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

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Presentation on theme: "Security Industrial policy + Horizon 2020 Secure Societies Khoen Liem Policy and Research in security DG Enterprise and Industry Helsinki, 25 March 2014i."— Presentation transcript:

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

2 Content Industry policy for security sector FP7 - achievements Horizon - 2020 "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 3

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 4

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

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 6

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 7

8 Security research & the 7 th Framework Programme (FP7) FP7-Security (2007-2013): 1,400 Mio EUR (20% to SMEs) More than 250 projects and 2,500 participants EU funding: more than 40% of total European funding 8

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: €79 000 million Duration: 2014-2020

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) 13

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 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 Secure Societies: does industry matter?

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 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 Lisbon Treaty

18 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) 417 - 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) 286 - European Programme for Critical Infrastructure Protection (EPCIP), COM(2006)786 - Civilian Headline Goal 2008 - 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 21

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 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 Time line Website: http://ec.europa.eu/research/participants/portal/desktop/en/home.html

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-1-2015: Crisis management topic 1: Potential of current and new measures and technologies to respond to extreme weather and climate events DRS-2-2014: Crisis management topic 2: Tools for detection, traceability, triage and individual monitoring of victims after a mass CBRN contamination and/or exposure DRS-3-2015: 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-4- 2014: 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-5-2014: Crisis management topic 5: Situation awareness of Civil Protection decision- making solutions – preparing the ground for a Pre-commercial Procurement (PCP) DRS-6-2015: Crisis management topic 6: Addressing standardisation opportunities in support of increasing disaster resilience in Europe DRS-7-2014: Crisis management topic 7: Crises and disaster resilience – operationalizing resilience concepts DRS-8-2014: Crisis management topic 8: Trans-national co-operation among National Contact Points (NCPs) for Security DRS-9-2014/2015: 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-10-2015: Disaster Resilience & Climate Change topic 2: Natural Hazards: Towards risk reduction science and innovation plans at national and European level

26 DRS-11-2015: Disaster Resilience & Climate Change topic 3: Mitigating the impacts of climate change and natural hazards on cultural heritage sites, structures and artefacts DRS-12-2015: Critical Infrastructure Protection topic 1: Critical Infrastructure “smart grid” protection and resilience under “smart meters” threats DRS-13-2015: 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-14-2015: Critical Infrastructure Protection topic 3: Critical Infrastructure resilience indicator - analysis and development of methods for assessing resilience DRS-15-2015: Critical Infrastructure Protection topic 4: Protecting potentially hazardous and sensitive sites/areas considering multi-sectorial dependencies DRS-16-2014: Critical Infrastructure Protection topic 6: Improving the aviation security chain DRS-17-2014/2015: Critical infrastructure protection topic 7: SME instrument topic: “Protection of urban soft targets and urban critical infrastructures” DRS-18-2015: Communication technologies and interoperability topic 1: interoperable next generation of broadband radio communication system for public safety and security – Pre- commercial Procurement (PCP) DRS-19-2014: Communication technologies and interoperability topic 2: Next generation emergency services DRS-20-2014: Ethical/Societal Dimension topic 1: Improving protection of Critical infrastructures from insider threats DRS-21-2014: Ethical/Societal Dimension topic 2: Better understanding the links between culture, risk perception and disaster management DRS-22-2015: 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-1-2015: Forensics topic 1: Tools and infrastructure for the fusion, exchange and analysis of big data including cyber-offenses generated data for forensic investigation FCT-2-2015: Forensic topic 2: Advanced easy to use in-situ forensic tools at the scene of crime FCT-3-2015: 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-4-2015: Forensics topic 4: Internet Forensics to combat organized crime FCT-5-2014: Law enforcement capabilities topic 1: Develop novel monitoring systems and miniaturised sensors that improve Law Enforcement Agencies' evidence- gathering abilities FCT-6-2015: Law Enforcement capabilities 2: Detection and analysis of terrorist-related content on the Internet FCT-7-2014: Law enforcement capabilities topic 3: Pan European platform for serious gaming and training FCT-8-2014: Law enforcement capabilities topic 4: Trans-national cooperation among public end-users in security research stakeholders FCT-9-2015: Law Enforcement capabilities topic 5: Identity Management FCT-10-2014: Urban security topic 1: Innovative solutions to counter security challenges connected with large urban environment FCT-11-2014: 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-12-2014: 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-14-2014: Ethical/Societal Dimension Topic 2: Enhancing cooperation between law enforcement agencies and citizens - Community policing FCT-15-2015: Ethical/Societal Dimension Topic 3: Better understanding the role of new social media networks and their use for public security purposes FCT-16-2015: 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-17-2015: 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-1-2015: 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-2-2015: Maritime Border Security topic 2: Low cost and “green” technologies for EU coastal border surveillance BES-3-2015: Maritime Border Security topic 3: Light optionally piloted vehicles (and sensors) for maritime surveillance BES-4-2015: Maritime Border Security topic 4: Detection of low flying aircraft at near shore air space BES-5-2015: Border crossing points topic 1: Novel mobility concepts for land border security BES-6-2015: Border crossing points topic 2: Exploring new modalities in biometric-based border checks BES-7-2015: Border crossing points topic 3: Optimization of border control processes and planning BES-8-2015: Supply Chain Security topic 1: Development of an enhanced non-intrusive (stand- off) scanner BES-9-2014: Supply Chain Security topic 2: Technologies for inspections of large volume freight BES-10-2015: Information management topic 1: Civilian humanitarian mission personnel tracking BES-11-2015: Information management topic 2: Information management, systems and infrastructure for civilian EU External Actions BES-12-2014: Conflict prevention and peace building topic 1: Enhancing the civilian conflict prevention and peace building capabilities of the EU BES-13-2015: Conflict prevention and peace building topic 2: Training curricula for Conflict Prevention and Peace Building personnel BES-14-2014: Ethical Societal Dimension topic 1: Human factors in border control

32 Digital Security 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-1-2014: Privacy DS-2-2014: Access Control DS-6-2014: Risk management and assurance models DS-3-2015: The role of ICT in Critical Infrastructure Protection DS-4-2015: Secure Information Sharing DS-5-2015: 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

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.

40 Supplier B Supplier C Supplier D Phase 1 Solution design Phase 2 Prototype development Phase 3 Original development of limited volume of first test products / services Supplier A Supplier B Supplier C Supplier D Supplier B Phase 0 Curiosity Driven Research Applied R&D / Pre-commercial Procurement (PCP) Phase 4 Deployment of commercial volumes of end-products Wide diffusion of newly developed solutions Supplier D Public Procurement of Innovative Solutions (PPI) 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 Supplier(s) A,B,C,D and/or X 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. 10.2 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 ENTR-SECURITY-RESEARCH-INDUSTRY@ec.europa.eu http://ec.europa.eu/enterprise/policies/security/index_en.htm (you can also find me in 'LinkedIn' - khoen.liem@gmail.com) 44


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