1. NH – KB economy Kowi – Nov 10 1 Europe’s Response to the Global Challenges Europe’s Response to the Global Challenges Nicholas Hartley –Head of Unit, Policy and Strategy European Commission, DG – Research « Industrial Technologies » KoWi, Brussels, 10th November 2005

2. NH – KB economy Kowi – Nov 10 2 Challenges: an increasing role for EU Research Objective “Lisbon”: to become the most dynamic and most competitive knowledge-based economy within 10 years Objective “Göteborg”: sustainable development (environment, health, economy, employment) “Barcelona” targets: 1,9%  3,0% of GDP with 2/3 financed by private sector; towards 700.000 researchers European Research Area (ERA): …Integrating, reinforcing, structuring RTD capacities, improving coordination of policies, overcoming fragmentation of efforts… and stimulating investment in RTD

3. NH – KB economy Kowi – Nov 10 3 EU-25USJapan R&D intensity (% of GDP) (3) 1.972.593.12 Share of R&D financed by industry (%) (2) 55.963.173.9 Researchers per thousand labour force (FTE) (3) 5.59.09.7 Share of world scientific publications (%) (3) 38.331.19.6 Scientific publications per million population (3) 639809569 Share of world patents (%) (1) 31.534.326.9 Patents per million population (1) 30.553.192.6 High-tech exports as a share of total manufacturing exports (%) (3) 19.728.526.5 Share of world high-tech exports (%) (2) 16.720.010.6 Note: (1) 2000 data (2) 2002 data (3) 2003 data R&D – European weaknesses

4. NH – KB economy Kowi – Nov 10 4 Japan: 3.0 USA: 2.7 EU-15: 1.9 Research: filling the gap Total expenditure on R&D, % of GDP

5. NH – KB economy Kowi – Nov 10 5 ● P ● E ● EL ● I ● IRL ● EU ● F ● A ● B ● UK ● NL ● DE ● FI ● DK● SE Research and economic performance

6. NH – KB economy Kowi – Nov 10 6 Transition from a « traditional economy » based on traditional resources to a new economy based on knowledge The triplet « land – labour - capital » is replaced by knowledge – capital …this implies moving from an economy of ‘quantity’ to an economy of ‘quality’, from an economy of ‘use and waste’ to a sustainable economy Implications…

7. NH – KB economy Kowi – Nov 10 7  Cancellation of the ‘resource-based’ differences between competitors  Focus on Added Value Added Value products ≠ high-tech products  Role of knowledge: new factor of production Towards new paradigms

8. NH – KB economy Kowi – Nov 10 8 Industrial Transformation l In the globalised economy, EU industry must focus upon creating products with more added-value – it’s a question of survival! l Such a transition is producing discontinuities in: products, industries, people and approaches l Six main changes include moving from: ü Linearity to complexity ü Individual to system competitiveness ü Resource-based to knowledge-based economies ü Macro → micro → nano ü “Top-down” → “bottom-up” production ü Mono-disciplinarity → interdisciplinarity → convergence

9. NH – KB economy Kowi – Nov 10 9 OLD INDUSTRIES (resource-based)  Compact enterprise  Production chain  Mass production  Quantity driven  Resource-intensive  Production driven  Linear approach (Taylorism in production) NEW INDUSTRIES (knowledge-based)  Extended enterprise  Network of suppliers  Focus to added value  Quality driven  Brain intensive  Demand driven  Simultaneous approach The fundamental changes

10. NH – KB economy Kowi – Nov 10 10  Delocalisation of traditional industries towards areas where labour and environmental costs are less constraining  ‘Dematerialisation’ of production and organisation  Novel activities and new generation of high-tech industries  Vanishing of some industries The shift from labour-intensive to knowledge-intensive operations modifies jobs and skills required Transition phase = crossing Death Valley

11. Phases Conditions Finance Initial Favorable Start up Spin off Growth Adaptation Venture Cap. Business angels Developm. Optimisat. resources Cash flow Loans Critical Knowledge relevance Loans End of life Loss DebtsTurnover Enterprise life curve

12. NH – KB economy Kowi – Nov 10 12 Market National European Globalised oriented Indust. approach Supplier Market Environment & oriented oriented customer driven RTD approach Technology Market System push pull oriented years 19831986 Single act 19901993 Maastricht FRAMEWORK PROGRAMMES FP 2 (1986-90) FP 1 (1983-86) FP 3 (1990-94)

13. NH – KB economy Kowi – Nov 10 13 Market e-commerce Knowledge-based & user driven society Indust. approach Concentration High added-value & Networking & integration RTD approach Society Sustainability Radical Converging oriented & problem innovationtechnologies & solving Breakthrough years 1999 Euro 2000 Enlargement 1997 Amsterdam 2007….. Lisbon FP 4 (1994-98) FP 5 (98-02) FP 6 (02-06) FP 7 (07-13) FRAMEWORK PROGRAMMES (cont.)

