Key Enabling Technologies: their role in the priority technologies for the Italian industry. Working document, 1 st edition April 2013

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1 Key Enabling Technologies: their role in the priority technologies for the Italian industry Working document, 1 st edition April 2013

2 AIRI Italian Association for Industrial Research AIRI has been founded in 1974 with the aim of promoting industrial research and innovation and enhancing co-operation between the private and public sector. Today AIRI is the focal point for around 100 members: large companies and SMEs active in R&D; universities, public and private research centers; Industrial associations, scientific parks, financial institutions supporting R&D. The researchers of AIRI members represent about one third of those operating in the country. Due to this broad representative base, AIRI is a key opinion leader for decision-makers sustaining industrial research as strategies for the technological development of the Country. AIRI/Nanotec IT - Italian Centre for Nanotechnology AIRI/Nanotec IT, a branch of AIRI established in 2003, is a national bridging point connecting industry, public research, and governmental institutions active in the nanotechnology field. Its mission is to promote nanotechnology and its applications in Italy to increase through it the competitive position of the Country. A great number of the players in this field are amongst its associates. Copyright Italian Association for Industrial Research (AIRI), 2013 Reproduction and translation for non-commercial purposes are authorised provided the source is acknowledged, prior notice is given to the editors and a copy of the finished work is sent to them. Contact Italian Association for Industrial Research (AIRI) Viale Gorizia 25/C, 00198, Rome - Italy Ph: info@airi.it The document may be downloaded from the internet at the AIRI website: Italian Association for Industrial Research (AIRI),

3 Key Enabling Technologies: their role in the priority technologies for the Italian industry Working document: results of the AIRI Working Group on Key Enabling Technologies (year 2012) Members of the Working Group AIRI Key Enabling Technologies: Luigi Ambrosio, Sandro Cobror, Marco Falzetti, Francesco Jovane, Elvio Mantovani, Gino Menchi, Cosimo Musca, Mauro Varasi, National Research Council (CNR), Dep. of Chemical Science and Materials Technology (WG chair) Mossi & Ghisolfi Group Centro Sviluppo Materiali & Alliance for Materials (A4M) Polytechnic of Milano & Manufuture Platform AIRI/Nanotec IT Italian Centre for Nanotechnology Ericsson STMicroelectronics Finmeccanica Editing Andrea Porcari, Italian Association for Industrial Research (AIRI) Acknowledgments The report is partially based on information from eperts of the Working Group of the study Tecnologie Prioritarie per l Industria Italiana: Innovazioni per il prossimo futuro (AIRI 1). The report has been realised with the support of the Dep. of Chemical Science and Materials of the National Research Council (CNR). Disclaimer: The opinions epressed in this document are the sole responsibility of the Italian Association for Industrial Research (AIRI). Italian Association for Industrial Research (AIRI),

4 Table of Contents Introduction... 5 Methodology... 7 Overview of the situation... 9 The si Key Enabling Technologies in the national Industry Micro and nanoelectronics Nanotechnology Industrial biotechnology Photonics Advanced materials Advanced Manufacturing Systems Workshop: the Key Enabling Technologies (KETs) for the national industrial system Conclusions and future actions Anne I: Correlation matrices: Priority Technologies vs. KETs Information and Communication Technologies Microelectronics and semiconductors Energy Chemistry Pharma and biotechnology Transport (Road, Rail, Sea) Aeronautics Manufacturing Anne II: Workshop proceedings Anne III: the AIRI Report: Priority Technologies for the Italian Industry References Italian Association for Industrial Research (AIRI),

