moreover, they allow for more efficient management of spikes in demand and offer the possibility for a rapid response (by lowering consumption in real-time following a temporary outage at a power station for example). But each consumer, individually, is not big enough to be managed at the scale of an electric system. For revealing the value they are able to create, customers needs to be federated. So energy consumers will have to get together, or allow themselves to be placed, in various sub-systems in order to create real gains in efficiency. From this point on, the focus will be to create robust points of interaction between these new sub-systems and the backbone. The manner in which these sub-systems are composed will play a crucial role in the future. The actual results will depend largely on regulatory standards and the dynamism of the different stakeholders. The strategic dimension of the questions that need to be asked of the various actors will lend the discussion a defining role in the future outlines of the sector. And it is on this point that the rupture created by the arrival of smart grids will likely have its most profound repercussions. What should not be forgotten however is that the changing relationship requires the availability of a reliable communications layer in order to facilitate the new mode of peer-to-peer information exchange on which the entire system depends. Viewed through this lens, research and deployment of smart meter systems becomes an essential ingredient to the success of the project. The regulatory framework will also play a major role. We can see for example that an investment in smart metering systems plays a dual role creating a value adding partner for utilities as well as network managers. Regulation has a major hand to play in creating conditions to encourage the kinds of investment that can be of benefit to the wider community. In the same spirit, regulation can contribute to the construction of a framework that rewards the emergence of technological innovation. The European Files 47
  • 48. Innovation in energetic evolutions, food safety and agriculture Customers interact with large systems through sub-systems Evolution and rupture in the industrial sector: defining standards and encouraging innovation in electrical engineering firms Injecting this “new intelligence” into wires will not come cheap and significant investments have already been made (the Obama administration has begun to dole out the $3.4 billion in funds earmarked for smart grid development). The most important beneficiaries will be technology manufacturers (meters,...), developers of software applications and services, and the communications layer. One possible stumbling block could arise from the notable absence of any common norms and standards. The basic building blocks of the system will remain expensive until large manufacturers are able to create a broader market which in theory should be possible given that the question of how to integrate renewables is truly 48 The European Files global. Clearly, agreed upon standards have become a necessity. Creating shared norms will become indispensable in the rush to create innovation. It will also play a large part in ensuring development costs are recouped through sufficient economies of scale. Standards are indispensable if smart grids are to achieve their true potential. Conclusion The challenge to the electricity sector is immense. The challenge is no less daunting for manufacturers (electrical engineering firms, software developers) as what is demanded is not just innovation but an entirely new set of standards. Finally, the challenge leads to the regulators as it is they who must: - create a dialogue between the stakeholders (utilities, network managers, …) and create the conditions necessary if investment is to benefit the wider community, - construct a framework that rewards technological innovation. To give an answer to the question in the title of this paper, we can say that smart grid issue begins like an evolution and finish like a revolution.
  • 49. Science in Support of Innovation Bernhard Url Deputising Executive Director, EFSA F aced with growing and increasingly urbanised populations, the agri-food industry is challenged to meet global food security demands and deliver the products that our constantly evolving society requires. Historically, industry has risen to the challenge, from the early innovations by pioneers such as Appert and Pasteur geared towards the preservation of a precarious food supply, through to more recent efforts to optimise the nutritional content of foods to address the global tide of chronic diseases. As Europe struggles to emerge from recession, the emphasis on economic growth has never been greater. Europe has a thriving food industry based on centuries of tradition and know-how. Considering that the agri-food sector is of crucial importance to the European economy – both in terms of contribution to GDP and employment – investment in RD and innovation is a prerequisite for growth. Experience has taught us that technologies that have delivered real benefits to human progress have endured and invariably those innovations have had a robust scientific basis. And it is this scientific rigour that the European Food Safety Authority (EFSA) – the European Union’s independent risk assessment body – brings to the innovation landscape. For risk assessors, scientific innovation is a mixed blessing: novels foods and technologies present significant challenges related in particular to the need for the development of new assessment methodologies and approaches or adaptation and harmonisation of existing ones. The data available to risk assessors in emerging sciences such as nanoscience are often limited and there may be significant areas of scientific uncertainty to overcome and communicate. Conversely, increasingly sensitive analytical methods have reduced detection thresholds, meaning that in some fields data have spiralled and become difficult to manage. Furthermore, products are often developed without due recognition of the specific needs of the risk assessment community and one of EFSA’s key roles is to ensure that those needs are articulated and reflected in the EU research agenda. On the more positive side, scientific progress continues to provide new tools that expedite the risk assessment process, reduce the need for animal testing and add powerful new computational methodologies to the armoury of toxicologists, by way of example. Since it was established in 2002, EFSA’s work has grown considerably in complexity and many new tasks have been appended to, or have grown in prominence in, its work programmes. In particular, the assessment of the efficacy and safety of regulated products destined for the European market has become a key pillar of its activities. While public health is and will remain the agency’s raison d’être for the foreseeable future, there is a growing demand from the EU’s 500 million consumers – more informed and empowered than ever before – to ensure that the products on supermarket shelves are safe and that the multitude of claims made by manufacturers for their products has a rational basis. And mirroring the situation in the pharmaceutical industry, it is not enough to put a product on the market and forget about it; as a result, EFSA’s role in the post-authorisation evaluation of regulated products continues to grow. As we are doing with GMOs, we will continue to monitor the safety of products on the market and ensure that industry provides us with data that are fit for purpose to perform effective risk assessments. To date, the most prominent aspect of EFSA’s work on commercial products has been related to the implementation of the so-called Health Claims Regulation in 2006. Faced with the proliferation of health and nutrition claims on food labels, national