The document discusses key enabling technologies (KETs) in Europe. It notes a disconnect between Europe's share of patents in areas like batteries and solar panels versus its low share of production. It recommends urgent action to strengthen KETs through a single EU innovation policy, combined financing, skills development, and a competitive IP policy. The status update outlines working groups and a KET summit to accelerate KETs implementation, noting a window of opportunity in Horizon 2020 rules. The next steps discussed include accelerating a new KET manufacturing KIC and ensuring PPPs address higher technology readiness levels.

1. CONFIDENTIAL 1
Brussels, 15 May 2013
HLG KETs final report
Gabriel Crean
Chairman of the Sherpa HLG KET Group
KETs Summit
Member States / Sherpa KETs meeting
KETs status update
High Level Group on KETs

2. CONFIDENTIAL
2) The importance of KETs for European competitiveness
Outline
1) Urgency of action
3) Implementation status update
4) Next Competitiveness Council

3. Disconnection between patents share and manufacturing share
Case Study: Li-ion battery production
Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), CGGC,
Lithium-ion Batteries for Electric Vehicles : THE U.S. VALUE CHAIN, October 2010
Europe
% Li-ion battery cell production share in 2008
Asia
87%
31%
Advanced Material Patent Share%
USA
12%
35%
30%
4%
Others
1%
0%
Smart, green
and integrated
transport
Sources: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), Avicenne, The Worldwide rechargeable
Battery Market 2012 – 2025 , March 2012, * others correspond to manufacturers of Li-ion battery cell which market share is lower than 2%
Europe
% Li-ion battery cell production share in 2011
Asia
31%
Advanced Material Patent Share%
USA
6,5%
35%
30%
4%
Others*
0%
0%
Smart, green
and integrated
transport
94%
87% in 2008
CONFIDENTIAL

4. 4
Disconnection between patents share and manufacturing share
Case Study: PV cells production in 2010
Europe
9%
3%
USA
<1%
%
29%
27%
42%
Asia
2%
Europe = 74 %
of global market
USA
6 %
ASIA =
13 %
%
Rest of World
Share of PV cells production in 2008
and 2011
Photonics patent share
Share of yearly
installed capacities
Source: Photon International Mars 2010, European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW)
« JP Morgan, PV News, Oliver Wyman Analysis”, SolarBuzz 2012, SolarPlaza 2012, EPIA
82% in 2008
~88% in 2011
Secure, clean and efficient energy
CONFIDENTIAL

5. 5
TOP 10 manufacturers of solar panels/cells 2001 to 2012 - Cell production in MW
Sources : Photon international mars 2010, Photon international mars 2012, Eurobserver - Baromètre photovoltaïque avril 2012, Market Buzz 2013
Solar Cell Production and Market Implementation in Japan, USA and the European Union - Joint Research Centre - European Commission - A Jäger-Waldau – 2002
Production 2004Production 2001
1. Sharp 75
2. Kyocera 51
3. Shell solar 51
5. Astropower 24
6. Sanyo 20
7. Isofoton 16
8. RWE Solar 16
9. Mistubishi 12
10. Photowatt 12
1. Sharp 324
2. Kyocera 105
3. BP Solar 85
4. Q-Cells 75
5. Mitsubishi 75
6. Shell solar 72
7. Sanyo 65
8. Schott Solar 63
9. Isofoton 53
10. Motech 35
1. First Solar 1100
2. Suntech 704
3. Sharp 595
4. Q-Cells 571
5. Yingli 525
6. JA Solar 520
7. Kyocera 400
8. Trina Solar 399
9. SunPower 397
10. Gintech 368
4. BP solar 40
Production 2009
Secure, clean and efficient energy
Production 2012
3. Suntech
2. First Solar
8. JA Solar
7. Jinko solar
4. Trina Solar
5. Canadian
Solar
1. Yingli Green
Energy
10. Hanwa
solar one
6. Sharp
9. Sunpower
CONFIDENTIAL