5 Introduction Key Enabling Technologies refer to the following si technology domains: 1. micro-nanoelectronics 2. nanotechnology 3. photonics 4. industrial biotechnology 5. advanced materials 6. advanced manufacturing systems Key Enabling Technologies are considered pivotal to foster innovation and market growth of future high tech goods and services in a variety of industrial sectors, such as automotive, foods, chemicals, electronics, tetiles, energy, environment, pharmaceuticals, construction, aerospace and telecommunication. KETs will, therefore, play an increasing role for R&D and innovation in Europe, with remarkable funding to support it and market opportunities epected in a short-medium term. An estimate of the overall global market related to the 6 KETs provided a figure of some 650 billion euro in 2008, epected to rise to more than 1 trillion euro by In terms of R&D on KETs, Europe is leading (it holds some 30% of global patent share 1 ), but its lagging behind to other competing economies, such as USA, in translating this knowledge into marketable products (EC3, 2012). The European Commission High Level Group on KETs has clearly identified the valley of death that divides laboratory research from commercial products as the major gap to overcome to fully eploit the potential of KETs. KETs will be a core part of the European Commission programme Horizon 2020, providing specific and innovative funding instruments toward cooperative research for KETs, focusing on 3 pillars to overcome the gap mentioned: Technological research; KET pilot line and demonstrator projects; Competitive manufacturing and KET deployment projects. The recent report (EC3, 2012) A European strategy for Key Enabling Technologies A bridge to growth and jobs underlines the cross-cutting, systemic relevance of KETs for industrial growth in Europe and asks to the stakeholders (Member States, industry, academia) a coordinated approach in R&I policies to fully benefit from the eploitation of KETs. All the above said three pillars are key issues for Italy sgrowth. The latest EU innovation scoreboards (EC4) confirmed the high quality of the national scientific base (e.g. the indicator related to most cited scientific publications worldwide for Italy is above the EU average) against moderate performances when patents and R&D intensity in diverse key industry national sector are considered. The country is classified as moderate innovator, though it is recognized the huge potential of R&I for the national economy (above all in large national market areas, such as the production of high-tech and medium-high-tech manufactured goods). 1 Patent data analysis referring to the period (EC3, 2012) Italian Association for Industrial Research (AIRI),

6 The European approach toward KETs deployment could be an opportunity for increasing Italy R&I performances and improving the transfer of research results to the market, fundamental for the benefit of the national industry and economy. A comprehensive understanding of the national situation on KETs (such as eisting competences, clusters, technology readiness, market development, etc.), in comparison to the EU, is essential to identify challenges and opportunities that the EU approach to KETs will offer to the national industrial and R&D players. AIRI, with the support of the National Research Council (CNR), established in 2012 the Working Group on Key Enabling Technologies, aiming to assess their impact and define a vision on KETs at the national level. As said, the value of R&D competences in Italy is well acknowledged and one of the epected outcomes of the work will be of help to bridge objectives and needs of the industrial research players with competences and skills of academia, toward technologies and sectors relevant for the economy of the Country. To this end, the WG, composed of eperts from industry and academia, used as background information the study on priority technologies for the Italian Industry prepared on a regular basis (since the 90s) by AIRI with the contribution of its members. Scope of the 1 st year of activity of the WG, as detailed in this document, has been to underline the contribution of KETs to the priority technologies identified in the 2012 edition of the study. Italian Association for Industrial Research (AIRI),

7 Methodology The assessment of KETs impact on the national industrial landscape is based on activities included in the AIRI report Tecnologie Prioritarie per l Industria Italiana: Innovazioni per il prossimo futuro (in the following AIRI Report ). The 8 th edition, published at the end of 2012, has been completed in parallel to the present analysis. The AIRI report is based on the work of more than one hundred R&D managers, representative of key industry, private and public research centres in Italy (most of them members of AIRI). The report provides an overview of industrial technologies selected as priority for their innovation potential for the impact on national economy in the short to medium time-frame. As shown in figure 1, the AIRI report identifies 84 priority technologies in relation to 8 industrial sectors. Numero TP per settore Transport (ground, rail, marine) 19 Manufacturing 10 ICT 9 Microelectronics - Semiconductors 6 Energy 7 Aereonautics 12 Pharma & Bio 8 Chemistry 13 Fig.1: Industrial sectors and number of priority technologies identified in the 2012 AIRI report Scope of the analysis has been the understanding of the level of contribution of the 6 KETs to the 84 priority technologies, following a 4 steps approach: Analysis of most relevant literature reports on KETs Definition and features of KETs, comparison with Priority Technologies (see boes) Priority Technologies - KETs matrices Collection of inputs from the working group of the AIRI report, through compilation of correlation matries (see anne I) Desk analysis Refinement of information based on the final AIRI report Final workshop to deepen and discuss the results The work provided an overview of the impact of KETs on the national industrial landscape, in close relationship with the technologies and sectors considered in the AIRI report. Therefore, though representative, the analyses cannot be considered ehaustive of the national situation. Italian Association for Industrial Research (AIRI),