authorities have responded by tighter regulation of food advertising whilst, at the European level, the legislator enacted the sometimes contentious Health Claims Regulation primarily to ensure that consumers are not misled. This unique and groundbreaking piece of legislation, widely welcomed by consumer groups and the public at large, puts the onus on manufacturers to justify their claims with reliable scientific evidence, which is assessed by EFSA. This has resulted thus far in a high rate of rejection of claims amid criticisms of both the legislation and the standards of evidence required. However, EFSA’s work has provided clarity on the level of evidence needed to support claims and has enabled a list of permitted claims to be established in the EU which will serve as a reliable basis for further sustainable innovation. Undoubtedly, innovation can bring major benefits for both the consumer and the environment, but we are beholden to independently assessing the risks and benefits of new technologies in an objective and unbiased manner. As the debate on GMOs in Europe has illustrated, there are many hurdles to the acceptance of new technologies; it should not be forgotten that, as well as their essential lifesupporting function, foods have strong social, cultural and ethical implications. If it is to be successful and sustainable, then it is clear that innovation must deliver clear, tangible benefits for citizens and take these societal expectations into consideration. One of the EU’s key achievements over the past decade has been to move science centrestage in the food policy-making process, backed up by the investment in scientific risk assessment that followed EFSA’s creation. This evidence-based approach has enabled Europe to more effectively protect its consumers and, in the increasingly globalised marketplace, provide a robust basis for European trade decisions. As we move towards the vision outlined in the Europe 2020 strategy of smart, sustainable and inclusive innovation, EFSA will continue to support the agri-food sector with high-quality scientific advice. The European Files 49
  • 50. Innovation for citizens: employment, social inclusion, education and health Putting People at the Centre of the Knowledge Triangle: the Cases of the EIT and MSCA Jan TRUSZCZYŃSKI Director General, DG Education, training, culture and youth, European Commission S timulating an entrepreneurial and creative mind-set is a shared goal in the Knowledge Triangle of education, research and innovation. Higher education plays a vital role by nurturing talent, so linking universities, enterprises and research organisations is crucial to providing people with the right skills. Businesses increasingly require staff to have both a strong academic background and the ability to be creative in translating that knowledge into products or services. According to the Innovation Union flagship of the Europe 2020 Strategy, we need more people to start or pursue their research careers in Europe but who also are ready to bring their ideas to the market. This is the ethos of both the European Institute of Innovation and Technology (EIT) and the Marie Skłodowska-Curie Actions (MSCA). Since 2008, the EIT has promoted the integration of the European innovation landscape in order to enhance European sustainable growth and competitiveness, reinforce EU innovation capacity and create the entrepreneurs of tomorrow. In its short life, the EIT has already brought a calculated risk-taking culture to more than 2000 students through its EIT-labelled degrees and contributed to the creation and development of more than 40 start-ups. The Marie Curie Actions (MCA) have encompassed the three sides of the Knowledge Triangle for even longer. They combine excellence in research with top-quality training in order to foster innovation skills. They promote the international and crosssectoral mobility of researchers, and offer attractive career development opportunities of 50 The European Files a high professional standard. By the time FP7 ‘PEOPLE’ Programme ends, the MCA will have awarded € 4.7 billion to 50 000 researchers. Both the EIT and MCA support multi-national structures that bring academia together with other organisations in order to provide the innovative higher education that the labour market demands. The EIT Knowledge and Innovation Communities (KICs) are long-term integrated partnerships gathering a diverse and balanced set of key innovation players from the higher education, research and business sectors. The EIT KICs carry out a portfolio of activities covering the entire innovation chain –from novel education entrepreneurial programmes to innovation projects and business incubators. The EIT KICs are designed to put people in the driving seat as agents of change in all areas of life. When looking at the education dimension, KICs develop innovative courses blending entrepreneurship to excellent, albeit traditional, programmes. The constant and direct feedback from education and business in a KIC allows for an education where creativity, problem-solving and an entrepreneurial mind-set become essential. In particular, by bringing research and business closer to higher education, the changing needs of the economy and society are quickly taken into account in all the steps of the innovation process. To reinforce the Knowledge Triangle, in 2012 the MCA launched the European Industrial Doctorates. Research enterprises structure, in collaboration with a university, a doctoral programme with 50% of time spent in industry. This provides researchers with skills that are needed by businesses. 21 European Industrial Doctorates are running and a further 30 will be announced shortly. For example, the VAMPIRE (‘Vascular Antibody-Mediated Pharmaceutically Induced tumour Resection’) project will bring together a Dutch SME and a British university plus other partners including a charity. Trainee researchers will investigate a promising new approach to vascular cancer, and gain skills that will accelerate its application in clinics. As part of Horizon 2020 the EIT will establish five new KICs, in addition to the three existing ones currently working on ICT, climate change and sustainable energy, in areas where important societal challenges have been identified and where the EIT KIC model can have a crucial role in promoting a new way of innovating such as healthy living and active ageing; raw materials; food4future; added-value manufacturing; and urban mobility. The MSCA in Horizon 2020 will build on the current achievements to support even more of the people behind research and innovation in Europe. As the main EU programme for doctoral training, financing around 25,000 candidates, MSCA will influence PhD programmes across Europe. MSCA will support industrial doctorates, joint doctorates, and other innovative forms of research training that provide experience outside academia. Therefore doctoral fellows will gain both specialist knowledge in the given research field and transferable competencies like entrepreneurship, while benefitting from international mobility and fair employment conditions. Furthermore MSCA will strongly enhance research/innovation collaboration between the academic sector and other organisations through the secondment of staff members. Participant organisations in these exchanges will be located in different European countries and could also be elsewhere in the world. MSCA post-doctoral fellowships will offer similar possibilities for sharing knowledge. The cross-fertilisation of ideas and the mobility of people across different sectors and disciplines are intrinsic to the EIT and MSCA models and trigger the type of innovative thinking that can benefit European society at large. They will strengthen the talented individuals behind research and innovation who are key to Europe’s economic recovery.
