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THE EIT: FACILITATOR OF OPEN INNOVATION FOR THE FUTURE OF EUROPE
Alexander von Gabain – Chairman of the EIT Governing BoardEIT AWARENESS DAY- THE NETHERLANDSThe Hague, 4 June 2013
ABOUT DISCOVERY, INVENTION, TRANSLATION & INNOVATION
1 2
3 4
Discovery:Finding out something not yet known
Invention: creating or designing something not existing before
Translation: processing discoveries and/or invention into innovation
Innovation: making changes with societal impact based on discoveries and/or invention
Excellent science & research are necessary yet not sufficient ingredients for innovation
INNOVATION IS COMPLEX, TAKES TIME AND NEEDS INVESTMENTS AND IS RISKY
Phase I1st year
Phase II1 - 2 year
Phase III3 - 4 year
Clinical development
10 - 20 20 - 50 50 - 90Likelihood of success(percent)
Research Development(pre-clinical)
Productlicensing
5 10 99
Submissionof license
90 - 95
20 - 200 50 - 175 100 - 125Cost(m US$)
10 - 40 20 - 225 5 - 1010 - 15
$ 215 - 1.000
Time(years)
4 - 6 1 - 2 4 - 6 1
Example: development of new pharmaceuticals
NEW PARADIGMS IN INNOVATION:FROM SINGLE GENIUSES TO COMPLEX NETWORKS
Source: Science, Vol. 308,
p. 640
• Go for the best individuals• Make sure they understand the master plan• Make sure they form a strong team• Create respect for the involved competence areas• Complement strength/weakness profiles of the team members
• High level of education & solid academic base
• Historical power houses of research & science
• Increasing number of centres of excellence
• Impressive corporations and SMEs
• Long tradition of product development
• Growing European interactions between national R&D
players
EUROPE‘S UNLOCKED POTENTIAL TO SUPPORT WORLD-CLASS INNOVATION
Europe Bio Report for 2007
CREATING VALUE - CREATING JOBSEurope USA
No. of employees 63,000 172,000
Average Investment per year
EUR 6 bn EUR 18 bn
Public listed <10% >30%
Total value ofcompanies
EUR ~30 bn
EUR ~300 bn
Origin of patents ~ 28% ~ 52% from commercialenterprises
EXAMPLEBIOTECH – WHAT CAME OUT FOR EUROPE
Many proposals & smart ideas that could help to improve Innovation in Europe
Communication cross disciplines is key: Creative Ideas are children of solitude, yet are rarely conceived in isolation G Schatz, Former President of the Swiss Reserch CouncilScience, 2011
Innovation isfostered best in Multicultural,Interdisciplinary &Game-changing EnvironmentM Schuurmans; Founding Chairof he EIR, at the SemmeringSymposium 2011
Fund early stage venturesSupport innovative companiesInvest into Education Celebrate entrepreneurs
F Brown, Dean of Insead J-P Courtois, President of Microsoft , The Wall Street Journal, 2009How to integrate
all them?
Scientists must be taughtto manageJ. Seliger, Ass. Prof, Nature 2012
THE SMOKING GUN: AGE DISTRIBUTION OF INNOVATIVE COMPANIES
US: approx. 21%EU: approx. 2%
Bruegel policy brief 2009 Reinhilde Veugelers
HOW TO ENCOURAGE THE GROWTH OF YOUNG VENTURES IN EUROPE?
Europe has a history of brilliant entrepreneurs but data suggest we
need an ‘entrepreneurial
renaissance’to strengthen our ability to compete
globally
wanted
THE EIT PROPOSITION FOR INNOVATION: INTEGRATING THE KNOWLEDGE TRIANGLE
Partners and people within the knowledge triangle are at the core of the innovation web beyond the traditional R&D consortia
Higher Education
Research & technology
Industry & SMEs
ENTREPRENEURIALLY DRIVEN
INNOVATION
THE EIT STRATEGY
Create the entrepreneurs of
tomorrow and prepare for the next innovative breakthroughs
Place ownership, accountability & entrepreneurship into the centre of
innovation
Create innovative ecosystems with
global impact,targeting societal
challenges
Overcome the silo mentality of the
players within and between Member
States
Seed-fund & catalyze the
integration ofthe innovation
triangle
COME IN WITH SEED INVESTMENT WHERE A STEP CHANCE IS MOST NEEDED
Its aim is to boost the innovation process:
from idea to product
from lab to market
from student to entrepreneur
in areas of high societal need through its Knowledge and
Innovation Communities (KICs).