8 Characteristics: Key Enabling Technologies - Pervasive, enabling processes and innovation throughout the economy - Knowledge, capital-intensive - High R&D intensity - Rapid and integrated innovation cycles - High capital ependiture - Highly skilled employment KETs are multidisciplinary, trans-sectorial with a trend toward convergence and technology integration in a value chain perspective. (EC3, 2012) Priority Technologies for the Italian industry (AIRI) Characteristics: - Enabling tech (not products) - Innovative and of concrete industrial/business relevance - Impact on national economy (jobs, eport, competition ) - Impact on one or more sectors - 3 years application timeframe - Integrated in a value chain perspective Several of them are capital intensive and require highly skilled employment (AIRI1, 2012) Italian Association for Industrial Research (AIRI),

9 Overview of the situation The European Commission definition of KETs and the definition of Priority Technologies are closely related, being both enabling technologies characterized by: high R&D intensity, systemic relevance, substantial industrial value and high potential economic impact. Several priority technologies are capital intensive and require highly skilled employees. There are three kinds of relationships between KETs, the identified priority technologies and related industrial sectors. These are: A KET is almost coincident with the priority technology sector (this is the case of the microelectronics and semiconductors and the manufacturing sectors); A KET is in close relationship with a specific priority technology (e.g. nanomaterials for catalysis); One or more KETs contribute to the priority technologies, often enabling solutions with respect to industrial needs and issues identified. Micro-nanoelectronics, AMS, advanced materials and nanotechnologies have the largest impact, contributing to the 50% - 60% of the 84 priority technologies identified, against some 30% of biotechnologies and photonics (figure 2). From the point of view of the industrial sectors, all technologies related to microelectronics and semiconductors, energy, chemistry, pharma and bio, transports, manufacturing include at least one KET. In the ICT, chemistry and aeronautics sectors the impact (from a quantitative point of view) is lower, and some technologies show no relationships with KETs (figure 3). In a nutshell: KETs contribute to all the 8 Priority Technologies for the industrial sectors More than 80% of the Priority Technologies includes at least one KET More than 50% of the Priority Technologies includes at least 3 KETs This shows the remarkable contribution given by KETs to R&D activities of the national industry, as represented by AIRI. Their systemic relevance and cross-cutting character is further underlined by eamples of technologies and applications where almost all 6 KETs contribute: some are wide and comple areas, such as novel information tech (ICT sector), carbon capture and storage (CCS) (energy sector) and solutions & technologies to improve performances, energy efficiency and reduce environmental impact (transport, aeronautics sectors): other are more specific areas, such as advanced photovoltaic (energy, microelectronics and semiconductors), sensors (ICT, microelectronics and semiconductors, energy, manufacturing), minimally invasive technologies (Pharma and Bio). In all these areas KETs contribute, and often are enabling, to develop components, devices, systems along the value chain of the technology process or product considered. Italian Association for Industrial Research (AIRI),

10 As far as it regards the technology readiness of KETs affecting the priority technologies, the situation is multifaceted, as somehow epected by their wide-ranging definition. In effect, KETs are related both to: Mature technologies, often already on the market, generally related to incremental innovation, and Emerging technologies, with limited applications available on the market, normally related to radical innovation. It s worth noting that despite their short to medium timeframe, also long term radical innovations are included in priority technologies, as a key factor to realize high added value products. The analysis carried out provided some preliminary indications about the technology readiness of KETs. At least 30% of the identified KETs are related to a Technology Readiness Level (TRL) >6, with some cases of TRL 8-9 (eamples are included in the tet). Photonics Biotech Nanotech Advanced Materials AMS Micro-nano 0% 10% 20% 30% 40% 50% 60% KETs in priority technologies (%) Fig.2: Contribution of the 6 KETs to the 84 Priority Technologies (percentage of PT affected by KETs on a total of 84 PT). Italian Association for Industrial Research (AIRI),