14. NH – KB economy Kowi – Nov 10 14 CONVERGING DISCIPLINES TECHNOLOGIESFROM TO MONO MULTIINTERTRANS INFO BIO NANO COGNITIVE INFO/BIO NANO/BIO NANO/INFO NANO/INFO/BIO NANO/INFO/ BIO/COGN

15. NH – KB economy Kowi – Nov 10 15 FP7 ‘Cooperation’ Theme 4: Nanosciences, nanotechnologies, materials and new production technologies Overall objective : improve the competitiveness of EU industry (including SMEs) and ensure its transformation through:  the effective transition from a resource-based to knowledge- based industry  generation of new breakthrough, applicable, knowledge  strengthening EU leadership in nano, materials and production technologies  emphasis on integrating different technologies and disciplines across many sectors Importance of Technology Platforms to help establish common research priorities and targets

16. NH – KB economy Kowi – Nov 10 16 Four activities: 1. Nanosciences and nanotechnologies 2. Materials 3. New production 4. Integration of technologies for industrial applications …good continuity with « NMP » activities in FP 6 FP7 ‘Cooperation’ Theme 4: Nanosciences, nanotechnologies, materials and new production technologies

17. NH – KB economy Kowi – Nov 10 17 1. Nanosciences and nanotechnologies Objective: increase and support the take up of knowledge generated in this revolutionary field for all industrial sectors Topics include: interface and size dependent phenomena; materials properties at nano-scale; self assembly; metrology; new concepts and approaches; impacts on health and safety; convergence of emerging technologies FP7 ‘Cooperation’ Theme 4: Nanosciences, nanotechnologies, materials and new production technologies

18. NH – KB economy Kowi – Nov 10 18 2. Materials Objective: generate new knowledge to enable new industrial products and processes to be achieved, exploiting the potential of interdisciplinary approaches in materials research. Topics include: high performance, sustainable and knowledge- based materials; design and simulation; nano-, bio- and hybrid materials and their processing; chemical technologies and materials processing industries FP7 ‘Cooperation’ Theme 4: Nanosciences, nanotechnologies, materials and new production technologies

19. NH – KB economy Kowi – Nov 10 19 3. New production Objective: create continuously innovating production capabilities to achieve leadership in industrial products & processes in the global marketplace. Topics include: Knowledge-intensive production; new paradigms for emerging industrial needs; adaptive, networked and knowledge-based production; convergence of technologies for next generation of high value-added products (nano, bio, info, cognitive..) FP7 ‘Cooperation’ Theme 4: Nanosciences, nanotechnologies, materials and new production technologies

20. NH – KB economy Kowi – Nov 10 20 4. Integration of technologies for industrial applications Objective: accelerate the rate of industrial transformation by exploiting the application potential of new generic technologies. Topics include: Integration of nano, materials and production technologies in sectoral and cross-sectoral applications (e.g. health, construction, transport, energy, chemistry, environment, textiles & clothing, pulp & paper, mechanical engineering,…) FP7 ‘Cooperation’ Theme 4: Nanosciences, nanotechnologies, materials and new production technologies

21. NH – KB economy Kowi – Nov 10 21 Nano-sciences and technologies offer: Great challenges to the scientific community in terms of scientific, educational, and organisational multi- disciplinarity, i.e. « CONVERGING » of technologies Potential for innovation and applications in many areas Economic opportunities in many sectors The strategic importance of “nano”

22. NH – KB economy Kowi – Nov 10 22 Some Perspectives è “Nanotechnology”, as a new market, does not exist but there is a value chain e.g. from nanomaterials, to intermediate components and finished products è In 2004, $13 billion worth of products incorporates emerging nanotechnology, equivalent to <0.1% of manufacturing output (Lux Research) è In 2014, it is expected that this figure will rise to $2.6 trillion as nanotechnologies spreads across many sectors, ~15% of manufacturing output (ibid) Europe needs to be at the forefront and ensure that it has the knowledge and capacity to benefit from this revolution

23. NH – KB economy Kowi – Nov 10 23 Which role/implications for EU academic community? Education Education- Multidisciplinarity Research Research- Knowledge creation (increase basic research and focus on ‘driver’/converging technologies) Innovation Innovation - Development of new relationships with finance Spreading of knowledge/popularisation- Increase credibility; dialogue Science&Society Governance-Contribute to the transition Local development-Increase in knowledge use/application locally

24. NH – KB economy Kowi – Nov 10 24 … and for industry? FOCUS- Core business - Added Value - Miniaturization/security REDEFINITION - Global of ROLE - Niche - Supplier - Assembling ORGANISATION- New production paradigms - Global organisation - Flexible logistics - Assembling relevance - Knowledge integration - New professional skills NEW - Academia RELATIONSHIPS - Finance

25. NH – KB economy Kowi – Nov 10 25 Information  EU research: http://europa.eu.int/comm/researchhttp://europa.eu.int/comm/research  Seventh Framework Programme and SPs: http://europa.eu.int/comm/research/future/index_en.cfm http://europa.eu.int/comm/research/future/index_en.cfm  Information on research programmes and projects: http://www.cordis.lu  RTD info magazine: http://europa.eu.int/comm/research/rtdinfo/  NMP Industrial Research Magazine http://europa.eu.int/comm/research/industrial_technologies/lists/ma gazine_en.html http://europa.eu.int/comm/research/industrial_technologies/lists/ma gazine_en.html