  • 51. Public Service and Innovation – an Opportunity Brought by Necessity Edit HERCZOG MEP, Group of the Progressive Alliance of Socialists Democrats, European Parliament Treasurer of the SD Group I f there is an Achilles heel in the EU it is our innovation activity which falls behind the global average. While the US and East-Asia annually spends 2 - 3 percent of their GDP on RD, in Europe this value stagnates at 1 percent. Dynamically developing regions along the Pacific coast line are gaining the leading position from the Atlantic area and this can quickly make the Old Continent the follower in the global division of labor. If we are to bring the ten or more percent of global investments to Europe then we cannot neglect RD and innovation. The given means tasks for all participants involved, including the EU and the member states. The Horizon 2020 scientific programme has proposed 80 billion Euros over the next seven years. Even if it is more than the originally proposed amount, it will still fail to cover all the demand, to give direct answers to the challenges of aging, climate change, demographic and information booms. The private sector and companies cannot be charged with requirements, although their tasks and opportunities are probably even greater than those of political decision makers. Owners and company chiefs will only spend more on development in case of consumer demand or if there are good incentives to persuade them. This is where we should find the breakpoint since community and national budgets cannot increase innovation funding to induce significant change. Thus enterprises must be supported in this important role. This is where public services come into focus. Between these and innovation productivity, a two way positive feedback, a synergy effect, can be maximized, in case RDI gets more emphasis in planning, operation and development. The improvement of public services by the means of social innovation can induce demand for services and products of companies engaged in the development of new technologies. However, at the same time, inclusive social politics – one of the main goals of Horizon 2020 – can widen the human resources for RDI activities and can hasten the spreading of technologies. This could include and energize small and middle sized companies as their taking part in innovation must be encouraged. Public approval is also important because if more people experience the results of 21st century innovation the better the culture of development and innovation will spread in communities. The extension of all levels of education and social inclusion can increase the human basis of European innovation. Through talent programs, fresh supply of excellent engineers and researchers can be ensured and the continuity of basic research can be maintained. Development of education helps keeping European minds within the community. Modernization of vocational education can speed up the adoption of new technologies helping enterprises to boost the pace of innovation. Due to the features of the European job market, programs aiming to bridge digital gap also gain greater importance. This could induce a significant improvement in the effectiveness of the modernization of local and national bureaucracies. Healthcare cannot be ignored either, as it may increase the demand for innovative products. Looking beyond the system’s need for equipment, another important effect lies in extending the age limit of working abilities and maintaining the freshness of the mind and learning abilities. The public services have a very important tangible value often underestimated. This is a very wide use of them once are introduced accelerating the member of users. The role of the telecommunication sector, mobile networks and broadband internet connection is another important one. By the development of the regulatory environment – e.g. abolishing roaming tariffs – the EU can do a lot to establish a truly competitive and profitable ICT sector. Only if we manage to transform the structure of telecom systems into a Pan-European model and succeed in providing the necessary incentives for companies to also include the (mostly rural) regions in need in the development process, only then can we regard high speed access to the Internet like a basic right. Luckily, beyond the budget of Horizon 2020 we can count on the 40 million Euros in the Competitiveness chapter of the EU budget “Connection devices”. Making innovation and RD profitable and attractive can be achieved by cutting administrative costs, making patenting procedures quicker and cheaper. The common European Patent System accepted last year not only makes patenting new inventions 80 percent cheaper for European innovators but also motivates inter-continental research groups to register their achievements in Europe. Supporting technology-intensive start-up companies and motivating investors’ risktaking also means an important opportunity and task for policy makers. I was quite disappointed when the 80 billion euro overall budget of Horizon 2020 was passed. However, I believe that the necessary change of perspective due to the tight monetary resources also means a great opportunity. We are forced to closely revise the public policies of the Union and the member states with the scope of “innovationfriendliness” and to identify all the synergy factors and their barriers. There are still resources to utilize. The European Files 51
  • 52. Innovation for citizens: employment, social inclusion, education and health Horizon 2020 and the Innovative Medicines Initiative: Promoting Public-Private Partnerships to Improve Public Health Magda Chlebus, EFPIA Director Science Policy Where is science leading us? That’s the big question in medicines research and development now. No matter how much we invest in research, we are ultimately limited – or empowered – by the capacities of science. It’s a powerful agent of change and has already allowed for great achievements. But we are missing the efficient translation of science into tangible treatments with real impact on patients. It’s not just about discovering new molecules; we need to be able to take what we discover in the lab and transform it into treatment that patients can benefit from. No standard research programme or single stakeholder today is capable of this. This has become clear as we have learned more about challenges posed by the new sciences, from big data to personalised medicines. We are discovering that nobody can do it alone – and we are finding the solution in public-private partnerships, PPPs. The EU framework programme Horizon2020 is one welcome initiative championing collaborative PPPs. Under Horizon2020, we are already seeing success in the Innovative Medicines Initiative – a PPP between the European pharmaceutical industry and the European Commission. By promoting such PPPs in the life sciences, Horizon2020 is clearly following through on its efforts to create an excellent science base; boost European competitiveness; and tackle societal challenges. IMI has already been recognised for the advances it has made in research; this summer saw the launch of IMI-2, which will continue to build upon the first initiative’s successes. Japan has kicked off its own PPP, the Global Health Innovative Technology Fund. While IMI looks largely at European problems, GHIT focusses on global health issues. Not all PPP’s are the same, nor should they be; the most effective