11 AMS 10/10 ICT 5/9 MICRO- /NANO 6/6 TRANS PORT 19/19 Cross Cutting KETs ENERGY 7/7 AERO 9/12 PHARMA /BIO 8/8 CHEM 11/13. Fig. 3: Contribution of KETs to the industrial sectors of the AIRI report (number of Priority Technologies related to at least one KET on the total number of PT of each sector). The si Key Enabling Technologies in the national Industry The following paragraphs for each of the si KETs include: 1) Overview of the KET: definition and general data (market, jobs, etc.), whenever available. 2) Impact on the priority technologies of the national industry: correlation of each KET with the priority technologies, quantitative data and eamples Definitions refer to the European Commission report (EC1, 2009) Preparing for our future: Developing a common strategy for key enabling technologies in the EU, Macroeconomic data have been collected from: the European Commission High Level Group on KETs (HLG1,2,3,4,5,6), presentations during the workshop devoted to KETs organized within this study (paragraph 5), other references provided in the tet. Market figures are only indicative. It is recognized that KETs have a relevant impact on the technologies considered and it might generate a market that could be also some orders of magnitude larger than that of the technology per se (HLG1, 2011). Based on available information, some figures are given as turnover of the specific technology (e.g. the market of enzymes for industrial biotechnologies), other as turnover related to products enabled by KETs (e.g. the market of nano-enabled products, in the case of nanotechnologies). Priority Technologies - KETs correlation matries, including all data collected, are reported in Anne I. Italian Association for Industrial Research (AIRI),

12 Micro and nanoelectronics Overview of the KET Micro-nanoelectronics is closely related to the semiconductor industry, a sector at the base of the value chain of diverse products in a large variety of sectors 2. The semiconductor global market alone is estimated in about 340 billion dollars (2012), with a forecasted growth to about 413 billion dollars in The market share for Europe is estimated (2011) at about 12,5% (some 50 $ billion). Driving sectors at European level are telecommunication, electronic applications for automotive, consumers products, industrial & medical, aerospace & defence, data processing. Definition Micro and nanoelectronics, including semiconductors, are essential for all goods and services which need intelligent control in sectors as diverse as automotive and transportation, aeronautics and space. Smart industrial control systems permit more efficient management of electricity generation, storage, transport and consumption through intelligent electrical grids and devices (HLG, 2009) In Italy there are active facilities of global leaders in the semiconductor market that employ more than 15,000 employees directly (AIRI1, 2012). Impact on the priority technologies of the national industry Micro - nanoelectronics have a strong relevance on all 8 industrial sectors considered in the AIRI report, contributing to about 60% of the 84 priority technologies. In several cases they are enabler of solutions of the identified industrial needs, and are related to a high technology readiness level. Some eamples are hereafter cited, selected from the most significant in terms of impact of the KET micro - nanoelectronics. Overall correlation with priority technologies is reported in Anne I. Micro-nanoelectronics (and photonics) are the backbone of the ICT sector, with a close relationship to all priority technologies related to development of hardware solutions. In novel information technologies, a very ample priority area, micro-nanoelectronics is contributing to several applications including: management and storage of large and comple sets of data (big data), hardware solutions for energy efficient ICT systems, development of advanced sensors, and all technologies suitable for human-machine interface (HMI) and machine to machine systems (note that these topic, in relation with micro-nanoelectronics, are cited also in the sectors of transport, aeronautics and manufacturing). Micro-nanoelectronics has also a significant impact in broadband networking technologies (in conjunction with photonics), in the development of systems and devices for home networks (in 2 When looking at the global market of electronics products, it turns out an overall value of some 1600 billion dollars (300 billion in Europe). In the sectoral report on micro nanoelectronics (HLG2, 2010) the global impact of the semiconductor industry is described as: semiconductors provide the knowledge & technologies that generate some 10% of global Gross Domestic Product. Italian Association for Industrial Research (AIRI),

