The role of Key Enabling Technologies for industrial competitiveness

Transcription

1 The role of Key Enabling Technologies for industrial competitiveness Conference "Key Enabling Technologies for a European Industrial Rennaissance" Brussels, 2 April 2014 Michel Catinat Head of Unit Key Enabling Technologies and Digital Economy DG Enterprise & Industry European Commission

2 What are the Key Enabling Technologies? Economic Potential Value adding enabling Role Technology- Intensity Capital Intensity Economic criteria GDP contribution Employment Market Growth Systemic relevance General Purpose Technology Innovation driver Productivity driver Spill-over effects R&D-Intensity Innovation cycles Know-how intensity IPR/ Patenting High-skill ratio Initial investments Capital expenditure/ Production costs Amortisation rates Investment per employee Selection of 6 KETs Nanotechnology Micro- & Nano-electronics Photonics Advanced Materials Industrial Biotechnology Advanced Manufacturing Systems

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4 KETs are of systemic importance to our economies Current global market volume in KETs: 646 bn Substantial growth expected (~ 8% of EU's GDP by 2015) Innovation accelerators to downstream markets Applications in multiple industries and more applications in variety of other industries expected e.g. automotive, food, chemicals, electronics, energy, pharmaceuticals, construction, telecommunications industry Sizeable markets sustain significant employment Role in traditional sectors and emerging industries, in both large companies and SMEs Ability to enable advances in all industries and sectors Europe's future competitiveness will depend on how it masters KETs in coming years 4

5 Importance of KETs on the EU policy agenda Europe 2020 and its flagship initiatives Key Enabling Technologies Nanotechnology Micro- & Nano-electronics Photonics Advanced Materials Biotechnology Advanced Manufacturing Systems Regional Policy 5

6 KETs: Strengths and Challenges 6

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8 Europe has difficulties to translate its knowledge base into goods and products Case study: Li-ion battery production (global patent and manufacturing shares) Source: Status Implementation Report, HLG on KETs, July

9 KETs Race: Top 15 Manufacturers by share of global manufacturing nominal gross value Source: Status Implementation Report, HLG on KETs, July

10 Problem Analysis: the Valley of death" Europe is strong with regard to both ends of the value chain There is a gap between the technology base and the manufacturing base We need to add product development (e.g. demonstrators, pilot lines) and competitive manufacturing to the technologies

11 Other regions invest in development activities to sustain their industrial innovation Source: Status Implementation Report, HLG on KETs, July

12 A European strategy for KETs 12

13 An Action Plan based on 4 pillars Adaptation of EU instruments and policies in support of KETs deployment Horizon 2020: Allocation of dedicated budget to KETs; rebalancing towards pilot lines and demonstrator projects; promotion of cross-cutting KETs activities; exploitation of results ERDF: KETs as priority investment area; financing up till first production; combined financing; KETs integration in regional smart specialisation strategies European Investment Bank: MoU agreement with the EIB prioritises KETs Modernise state aid rules to sustain EU growth Promote necessary multidisciplinary technology skills and training Coordination of EU and national policies to achieve synergies Synergies with national and regional industrial innovation policies Invite industry to express its commitment to KETs investment Dedicated governance structure to ensure sound implementation of the KETs strategy Establish an external advisory group for KETs - the KETs High- Level Commission Expert Group Ad hoc governance for KETs to ensure coherence of all relevant programmes and creation of synergies between them Mobilisation of trade instruments to ensure fair competition and a level international playing field The Commission strives to guarantee: Favourable trade relationships Fair and equal competition Ease of access to finance for investment A market free from distortions Reciprocal agreements Compliance with WTO and EU laws

14 KETs on EU Agenda instruments COSME :Framewor rk conditions Fundamental Research Pillar 1: technological research Pillar 2: Product demonstration Horizon 2020 (TRL 1 8) Structural Funds (TRL 2 9) European Investment Bank (TRL 2 9) Pillar 3: Competitive Manufacturing