PPP’s will be those that are tailored to the results they are intended to deliver. By bringing together diverse stakeholders, PPP’s deliver on a range of points – not just on research. How? In the spirit of collaboration, I’ve asked colleagues from the industry to offer their 52 The European Files varying perspectives on how PPP’s deliver – for research, for industry, for academia, for society and, of course, for patients. Reading their words, I am more convinced than ever of the continued support of initiatives like IMI. We’ve seen that such open innovation models work – there’s no doubt in my mind that IMI is a success story. Now we need to further support PPPs like IMI in their ambitious goals of combining research and public health agendas to ensure the delivery of new and improved medicines – from petri dish to doctors and patients. IMI has demonstrated that PPPs can deliver ground-breaking results Michel Goldman, Executive Director of IMI, the world’s largest PPP in life sciences research The journey of IMI has really been an exciting one. In just a few years, we’ve seen some amazing breakthroughs addressing major public health needs, for example in the area of antimicrobial resistance. The fact is that only two new classes of antibiotics have been developed in the past three decades. By launching a number of projects addressing antimicrobial resistance that bring together large pharmaceutical companies, small and medium-sized enterprises (SMEs) and experts in universities and hospitals, IMI hopes to change this. Then we have the NEWMEDS project, which created the largest known database of studies on schizophrenia by bringing together data from many clinical trials, conducted by several different companies. These companies are competing on the market – but for this endeavour they joined forces and the benefits of this approach are clear from the excellent results coming out of the project. Another wonderful example is EU-AIMS, which brings is developing new understandings of the pathogenesis of Autism Spectrum Disorders. The five-year project is the largest single grant for autism world-wide. These are just a few of IMI’s success stories – there are many more, and I am confident that IMI 2 will build on these successes and move one step further by addressing the current gap between approval of a treatment and its adoption in the standard of care to improve patient outcomes. Collaboration will be needed as we adapt outdated research pathways – a fundamental need Peter Andersen, Chair of the Research Directors Group of EFPIA From IMI, we’ve clearly seen the value of working together. The question now is how to convert this to true benefits to patients. Traditional “serial” approaches are time-consuming (10-plus years), expensive, and hugely inefficient. We need to fundamentally redesign the pathway from science to patient – what we have today is not reasonable and certainly not sustainable. The resources required to change this are huge and will require the efforts of many different stakeholders working together. I can only see this happened through a PPP like IMI. PPPs encourage us to look at the big picture when considering patient access to medicines Richard Bergstrom, Director General of EFPIA I think we’ve found a good formula here on how to progress research. But we need to go beyond thinking about just research. This means thinking about the regulatory framework – taking into consideration the ways that RD is changing, smaller patient numbers, modified data requirements, differential assessments of risk. It means looking at HTA, at pricing and reimbursement – arguably these are now the gatekeepers of patient access to medicines, not market approval. Today, HTA and reimbursement can add years onto the already lengthy development process. PPPs inviting diverse stakeholders’ input are one
  • 53. way to bring together relevant stakeholders to work together towards the ultimate goal – better patient access to better medicines. Different minds need to come together to tackle the challenges that remain Dr. Paul-Peter Tak, Senior Vice President and Head of the ImmunoInflammation Therapy Area Unit at GlaxoSmithKline There is a great opportunity to develop personalised medicines, but this is just one example of a very complex field in today’s RD world. This is one of the reasons we are increasingly seeing a move towards open innovation and collaborative research. For instance, years ago, breast cancer was based on the location of the tumour. It can now be classified according to the genotypic features and the patient’s molecular pathology. We can identify at least ten different types of breast cancer and these are susceptible to distinct treatments. Theoretically, we have the possibility to develop a much larger number of distinct treatments for different types of cancer – which we have yet to even define on a molecular basis. The prospect is huge, but daunting. No single pharmaceutical company, research institution, or academic body has the means – the knowledge, the resources, the finances, the skills – to realise the full potential of such a science. Innovation driven by PPP’s is valuable not only for patients, but for society Richard Torbett, EFPIA Chief Economist Innovations, of one sort or another, have been at the heart of economic and social progress throughout history. Obvious examples that prove the point might include: steam power; electrification; the internal combustion engine; medicine and more recently the internet. Such disruptive innovations have all had a profound effect on society. They have transformed the way we work; live our lives and have opened up new opportunities for commercial endeavour that have led to economic growth. What many of these have in common is that they have combined advances in scientific knowledge with technological and market opportunities. If society is to meet new challenges of the 21st century - such as an ageing demographic and the public finance challenges that come with it - all stakeholders (both public and private) must refocus their efforts to seek out the most useful innovations. In the area of medicine this means supporting new partnerships and collaborations that can help ensure that our improved understanding of disease translates into real therapies that help patients be healthy and productive members of society. By encouraging patient involvement, PPPs can bring am more human approach to RD Dr. Mary Baker, President of the European Brain Council What I find encouraging about IMI1 is the way in which it works to close the gap between patients and research. It actively involves patients’ organisations, empowers patients to engage in the development and approval of new treatments, and encourages patients to play an active role in RD. This is a huge aid to researchers and patients alike: When that causal signal arises in a clinical trial, a patient will be able to tell you better than anyone else whether that is a tolerable trade off to the benefit of the medication. Patients are the driving force behind healthcare. We know this but sometimes we forget. In preclinical development, when researchers are focused on molecular compounds under microscopes, it can be easy to forget that one of those compounds could actually become a medicine for an actual person. By bringing patients into the picture, a PPP like IMI can help remind us of that fact. Current Reading: The Latest News on IMI There are