13 particular sensors), in networks security (data and information management), ICT-based logistics and mobility services technologies (infomobility). In the energy sector, micro-nanoelectronics enables the development of solar cells for advanced photovoltaic (silicon, polymers, organic cells). In particular, a priority technology is fully devoted to multi-junction cells for concentrator photovoltaic (CPV) (included in the micro-nanoelectronics sector, see below). The priority area of smart grid/smart metering/smart energy systems, related to an interactive, intelligent use of electricity networks, provides an ample range of applications for micronanoelectronics systems (in particular sensing, network and communication devices). Eamples are advanced smart metering systems and the Home and Building Management Systems automation (HMS/BMS) area. In the pharma and bio sector micro-nanoelectronics provides a strong contribution in the development of diagnostic devices, in particular for screening and analysis of biological samples, in several priority areas such as the genomics, proteomics and metabolomics and the technologies for pharmaceutical chemistry (e.g. lab-on-chips, DNA microarrays and Protein arrays, high throughput screening and high content screening devices). Electronics systems, providing improved sensing, monitoring, control and communication functions, are increasingly affecting the transport sector, in particular automotive. There are plenty of uses and applications of micro-nanoelectronics, aiming to improve efficiency, performance, control, safety and security, reduce environmental impact. This KET is included in the majority of priority area, such as (to a cite a few): power train technologies, telematic technologies for a safe, efficient and eco-friendly mobility and human-machine interface (road transportation); technologies for controls and security (sea transportation), information, security & Safety technologies (rail transportation). The drivers for micro-nanoelectronics in transportation are shared also by the aeronautics sector, across several priority areas. Their impact is remarkable in particular in prognostics and condition based maintenance systems, autonomous systems technologies and, as in the transport and ICT sector, the human machine interfaces technologies. The KET micro-nanoelectronics (and the information technologies enabled by the KET), is instrumental for the whole area of machinery and equipment production for the manufacturing sector. The KET micro-nanoelectronics is almost coincident with the microelectronics and semiconductor sector considered by the AIRI report and to it are related all 6 priority technologies identified for this sector. In particular: 1. Silicon electronic system integration 2. Photovoltaic applications 3. Materials alternative to silicon 4. Heterogeneous Integration: processes, fabrication techniques and design methods 5. Silicon integration of sensors technologies 6. Silicon Photonics Italian Association for Industrial Research (AIRI),

14 Some technologies and applications are also cited in priority technologies of other sectors (in particular sensors, photovoltaic, silicon photonics). Micro nano Manufacturing 9 ICT 5 Microelectronics - Semiconductors 6 Transport (ground, rail, marine) 14 Aereonautics 5 Energy 4 Chemistry 1 Pharma & Bio 5 Fig. 4: Distribution per sector of the 49 priority technologies to which micro nanoelectronics contributes Italian Association for Industrial Research (AIRI),

15 Nanotechnology Overview of the KET Nanotechnologies can play a key role in the value chain, enabling new components, systems and processes with improved performances, efficiency, functionality. Nanotechnologies are transversal to the other KETs and the sectors where is epected their largest impact are numerous and diverse, spanning from materials to medicine, electronics, energy (production, storage, transportation), environment, manufacturing processes. Definition Nanotechnology holds the promise of leading to the development of smart nano and micro devices and systems and to radical breakthroughs in vital fields such as healthcare, energy, environment and manufacturing (HLG, 2009) Nanotechnologies enabled products already on the market generally belong to the so called first and second generation of nanotechnologies (passive and active nanostructures). In short, structural and functional properties of nanomaterials are used for both technical applications and consumer products (e.g. lightweight materials, insulator, surface treatments, sensors, cosmetics, etc). Despite this kind of use already at hand, nanotechnologies are generally considered at an early stage of maturity, with a medium - long term perspective Nanotechnology is the application of scientific knowledge to control and utilize matter in the size range 1 nm to 100 nm, where entirely new physical and chemical, size-related properties and phenomena can emerge. This often results in new, eciting and different characteristics that can generate a vast array of novel products. (ISO TC 229, 2011) for a full fledged market. The global market of nano-related products is estimated at about 250 billion dollars (2009), with a forecasted growth to some 1-3 trillion dollars in and beyond (HLG3, 2010). In Italy, there are about 200 organizations with specific R&S activities on nanotechnologies, about half of them private. The number of companies has been growing in the last years, in particular SMEs (they represent about 70% of the total) (WS6). Impact on the priority technologies of the national industry Nanotechnologies, and nanomaterials, are related to all 8 industrial sectors considered in the AIRI report, contributing to about 50% of the 84 priority technologies. Potential impact and technology readiness vary substantially depending from the application considered. Some eamples are hereafter cited, selected from the most significant in terms of impact of the KET nanotechnology. Overall correlation with priority technologies is reported in Anne I. Since some years, the microelectronics and semiconductors sector use manufacturing process at the nanoscale to produce silicon based systems and devices (components). Nanotech is widely used in the priority area about silicon integration of sensors technologies, in order to produce devices with different functions (sensing chemical, biological, physical, 3 Figures for nano-related products refer to the value of products into which nanomaterials are incorporated Italian Association for Industrial Research (AIRI),

