1. Anders Flodstrom, vice- chair EIT, Industrial Technologies, Aarhus June 19, 2012 Valley of Death

2. Productivity The obvious – low salaries do not mean high productivity Effectiveness and Innovation Robert Solow and Paul Romer Innovation can be anything that improves function and the perception of function – real or not

3. Common Sense and socio-economic analysis Ray Bradbury - the need for a vision! Impact – public good and commercial value Innovations – social, business, technological,.. Competent people – creativity, risktaking, values,..

4. Grand societal challenges No longer scientific or technology challenges, instead problems created by us – to be solved by us New infrastructures, business innovations, business and public good in synergy New legal entities? Present healthcare and schooling debate! Innovation procurement? Horizon 2020 and Innovation Union, ERC and EIT

5. Grand challenges – a few! Demography - not only ageing or longevity Logistics - not only urbanization – take the train to China Genetics and proteomics - not only pharmaceuticals Carbon - not only energy and climate Learning or human enhancement - not only teaching - neurology, computer science and nanotechnology Reindustrialization of Europe

6. The Role of Technology Policies, regulations and legislation Contemporary technology and new systems solution New often science based technology

7. Europe is old and getting older Population as compared to Middle East, Africa, India and Pakistan Companies as compared to US, China and India

8. Nobel, Citroen, Siemens, Reuter, Merrieux - history? Boyer, Gates and Zuckerberg - US-reality! HOW TO MOTIVATE KIDS TO SET UP GARAGE COMPANIES IN EUROPE? wanted One definition of entrepreurial innovation: “A Grapefruit is a lemon who took a chance”

9. Age distribution of companies’ contribution to innovation: Europe v. US and others Bruegel policy brief March 2009 Reinhilde Veugelers US: approx. 21% EU: approx. 2%

10. Biotech as an example: EU has strong assets to support a strong entrepreneurially driven industry HOW TO CAPITALIZE ON THE ASSETS? High level of education Solid academic base Top science at many historical power houses of research: EMBO, Pasteur, Karolinska, Cambridge, Oxford, Max Planck, VBC etc.. Increasing number of Centers of Excellence Long tradition of pharmaceutical development and industry Excellent clinical institutions with the potential to carry out studies Growing interaction between the national bio-medical scenes Scientific output in biotech is even larger than in the USA

11. Biotech example: Does European biotech exploit its chances? Europe Bio Report for 2007 CREATING VALUE - CREATING JOBS EuropeUSA No. of employees63,000172,000 Average Investment per year EUR 6 bnEUR 18 bn Public listed<10%>30% Total value of companies EUR ~30,000 bn EUR ~300,000 bn

12. The Ways to increase Innovation New R&D Improved processes for turning R&D into innovations and innovations into business Universities will not alone solve the productivity crisis Slovenia Much more emphasis on Companies and especially SMEs and their innovation processes

13. Where will it happen – in the companies! New products rule the market Innovation is a driver of productivity Industry needs to become more entrepreneurial EU and national industrial research and innovation programs are driven to a very high degree by universities and research institutes EIT will make a difference through stakeholders integration

14. Value Systems Research for research – the result is more funding. Measured by citations and prizes! Research for innovation – the result is society and business impact. How to measure? From scientific goals to grand challenges Is it real or a fake Open innovation

15. SIA for EIT Knowledge Triangle Entrepreneurship Stakeholder Integration Cohesion Smart Investor

16. EIT Label Competencies for the Future Creativity, Innovative, Entrepreneurial, Taking calculated risks Values - Intergenerational fairness Geographical and sectorial mobility

17. Stakeholder integration Legal entities – CEO and common Board Networks and colocation centers Research and innovation – universities, research institutes, companies; SMEs and major, production and services; veture capitalists Higher education – universities, labor market and students

18. New Member States Regional Innovation Communities EIT Label Educations Regional Colocation Centres Scholarship Schemes Researcher Sharing From Aid to Intelligence

19. Major Changes New innovation/business infrastructure for Europe – not a new research or higher education infrastructure Knowledge triangle Investing not funding! Catalyst – Carrier model Educational programs for creativity, innovation and entrepreneurship

20. KICs Climate KIC – climate mitigation and adaptation – new industry KIC Innoenergy – sustainable energy – major companies industry ICT Labs – future ICS ( Information Communication Society) – open innovation 400 million € and 2500 “staff” and 1500 students

21. New KICs Healthcare - divided Natural resources management Food 4 Future Mobility and smart cities Added value manufacturing - reindustrialization Security and safety – divided ??? +++

22. Horizon 2020 3 billion euro Two Waves new KICs; 3 + 3 or all at once 2014 and 2018 Shared equally between existing KICs, Climate KIC, KIC Innoenergy, ICT Labs, and the new ones

23. Timeline Right now; draft proposal from EP and EC (Denmark) Autumn; decisions on themes (Cyprus) December; GB decisions on Call for proposal Early spring 2013; decision on budget (Ireland) Winter 2013; new KICs