a number of useful resources providing more information on the Innovative Medicines Initiative. Check out the links below to learn more about how this unique public-private partnership is promoting public health initiatives under the Horizon2020 funding framework. IMI1 Call 9 for Proposals - The first Innovative Medicines Initiative is currently in its ninth call for proposals. Expressions of Interest can be submitted until October 9, 2013. More information is available here: IMI2 Strategic Research Agenda - The Strategic Research Agenda (SRA) for IMI2 was created with Europe’s changing public health needs and challenges in mind. It addresses such essential points as anti-microbial resistance and ageing-associated illnesses. Ultimately IMI2’s SRA aims to impact everyday healthcare and patients, as it considers not only the discovery and development of new medicines, but also the pathways in which these new medicines reach patients. More info, including a draft of the most recent SRA put forth for public consultation, can be found here: More on IMI - Detailed information on IMI, links to the various project pages, and latest news updates can be found on the general website of the Innovative Medicines Initiative: http://www.imi. - The European Federation of Pharmaceutical Industries and Associations has two dedicated pages to IMI. Detailed information about IMI 2, including videos, presentations, blog posts and more, can be found here: innovation/innovative-medicines-initiative/innovative-medicines-initiative-2 Additional information about IMI can be found on The European Files 53
  • 54. Innovation for citizens: employment, social inclusion, education and health KIC InnoEnergy in the H2020 Landscape Claude Ayache KIC Innoenergy, SE Business Development European Affairs Towards Maturity and Sustainability co-location centres bridging the gap between proximity services and European dimension The period opening in 2014 will be for KIC IE a and, most importantly, a private legal status. period towards maturity and sustainability. It will KIC IE partnership groups university, research be marked quantitatively, by a strong increase and industry as shareholders, associates or in ambitions, activities and budget and qualitaparticipants. When operating the knowledgetively, by introducing refined strategic tools. triangle (K-T), industry views play a strategic The KIC IE business model foresees to double the ambitions, outputs and impact role. Presently, more than 100 companies are ince their launch in 2010 by the European achieved in 2013, reaching the steady state associated to KIC, either worldwide leading 1 Institute of Technology (EIT)nnoEnergy  in  the  H2020  landscape   over the next two years. The created dynamics companies or SMEs. KIC IE is established as KIC  I , three years ago, the three first KICs (Knowledge and makes realistic this objective which will be a Societas Europaea (S.E.) and thus, run as Innovation Communities) have been firmly achieved mainly by increasing the implication a private Technology  (EIT)1,  three  ywith aago,  the  three   company. This provides it ears   full Since  their  launch  in  2010  by  the  European  Institute  of   settled in the EU Research and Innovation of current partners, increasing the number of operational capability and agility in decision first  KICs  (Knowledge  a significantly grown. (RI) landscape and have nd  Innovation  Communities)  have  been  firmly  settled  in  the  EU  Research  and   (especially from industry) in order to partners making and running activities. Innovation   fully integrated in the H2020 2020   Now, they are(RI)  landscape  and  have  significantly  grown.  Now,  they  are  to consolidate the the  Hcover all the value chain, and expanding our Activities are expected fully  integrated  in   Programme2 whichhich  will  structure  EU  RI  strategy  over  2014-­‐2020.  By  ambition  and  construction,  the   geographical footprint. Annual activities will Programme2  w will structure EU RI strategy three components of the K-T while fostering over 2014-2020. By(KIC  IE)  anticipated  the  innovation  spirit  that  underlies  tohe  latter  especially  under  the   consecutively: up to 1000 people increase KIC  InnoEnergy   ambition and construction, their articulation. Owing t EIT rules funding benefiting from educational programs, increase the KIC InnoEnergy (KIC IE) anticipated the is ensured in majority by partners, e  m being societal  challenge  ‘reliable,  clean  and  efficient  energy’.  The  coming  period  will  b30%arked  by  KIC  IE   by innovation spirit that underlies the latter espeprovided sby industry.innovative  policies  in  the  field.   four the innovation portfolio of innovative Education programs are achieving   the societal challenge ‘reliable, erving  EU   products and services with a hundredth patents cially under maturity,  autonomy  and  sustainability  while  toward market innovation and entrepreoriented filed therefore, up to 250 ventures nurtured in clean and efficient energy’. The coming period neurship. From master to executive level, they An   marked nd  operational   maturity, the HighwayTM and 30 new start-ups in the run will be agile  aby KIC IE achieving dynamics  serving  and  fostering  innovation   aim at educating and training ‘game changers’ rate. Those results will generate new sources autonomy and sustainability while serving EU of the energy transition. Innovation projects are KIC  IE  c policies in the field. of income innovative entral  ambition  is  to  be  the  leading  engine  for  innovation  and  entrepreneurship  in  Sustainable   allowing KIC IE to achieve a sound constructed on the basis of excellent research degree Energy  and operational dynamics serving it   gathers   several   key   assets   focusing   its   activities   toward  of sustainability since the grant received and,   to   deliver   along   that   line,   An agile results, covering the last steps so they become from EIT should progressively decrease after 3 concrete  a innovation and fosteringnd  measurable  goals .     innovative products and services on the market. 2017. Finally, KIC IE directly supports ventures KIC IE central ambition is to be the leading At the Main  assets  rest  on  a  strong  partnership  with  mixed  expertise,  thematic  strategies  closely  linked  to   same time, KIC IE consolidates its to become post revenue start-ups, through engine for innovation and entrepreneurship in strategic approach to innovative solutions for the   SET   Energy and, to   network   of   that the InnoEnergy Highway™3 etween   Those SustainablePlan   priorities,   adeliver along co-­‐location   centres   bridging   the   gap   bsystem. proximity   services   sustainable energy. This strategy is based on and   European   dimension   and,   most   its ventures are offered specific managed accomline, it gathers several key assets focusing importantly,   a   private   legal   status.   KIC   IE   partnership   groups   studies and on exploiting the collective specific panying services and given pan-European activities toward concrete and measurable university,   research   and   industry   as   shareholders,   associates   or   participants.   When   operating   the   force gathered by KIC partners. A expertise vision from the beginning. Tablemore   than   100   companies   summarizes the goals3. competence mapping has allowed a thorough knowledge-­‐triangle   (K-­‐T),   industry   views   play   a   strategic   role.   