16 mechanical properties) for applications in a variety of industrial sectors (they are also cited in the ICT, transport, energy, aeronautics and manufacturing sectors). Photovoltaic applications in the semiconductors sector include silicon based systems, such as multijunction solar cells for concentrator photovoltaic and thin film (amongst nanomaterials cited are silicon quantum dot and silicon nanoparticles). Also in the energy sector nanotech is related to advanced photovoltaics, such as quantum dots cells, organics cells, Dye-sensitized Solar Cells (DSSC). Other priority areas in this sector include: the technologies for power generation and advanced materials, where nanomaterials are mainly used in combined cycles and supercritical cycles machines/plants (structural parts) and in fuel cells; the Carbon capture and storage (CCS) technologies, where nanomaterials are used for improving equipments performances, chemicalphysical processes, catalysis, environmental remediation. In the chemistry sector, nanomaterials are used as catalyst for various industrial processes, for environmental monitoring (membranes, devices), and for different applications in the manufacturing industry (construction and active materials for the packaging). In the aeronautics and transport sector there is a wide range of actual and potential uses of nanomaterials for structural and functional purposes (e.g. nanocomposite, nanoporous materials, nanostructured alloys, nanofluids, coatings and others), aiming to introduce novel functions, improve performances and energy efficiency, environmental impact of materials, structures and processes. Therefore, several priority areas in these sectors includes nanotechnologies, such as (eamples): Power Train technologies (including propulsion systems, transmission systems, fuels) and materials for green automotive (transport), technologies for materials, production and maintenance processes for aero structures and engines and technologies for low emission engines (aeronautics). In the pharma & bio sector, nanotechnologies (and nano-biotechnology) promise to provide technology breakthroughs for the development of new diagnostic and therapeutic systems. The time to market for R&D in this sector is often considered to be of quite long term, and only few nano-based drugs (at the global level) have been already approved for use on the market, but R&D on nanotechnologies is generally recognized as strategic. Most of the priority areas of the sector include nanotechnologies. An important contribution is provided in the technologies for pharmaceutical chemistry and the genomics, proteomics and metabolomics areas (in conjunction also with micro-nanoelectronics), where diagnostic devices using components at the nanoscale are at an advanced stage of development. Progress has been made also in nanomaterials and nanosystems for the targeted delivery of drugs (treatment of cancer is an area of particular interest) and contrast agents for molecular Imaging. Nanoparticles (such as solid lipid nanoparticles, dendrimers, polymer nanoparticles) often enable theranostic, i.e. the combination of diagnostic and therapeutic functions. Italian Association for Industrial Research (AIRI),

17 Nanomaterials, in conjunction with all other KETs, are also important for future minimally invasive technologies. In the manufacturing sectors, nanomaterials contribute to high performance sensors and mechatronics components, and for improving performances, efficiency and environmental impact of machines and systems. Nanotech Transport (ground, rail, marine) 14 Manufacturing 2 ICT 4 Micronanoelectronics 4 Energy 5 Aereonautics 4 Pharma & Bio 5 Chemistry 5 Fig. 5: Distribution per sector of the 41 priority technologies to which nanotechnology contributes Italian Association for Industrial Research (AIRI),

18 Industrial biotechnology Overview of the KET Producing renewable raw materials by means of biotechnologies is one of the most promising approaches to reduce greenhouse gas emissions and to improve performances and sustainability of industrial processes. Biotechnology is being integrated in a growing number of conventional products and processes in order to improve quality, performances and reducing environmental impact, contributing to the so called bioeconomy. Definition Industrial biotechnology also known as white biotechnology uses enzymes and micro-organisms to make bio-based products in sectors as diverse as chemicals, food and feed, healthcare, detergents, paper and pulp, tetiles and bioenergy. (HLG, 2009) The impact of biotechnology, including the pharmaceutical sector (red biotech), agrifood (green biotech) and industrial biotechnologies (white biotech), is continuously increasing. White biotech is cross cutting, including the production of bio specialities, biomaterials, bio fuels, chemicals and other bio-based products for a variety of sectors. Considering the market generated by bio-based industries in Europe, the sector bio-chemicals and plastic contributes for about 50 billion euro, enzymes for 0,8 billion euro and bio fuels for 6 billion euro. When the market related to other sectors using biotechnology its included (food, agriculture, paper/pulp, forestry/wood industries, fisheries) the overall figure for the EU bioeconomy market is close to 2000 billion euro (WS4). Italy is well positioned in the European biotech landscape, being third after Germany and UK for number of pure biotech companies 4. A total of 400 companies are active in the different biotech areas. The companies involved in the red biotech are actually prevailing (more than half of the total), though with a relevant and increasing activity in the green and white biotech. About 80% of the players are small or micro enterprises. Impact on the priority technologies of the national industry Biotechnologies are related to si of the industrial sectors considered in the AIRI report, contributing to about 30% of the priority technologies, with increasing potential of application in the medium to long term. Some eamples are hereafter cited, selected from those most significant in terms of impact of the KET biotechnology. Overall correlation with priority technologies is reported in Anne I. In the energy sector, there is a direct relationship of biotechnology with the use of biomass for electric and thermal energy production (second generation bio fuels, from renewable resources and waste, cited also in the chemistry and transport sector) and a relevant contribution in various chemical and physical processes related to carbon capture and storage (CCS) technologies. 4 Most of data reported, and references to pure biotech industry, are taken by Report on biotechnology in Italy Assobiotec 2012, Assobiotec and Ernst & Young. Italian Association for Industrial Research (AIRI),

