2 HEPTech and ESS Innovation Procurement Workshop Practices in National Public Research Organisations European Research and Innovation Policy Unit, MIWF Anne Müngersdorff, ZENIT GmbH 7 May 2013, HEPTech and ESS Innovation Procurement Workshop

7 May 2013, HEPTech and ESS Innovation Procurement Workshop 3 Agenda ZENIT GmbH - shareholders, priorities and areas of expertise General information on public procurement in Germany Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Innovative procurement in North Rhine-Westphalia / Germany

4 7 May 2013, HEPTech and ESS Innovation Procurement Workshop Netzwerk ZENIT e.V. Network of 200 primarily small and medium-sized enterprises from NRW Consortium of banks NRW.BANK WGZ BANK Bankenvereinigung NRW German State of North Rhine-Westphalia Represented by: Ministry of Innovation, Science and Research ZENIT – Zentrum für Innovation und Technik (since 1984) Shareholders (Public-Private Partnership)

5 7 May 2013, HEPTech and ESS Innovation Procurement Workshop ZENIT - Priorities and areas of expertise Funding Information on funding Evaluation of project ideas Choice of programme Application support Innovation International technology transfer, innovation management, technology searches and appraisals Europe EU information Internationalisation strategies Cooperation partner search Partner in the Enterprise Europe Network NRW.Europa NCP for SME NCP - CIP-ICT-PSP

7 May 2013, HEPTech and ESS Innovation Procurement Workshop 6 Agenda ZENIT GmbH - shareholders, priorities and areas of expertise General information on public procurement in Germany Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Innovative procurement in North Rhine-Westphalia / Germany

7 7 May 2013, HEPTech and ESS Innovation Procurement Workshop Annual procurement volume in Germany on federal, regional and local level is about 300 billion EUR (EU 2,400 billion EUR and some 19% of GDP), > procurement departments, high potential for innovation New ways of interrelation between purchasers and suppliers paved, additional incentives for reference projects in innovative organisations 1 legal framework at federal level + 16 legal frameworks at Länder level (regional level) General information Key facts and legal framework on public procurement in Germany

8 General information Wide range of PROs, performing about 15 % of total R&D expenditure (2009) Many different organisations/institutions with a variety of governance and financing models - ranging from basic research to applied research institutes PROs are organised under the following four main organisations:  Max Planck Society (MPG)  Fraunhofer Society (FhG)  Helmholtz Association (HGF)  Leibniz Association (WGL) MPG and FhG: integrated organisations with strong headquarters, HGF and WGL: umbrella organisations of legally independent institutes Most governed by the Federal Ministry of Education and Research All receive basic funding from Federal or Länder Governments 7 May 2013, HEPTech and ESS Innovation Procurement Workshop National Public Research Organisations (PROs) in Germany

9 7 May 2013, HEPTech and ESS Innovation Procurement Workshop MPG: 80 institutes, research units, working groups, mainly in the field of basic research; R&D expenditures 1.7 billion EUR (2011) FhG: >80 research units, applied research and scientific and technical expertise for enterprises/SME; R&D expenditures 1.6 billion EUR (2010); of which roughly 80% is generated through contract research HGF: community of 18 research centres, Germany's largest scientific research association, focusing on research which requires large scale installations, research which contributes substantially to answering the major challenges facing science, society and industry; R&D expenditures in 3.7 billion EUR (2013) WGL: comprises 86 research institutions and service facilities, working at the interface of problem-oriented basic research and applied research; R&D expenditures 1.1 billion EUR (2009) General information National Public Research Organisations (PROs) in Germany

10 General information Source: Federal Ministry of Education and Research, BMBF map 2010: 7 May 2013, HEPTech and ESS Innovation Procurement Workshop E. g. Helmholtz organisations, located in Germany

May 2013, HEPTech and ESS Innovation Procurement Workshop Public money is tight, too little financial incentives for purchasers Low risk and low strategic management in public procurement Life-cycle costs less regarded IP-Rights not used for risk sharing Lack of knowledge of innovative instruments On-the-job training needed (combination of legal, operational and economic) Low interrelation between user, purchaser and supplier e-Procurement tools are not completely compatible General information Identified constraints in the field of public procurement

7 May 2013, HEPTech and ESS Innovation Procurement Workshop 12 Agenda ZENIT GmbH - shareholders, priorities and areas of expertise General information on public procurement in Germany Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Innovative procurement in North Rhine-Westphalia / Germany

May 2013, HEPTech and ESS Innovation Procurement Workshop 2007 State Secretary Resolution of six Federal Ministries on the use of innovative public procurement within the frame of the High-Tech Strategy (HTS) of the Federal Government in Germany. The HTS (launched in August 2006) is the first national concept, which connected the key stakeholders involved in innovation around a common idea 2009 progress report on innovative public procurement in Germany The German Federal Ministry of Economic and Technology (BMWi) presented in May 2012 the revised innovation strategy of the general orientation of R&D and innovation policy Including incentives to support innovative procurement (two PCP-pilots in Germany are planned on federal level, each 1 million EUR funding) Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Impulses for innovation in public procurement

Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Examples of innovative procurement from public research organisations Max Planck Society Cryo-Scanning Electron Microscope Fraunhofer Society Institute for Photonic Microsystems OLED: Organic Light Emitting Diodes 7 May 2013, HEPTech and ESS Innovation Procurement Workshop

May 2013, HEPTech and ESS Innovation Procurement Workshop Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept New Competence Centre for Innovative Procurement March 2013 – BMWi opened the new Competence Centre for Innovative Procurement, established at the Association Materials Management, Purchasing and Logistics (AMMPL), Bundesverband für Materialwirtschaft, Einkauf und Logistik e. V. (BME) Information centre ( Consultancy service Virtual market place Support to pre-commercial procurement projects Regional events

