1. Strengthening innovation in chemical clusters
Andrea Tilche
European Commission
DG Research
Head of the Unit « Environmental Technologies and Pollution Prevention »
Strengthening innovation in chemical clusters

2. The current economic downturn
Not a cyclic crisis
Need for a more strategic approach to design the recovery path
Combination with the need to build a low-C economy
Environmental Technologies and Eco-innovation become the key elements for future growth

3. Vision for Tomorrow All industry becomes “green”!
eco-innovation, environmental technologies across all sectors
Need fundamental transformations – not just “add ons”
Make use of ecological principles: life-cycle, diversity, symbiosis, resilience, bio-compatible, networking, etc.
All in all, in the future all innovation should also be eco-innovation
Europe leading but others catching up…
World Market environmental industries
1 trillion euro (2005) ->
2.2 trillion (2020)
German GDP share:
4% (2005)
16% (2020)
All the previous examples…the seeds for tomorrow and the environmental challenges
All point towards a VISION for tomorrow… 3

4. From Eco-Innovation to Innovation: assuring that green is really green
The potential environmental impacts of an innovation should be already assessed at the phase of conceptual development (eco-design). This require the implementation of specific evaluation criteria based on Life Cycle Thinking.
Before an innovation is scaled-up from pilot to demonstration scale, an assessment based on robust Life Cycle Assessment methodologies should be carried out in order to verify if the innovation is an eco-innovation.

5. Huge challenges for the European Chemicals Industry
International competition
Costs of feedstock
Climate change
Creating skills
Financial markets
...

6. What to do in Europe
The Chemicals Industry in Europe is still the larger in terms of world market share with respect to other competing areas, but...
Its market share is decreasing
It is relocating in other parts of the world
Its competitiveness is at stake

7. What is our competitive advantage
Europe cannot compete for lower salaries, for cheap resources or for relaxed environmental quality standards
Europa can compete for its knowledge base, its research potential, its skills, its potential of growing new skills, its organisational capability at regional level and along the value chain, its first class infrastructures

8. How to reverse the trend?
INNOVATION is the only European asset that can make the difference
More investments in high-tech sectors
Start-up programmes in Universities linked to chemical entrepreneurship programmes
Promotion of Public-Private-Partnerships and Open innovation schemes
Better exploitation of funding opportunities along the innovation chain
Focus on excellence – clusters and regions

9. The importance of clustering/networking
3 main types of innovation clusters and networks may exist:
At thematic level
At regional/local level
Along the value chain

10. Thematic clusters To share basic research costs
To share costs of development in open innovation schemes
To promote and share logistics
To share production facilities …

11. Regional/local clusters
To develop “industrial Ecology” schemes
To improve energy and resource efficiency
To share logistics
To make better use of local/regional high education, training and research facilities and infrastructures

12. Clusters along the value chain
To better target the specific needs
To ensure product sustainability
To maximise the resource use
To ensure efficiency at all levels
To maximise quality through specialisation

13. Is innovation facilitated by clustering?
Succesful innovation is a complex process, based on a combination of factors where clustering may play a major role:
Scientific and Technological developments
Availability of skills
Market conditions
Regulatory environment
Business models
Risk capital availability

14. A new model: the EIT
The European Institute of Innovation and Technology proposes a model of full integration of the “knowledge triangle” of research, innovation and education
First Knowledge and Innovation Clusters (KICs) – on energy, climate change and ICT - to be launched within 2009, and new ones after 2012

15. Thanks for your attention!