Presentation on theme: "Bror Salmelin Advisor to the DG, Innovation Systems"— Presentation transcript:
1 Open Innovation Ecosystems for Horizon 2020 - New Approach Helsinki/Espoo, April 2013 Bror SalmelinAdvisor to the DG, Innovation SystemsEuropean Commission
2 European Commission Vice President 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.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.European Commission Vice PresidentNeelie Kroes (18/12/2012)
3 Does ICT matter ? GROWTH ICT investment →50% productivity growth Internet has contributed to 21% of GDP growth across the G20 from 2005 to 2010Digitalized 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 GDPICT investment →50% productivity growthInternet usage X2 every 2-3 years,Wireless connected devices: doubling from 25 to 50BL,Mobile data traffic: x12-14,4million ICT workers, grow 3% p.a. even in crisisBut we lack people!
4 Very fast internet supply and demand Broadband drives competiveness European Commission, 2011A 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) buzzwordsSustainable innovation is holistic!
6 Diversity means breakthrough probability HighlowLowhighValue of innovationBreakthroughaverageinsignificantAlignment of team members’ disciplines
12 Innovation? Make things happen! Science based linear innovation is NOT mainstream anymore!User-centric innovationOpen innovationSystemic innovationExperimental mash-upLeadership with courage -> new management skills
14 Innovation as parallel activities ResearchPrototypingPilot roll-outMarketsKnowledgeProductionEach activity collects knowledge about product/market fit
15 Innovation moving out of the Lab Centralized inward looking innovationClosed InnovationExternally focused, collaborative innovationOpen InnovationEcosystem centric, cross-organizational innovationInnovation NetworksDefinition and characteristics of networked innovation, examples per page or at the end of trendsScience and Engineering skills and external funding mechanisms are abundantInnovations are valuable mostly as components on standard platforms used by many players.Knowledge is shared with business partnersSources: Chesbrough 2003, Forrester 2004, von Hippel 2005
16 The European Perspective 28/03/2017The European PerspectiveEurope 2020 “smart, sustainable and inclusive growth”Digital Agenda for EuropeInnovation UnionTowards a EuropeanDigitalSingle MarketRegional/Cohesion PolicyContributing toSmart growthSmart Cities andRegionsFuture Internet forcitizen-centric innovationOther instruments:Structural Funds, National funding, Financial InstrumentsCommon strategic Framework for Research and InnovationHORIZON 2020CIP/ICT-PSPPilots in specific domainsacross bordersFP7/ FP8ICT theme: FI PPP, EIPs, JTIsEIT / KICs : bridging education research innovationOther policies: industrial policy for the globalisation era, youth on the move,Agenda for new skills and jobs, resource efficient Europe, the green digital charter…16
17 Essential driversconnectivityopeninteraction“organic” (OrganiCsations..)NON-controllable, only catalyzing possible
18 Innovation Activities (examples) H2020 Instrument/schemePilots (prototyping, pilot lines, demonstration, testing)Research and Innovation grantPre-commercial procurementPCPPublic procurement of innovationPPIResult based awardRecognition, Inducement prizesTargetting 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), JTITargetting societal challengeEuropean Innovation Partnership (using all instruments)+Smart specializationClustering, bridge to accelerators, incubatorsCoordination and Support action
19 ODI scheme using complementary H2020 Instruments Phase 1: Technical market feasibility and prototypingR&I grant lump sum x 3-9 monthsPhase 2: Validation & piloting of scalable solutionsR&I grant covering eligible costs x mSupport measuresSuccesful projects reaching end of Phase 2 = EU Disruptive Innovation Label/PrizesExposure on dedicated platforms (e.g. crowd-funding and V.C. seeds)Ph.1EU Disruptive Innovation LabelPh. 2On-line assessment EU Disruptive Idea Label & Exposure on EU Dedicated Platforms & events etc.
20 ? SME instrument IDEA continued support throughout the project MARKET Phase 1: Concept & Feasibility AssessmentPhase 2: DemonstrationMarket ReplicationR&DPhase 3: CommercialisationIdea to concept,risk assessment, technological & commercial feasibilityDemonstration, prototyping, testing , market replication, scaling up, miniaturisation, researchQuality label for successful projects, access to risk finance, indirect supportSME window EU financial facilitiesPre-commercial procurement
22 PCP and PPI complementary PCP to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendorsPPI to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the marketPublic Procurement ofInnovative Solutions (PPI)R&D / Pre-commercial Procurement (PCP)Phase 0CuriosityDrivenResearchPhase 1Solution designPhase 2PrototypedevelopmentPhase 3Original developmentof limited volumeof first test products /servicesPhase 4Deployment of commercial end-productsDiffusion of newly developedproducts / servicesSupplier ASupplier BSupplier BSupplier BSupplier(s)A,B,C,Dand/or XSupplier CSupplier CGroup of European procurersPool public demand and specify needsManage procurement processShare risks and benefits together and with suppliersCost shared, IPR shared, knowledge sharedCompatible with procurement directives and state aidException to procurement directivesLegally defined as procurement of ‘R&D Services’Possibility to restrict to ‘European wide offers’Possibility to apply at European and Member States levelNeed for incentive to support the frameworkSupplier DSupplier DSupplier DTwo possibilities in H2020 (for PCP/PPI) & CEF (for PPI)EC can co-finance PCPs/PPIs carried out by grant beneficiariesEC or EU agencies can carry out PCPs/PPIs on their own behalf or jointly with Member States
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 controlRules to share and build valueExperimentation mentality (fail fast in small things, not in the big one)