1. Security Industrial policy + Horizon 2020 Secure Societies
Khoen Liem
Policy and Research in security DG Enterprise and Industry
Helsinki, 25 March 2014i 2013

2. Content Industry policy for security sector FP7 - achievements
Horizon
"Secure society"
(Outlook for 1st SEC call H-2020)
Pre Commercial Procurement
European Council December 2013 2

3. Industrial Policy - Background
The Commission announced a policy initiative for the EU security industry in the EU 2020 flagship initiative "An Industrial Policy for the Globalisation Era Putting Competitiveness and Sustainability at Centre Stage". COM(2010) 614
This lead to the dedicated Communication "Security Industrial Policy - Action Plan for an innovative and competitive Security Industry" COM(2012) 417

4. Communication on the Security Industrial Policy – COM(2012)417
Action Plan for an innovative and competitive Security Industry Objectives: 1. Overcoming the fragmentation of the EU security market 2. Reducing the gap from research to market 3. Better integration of the societal dimension

5. 1. Overcoming market fragmentation
Standardisation
Certification/ conformity assessment procedures
Synergies between security and defence technologies ("Dual-Use research")

6. 2. Reducing the gap from research to market
Aligning funding programmes, exploiting IPR routes
Pre-commercial procurement (PCP)
Access to international procurement markets
Third party liability limitation

7. 3. Better integration of the societal dimension
Societal impact: “checking” during the R&D phase
Privacy by design and privacy by default during the design phase

8. Security research & the 7th Framework Programme (FP7)
FP7-Security ( ):
1,400 Mio EUR (20% to SMEs)
More than 250 projects and 2,500 participants
EU funding: more than 40% of total European funding

9. FP7 Security budget vs. requested EC contribution

10. The new "Horizon–2020"
Aim: securing Europe's global competitiveness by investing in science and innovation
Budget: € million
Duration:

11. What has changed in H-2020? Strong challenge-based approach
Focus on societal challenges facing EU society
Simplified list of possible actions
Mainstreaming of cross-cutting issues
Coupling research to innovation: from research to retail, all forms of innovation
Participation is easier:
- easier access
- easier applications
- less reporting
- shorter time to grant
- quicker payments
- fewer audits

12. H-2020 Key pillars Supporting Europe's excellent science base
Building industrial leadership in Europe
Tackling societal challenges for a better society
Secure societies

13. Horizon 2020 (Com. Proposal)

14. Security: a societal challenge
It concerns the protection of citizens, society and economy as well as Europe's assets, infrastructures and services, its prosperity, political stability and well-being. Any malfunction or disruption, intentional or accidental, can have a detrimental impact with high associated economic or societal costs.

15. Secure Societies: does industry matter?
The security industry is one of the sectors with highest potential for growth and employment in the EU. In 2011, the sector employed 180,000 people, with an annual turnover of approximately €30 billion.
Overcoming market fragmentation through EU-wide standards
Reducing the gap from research to market by introducing new funding schemes such as Pre-Commercial Procurement
Better integration of societal considerations by thoroughly assessing the impact of security technologies on fundamental rights

16. Security Research Maintains its mission driven character
Supports EU internal and external security policies
Supports the EU industry to be competitive
Strengthens the involvement of the end-users
Takes more into account the Societal Dimension
Includes Cyber-Security

17. Security Research Maintains its mission driven character
Lisbon Treaty
Maintains its mission driven character
Supports EU internal and external security policies
Supports the EU industry to be competitive
Strengthens the involvement of the end-users
Takes more into account the Societal Dimension
Includes Cyber-Security

18. European Cyber Security Strategy
Security Research
Maintains its mission driven character
Supports EU internal and external security policies
Supports the EU industry to be competitive
Strengthens the involvement of the end-users
Takes more into account the Societal Dimension
Includes Cyber-Security
European Cyber Security Strategy