THE EIT’s OBJECTIVES
THE LABORATORY AND THE FACTORY: KNOWLEDGE AND INNOVATION COMMUNITIES
Higher Education
Business
KIC
• Innovation around a common theme
• Output focused: ideas exploited and
entrepreneurs ‘launched’
• Excellence
• International partnerships
• Long term, sustainable & autonomous
• Integration and exchange
• Bringing people together: co-location
• Clear governance: CEO and BP
• Up to 25% EIT funding
Research
How do the KICs work in practice?Industry/SMEs -
Higher Education Institute -
Research Institute -
Entrepreneurship -
KIC Co-location Centre -
Using KIC InnoEnergy as an example
Climate KIC:
Co-location centre
RIC (Regional Implementation and
Innovation Centre)
EIT ICT Labs:
Co-location centre
Associate Partner
KIC InnoEnergy
Co-location centre
KICs EUROPEAN IMPACT
Climate-KIC
• Mission: to accelerate significantly the innovation required for a transformation to a low-carbon economy, and to ensure Europe benefits from new technologies, company growth and jobs
• Thematic Focus Area: assessing climate change and managing its drivers, transitioning to resilient, low-carbon cities, advancing adaptive water management and developing zero carbon production systems
• Governance: CEO - Mary Ritter, Chairman - John Schellnhuber
• Partners inc. Bayer, EDF, GDF Suez, DSM, Schipol Airport ETH Zurich, Imperial College London, Potsdam Institute for Climate Impact Research PIK, Technische Universität Berlin, Forschungszentrum Jülich GmbH, l’Institut national de la recherche agronomique INRA, Delft University of Technology & Utrecht University,…
KIC InnoEnergy
• Mission: To become the leading engine of innovation in the field of sustainable energy.
• Thematic Focus Area: energy from chemical fuels, renewables, clean coal technologies, sustainable nuclear and renewable energy convergence, intelligent, energy efficient buildings and cities and European smart electric grid and electric storage
• Governance: CEO - Diego Pavia, Chairman - Karl-Friedrich Ziegahn
• Partners inc. EnBW, Vattenfall, Karlsruhe Institute of Technology (KIT), Grenoble Ecole de Management, CEA, EDF, VITO, ESADE, Gas Natural Fenosa, TNE, K.U. Leuven, ABB, KTH, AGH University of Technology, Central Mining Institute,…
EIT ICT Labs
• Mission: EIT ICT Labs intends to turn Europe into the global leader in ICT innovation by establishing a new type of partnership between leading companies, research centres and universities in Europe.
• Thematic Focus Area: smart spaces, smart energy systems, health and wellbeing, digital cities of the future, future media and content delivery and intelligent mobility and transportation systems
• Governance: CEO – Willem Jonker , Chairman – Henning Kagermann
• Partners inc. Alcatel Lucent, Fraunhofer, KTH, Nokia, Aalto University, Ericsson, INRIA, Philips, Orange, SAP, Siemens, TRENTO Rise, Universite Paris Sud, Telecom Italia, VTT,...
KIC PARTNERS: 2010-2013
In 2013, the three KIC brought together over 350 partners
EIT FUNDING: 2010-2013Leverage impact and sources of funding
KIC ACHIEVEMENTS SINCE THEIR IMPLEMENATION IN 2010
• 17 innovation hotspots spread across Europe
• More than 350 partners from business, higher education and research and
other relevant institutions
• Approx. 300 million € EIT investment into the existing three KICs with more than 1.1 billion € leveraged from external sources
• KICs have recruited more than 1000 students into about 20 specific
educational programmes integrating interdisciplinary innovation and entrepreneurship
• Approx. 90 innovation projects initiated by the KICs, 108 start-up companies,
400 business ideas incubated.