Presently,   presently created dynamics Main ssociated  tonKa strong partnership witheading  companies  or  SMEs.  KIC  Iand marks KIC IEas  a  Societas   assets rest o   IC,  either  worldwide  l identification of most performing and innovative are  a E  is  established   capability to mobilize significant annual budget mixed expertise, thematic strategies closely actors from industry, research centers and Europaea  (S.E.)  and  thus,  run  as  a  private  company.  This  provides  it  with  a  full  operational  capability   worldwide. Expert analysis from all linked to the SET Plan priorities, a network of to the service of innovative activities. university, and  agility  in  decision  making  and  running  activities.   the value chain (from end user, end customer to the supply side)   2011   2012   2013  (est.)   is used to establish Innovative roadmaps which structure our 23.3   34.3   (43.4)   EIT  Grant  (M€)   ambitions (where we can make 85.6   116.2   (152.6)   KIC  IE  Budget  (M€)   a difference), our support to Students  in  programs   233   503   (637)   innovative projects, educaEducation  programs   Graduates   -­‐   44   (163)   tional programs and business Running  projects   36   41   (57)   creation as well as they favor Innovation  projects   their integration. This approach Patents  filled   -­‐   11   (15)   is completed by a prospective Ventures  incubated   32   25   (37)   Business  creation   analysis anticipating over five Start-­‐ups  created   -­‐   8   (13)   and ten year’s evolutions. It will   S Activities   are   expected   to   consolidate   the   three   components   of   the   K-­‐T   while   fostering   their   articulation.  eOwing  r o EIT   rules  F i l e s is   ensured   in   majority   by   partners,   30%   being   provided   by   54 T h E u to   p e a n funding   industry.   Education   programs   are   oriented   toward   market   innovation   and   entrepreneurship.   From   master   to   executive   level,   they   aim   at   educating   and   training   ‘game   changers’   of   the   energy   transition.  Innovation  projects  are  constructed  on  the  basis  of  excellent  research  results,  covering  the  
  • 55. the  number  of  partners  (especially  from  industry)  in  order  to  cover  all  the  value  chain,  and  expanding   our  geographical  footprint.  Annual  activities  will  increase  consecutively:  up  to  1000  people  benefiting   from   educational   programs,   increase   by   four   the   innovation   portfolio   of   innovative   products   and   services   with   a   hundredth   patents   filed   therefore,   up   to   250   ventures   nurtured   in   the   HighwayTM   and   30  new  start-­‐ups  in  the  run  rate.  Those  results  will  generate  new  sources  of  income  allowing  KIC  IE  to   achieve   a   sound   degree   of   sustainability   since   the   grant   received   from   EIT   should   progressively   decrease  after  2017.   At   the   same   time,   KIC   IE   consolidates   its   strategic   approach   to   innovative   solutions   for   sustainable   energy.   This   strategy   is   based   on   specific   studies   and   on   exploiting   the   collective   expertise   force   gathered   by   KIC   partners.   A   competence   mapping   has   allowed   a   thorough   identification   of   most   performing   and   innovative  actors  from  industry,  research   centers  and  university,  worldwide.  Expert   analysis   from   all   the   value   chain   (from   end   user,   end   customer   to   the   supply   side)   is   used   to   establish   Innovative   roadmaps   which   structure   our   ambitions   (where   we   can   make   a   difference),   our   support   to   innovative   projects,   educational   programs   and   1. EIT Web Site :; see also, Strategic the SET Plan4 which fits with its own strategy be complemented and consolidated by quanInnovation is   completed   by   a   prospective   titative business   creation   as   well   as   they   favor   their   integration.   This   approach  Agenda Final.pdf techno-economic analysis which will developments. EC WEB Site for Horizon 2020 : comfortanalysis  anticipating  common ive  and  ten  year’s  evolutions.  It  will  be  2. omplemented  and  consolidated  by   experts’ analysis and provide a over  f Concerning outreach, KIC IE assists EIT c research/horizon2020/index_en.cfm scale to most innovative challenges in term of ‘awareness’ activities and has launched its InnoEnergy quantitative   techno-­‐economic  own program to ensure will   comfort   experts’   see also, CallWeb Site: http://www.kic-innoenergy. analysis   which   a broader participation 3. KICanalysis   and   provide   a   common   CAPEX, OPEX and environmental impact. com/; 2014 Web Site: http://cip2014.kicThis KIC IE innovative referential will allow of relevant European actors of the K-T to its scale   to   most   innovative   challenges   in   term   of   CAPEX,   OPEX   and   environmental   impact.   This   KIC   IE   optimized impact, higher return on investment, 4. different activities, especially from Central higher innovative  referential  will  allow  optimized  impact,  higher  return  on  investment,  higher  coherence  in   coherence in activities integration while set_plan_en.htm; see also, COM(2013) 253, ‘Energy Europe. the established modus operandi will continue to Technologies and Innovation’. Note finally that potentiality of KIC IE relaactivities   integration   based modus   operandi   privilege support to individual initiatives while   the   established   policies, SMEs programs will   continue   to   privilege   support   to   tively to EU Regional on excellence, sense of entrepreneurship and or action toward sense  of   partner countries individual  initiatives  based  on  excellence,  Neighbouring entrepreneurship  and  agility.   agility. is being explored as we speak. Specific roles and tasks of KIC IE relatively to H2020, the EIT and the SET Plan In its Strategic Innovation Agenda, ‘Investing in Innovation beyond 2014’, the EIT stresses two consortia   In   1: better integrating EIT activities with action linesits   Strategic   Innovation   Agenda,   ‘Investing   in   Innovation   beyond   2014’,   the   EIT   stresses   two   action   Energy   Res EU programs 1:  bdevelop ian outreach policy.IT  activities  with  EU  programs  and  develop  an  outreach  policy.  KIC  IE  is  fully   lines and etter   ntegrating  E definitively   KIC IE is fully engaged in both processes. In dealing with generalboth  processes.     engaged  in   RI EU programs and by  itself  but instruments, KIC IE considers the relevance and help   trans the way of interactions on the basis of a CRL/ In  dealing  with  general  RI   TRL scheme (see figure). Especially, it sees itself EU  programs  and  instruments,  KIC  IE  considers  the  relevance  and  the  way   results  into as a natural partner of European collaborative of   interactions   on   the   basis   of   a   CRL/TRL   scheme   (see   figure).   Especially,   it   sees   itself   as   a   natural   services  by   research as structured by the SET Plan , either 4 led by partner   of   European   collaborative   research   as   structured   by   the   SET   Plan ,   either   led   by   Industrial   Industrial (like EIIs, European Industrial of   the   K-­‐T, Initiatives, and ETPs, European Technology (like   EIIs,   European   EERA, between   Platforms) or by Public consortia (likeIndustrial   Initiatives,   and   ETPs,   European   Technology   Platforms)   or   by   Public  m European Energy Research Alliance). KIC IE push.   