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

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Presentation on theme: "Open Innovation Ecosystems for Horizon 2020 - New Approach Helsinki/Espoo, April 2013 Bror Salmelin Advisor to the DG, Innovation Systems European Commission."— Presentation transcript:

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

2 European Commission Vice President Neelie Kroes (18/12/2012) 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. 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.

3 Does ICT matter ? 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, million 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 Knowledge Markets Research Prototyping Pilot roll-out Production Each activity collects knowledge about product/market fit

15 Innovation moving out of the Lab Centralized inward looking innovation Closed Innovation Ecosystem centric, cross- organizational innovation Innovation Networks Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005 Externally focused, collaborative innovation Open Innovation

16 The European Perspective Towards a European Digital Single Market Smart Cities and Regions Regional/Cohesion Policy Contributing to Smart growth Innovation Union Digital Agenda for Europe CIP/ ICT-PSP Pilots in specific domains across borders FP7/ FP8 ICT theme: FI PPP, EIPs, JTIs 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… Future Internet for citizen-centric innovation Other instruments: Structural Funds, National funding, Financial Instruments Europe 2020 smart, sustainable and inclusive growth EIT / KICs : bridging education research innovation Common strategic Framework for Research and Innovation HORIZON 2020

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 procurementPCP Public procurement of innovationPPI Result based awardRecognition, Inducement prizes Targetting SMESME instrument (also for individual SMEs) Non prescriptive calls; open, light and fastOpen Distruptive Innovation scheme (using lumps sums and R&I grants) Road-map based, critical massContractual PPP (using all instruments), JTI Targetting societal challengeEuropean Innovation Partnership (using all instruments)+Smart specialization Clustering, bridge to accelerators, incubatorsCoordination 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 On-line assessment EU Disruptive Idea Label & Exposure on EU Dedicated Platforms & events etc. Ph. 2

20 20 SME instrument ? IDEAcontinued support throughout the projectMARKET 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 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 Phase 4 Deployment of commercial end-products Diffusion of newly developed products / services Supplier D Public Procurement of Innovative Solutions (PPI) Supplier(s) A,B,C,D and/or X 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 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 R&D / Pre-commercial Procurement (PCP)

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 jobs-0

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