19. Strong link to EU policy initiatives
- The EU Internal Security Strategy in Action, COM(2010)673 - Towards a stronger European disaster response: the role of civil protection and humanitarian assistance, COM(2010)600 - The EU Action Plan on combating terrorism - The Security Industry Policy Action Plan COM (2012) Cybersecurity Strategy of the European Union: An Open, Safe and Secure Cyberspace JOIN(2013) 1 final - Flagship Initiative 'Digital Agenda for Europe' - The EU Strategy towards the Eradication of Trafficking in Human Beings 2012–2016, COM(2012) European Programme for Critical Infrastructure Protection (EPCIP), COM(2006)786 - Civilian Headline Goal EU Maritime Security Strategy……(2014)

20. Stakeholder involvement
Security is an issue that can only be tackled effectively if all stakeholders cooperate. Representatives of the public and private sector need to work together across borders. The Work Programme is addressed to:
private companies
industrial corporations
institutional stakeholders
civil society organisations

21. Features
Strengthened coordination with relevant EU- Agencies: FRONTEX, EUROPOL, ENISA, EMSA, eu- LISA etc.
Closer coordination with the activities of EDA
Pre-Commercial Procurement (PCP) instrument

22. Structure of the Secure Societies Work Programme
Disaster Resilient Societies – ENTR (+ R&I)
Crisis management and civil protection, critical infrastructure protection
Fight against Crime and Terrorism - ENTR
Forensics, law enforcement capabilities, ethical/societal dimension
Border Security - ENTR
Border crossing points, information management, supply chain security
Digital Security – CNCT (+ ENTR)
Privacy, access control, trust eServices, Secure information sharing

23. Info on outcome of Evaluation: end October 2014
Time line
Call open: 25 March 2014
Call closed: 28 Aug 2014
Info on outcome of Evaluation: end October 2014
Signature of Grant Agreements: starting early 2015
Website: 23

24. Disaster Resilient Societies safeguarding and securing society, including adapting to climate change
The DRS-call is divided in the following sub-sectors:
Crisis management and Civil Protection
Disaster Resilience & Climate Change
[These topics come from the Environment Challenge 5 – with their budget.]
Critical Infrastructure Protection
Communication interoperability
Ethical/Societal Dimension
2014: 62,4 Mio / 2015: 65,1 Mio

25. Call - Disaster-resilience: safeguarding and securing society, including adapting to climate change
DRS : Crisis management topic 1: Potential of current and new measures and technologies to respond to extreme weather and climate events
DRS : Crisis management topic 2: Tools for detection, traceability, triage and individual monitoring of victims after a mass CBRN contamination and/or exposure
DRS : Crisis management topic 3: Demonstration activity on large scale disasters and crisis management and resilience of EU external assets against major identified threats or causes of crisis
DRS : Crisis management topic 4: Feasibility study for strengthening capacity-building for health and security protection in case of large-scale pandemics – Phase I Demo
DRS : Crisis management topic 5: Situation awareness of Civil Protection decision-making solutions – preparing the ground for a Pre-commercial Procurement (PCP)
DRS : Crisis management topic 6: Addressing standardisation opportunities in support of increasing disaster resilience in Europe
DRS : Crisis management topic 7: Crises and disaster resilience – operationalizing resilience concepts
DRS : Crisis management topic 8: Trans-national co-operation among National Contact Points (NCPs) for Security
DRS /2015: Disaster Resilience & Climate Change topic 1: Science and innovation for adaptation to climate change: from assessing costs, risks and opportunities to demonstration of options and practices
DRS : Disaster Resilience & Climate Change topic 2: Natural Hazards: Towards risk reduction science and innovation plans at national and European level

