Digital Innovation Hubs (DIHs) and Competence Centers (CCs) provide funding and support for SMEs to help them overcome challenges in adopting new digital technologies. DIHs offer both technological support through CCs as well as tailored business services. The European Commission is investing 500 million euros in DIHs through Horizon 2020 to help businesses, especially SMEs, benefit from digital transformation. Case studies demonstrate how DIH networks can help startups and SMEs access funding, expertise, and partnerships to develop new digital solutions for sectors like agriculture.

1. DIATOMIC: Funding opportunities for SMEs via Digital Innovation Hubs
7 September 2017
Digital Innovation Hubs
A S T E C H N O L O G Y A C C E L E R A T O R S
G r i g o r i o s C h a t z i k o s t a s • C E O • c h a t z i k o s t a s @ i n o s e n s . r s

2. Crossing the “Valley of death”
Limited knowledge of the
potential of using
advanced technologies
(e.g. microelectronics,
robotics)
Access to robust business
competencies and support
services and strong
technical infrastructure
Getting from zero to
critical market mass in
crowded market
1 2 3
It’s not (only) about the tech – it’s about the ecosystem

3. Industry focus: What is at stake?
HEALTH AGRIFOOD MANUFACTURING
Improved decision making;
Less repetitive and physically
demanding tasks;
Increased flexibility,
productivity, and animal
health;
Faster manufacturing &
reduced error;
Less hard, manual, repetitive
tasks;
More sustainable
manufacturing processes;
Source: #EUSkillsAgenda
Enhanced patient experience;
Improved outcomes of
treatment;
Enhanced management of
drugs;
Improved access to medical
information;
$90B for medical
electronics
Turnover of €1 trillion,
low IT intensity
Manufacturing equipment
in EU worth €57B

4. The digital innovation ecosystem
INVESTORS
TECH ADOPTERS
TECH END-USERSREPRESENTATIVES OF AUTHORITIES
COMPETENCE CENTERS
BIG INDUSTRY
BUSINESS INTELLIGENCE
VALUE CHAIN ACTORS
TECH PROVIDERS

5. The DIH ecosystem can be seen as a
coral reef where there are big and
small fish, hunters and prey, but
overall everyone performs better
compared to isolation.”
— Grigorios Chatzikostas, EIP-AGRI Seminar
Digital Innovation Hubs for Agriculture

6. What a DIH ecosystem offers
TECHNOLOGICAL SUPPORT BUSINESS SERVICES ACCESS TO CAPITAL
€
Access to technology
& know-how;
Availability of research
infrastructure;
Technology-oriented trainings;
Tailored technical support;
Technological tools &
experimentation facilities;
Tailored Competence Brokerage;
Business plan development
support;
Online investor readiness
webinars;
Intellectual Property (IP) trainings;
Mentoring and coaching services;
Investment readiness programs
(IRP);
Networking with VCs, Business
angels, accelerators etc.;
Capacity building in novel funding
mechanisms e.g. equity
crowdfunding;
Support and participation in
relevant venture events;

7. How to explain DiHs and CCs to…
Mother
Startup
entrepreneur
Consultant Scientist
Potential
Customer

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DIHs vs. CCs: Retail Stores vs. Factories
CC
DIH
Source: i4ms.euDiversity ConnectivityProximity

9. Institutional response to the lean challenge
understand observe define
ideate prototype test
CC
DIH

10. DIGITAL INNOVATION HUBS VS. COMPETENCE CENTERS
OPPORTUNITIES AT A
WORKING DISTANCE
Through DIHs, any company,
regardless of size/market position,
can grasp digital opportunities, to
get access to the expertise and
testing facilities needed to bring
robust digital solutions to market.
ONE STOP SHOP FOR
BUSINESSES
A DIH offers both technological
support to companies (through a
competence center) and tailored
business support services relevant
to their business production
processes, products or services.
Fostering “many to many” connections

11. THE BOTTOM-UP APPROACH
Unlike CCs, DIHs are driven by
demand, focused on enabling and
fostering more intensive
collaboration and dynamic
interaction between the demand
and supply side (tech adopters w/
tech suppliers).
TECHNOLOGY AT THE CORE
OF AN ECOSYSTEM
CCs act as the heart of DIHs,
spurring bottom-up innovation by
providing core technology
infrastructure, but need to be
embedded in a DIH to offer an
integrated set of services.