EIT MILESTONES TO DATE2011 - 2012: Consolidation of EIT and KIC activities
April 2010: Implement Headquarters in Budapest
PARTNERS, TALENTS, NETWORKS, EDUCATION, MINDSET CHANGE, NOVEL CONCEPTS & PLATFORMS
PRODUCTS SERVICES
& FINANCIAL SUSTAINABILITY
ENTRE & INTRAPRENEURS, PRIVATE INVESTMENT,
PROMOTION, MARKETS & CUSTOMERS
IMPACT
SUSTAINABILTY
HIGH QUALITY JOBS
COMPETITIVENESS
SOLUTION TO SOCIETAL
CHALLENGES
EIT INNOVATION - AN INTEGRATED APPROACH TOWARDS SUCCESFUL KICs
• THE EIT NEEDS TO MANAGE AND TO MONITOR THE INVESTMENT INTO THE
KICs
• THE KICs NEED TO MANAGE COMPLEXITY TO BUILD THEIR PAN EUROPEAN
‘INNOVATION FACTORIES’
• ENTREPRENEURS AND INTRAPRENEURS FOSTERED WITHIN THE KICS NEED
TO BE EDUCATED TO TAKE ADVANTAGE OF MANAGEMENT SKILLS
• THE GROWTH OF KIC PARTNERS RELIES ON MANAGEMENT SKILLS
• HOWEVER, A SMART BALANCE BETWEEN ENTREPREUNERIAL ‘OBSESSION’
AND MANAGERIAL SKILLS NEEDS TO BE MAINTAINED
MANAGMENT WILL BE KEY ON THE EIT JOURNEY TO UNLOCK INNOVATION IN THE KICs
THE FUTURE OF THE EIT
Consolidate the current KICs and set up 6 further KICs:
• 2014: healthy living & active ageing, food4future, raw materials (TBC)
• 2018: added value manufacturing, smart secure societies & urban mobility (TBC)
Together with the KICs create ecosystems
• that attract private investors, regional and public funds (e.g.: EIB and EDB)
• that become accepted and interconnected by/with the global innovation arena
• that become financially self sustainable in the long term
EIT to become a hub providing knowledge to all stakeholders within the innovation knowledge triangle
THE EIT’s ROLE BEYOND THE FOSTERING OF THE KICs
• Share and disseminate good practices and learnings on its integrated innovation approach to the European innovation landscape
• Educate talents from all members states towards an integrated innovation approach built on entrepreneurship and leadership
• Integrate regional approaches into the EIT innovation ecosystems
• Foster a European innovation landscape that is attractive to entrepreneurs and risk capital
IS THERE AN EIT MISSION BEYOND THE EUROPEAN INNOVATION GAP?
Established socio-technical systems tend to narrow down the diversity of innovations, because the prevailing technologies develop a fitting institutional environment (Garud and Karnøe, 2001)
Source: C. Rammel 2006 and recent presentations; more recent Stirling 2011; Geels 2002
THE CREATION OF ECOSYSTEMTS THAT RENEW TECHNICAL LANDSCAPE
TimeTime
Landscape developments put pressure on existing regime,
which opens up, creating windows of opportunity for novelties
Socio-technical regime is ‘dynamically stable’.On different dimensions there are ongoing processes
New configuration breaks through, takingadvantage of ‘windows of opportunity’. Adjustments occur in socio-technical regime.
Elements are gradually linked together,and stabilise in a dominant design.Internal momentum increases.
Learning processes take place on multiple dimensions.Different elements are gradually linked together in a seamless web.
New socio-technicalregime influences landscape
Technologicalniches
Socio-technical’landscape
Socio-technicalregime
Technology
Markets, user preferences
CulturePolicy
ScienceIndustry
experimentation / learning
alignment / stabilisation / momentum
saturation / incumbent inertia
windows of opportunity / breakthrough / reconfiguration
environmental drivers / political pressures
environmental drivers / political pressures
TECHNOLOGICAL NICHES
TECHNOLOGICAL NICHES
SOCIO-TECHNICAL
REGIME
SOCIO-TECHNICAL LANDSCAPE
Source:Geels, 2002
… Innovation powered by the EIT! …
... Research on the move! …
… Entrepreneurs in the making! …
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www.eit.europa.eu
HOW TO BUILD FUTURE INNOVATION FACTORIES?
Identify organisations who are excited and eager to take ownership
Find a topic that is “KIC-able” within the given themes
Select a strong consortium of excellence integrating all stakeholders across the knowledge triangle
Build upon or create a local and pan-European ecosystem that supports the business plan and overcomes the local and global silo-attitude & don’t forget CLCs
Integrate contributors from regions and communities (regional centers)
Plan the 25% EIT contributions to catalyze activities that are not already anchored at the existing partners
Academia, innovation & industry: traditional model (Francis Bacon; 1561 – 1626)
LINEAR TECHNOLOGY EVOLUTION
Academic research
Appliedresearch &techno-logies
Basicresearch
Addedvalue
Academia, innovation & industry: the Californian model (Adam Smith; 1723 – 1790)
BRANCHED TECHNOLOGY EVOLUTION MODEL
Acad.research
Old technology(industry)
New technology(industry)
Added value
More than half of economic growth in the USA, 1945 – 2002 is attributed to innovation within the high-technology sector** Leary et al
2002