May 2013, HEPTech and ESS Innovation Procurement Workshop Prizes for excellence in purchasing and logistics management in 2013, each 10,000 EUR City of Detmold (use of innovative materials, reduction of health and environmental impact) in the region of North Rhine-Westphalia University Hospital Bonn (standardisation and defragmentation of investment needs) in the region of North Rhine-Westphalia Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Public Procurement Innovation Award (BMWi and BME)

7 May 2013, HEPTech and ESS Innovation Procurement Workshop 17 Agenda ZENIT GmbH - shareholders, priorities and areas of expertise General information on public procurement in Germany Activities of the German Federal Ministry of Economics and Technology within the scope of the new innovation concept Innovative procurement in North Rhine-Westphalia / Germany

October 2011: PCP workshop May 2012: event on HORIZON 2020 PCP / PPI and SME-Instrument (SBIR) September 2012: PCP workshop January 2013: PCP proposal March 2013: Berlin PCP/ PPI event Co. with EC and BMWi Strategic Dialogue and Milestones Inter-ministerial working group on innovative procurement (IMAG) 7 May 2013, HEPTech and ESS Innovation Procurement Workshop 18 Innovative Procurement: North Rhine-Westphalia / Germany

May 2013, HEPTech and ESS Innovation Procurement Workshop Innovative Procurement: North Rhine-Westphalia / Germany Inter-ministerial working group on innovative procurement (IMAG)  Ministry of Innovation, Science and Research  Ministry of Economics  Ministry of Finance PCP as one accompanying measure within the framework programme on Research and Innovation for Sustainable Developement „Fortschritt.NRW“ Internet-platform on innovative procurement (under construction ) NRW participation in ICT-PCP-pilots Strategic Dialogue and Milestones

May 2013, HEPTech and ESS Innovation Procurement Workshop Innovative Procurement: North Rhine-Westphalia / Germany Participants from NRW in running PCP-projects „PRACE“ and Partnership for advanced computing in Europe High Performance Computing (HPC) Partner from NRW: Forschungszentrum Jülich (Research Centre) Intelligent clothing for firefighters Partner from NRW: IFR - City of Dortmund (Fire brigade and life-saving service)

PRACE Members April, 23 rd 2010 creation of the legal entity (AISBL) PRACE with seat location in Brussels, Belgium 400 million EUR from France, Germany, Italy, Spain provided as Tier-0 services on TCO basis 67+ million EUR from EC FP7 for preparatory and implementation phases Grants INFSO-RI , , and Complemented by ~ 50 million EUR from PRACE members Interest by: Latvia, Belgium Innovative Procurement: North Rhine-Westphalia / Germany 7 May 2013, HEPTech and ESS Innovation Procurement Workshop

22 Innovative procurement at Forschungszentrum Jülich PRACE-3IP: some facts Project life time: July 2012 – June 2014 (PCP part – June 2016) Consortium: 26 partners from 24 countries Budget: 26.4 million EUR EC contribution: 19 million EUR PCP budget: 9 million EUR (4.5 million € EC contribution) for subcontracting This project receives funding from the European Community’s Seventh Framework Programme (FP7/ ) under grant agreement no Innovative Procurement: North Rhine-Westphalia / Germany Source: Forschungszentrum Jülich May 2013, HEPTech and ESS Innovation Procurement Workshop

23 Execution stage April 1, 2014 Framework contracts and contracts for phase 1 signed Feb. 1, 2015 October 1, 2013 Contracts for phase 2 signed Prototype development Pre-commercial small scale product/service development - Field test Supplier A Supplier B Supplier C Supplier D Phase 1 – 6 months June 30, 2016 Phase 2 – 10 months Phase 3 – 16 months Supplier B Supplier C Supplier D Solution design Selection of suppliers Supplier C Supplier D Assessment of results Contracts for phase 3 signed Lesson learnt Recommendations for using PCP for HPC Supplier E Supplier F Vendor dialogue Sep 21, 2012 Innovative procurement at Forschungszentrum Jülich PCP - Execution stage Innovative Procurement: North Rhine-Westphalia / Germany Source: Forschungszentrum Jülich May 2013, HEPTech and ESS Innovation Procurement Workshop

24 Agreement on need for dialogue with vendors Several purposes  to explain our plans to vendors  educate them about PCP and how it works  explain the scale of funding and our technical goals  gather feedback from them Open conference on PCP  close to 50 participants  more than 20 HPC companies Very useful process  clear input from vendors on realistic technical goals  lack of funding for in-depth development e. g. silicon  need for simplified process Innovative Procurement: North Rhine-Westphalia / Germany Innovative procurement at Forschungszentrum Jülich Vendor dialogue Source: Forschungszentrum Jülich May 2013, HEPTech and ESS Innovation Procurement Workshop

25 PCP is a powerful tool to foster innovation in Europe PCP should be primarily used by funding agencies and ministries, regions, cities Conflict of interest: own competence vs. co-development Horizon 2020: PCP without endanger the excellence principle PRACE will pilot PCP in HPC Contact: Dr. Florian Berberich, Project Manager PRACE-3IP (PCP Pilot for HPC), Juelich Supercomputing Centre, Helmholtz- Gemeinschaft, Forschungszentrum Jülich, North Rhine-Westphalia Phone: Innovative Procurement: North Rhine-Westphalia / Germany Innovative procurement at Forschungszentrum Jülich Conclusions Source: Forschungszentrum Jülich May 2013, HEPTech and ESS Innovation Procurement Workshop

26 Thank you for your attention! Anne Müngersdorff +49 (0) ZENIT Centre for Innovation and Technologie in NRW 7 May 2013, HEPTech and ESS Innovation Procurement Workshop