6. CONFIDENTIAL
Global share of equipment production
Source: Oxford Economics
Europe generated 45% of world machine tool production before the economic
crisis. Today, this share is down to 32%. The lost share went to Asia.
51.7 % 47.1 %
61.7 %
7.4 %
6.3 %
48.3 % 45.5 %
32 %
0
10
20
30
40
50
60
70
80
90
100
2001 2008 2011
Europe
US
Asia

7. CONFIDENTIAL
2) The importance of KETs for European competitiveness
Outline
1) Urgency of actions
3) Implementation status update
4) Next Competitiveness Council

8. CONFIDENTIAL 8
Nanopowder
for batteries
Led’s
Sensor
Lotus effect windscreen
Power MOSFET
PhotonicsPhotonicsPhotonicsPhotonics
MicroelectronicsMicroelectronicsMicroelectronicsMicroelectronics
NanotechnologiesNanotechnologiesNanotechnologiesNanotechnologies
BiotechnologiesBiotechnologiesBiotechnologiesBiotechnologies
Advanced manufacturingAdvanced manufacturingAdvanced manufacturingAdvanced manufacturing
Advanced materialsAdvanced materialsAdvanced materialsAdvanced materials
LowLowLowLow carboncarboncarboncarbon
mobilitymobilitymobilitymobility
Societal
challenge
Combining several key enabling technologies for advanced products
KETs are strategic for a competitive Europe

9. 9
World first !
ELIOT®, the first plastic pipe that
communicates and is detectable
KETs can revolutionize traditional products
CONFIDENTIAL

10. CONFIDENTIAL 10
KETs:
-Advanced materials
-Nanotechnologies
-Biotechnologies
KETs:
-Advanced manufactu-
ring systems
-Biotechnology
KETs:
-Nanoelectronics
-Photonics
FromKETs
tofinalproduct
Material
Equipment
Component
Fromproduct
tosocietalchallenge
Product
Solutions &
services
Societal
challenges
Biomass
Bioisoprene
Car
industry
Biobased
Synthesis rubber,
Adhesives, elastomers
Car tyres
Bio-pneus
Low carbon mobility
(Climate change)
MOCVD Reactor
Lighting
GaN
LED
Lamp
Lighting
Efficient energy
(Climate change)
Information &
Communication technologies
Nano component
(Low power)
Litho-scanner
SOI material
Nomadic
communication
Knowledge
society
Mobile phone
KETs are strategic all along EU value chains

11. CONFIDENTIAL
2) The importance of KETs for European competitiveness
Outline
1) Urgency of actions
3) Implementation status update
4) Next Competitiveness Council

12. CONFIDENTIAL
A single KETs and
fully-fledged
innovation policy
at EU level.
A comprehensive
strategic
approach to a
KETs policy at EU
level.
A combined
financing to
promote R&D&I
investments in
KETs.
Follow-up
Education and
skills.
Globally
competitive IP
policy.
HLG KET 1: 6 key priorities for 6 KETs
HLG Strategic recommendations
(June 2011)

13. CONFIDENTIAL
Recommendations from HLG KET 1
(June 2011)
The EU should apply the
TRL scale R&D definition
Make KETs a technological
priority for Europe
Fully exploit the scope of relevant
R&D definitions from basic
research to innovation actions
such as prototyping, testing,
demonstrating, experimental
development, piloting and market
replication (new rules of
procedure of Horizon 2020)
Rebalancing of EU funding programmes
towards technological research product
development including pilot lines,
prototype, first-in-kind equipments and
facilities and demonstrator activities
Implement a strategic
industry driven and
coordinated approach of
KETs programmes accross EC
RDI funding programmes and
instruments (CSF, ERDF)
Combined funding
mechanism
Competitive IP policy
Adapted state aid provisions
to facilitate KETs research and
innovation actions
KETs observatory
Build, strengthnen and
retain KETs skills
An appropriate set of rules to
implement KETs programmes