26. DRS : Disaster Resilience & Climate Change topic 3: Mitigating the impacts of climate change and natural hazards on cultural heritage sites, structures and artefacts
DRS : Critical Infrastructure Protection topic 1: Critical Infrastructure “smart grid” protection and resilience under “smart meters” threats
DRS : Critical Infrastructure Protection topic 2: Demonstration activity on tools for adapting building and infrastructure standards and design methodologies in vulnerable locations in case of natural or man-originated catastrophes
DRS : Critical Infrastructure Protection topic 3: Critical Infrastructure resilience indicator - analysis and development of methods for assessing resilience
DRS : Critical Infrastructure Protection topic 4: Protecting potentially hazardous and sensitive sites/areas considering multi-sectorial dependencies
DRS : Critical Infrastructure Protection topic 6: Improving the aviation security chain
DRS /2015: Critical infrastructure protection topic 7: SME instrument topic: “Protection of urban soft targets and urban critical infrastructures”
DRS : Communication technologies and interoperability topic 1: interoperable next generation of broadband radio communication system for public safety and security – Pre-commercial Procurement (PCP)
DRS : Communication technologies and interoperability topic 2: Next generation emergency services
DRS : Ethical/Societal Dimension topic 1: Improving protection of Critical infrastructures from insider threats
DRS : Ethical/Societal Dimension topic 2: Better understanding the links between culture, risk perception and disaster management
DRS : Ethical/Societal Dimension topic 3: Impact of climate change in third countries on Europe's security

27. Fight against Crime and Terrorism
The FCT-call is divided in the following sub-sectors:
Forensics
Law enforcement capabilities
Urban security
Ethical/Societal Dimension
2014: 56,8 Mio / 2015: 44,3Mio

28. Call – Fight against crime and Terrorism
FCT : Forensics topic 1: Tools and infrastructure for the fusion, exchange and analysis of big data including cyber-offenses generated data for forensic investigation
FCT : Forensic topic 2: Advanced easy to use in-situ forensic tools at the scene of crime
FCT : Forensics topic 3: Mobile, remotely controlled technologies to examine a crime scene in case of an accident or a terrorist attack involving CBRNE materials
FCT : Forensics topic 4: Internet Forensics to combat organized crime
FCT : Law enforcement capabilities topic 1: Develop novel monitoring systems and miniaturised sensors that improve Law Enforcement Agencies' evidence- gathering abilities
FCT : Law Enforcement capabilities 2: Detection and analysis of terrorist-related content on the Internet
FCT : Law enforcement capabilities topic 3: Pan European platform for serious gaming and training
FCT : Law enforcement capabilities topic 4: Trans-national cooperation among public end-users in security research stakeholders
FCT : Law Enforcement capabilities topic 5: Identity Management
FCT : Urban security topic 1: Innovative solutions to counter security challenges connected with large urban environment
FCT : Urban security topic 2: Countering the terrorist use of an explosive threat, across the timeline of a plot, including the detection of explosives in a flow
FCT : Urban security topic 3: Minimum intrusion tools for de-escalation during mass gatherings improving citizens’ protection

29. FCT-13-2014: Ethical/Societal Dimension Topic 1: Factors affecting (in-) security
FCT : Ethical/Societal Dimension Topic 2: Enhancing cooperation between law enforcement agencies and citizens - Community policing
FCT : Ethical/Societal Dimension Topic 3: Better understanding the role of new social media networks and their use for public security purposes
FCT : Ethical/Societal Dimension Topic 4 - Investigating the role of social, psychological and economic aspects of the processes that lead to organized crime (including cyber related offenses), and/or terrorist networks and their impact on social cohesion
FCT : Fast track to Innovation Topic

30. Border Security and External Security
The BES-call is divided in the following sub-sectors
Maritime Border Security
Border crossing points
Supply Chain Security
Information Management
Conflict prevention and Peace building
Ethical/Societal Dimension
2014: 20,8 Mio / 2015: 44,4 Mio