15 Leadership in Enabling and Industrial Technologies (LEIT) HORIZON 2020 Priority 1: Excellent Science Priority 2: Industrial Leadership Leadership in enabling and industrial technologies (LEIT) (i) ICT including micro- and nano-electronics and photonics (ii) Nanotechnologies (iii) Advanced Materials (iv) Industrial Biotechnology (v) Advanced Manufacturing & Processing (vi) Space Access to risk finance Leveraging private finance and venture capital for R&I Innovation in SMEs Fostering all forms of innovation in all types of SMEs 30% cross-cutting KETs Priority 3: Societal Challenges 15

16 Methodology, Work plan and roadmap for crosscutting KETs activities in Horizon 2020 Rationale KETs Communication 2012: A considerable part of the KETs activities planned under Horizon 2020 will be dedicated to cross-cutting activities, bringing together different KETs for developing innovative products and for contributing to solving societal challenges Focus on more innovative products integrating technologies : shift of competitive pressure towards quality competition Objective Development of a methodology, work plan and roadmap that will provide input to the preparation of the cross-cutting KETs part of Horizon 2020 Coordinator: D'Appolonia Approach Market perspective, analysing demand side: Identify promising areas of innovation that address clear industrial and market needs in a broad range of industrial sectors and stemming from societal challenges

17 H2020-LEIT work programme( ) Launch of more than 20 multi-kets pilot lines initiatives in four strategic industrial areas: Smart structures High-performance production Embedded energy (batteries) Industrial bio-processes using renewable resources In line with EU KETs policy: rebalancing towards closer to market activities, integration of different KETs, synergies between EU and national KETs policies To allow for more ambitious pilot lines projects through combined funding Could pave the way for possible Important Projects of Common European Interest (art (b) TFEU)

18 Criteria for multi-ket pilot lines Rationale KETs Communication 2012: to provide support for pilot lines and demonstrator projects, with a particular focus on projects that provide integration between different KETs Why? Pilot lines are a critical step in bridging the gap between research and market Objective Identify criteria for efficient development of multi- KETs pilot lines in Europe Examples of key elements: Evaluation of the potential impact Industrial value-chain criteria Exploitation plans in Europe Sharing of technology infrastructures Openness requirements for SMEs

19 Conclusions European Council March "The European Council recalls that key enabling technologies (KETs) are of crucial importance for industrial competitiveness. KETs of high industrial interest, such as batteries for electro-mobility, intelligent materials, high performance production and industrial bioprocesses, should be strengthened by swiftly identifying projects of European interest." " smart specialisation should be promoted at all levels, including through the efficient use of public investment in research. This will facilitate contacts between firms and clusters and improve access to innovative technologies."

20 HLG Final Report (2011), HLG Status Implementation Report 2013, three Communications (2012/2014) to support the KETs strategy KETs for a competitive Europe Invitation to European Council to declare KETs as a key priority of the European Union March rd Meeting of the HLG on KETs, Brussels 29 January 2014

21 KETs for all EU Regions : KETs value chain A KETs-focused innovation policy allows most industrial sectors and regions to become involved KETs policy concerns not only the mastering of technology but also the deployment of these technologies into KETs-based products and services Knowledge Technology Transfer Proof of concept Commercialisation Market Fundament. Research Applied Research Product Demonstrations Pilot lines, large-scale demonstration projects, first-of-its-kind market replications Competitive Manufacturing Mar ket Entr y Regional Policy

22 KETs and Smart specialisation ERDF Priority 1.c: supporting research and applied technology, pilot lines, validation actions early products, advanced manufacturing capabilities, first production in key enabling technologies Any region can find its particular niche KETs are pervasive, not sector-specific Whole value chain: from higher education & research institutes to technology developers via suppliers to producers Potential of KETs to connect industrial value chains across regions Enhancing regional eco-systems (clusters) "KETs should be an integral part of every region s smart specialisation strategy" (Commissioner J. Hahn) 22 Regional Policy