14. CONFIDENTIAL 14
Market
Technological
facilities
Knowledge
Anchor
companies
Industrial
consortia
Research
& technology
organisations
Technologicalresearch
Productdevelopment
Competitive
manufacturing
Globally competitive
manufacturing facilities
Pilot deployment
Pilot line
Key Recommendation: The ‘‘ three pillar bridge ’’to pass across the ‘‘valley of death’’
The valley of death

15. “Think about the America within our reach: a country that
leads the world in educating its people; an America that
attracts a new generation of high-tech manufacturing
and high-paying jobs; a future where we’re in control of
our own energy; and our security and prosperity aren’t so
tied to unstable parts of the world. An economy built to
last, where hard work pays off and responsibility is
rewarded.”
15
Obama to reindustrialise the US
Barack H. Obama, State of The Union speech, 12 February 2013PCAST actions: strong overlap with HLG-KET recommendations
International benchmark on the share of basic, applied and development
activities funded by China, Korea, the US, the Member States and the EU
Asia and US federal R&D funds mainly go to applied “Development” whereas Europe
has the highest share of Basic Research Funding
36%
11%
24% 24% 22%
FP7
92%
EIT - 2%
45%
32%
32% 28% 33%
CIP - 6%
19%
58%
44% 48% 46%
0
10
20
30
40
50
60
70
80
90
100
China Korea US Japan Sum of Member
States
EU
Development
Applied
FP7
Basic
CONFIDENTIAL

16. 16
( 2012) EC Communication on KETs ( 2012) EC Communication on
industrial policy including KETs
( Feb. 2013) Launching of the HLG KET (2)
From KETs Strategy to KETs Implementation
Vice-President
Antonio Tajani,
Commissioner for Industry
& Entrepreneurship
2011
CONFIDENTIAL

17. CONFIDENTIAL
Creation of a new High Level Group on KETs

18. Cross-cutting and
civil society representatives
HLG KET composition
KET representatives End-user representatives
PPP representatives
Ms. Spile, Novozymes, Vice President Novozymes Global R&D Strategy
M. Nelson, CEO IQE, President EPIC
M. Fava, Professor of Industrial & Environmental Biotechnology, DICAM,
University of Bologna, Chair, European Federation of Biotechnology
M. Van Sande, Umicore, Executive Vice President & CTO
M. Eguren, Nicolas-Correa, CEO
M. Sinnott, INTEL Ireland, General Manager
M. Auberton-Hervé, SOITEC, CEO, Chairman of the SEMI European Advisory
Board
M. Uhl, EC Group, President and CEO , Professor at AGH University of Science
and Technology
Ms. Bastioli , CEO NOVAMONT
M. Botti, EADS, CTO, Member of the Executive Committee
M. Engel, Vestas Wind Systems , President & CEO
M. Hoheisel, Bosch, Member of the management board Robert
Bosch GmbH
M. Ambrosio, President European Society for Biomaterials
M. Rimondi, CEO, Bellco, President Assobiomedica)
Mr. Helmrich, CTO, Siemens AG
M. Mengelers, TNO, President,
M. Neugebauer, FhG Fraunhofer Gesellschaft ,President
M. Leppävuori, VTT, President and CEO
M. Van den Hove, IMEC, CEO
M. De Fontaine Vive, EIB, Vice-President
Ms. Sourisse, Board Chairman Telecom-Paristech, Senior Vice President Thales
Defence and Security Systems
M. Bozotti, Chairman European Round Table (ERT), Chairman of ERT Societal
changes and skills working group, President and CEO ST Microelectronics
Ms. Rabmer-Koller, Chairman, Sustainable Development Committee UAPME
Ms. Dely, Covenant of Mayor, Head of COM Office and Head of European Affairs
Energy Cities
Ms. Segol, General Secretary European Trade Union Confederation
M. Baldock, Executive Director, Institute for European Environmental Policy
(IEEP)
M. Desruelles, Chairman of E2BA (Energy Efficient Buildings Association),
Bouygues, Executive Vice-President
M. Mattucci, Chairman EFFRA (European Factories of the Future
Research Association), Comau Group (CEO)
M. Mertin, President & CEO Jenoptik AG
M. Ploss, Representative of ENIAC PPP, CEO Infineon Technologies
M. Wester, Representative of Green Cars PPP; CTO & Member of the
Group Executive Council, Fiat Group; CEO, Maserati, Abarth & C., Alfa
Romeo Automobiles
M. Plischke, Representative of SUSCHEM ETP, Board Member BAYER AG
M. Mensink, Representative of Bio-based industries PPP; Deputy
Director General CEPI, Confederation of European Paper Industries
M. Asch, representative of the SPIRE initiative, President EUnited and
Deputy CEO Alfred Kärcher GmbH & Co. KG
M. Therme, President of HLG KET, Deputy Director of
Renewable Energies, Director of Technological Research,
CONFIDENTIAL

