Connecting Regional Innovation Hubs KEP for KET event in Jena 10-11 November 2016, Jena Bart Van Caenegem Programme Officer A4 – Photonics Directorate A – Digital Industry DG CONNECT, European Commission

Overview Context for innovation hubs in photonics The Photonics Public Private Partnership in H2020 The Digitising European Industry (DEI) strategy innovation hubs with photonics competencies Set-up of workshop on 20 June 2016 Workshop findings Framing in the DEI strategy Conclusions

Photonics - strong European industry with huge economic impact Global photonics market ~373 bn EUR (2013) European photonics market ~69 bn EUR (2013)  Market share ~18% (2013) Estimated global photonics market in 2020 ~615 bn EUR SME based - more than 5.000 SMEs in Europe ~370.000 employees in the European photonics sector Market shares of European companies - Production technology 55% - Optical components & systems 40% - Measurement & automated vision 35% - Medical technology & life sciences 30%

Why a Photonics PPP in Horizon2020? Speed up Process from Lab to Fab Source: High Level Group on KETs – final meeting (24/06/2014)

Photonics Public Private Partnership The PPP is the EC + Photonics21 Signed on 17 December 2013, Brussels  Industry-driven, multi-annual strategic research and innovation agenda EU investment up to 700 M€ for the Photonics PPP (460 M€ in FP7) Objectives: FOSTER MANUFACTURING, JOB AND WEALTH CREATION IN EUROPE through a long term investment commitment by both industry and the EC; MOBILISE, POOL AND LEVERAGE PUBLIC AND PRIVATE RESOURCES to provide successful solutions for some of the major societal challenges facing Europe, in particular in healthcare & well-being, and energy efficiency. ACCELERATE EUROPE’S INNOVATION PROCESS AND TIME TO MARKET by addressing the full innovation and value chain in a number of market sectors where European photonics industry is particularly strong (e.g. lighting, medical photonics, and optical components & systems); Equipment Components & Devices Integrated Systems Products & Solutions Materials

Industry Research collaboration: PPP projects move up to TRL 7 Focus of Photonics PPP Projects TRL1: Basic principles observed TRL2: Technology concept formulated TRL3: Experimental proof of concept TRL4: Technology validation in lab TRL5: Tech. validation in relevant environment TRL6: Demonstration in relevant environment TRL7: Demonstration in operational environment TRL8: System complete and qualified TRL9: Successful missions operations KET** Report: The Technological Readiness Level (TRL) FP7 funding Pilot Production or Demonstration Project Disruptive Research Applied Research Manufacturing Challenge: Activities closer to the market are often 10 times more expensive

Overview Context for innovation hubs in photonics The Photonics Public Private Partnership in H2020 The Digitising European Industry (DEI) strategy innovation hubs with photonics competencies Set-up of workshop on 20 June 2016 Workshop findings Framing in the DEI strategy Conclusions

DIGITISING EUROPEAN INDUSTRY European Commission communication (April 2016) What is this about? Measures that enable all sectors to benefit from digital innovation: For higher value products with "digital inside" Increased efficiency of processes Adapted and reshaped business models including relevant services These measures benefit from: A true Digital Single Market World class broadband, cloud and data infrastructures Access to sources of financing Coordination of various initiatives - MS, regional, EU Pool resources, avoid fragmentation, support DSM http://ec.europa.eu/digital-agenda/en/digitising-european-industry

Digital value chains across all sectors Critical Value chains ~40% of Added Value Electronics, photonics ICTdevices ~40% of Added Value ~40% of Added Value ~50% of Added value

The challenge of digital transformation Digital transformation of all industry in Europe requires a strong digital sector in Europe Broad digital transformation of all industry offers a unique opportunity to strengthen Europe's digital sector Demand Supply

What is the problem? For close to two thirds of managers in industry: The Return on Investment in digital innovations is difficult to assess upfront. Have problems with trusting the technology Are not sure about the maturity of latest technologies (Big data, AI, robotics,..) Are not clear about compatibility/interoperability with legacy systems. Are afraid of being locked in with one vendor Percentage is higher for SMEs Clear need to "test and experiment before engaging in digital innovation"

Access to digital technologies spurring bottom up innovation Target: Access to digital technologies and expertise within "working distance" for any industry in Europe with a focus on: SMEs, mid-caps, non-tech How: "Digital Innovation Hubs" across Europe : provide industry with access to technology, expertise, testing,… based on world-class specialised competence centre Networking DIH to ensure a one-stop-shop for industry

Overview Context for innovation hubs in photonics The Photonics Public Private Partnership in H2020 The Digitising European Industry (DEI) strategy innovation hubs with photonics competencies Set-up of workshop on 20 June 2016 Workshop findings Framing in the DEI strategy Conclusions

Set-up of workshop on 20 June 2016 About 40 experts involved in existing initiatives at regional, national or EU level Reach a common understanding of: What digital innovation hubs are How can we upgrade existing competence networks to Innovation Hubs How access to hubs can be facilitated Define what needs to be done and by whom: The hubs themselves The regional actors The national actors The European actors Industry

Morning: short presentations Format of the meeting Morning: short presentations Examples of innovation hubs EU level actions: Actphast, Lashare, PIX4LIFE (a pilot line) Regional and national initiatives InfectoGnostics, Photon delta, Catapult, The PISA ecosystem Examples of coordinating access to hubs/competence centres: EU level actions OASIS, I4MS Coordination Regional or inter-regional initiatives: Industrie4.0 coordination in Germany, the Vanguard Initiative The point of view of the SME Holoxica

Agenda and course of the workshop Afternooon: world café discussion What are the objectives of hubs, and how do they implement these? How to facilitate access to the hubs? How to facilitate coordination between hubs? How to extend existing innovation hubs and how to foster new innovation hubs? Role of regional/national/EU level actors (define actions) Be as concrete as possible on what and how!