KIC   IE is definitively not to perform research by itself construction but its main task is rather to help transforming best research results into innovative products roadmap’   c and services by allowing optimal working of communica the K-T, in the positive tension between market pull and techno push. KIC IE is also engaged which   fits   Technology Readiness Level in the construction of the ‘integrated roadmap’ developmen called for by the recent communication on Customer Readiness Level Specific  roles  and  tasks  of  KIC  IE  relatively  to  H2020,  the  EIT  and  the  SET  Plan   Concerning   outreach,   KIC   IE   assists   EIT   ‘awareness’   activities   and   has   launc ensure   a   broader   participation   of   T h e E u r o p e a n Factors   of   the   K-­‐T   t relevant   European   i l e s 5 5 especially  from  Central  Europe.   Note   finally   that   potentiality   of   KIC   IE   relatively   to   EU   Regional   policies,   S
  • 56. Innovation for citizens: employment, social inclusion, education and health Urban Innovation: a Crucial Stake for Reworking Cities Julie DE BRUX Studies and Prospective Manager at VINCI Concessions Associate Research Fellow at Sorbonne Business School W hile urban and suburban areas concentrate more than 75% of the European population, the potential for innovation to organize more livable cities is huge. A more livable city is not a city where one can go faster from point A to point B, but a city where time forecasts are credible; where several alternatives and more services are provided between point A and point B; a city with energy efficient buildings that can be used for several objectives; a city with no isolated district, and where the links between different types of stakeholders are strong, contributing efficiently to wealth in a sustainable way. Urban mobility policies combined with information and communication technologies (ICTs) are at the very core of this “live better together” goal. Several examples of objects favor such new uses of the city. For instance, some new bus stops have been implemented in Paris and go beyond their initial goal, i.e. a visual cue of the place the bus will stop and a roof to protect users from the rain. These new bus stops are now equipped with touch screens connected to the web and direct information about other transport modes (metro, public bike sharing system, taxi, bus); USB plugs make it possible for citizens to charge up their mobile phone while waiting for the bus. We can find many other examples in car parks, whose function is not anymore to just store cars. The new car park generation is connected to its environment and has a real function in cities’ mobility package. Real time information about alternative transports modes and their impact in terms of time, carbon footprint and cost for users is proposed. The car park is also connected to the commercial, administrative and cultural environment around, by providing addresses, discount vouchers, etc. Car parks can also be used in the logistic chain, 56 The European Files as a storage point before the “last mile” delivery. These two examples show that cities should not be thought as a simple sum of infrastructure and people. They are integrated and connected one another. The smooth running of such connected, livable and reworking cities is based on four pillars: - First, implication of the private sector is crucial since technologic innovations often come from their ICT development programs. Small and medium enterprises should be encouraged this way. Larger groups, able to deliver infrastructure, are also very much involved in the future of cities. Relying on the strength of these groups can represent a worthwhile resource for cities concerned by long term maintenance of their infrastructure. Indeed, it is possible for public authorities to enter into long term contracts, like Public-Private Partnerships. The private partner builds, finances, operates and maintains the infrastructure. He is then repaid for his © Augusto Da Silva / Graphix Images investment on an annual basis depending on the availability of the infrastructure and its performance. Appropriate integration of information technologies can be a criterion for performance. This results in an infrastructure whose state of order is guaranteed in the long run, benefits to citizens, and gets back to the public at the end of the contract. At Horizon 2020, Europe should promote this type of long term contracts to ensure viable infrastructure. - Second, public authorities have the contractual possibility to delegate purely operational tasks. Thus, they can regain control over supervision and planning: supervision of the private sector’s performance, but also public policies to incentivize or “desincentivize” citizens in their daily behaviors. Typically, because of a “Law of Inertia”, citizens do not modify their choice of transport mode, unless strong incentives or constraints are implemented. Marginal changes are not enough. As
  • 57. connected, livable and reworking cities will have to do without cars, public policies can consist on the one hand, in constraining the use of cars, through norms, rules or taxation. On the other hand, decision-makers can provide incentives for a more responsible mobility. Such incentives can take the shape of a higher frequency of public transports, the development of services © Laurent Zylderman / Graphix Images in public transports, spatial planning for bicycle highways as in Copenhagen, pedestrian zones, car-sharing, self-service electric vehicles, etc. European research programs could be dedicated to the evaluation of the improvement of comfort in responsible transport modes as well as inter-modality, and their impact on the likelihood for citizens to change transport modes. - Third, in order to organize efficiently connected cities, a reflection should be launched about the relevant scale of governance, i.e. the “optimal urban area”. Indeed, given the decline of rurality and taking urban sprawl for granted, there cannot be a metro station in front of each building in suburban areas. It is thus of primary importance that public decisions taken for city centers include the impact for the suburbs, although the administrative scales may be different. Ticketing-related topics or issues about information to users can be good starters to launch the reflection. Connected transports should not stop at an administrative border. Finally, citizens are the most important pillar of reworking cities. Their acceptability and active participation is needed. As they become more and more connected to information technologies, citizens may report malfunctions, organize their car-sharing, etc. Here, the issue of data is raised. Data collection, video and exchange of information can be a fantastic collaborative tool. It may also however cause concern about individual freedom and data property. Such concern may lead to citizens’ mistrust in cities, which would be counterproductive. This is why some data regulatory authorities should be implemented to keep these issues under control, reinsure citizens and guarantee their rights, while encouraging to the best use of data as an opportunity to develop new urban services, and to create link. Such a regulatory authority would make it possible to move from the technologic smart city, to the smart citizens, who are the cornerstone of livable and reworking cities. Just like cities are not only a sum of infrastructure, these four pillars (participation of the private sector, public vision, definition of the appropriate urban area and data regulator) are needed to elaborate “co-opetitive” cities. As a result, innovation is both technologic and organizational. It deserves investment and commitment in a long term perspective, combined with agility and reactivity to external changes. The European Files 57