19. CONFIDENTIAL
KETs Value Chain
HLG KET Working groups
Multi-KETs approach
KETs global
competitiveness
& State Aids
Integrated
approach for
(Re)Industrialisation
of KETs in Europe
Skills and
Technological research
infrastructures
KETs & societal
challenges
WG 7
KETs Financial
engineering
Promotion of KETs policies
in EU at Member States and
Regional Levels
WG 5 KETs global competitiveness
& State Aids
Human Capital , Skills
and Infrastructure
WG 6

20. CONFIDENTIAL

21. Europe 2020 – KETs at the core of smart specialisation Regional Policy
Johannes Hahn
Commissioner for
Regional Policy
Budget 2014-2020
53Md€
Fore regions covered by
the « Competitiveness
Objective »
3 priorities related to
technological development
and innovation, including KETS

22. CONFIDENTIAL
EIB to Finance Key Enabling Technologies

23. CONFIDENTIAL
FIRST KET SUMMIT
European Commission
• M. TAJANI. Vice-President of the European Commission, Commissioner for
Industry and Entreprenership;
Member states
• Ms FIORASO, French Minister for High Education and Research,
• Ms VELA OLMO, Secretary of State for Research, Development and Innovation,
• Mr. MONIG, Director for European Affairs and Deputy Director General for
European and International Cooperation from the Federal Ministry of
Education and Research (BMBF),
• Mr. LIBERALI, Director of the University and Research Department, Italian
Ministry for Education, University and Research,
• Mr DODDS, Director of Innovation, Department for Business, Innovation and
Skills (BIS), Ministry for University and Science
KETs SUMMIT
GRENOBLE, FEBRUARY 6TH, 7TH , 2013

24. CONFIDENTIAL
FIRST KET SUMMIT
Nanocharacterization platform
Ministerial meeting
KETs Summit closing ceremony
Family picture
KETs SUMMIT
GRENOBLE, FEBRUARY 6TH, 7TH , 2013
Microelectronics Clean roomAdvanced Materials

25. CONFIDENTIAL
Window of opportunity
Feb MayMarch April June July August Oct.Sept. Nov. Dec.
H2020 Regulation
Rules for participation
TRILOGUE
Window of opportunity for the development and deployment of KETs
There is a need to implement strategic measures to develop
and deploy KETs in H2020

26. CONFIDENTIAL
2) The importance of KETs for European competitiveness
Outline
1) Urgency of actions
3) Implementation status update
4) Next Competitiveness Council

27. CONFIDENTIAL
Key issues for KETs discussion within the next Competitiveness
Council meeting of May 29th.
o To accelerate the launch of the new KIC on KETs related Manufacturing
in 2014 rather than in 2017, to address the current KET skills deficit.
o To ensure that PPPs address higher TRLs (from 4 to 8) as a necessary
condition to achieve the objectives of the new industrial policy and
facilitate Joint calls between PPPs to address common needs across
sectors.
o Societal Challenges must include dedicated technological blocks to
combine market pull and push in order to speed up innovation thus
contributing to the targets of EC Industrial policy.
o Improve competitive landscape (“fast track” project of common
European interest, Regional State Aid intensity, Capex eligibility, Articles
55, 60, 87 )

28. CONFIDENTIAL
Thank you for your attention
gabriel.crean@cea.fr