Is there a definition for Digital Innovation Hubs? No one-fits-all definition, but based on principles: Valorization of technology and technology transfer Access for industry to expertise, infrastructure, testbeds, etc. to seize the opportunities of digital transformation to make the regions and Europe more competitive and to create jobs and growth Digital innovation hub Competence centre Organised to provide services to industry Access to competence centres Development of innovation ecosystem Brokerage Access to finance Market intelligence Training and education Incubator/mentoring services Competences in Digital Technologies Provide access to infrastructure and technology platforms Provide digitisation and application expertise Support experimentation in real-life environments Support fabrication of new products Demonstrate best practices Showcase technologies in pilot factories, fab-labs "ecosystem" with solid governance structure

More DIH characteristics Need for a solid and strong governance structure, a dedicated management structure and maanement team with a mix of profiles and disciplines A reginal character built on existing excellence and speicalisatin in the region Active scouting for SMEs and businesses to make use of the DIH services Sustainability and ensuring justification of the hub Access to the hub: Speed, easy to access, a clear offer of services Via intermediaries (multiplicators)

Interregional DIH cooperation A DIH will not cover all required competencies and expertise Coordination with hubs in complementary competencies Inside the region Between regions "Serve or forward" principle To foster hubs in other regions Building on existing competence centres 'coaching' or 'mentoring'

Digital Innovation Hubs: current landscape Variable geometry of the innovation infrastructure in Europe Competence Centers and Innovation Hubs sector- and application oriented technology oriented user oriented location oriented European Factories of the Future PPP Netherlands Field Labs Regional Innovation Hubs: Digital Hub Cologne Fabricca Intelligente Lombardia … VANGUARD INITIATIVE

Organic growth of digital innovation infrastructure Role of the European Commission: added value oriented measures to create European digital innovation ecosystem map of competencies, best practices, demonstrators,… pan-European network of Digital Innovation Hubs (DIH) bring actors together support for crossboarder innovation experiments Measures to foster DIH in all regions Use of H2020 workprogrammes to support such measures develop funding models under ESIF und EFSI Role of the member states and regions: build-up and strengthening of national and regional structures of digital innovation/ competence hubs innovation programmes (e.g. german Mittelstand-Digital, Bayern Innovativ, …) structural funds (e.g. ESIF – structural fund) funding programmes (e.g. KfW, EFSI - Juncker Plan) Innovation vouchers, engaging in smart specialisation platform Role of industry Engage with competence centres, help set priorities,..

Why do we want combined sources of funding? Regional funding Leverage through Europe wide focussing and bundling of digital innovation measures 500 M€ for network of Innovation Hubs in Horizon 2020  5 B€ regional and national funding

Thematic Smart Specialisation Platform (S3P) and Strategic Cluster Partnerships for Industrial Modernisation

Overview Context for innovation hubs in photonics The Photonics Public Private Partnership in H2020 The Digitising European Industry (DEI) strategy innovation hubs with photonics competencies Set-up of workshop on 20 June 2016 Workshop findings Framing in the DEI strategy Conclusions

Framing in the DEI strategy Roundtable of High-Level Representatives of Member States' initiatives (twice a year) Two Working Groups WG1: Digital Innovation Hubs WG2: Leadership in digital technology value chains and platforms First meeting on 20-21 October 2016 Second meeting on 8-9 December 2016

Framing in the DEI strategy WG1 mandate elaborate in more detail the Digital Innovation Hub approach Reflect on how Member States, regions and the private sector could fund the expansion of Digital Innovation Hubs 'reflect and advise' WG1 timeline A first draft of the report before the end of December 2016 Revised draft for the DEI Stakeholder Forum (end of January 2017) Final version for Hannover Fair, April 2017 Report of first WG1 meeting: https://ec.europa.eu/futurium/en/content/wg-1-digital-innovation-hubs-meeting-report-first-meeting-20-oct-2016

Conclusions Innovation hubs with photonics competencies Motor for innovation and competitiveness How to realise the vision of a European network of Digital Innovation Hubs: Ongoing discussion with stakeholders in photonics and in Digitising European Industry initiative Define topics in H2020 work programmes Partnerships with regions and industry (smart specialisation platform)

For more information Contacting the Photonics Unit: CNECT-PHOTONICS@ec.europa.eu Photonics Unit web site: https://ec.europa.eu/digital-agenda/en/photonics Photonics 21 http://www.photonics21.org The Photonics PPP on twitter: @Photonics21 and @PhotonicsEU Photonics PPP Annual Meeting 2017 Brussels, 28-29 March 2017 (save the date)