31. Call – Border Security and External Security
BES : Maritime Border Security topic 1: radar systems for the surveillance of coastal and pre-frontier areas and in support of search and rescue operations
BES : Maritime Border Security topic 2: Low cost and “green” technologies for EU coastal border surveillance
BES : Maritime Border Security topic 3: Light optionally piloted vehicles (and sensors) for maritime surveillance
BES : Maritime Border Security topic 4: Detection of low flying aircraft at near shore air space
BES : Border crossing points topic 1: Novel mobility concepts for land border security
BES : Border crossing points topic 2: Exploring new modalities in biometric-based border checks
BES : Border crossing points topic 3: Optimization of border control processes and planning
BES : Supply Chain Security topic 1: Development of an enhanced non-intrusive (stand-off) scanner
BES : Supply Chain Security topic 2: Technologies for inspections of large volume freight
BES : Information management topic 1: Civilian humanitarian mission personnel tracking
BES : Information management topic 2: Information management, systems and infrastructure for civilian EU External Actions
BES : Conflict prevention and peace building topic 1: Enhancing the civilian conflict prevention and peace building capabilities of the EU
BES : Conflict prevention and peace building topic 2: Training curricula for Conflict Prevention and Peace Building personnel
BES : Ethical Societal Dimension topic 1: Human factors in border control

32. Digital Security 2014: 47,0 Mio / 2015: 50,3 Mio
The DS-call concerns the following subjects:
Privacy
Access Control
The role of ICT in Critical Infrastructure Protection
Secure Information Sharing
Trust eServices
Risk management and assurance models
2014: 47,0 Mio / 2015: 50,3 Mio

33. Call – Digital Security: Cybersecurity, Privacy and Trust
DS : Privacy
DS : Access Control
DS : Risk management and assurance models
DS : The role of ICT in Critical Infrastructure Protection
DS : Secure Information Sharing
DS : Trust eServices

34. Cyber Security
Citizens, businesses and administrations increasingly involved in digital interactions and transactions. Internet led to cyber-crime worth B€/ year, to attacks to critical infrastructures and to breaches of privacy. Lack of security of digital technologies is a risk for economy and society. Cyber security has become a political and economic priority. Eurobarometer: 50% of the EU citizens are worried (percentage increasing)

35. Cyber security has become part of "Secure Societies“
Challenges:
- How to assess the threats in cyber-space and their possible scope?
- How to best tackle cyber-threats and protect citizens in the digital domain?
Convergence of traditional security needs and the digital world. Many infrastructures and services privately owned and operated, yet protection of public (safety and) security is responsibility of public authorities.
Security is an issue that can only be tackled effectively if all stakeholders cooperate: companies and authorities must work together across borders.

36. Pre-Commercial Procurement (PCP)
In “Security Industrial Policy-Action Plan for an innovative and competitive Security Industry” (COM(2012) 417 final) it is written :
“Pre-commercial procurement (PCP) is a very useful tool in bridging the gap from research to market…..in particular in domains, where there is an institutional market or a market largely driven by legislation, given that public procurement of innovative products and services is vital for improving the quality and efficiency of public services at a time of budget constraints.
Eventually, PCP should enable public users to play a more central role in the innovation cycle through the purchase of novel technologies.
Procurers should act as "agents of change".
The Commission intends to devote a significant part of the Secure Societies budget in Horizon 2020 on this instrument.

37. Pre-Commercial Procurement (PCP)
PCP: using public-sector demand to drive development of innovative solutions from Europe’s research and private sectors. It is an additional tool that can be used to bridge the gap between research and market. PCP should enable public users to play a more central role in the innovation cycle through th purchase of novel technologies.

38. Pre-Commercial Procurement (PCP)
When?
Challenge requires R&D to get new solutions introduced. Problem clear, but pros/cons of several potential competing solutions not evaluated/validated yet. PCP: No commitment to deploy yet (PPI).
What?
Public sector contracts R&D to steer development of solutions to its needs, gather info about pros/cons of alternative solutions to be better informed to make specs for a possible PPI follow-up, to avoid supplier lock-in situation (create competitive supply base)
How?
Public sector buys R&D from several suppliers in parallel (comparing alternative solution approaches), in form of competition evaluating progress after critical milestones (design, prototyping, test phase), risks & benefits of R&D (e.g. IPRs) shared with suppliers to maximise incentives for wide commercialisation
Pre-Commercial Procurement (PCP)
Health
Inclusion
Government
Security
eInfrastructure

