1. Open Innovation Ecosystems for Horizon 2020 - New Approach Helsinki/Espoo, April 2013
Bror Salmelin
Advisor to the DG, Innovation Systems
European Commission

2. European Commission Vice President
The digital economy is growing at seven times the rate of the rest of the economy, but this potential is currently held back by a patchy pan-European policy framework.
2013 will be the busiest year yet for the Digital Agenda. My top priorities are to increase broadband investment and to maximise the digital sector's contribution to Europe's recovery.
European Commission Vice President
Neelie Kroes (18/12/2012)

3. Does ICT matter ? GROWTH ICT investment →50% productivity growth
Internet has contributed to 21% of GDP growth across the G20 from 2005 to 2010
Digitalized SMEs produce 10% more, grow and export twice and create twice the jobs ordinary ones do
"Endorsing the cloud" could add 0,1-0,4% of GDP growth to the EU.
ICT = 6% of EU GDP
ICT investment →50% productivity growth
Internet usage X2 every 2-3 years,
Wireless connected devices: doubling from 25 to 50BL,
Mobile data traffic: x12-14,
4million ICT workers, grow 3% p.a. even in crisis
But we lack people!

4. Very fast internet supply and demand Broadband drives competiveness
European Commission, 2011
A 10% increase in the broadband penetration rate results in 1 to 1.5% increase in annual GDP per-capita. Faster broadband = higher GDP growth. (Czernich et al. - University of Munich, 2009)

5. Sustainability Sustainable innovation is full of disruptions!
Sustainable innovation is about (value) choices!
Sustainable innovation is beyond (political) buzzwords
Sustainable innovation is holistic!

6. Diversity means breakthrough probability
High
low
Low
high
Value of innovation
Breakthrough
average
insignificant
Alignment of team members’ disciplines

8. New entrepreneurship -> new skills, attitude, talent! Connectivity!

9. Policies Open innovation processes and environments (e.g. Living Labs)
Technology enablers (ICT, KET)
Societal innovation
-> Business model innovation a weak point in Europe

10. Maslow 2.0 for organisations

11. Schwarz’ Universal Values

12. Innovation? Make things happen!
Science based linear innovation is NOT mainstream anymore!
User-centric innovation
Open innovation
Systemic innovation
Experimental mash-up
Leadership with courage -> new management skills

14. Innovation as parallel activities
Research
Prototyping
Pilot roll-out
Markets
Knowledge
Production
Each activity collects knowledge about product/market fit

15. Innovation moving out of the Lab
Centralized inward looking innovation
Closed Innovation
Externally focused, collaborative innovation
Open Innovation
Ecosystem centric, cross-organizational innovation
Innovation Networks
Definition and characteristics of networked innovation, examples per page or at the end of trends
Science and Engineering skills and external funding mechanisms are abundant
Innovations are valuable mostly as components on standard platforms used by many players.
Knowledge is shared with business partners
Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005

16. The European Perspective
28/03/2017
The European Perspective
Europe 2020 “smart, sustainable and inclusive growth”
Digital Agenda for Europe
Innovation Union
Towards a European
Digital
Single Market
Regional/Cohesion Policy
Contributing to
Smart growth
Smart Cities and
Regions
Future Internet for
citizen-centric innovation
Other instruments:
Structural Funds, National funding, Financial Instruments
Common strategic Framework for Research and Innovation
HORIZON 2020
CIP/ICT-PSP
Pilots in specific domains
across borders
FP7/ FP8
ICT theme: FI PPP, EIPs, JTIs
EIT / KICs : bridging education research innovation
Other policies: industrial policy for the globalisation era, youth on the move,
Agenda for new skills and jobs, resource efficient Europe, the green digital charter… 16

17. Essential drivers
connectivity
open
interaction
“organic” (OrganiCsations..)
NON-controllable, only catalyzing possible

18. Innovation Activities (examples)
H2020 Instrument/scheme
Pilots (prototyping, pilot lines, demonstration, testing)
Research and Innovation grant
Pre-commercial procurement
PCP
Public procurement of innovation
PPI
Result based award
Recognition, Inducement prizes
Targetting SME
SME instrument (also for individual SMEs)
Non prescriptive calls; open, light and fast
Open Distruptive Innovation scheme (using lumps sums and R&I grants)
Road-map based, critical mass
Contractual PPP (using all instruments), JTI
Targetting societal challenge
European Innovation Partnership (using all instruments)+Smart specialization
Clustering, bridge to accelerators, incubators
Coordination and Support action

19. ODI scheme using complementary H2020 Instruments
Phase 1: Technical market feasibility and prototyping
R&I grant lump sum x 3-9 months
Phase 2: Validation & piloting of scalable solutions
R&I grant covering eligible costs x m
Support measures
Succesful projects reaching end of Phase 2 = EU Disruptive Innovation Label/Prizes
Exposure on dedicated platforms (e.g. crowd-funding and V.C. seeds)
Ph.1
EU Disruptive Innovation Label
Ph. 2
On-line assessment EU Disruptive Idea Label & Exposure on EU Dedicated Platforms & events etc.

20. ? SME instrument IDEA continued support throughout the project MARKET
Phase 1: Concept & Feasibility Assessment
Phase 2: Demonstration
Market Replication
R&D
Phase 3: Commercialisation
Idea to concept,
risk assessment, technological & commercial feasibility
Demonstration, prototyping, testing , market replication, scaling up, miniaturisation, research
Quality label for successful projects, access to risk finance, indirect support
SME window EU financial facilities
Pre-commercial procurement

21. Hierarchy of Prize schemes for ICT in H2020

22. PCP and PPI complementary
PCP to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors
PPI to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market
Public Procurement of
Innovative Solutions (PPI)
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 end-products
Diffusion of newly developed
products / services
Supplier A
Supplier B
Supplier B
Supplier B
Supplier(s)
A,B,C,D
and/or X
Supplier C
Supplier C
Group of European procurers
Pool public demand and specify needs
Manage procurement process
Share risks and benefits together and with suppliers
Cost shared, IPR shared, knowledge shared
Compatible with procurement directives and state aid
Exception to procurement directives
Legally defined as procurement of ‘R&D Services’
Possibility to restrict to ‘European wide offers’
Possibility to apply at European and Member States level
Need for incentive to support the framework
Supplier D
Supplier D
Supplier D
Two possibilities in H2020 (for PCP/PPI) & CEF (for PPI)
EC can co-finance PCPs/PPIs carried out by grant beneficiaries
EC or EU agencies can carry out PCPs/PPIs on their own behalf or jointly with Member States

23. Integrating R and I

24. Grand Coalition

25. Important considerations
Cost of NOT doing something?
How to make innovation space fluid?
How to move from control to encouragement?
Rules of the game clear, ex post control
Rules to share and build value
Experimentation mentality (fail fast in small things, not in the big one)

27. More information www.ec.europa.eu/research/horizon2020