23 Combining public funding sources for ambitious industrial projects What is combined funding? Combined funding is the possibility to use different public funding sources, including EU funding sources, within a programme, project or a group of projects. It seeks to exploit complementarities and synergies while at the same time needs to avoid overlaps and exclude double-financing. Combining EU funding sources H2020 and ESIF Legal basis: The H2020 Rules for Participation (Article 37) and for the Common Provisions Regulation on the ESIF (Article 65(11)) both deviate from the Financial Regulation (Article 129) as they allow for the funding of the same action by two different instruments, subject to the absence of double funding. Regional Policy

24 EIB KETs Lending bn Signing of the MoU between the EC and the EIB - 27 February 2013 Total Signature Volume (m EUR) bn 2.9 bn 2.7 bn Regional Policy 24

25 State of implementation of EU instruments and policies in support of KETs deployment Horizon 2020: Specific budget allocated to KETs; promotion of cross-cutting KETs activities; rebalancing towards pilot lines and demonstrator projects; exploitation of results ERDF: KETs as priority investment area; financing up till first production; combined financing; KETs integration in regional smart specialisation strategies European Investment Bank: MoU agreement with the EIB prioritises KETs Modernise state aid rules to sustain EU growth Promote necessary multidisciplinary technology skills and training Discussion and consultation ongoing: Clarification of provisions on Projects of Common European Interest Increase in maximum of state aid intensities Increase in notification thresholds Introduction of concept of applied research (attached to pilot lines and demonstrators) Regional Policy

26 State of implementation of EU instruments and policies in support of KETs deployment KETs Communication 2012 Horizon 2020: Specific budget allocated to KETs; promotion of cross-cutting KETs activities; rebalancing towards pilot lines and demonstrator projects; exploitation of results ERDF: KETs as priority investment area; financing up till first production; combined financing; KETs integration in regional smart specialisation strategies European Investment Bank: MoU agreement with the EIB prioritises KETs Modernise state aid rules to sustain EU growth Promote necessary multidisciplinary technology skills and training A Knowledge and Innovation Community (KIC) on Added Value Manufacturing will be launched in The KIC will be a forum for integration and promotion of transdisciplinarity skills and competences, particularly for the combination of multiple KETs. Study on multidisciplinary skills for KETs (start in January 2014): analysis of current situation (gaps to be filled) and recommendations for a strategy to reduce gaps Regional Policy

27 Specific actions to promote and enable pan-european access for SMEs to European KETs technology platforms Demand Side (SME) SME instrument covers access for SMEs to technology platforms Phase 2: Demonstration activities (prototyping, piloting innovative processes, products and services) Supply Side (KETs technology platforms) Study "Cooperation between KETs Technology Centres of Excellence": Inventory of European KETs centres of excellence with technology platforms State of play of cooperation Portal on KETs technology centres for SMEs COSME / Horizon 2020

28 State of implementation of EU instruments and policies in support of KETs deployment KETs Communication 2012 The Commission will: launch a monitoring mechanism on KETs in 2013, which will provide relevant market data on the supply of and demand for KETs in the EU and other regions; make the results of the monitoring mechanism publicly available on a dedicated website. Feasibility study finalised KETs observatory website available: Indicators: technology, production, trade, demand, business data Geographical coverage: EU 28, EEA countries, North-America, East-Asia, other countries (Brazil, Russia, ) February 2014 : update of indicators September 2014 : Publication of report on "KETs performance" for EU and third countries

29 Conclusions KETs have a huge potential for growth, are important for Europe's future competitiveness and are therefore one of the key priorities of our industrial policy Stimulating investments in KETs is a must for Europe The EU strategy for KETs aims to boost the deployment of KETs in Europe, via Dedicated provisions in Horizon 2020 and the Cohesion Fund / smart specialisation More funds and more projects supported by the European Investment Bank Access for SMEs to KETs technology platforms Stimulation of KETs multidisciplinary skills Strong support from European Council (Heads of State) Implementation is ongoing, be part of it! 29

30 Contact European Commission DG Enterprise and Industry Unit E4: Key Enabling Technologies and Digital Economy B-1049 Brussels Website: HLG website: KETs Observatory