  • 58. Innovation for citizens: employment, social inclusion, education and health Sunset for Child Poverty on the Horizon? Heather Roy President, Social Platform P overty produces poverty – it’s a vicious cycle that affects society as a whole. It requires new ways of thinking about old problems as well as effective responses to new social challenges. Horizon 2020 should be an important source of innovation, contributing to better policies and practice in Europe and beyond. Child poverty is a scourge on European society. Currently one child in four in the EU is at risk of poverty and social exclusion. Increasing numbers of children are being exposed to material deprivation, low quality housing, poor nutrition, and inadequate, inaccessible or unaffordable healthcare, and education, often compounded over life. Children and families have also been hit hard by the economic crisis the consequences of which have been worsened by some member state’s austerity measures which target social policies and social spending. Children’s rights and well-being are being severely compromised – which is bad for children now, but it also stores up problems for future generations. Helping to break this cycle of poverty is clearly a priority for Horizon 2020 as it aims to focus on these challenges: inclusive, innovative and secure societies and health, demographic change and wellbeing. Breaking the cycle of disadvantage requires a comprehensive and rights-based approach to developing policies for investing in children. Prevention and early intervention as well as correction measures must be put in place to tackle problems before they arise or escalate and to redress the negative impact of policies on the well-being of children. This demands an integrated approach: one that brings together traditionally separate policy agendas of social inclusion and social protection, education, health, housing, child care, equality and 58 The European Files employment. It will also require coordination to ensure that these policies support each other in delivering on the improvement of children’s well-being and daily living conditions. Critically, children need to be recognized as active players in their own lives, and the lives of their families and communities, not only as dependents or passive recipients of support. Children must be treated as competent partners and encouraged to participate in all decisions that affect them. This is fundamental to building inclusive societies in the future. However, policy integration and coordination, and the greater attention to children’s own views and experience require appropriate financial support at EU and member state level. As a first priority, decision-makers must shift their focus from cutting social budgets to investing in these policy areas and related services, and measuring the social and financial returns they produce, as well as assessing the social and economic costs of non-investment. This should be done from a short, mid as well as long-term perspective. The upcoming 2014-2020 multiannual financial framework should also contribute in an effective and result oriented way to the eradication of generational poverty. It should address the goals of “Europe 2020”, in particular the social targets for poverty and social exclusion, employment and education. Coherence needs to be ensured between social, health, education and employment policies and between funds and programmes under the MFF. Structural Funds and other EU programs should be used to boost social investment and protection at national level, and to achieve the Europe 2020 social targets. This includes a combination of Horizon 2020 with the European Social Fund (ESF), the European Regional Development Fund (ERDF) and the European programme for Employment and Social Innovation (EaSI). Finally, to identify and implement innovative and best practices in the social sector, including in the area of children’s welfare, it is important to involve all relevant stakeholders to achieve a comprehensive and sustainable policy approach. Involving civil society organisations and the people they represent at all different levels and in the different stages of policy making will enable member states to tap into the existing, on the ground knowledge of NGOs. In particular it is important to give a voice to children and young people themselves both through representative organisations, and also by creating a culture of participation and respect for children’s views within child and family services. About Social Platform The Platform of European Social NGOs (the Social Platform) is the alliance of representative European federations and networks of non-governmental organisations active in the social sector, promoting social justice and participatory democracy by voicing the concerns of its member organisations. The Social Platform and its members are committed to the advancement of the principles of equality, solidarity, non-discrimination and the promotion and respect of fundamental rights for all, within Europe and in particular the European Union. For more information visit
  • 59. ECO-INNOVATION € When business meets environment The European Union’s Eco-Innovation initiative bridges the gap between research and the market. It helps innovative green ideas become fully-fledged commercial prospects, ready for use by business and industry. The results shown are based on a sample of Eco-Innovation projects. 1.6 billion € Every euro of funding expected to generate 20€ revenue per project 1€ total global environmental and economic benefit 8 full time jobs created per project, including the whole supply chain 1.4 million 20€ tonnes raw materials saved Enough raw material to build 200 Eiffel towers 170 million m3 water saved 609,000 The annual water tonnes less waste consumption The annual waste generation of an EU city of 350,000 people 11.6 Equal to the carbon million tonnes emissions from CO2 saved the annual electricity use of 1.7 million homes in the EU of an EU city of 125,000 people 5 sectors 40% 40% 20% Micro ( 0 -10 employees) Green Business Sustainable Building Products Material Recycling Food drink Water Results for 125 projects, indicated by the projects for two years after completion. Revenues from sales exclude production and labour costs but account for deadweight, market displacement and complementarity, supply chain effects and an optimism bias. 80% Private sector Eco-innovation Small (10 - 50 employees) Medium (50 - 250 employees) 70% SMES Produced by the Executive Agency for Competitiveness and Innovation (EACI), 2013.
  • 60. OUVRIR de nouvelles voies aux échanges d’électricité entre l’Europe et les pays du Sud et de l’Est de la Méditerranée Regards Conseil OPENING NEW ELECTRICITY HIGHWAYS BETWEEN EUROPE AND THE SOUTH AND EAST MEDITERRANEAN COUNTRIES