39. PPI - Public Procurement of Innovative Solutions
When?
Challenge requires solution which is almost on the market or already on the market in small quantity but not meeting public sector requirements for large scale deployment yet. No R&D involved (already done, or not needed)
What?
Public sector acts as launching customer / early adopter / first buyer for innovative products and services that are newly arriving on the market (not widely commercially available yet)
How?
Public sector acts as facilitator establishing a buyers group with critical mass that triggers industry to scale up its production chain to bring products on the market with desired quality / price ratio within a specific time. After potentially a test / certification / labelling, the buyers group buys a significant volume of solutions.
Health
Inclusion
Government
Security
eInfrastructure

40. Price/quality products that better fit public sector needs
PCP to steer the development of solutions towards concrete public sector needs, whilst comparing alternative solution approaches from various vendors
PPI to act as launching customer / first buyer of innovative commercial end-solutions newly arriving on the market
Public Procurement of
Innovative Solutions (PPI)
Applied R&D / Pre-commercial Procurement (PCP)
Phase 0
Curiosity
Driven
Research
Phase 1
Solution design
Phase 2
Prototype
development
Phase 3
Original development
of limited volume
of first test products /
services
Phase 4
Deployment of commercial volumes of end-products
Wide diffusion of newly developed solutions
Supplier A
Supplier B
Supplier B
Supplier B
Supplier(s)
A,B,C,D
and/or X
Supplier C
Supplier C
Third reason for why demand driven innovation through public procurement: To create growth and jobs 'in Europe'
PCP-PPI combination is based on best practice to:
Steer R&D to meet concrete public sector needs (earlier customer feedback helps gets better fit for purpose products, less expensive customisation needed after)
Give multiple companies a chance to show what pros/cons of their ideas are (preventing supplier lock-in, get first inside knowledge of pros/cons of competing solutions to write better tender specs for PPI afterwards)
Share IPR rights with industry to encourage wide commercialisation
Keep competitive open market at all stages to get best value for money (short contracts per phase, no long term partnership contract locking into certain vendors)
Give SMEs an equal chance to enter the procurement market (no selection criteria requesting large company turnover / long list of prior customer references, contract value / expected effort increases gradually phase per phase alongside the natural growth path of a growing company)
Pool demand where possible with other procurers to share the R&D cost
Because of the split between PCP and PPI:
Definitely no State aid (uses maximum level of competition possible)
PCP exempted from EU directives and WTO rules on procurement. Possible to restrict PCP to EU wide offers or to require R&D (jobs) to be done in Europe
Supplier D
Supplier D
Supplier D
Also normally multiple sourcing here to keep competition going
Objectives:
Price/quality products that better fit public sector needs
Earlier customer feedback for companies developing solutions
Better take-up/Wider commercialisation of R&D results

41. International Dimension
All topics are open to international cooperation
Some topics explicitly encourage international cooperation:
"In line with the EU's strategy for international cooperation in research and innovation international cooperation is encouraged, and in particular with international research partners involved in on-going discussions and workshops, and US homeland security research entities. Funding for third countries is however still subject to the  evaluations."
Eligibility for funding: see Art of the Rules for Participation

42. Conclusions of the European Council (19-20/12)
First thematic debate on defence since the entry into force of the Lisbon Treaty.
Highlighted the importance of an effective Common Security and Defence Policy (CSDP).
Recognised that financial constraints and fragmented defence markets limit military capabilities and jeopardise the stability and competitiveness of Europe's defence and security industry.
A number of priority actions were identified:
Increasing the effectiveness, visibility and impact of CSDP
Enhancing the development of capabilities
Strengthening Europe's defence industry

43. European Council – Research & Dual-use
"To ensure the long-term competitiveness of the European defence industry and secure the modern capabilities needed, it is essential to retain defence Research & Technology (R&T) expertise, especially in critical defence technologies."
Civil and defence research reinforce each other
Further dual-use research is encouraged
Synergies between national and EU research should be maximised
A Preparatory Action on CDSP-related research will be set up

44. …..….thank you Khoen Liem European Commission
DG Enterprise and Industry
(you can also find me in 'LinkedIn' -