12. Upgrade or transform existing Competence Centres to Digital
Innovation Hubs
Only when embedded in a DIH, a CC can offer, apart from transferring leading-edge
technology, an integrated set of services, including access to funding/finance, training
and mentoring services for business growth, business/market intelligence,
brokering/matchmaking, etc.
Establish new Digital Innovation Hubs
Based on the strengths of a region, and bringing sector-specific expertise based on the
needs of industry in that region.
Create a network of Competence Centres and Digital Innovation Hubs
Building links with other Hubs in order to access additional facilities, fill missing
competences, and collaboratively develop new services and tools. This can be done at
three levels:
01
LEVEL ONE
CCs with CCs
LEVEL TWO
CCs with DIHs02 03
LEVEL THREE
DIHs with DIHs
Focused priorities: major action areas

13. Navigating the European landscape of DIHs
Agile, and demand-driven, Digital Innovation Hubs in Europe are sustainable innovation
ecosystems, not just a gateway to services.
AS A TECH PROVIDER, HOW DO I CROSS
THE CHASM? AS A TECH ADOPTER, HOW
DO I GAIN COMPETITIVE ADVANTAGE TO
CREATE FINANCIALLY VIABLE BUSINESS?
"
DIHS OFFER COST-EFFECTIVE ACCESS TO
CORE COMPETENCES:
• WITHIN WORKING DISTANCE,
• FOR ANY INDUSTRY IN EUROPE;
• WITH A FOCUS ON SMES, NON-TECH
INTENSIVE INDUSTRY
Running DIH initiatives
€110m of funding has been invested in
I4MS since 2013; - 11 large projects
funded by Fp7 and H2020, 70
competence centres;
22 innovation hubs all over the
European continent, soon expanding
worldwide
Digital Innovation Hubs in H2020: The
EC is focusing EUR 300M in H2020
(2018-2020) – short time from idea to
hands-on experimentation and
development.

14. Growing the ecosystem: The added value of EU-wide DIHs
Over the next five years, the EC will focus EUR 500M from Horizon 2020 budget to support the development of DIHs.
A pan-European network of DIHs further supports businesses, notably SMEs and non-tech intensive industry, in reaping
the full benefits of digital transformation.
Building on and expanding on successful experiences:
good practice examples
Vanguard initiative, a
coordinated effort by 30 EU
regions – striving To speed up the
market uptake of innovative
Technologies;
More than 1000 SMEs and start-
ups selected to be part of the
FIWARE business acceleration
programme;
Since 2012, the EIT Digital
Accelerator has supported more
than 230 startups, helping them
raise more than €80 million

15. Case study: BioSense as a European CoE
Centre of Excellence for Advanced Technologies in Sustainable
Agriculture and Food Security
Competence Centre Digital Innovation Hub
Showcases/field implementations of agtech
companies
Experiments of Scientists and Researchers
Implementation of technologies
(smart irrigation, soil mapping, autonomous robotic-
based sensing...) Trainings and co-development work-shops
Entrepreneurial mentiality
Know-how transfer
Cross-fertilization

17. Why/How/What
BUSINESS ACCELERATION services that help pace
up the speed of agrifood innovation among high-tech
start-ups, SMEs & web entrepreneurs;
Valuable KNOW-HOW from H2020 accelerators
(FRACTALS, KATANA) to bring together the investor
community, most innovative SMEs, AgTech experts
and researchers;
PORTFOLIO of agrifood oriented start-ups and SMEs,
supported in terms of access to know-how, funds and
state-of-the-art equipment by BioSense;

18. Scenarios for a digital Europe (1/3)
Agnes (27),
CEO of a SME selling
platforms for farm
management;
Invented new software
for aerial imagery;
Pablo (32), CEO,
an ultra-light fixed wing
aircraft SME;
Involved in the acelerator
programme of the
Andalusian agri-tech DIH
Hans (36), senior researcher, Estonian
Institute of Agricultural and
Environmental Sciences
CC and part of the
Baltic DIH for
technologies
Andalusian agri-tech DHI
Connected with the other
technology DIHs of Europe

19. Scenarios for a digital Europe (2/3)
Pablo, after reviewing
Agnes’ idea, accepts
to collaborate
For him, this is a great
business opportunity! Lacks access to capital;
Looking for a partner to
provide the harware to test
the new software;
Baltic Tech DIH does not have any
aircraft producers within its ecosystem
Baltic Tech DIH contacts the other
DIHs in Europe
Andalusian agri-tech DHI
knows that Pablo’s SME could
be of help for Agnes

20. Scenarios for a digital Europe (3/3)
Agnes and Pablo
received training and
mentoring from the DIHs
Agnes and Pablo’s
product received an
investment of 1M euros
from VC
Agnes and Pablo received training
and mentoring from the DIHs
Agnes and Pablo’s product
received an investment of 1M
euros from VC
Andalusian agri-tech DHI supported
A&P with technical support to
improve their new product
Baltic Tech DIH provided trainings and
mentoring activities to A&P
Baltich Tech DIH put A&P in contact with
the investor community

21. DIATOMIC: Funding opportunities for SMEs via Digital Innovation Hubs
7 September 2017
Thank you!
G r i g o r i o s C h a t z i k o s t a s • C E O • c h a t z i k o s t a s @ i n o s e n s . r s