19 Similarly, in the chemistry sector is underlined the strong contribution to renewable resources technologies, including high potential sectors such as bio refinery processes, bio fuels (bio ethanol), II generation biochemicals, biopolymers (mainly rubber production), and hydrogen production. In the pharma & bio sector, biotechnology is enabling biomolecular production and biomarkers (predictive biomarkers and surrogate endpoint), and provides relevant contribution to minimally invasive and advanced therapies technologies. In the transport sector, biotechnology main contributions are in power train technologies to reduce environmental impact (in particular bio fuels) and technologies to optimise security, quality and costs and maintaining performance and recycling standards of vehicle systems (such as development of renewable, biocompatible materials and on board sensors for monitoring of biological/physiological parameters). Fig. 6: Distribution per sector of the 24 priority technologies to which biotechnology contributes Italian Association for Industrial Research (AIRI),

20 Photonics Overview of the KET Photonics is increasingly pervasive in a multiplicity of applications and products, both for industrial and consumer uses. The current global market of photonics is estimated to be more than 300 billion euro, with an annual growth in the range of 8-10%. Europe holds about the 20% of this market (about 60 billion euro). Several market leader and more than 5000 highly innovative SMEs are active in EU. It is estimated that photonics employs about 300,000 people directly. Different sources gave to the Italian market a share between the 8% and the 18% of the EU market. The number of companies in Italy is around 200, several of them are SMEs 5. Definition Photonics is a multidisciplinary domain dealing with light, encompassing its generation, detection and management. Among other things it provides the technological basis for the economical conversion of sunlight to electricity which is important for the production of renewable energy, and a variety of electronic components and equipment such as photodiodes, LEDs and lasers. (HLG, 2009) Impact on the priority technologies of the national industry Photonics are related to all 8 industrial sectors considered in the AIRI report, contributing to about 30% of the 84 priority technologies. They refer to a wide spectrum of technologies, some already mature (as confirmed by market figures), though still with potential for further development and innovation. Relevant eamples are the technologies for silicon integration of optoelectronic and photonic components (silicon photonics), area of convergence between the KET photonics and micro nanoelectronics. Developments in this area will have a huge impact in the improvement of telecom infrastructure, as well as in several of the other applications of the two KETs. Some eamples of priority technologies (and related applications) are hereafter cited, selected from the most significant in terms of impact of the KET photonics. Overall correlation with priority technologies is reported in Anne I. In the ICT sector, photonics strongly contributes to access, distribution, transmission of data in broadband networking technologies (e.g. technologies such as ultra low-loss optical fibres, novel optical techniques for signal processing), with a strategic relevance considering the evolution toward wireline and wireless wide bandwidth and ultra-wide bandwidth communications. Photonics is also key in home networks technologies and for developments in networks security solutions. Both in the ICT and the microelectronics and semiconductors sector, a relevant contribution is given to development of sensors, signal processing devices, optical fibres (for improved transmission and interconnections), lasers, optical, optoelectronics and photonics components. 5 Source of data are the workshop organised within this study (WS3) the report of the Italian platform on photonics ( Phorit: la fotonica in Italia, 2008), the website of European photonic platform (Photonics 21). Italian Association for Industrial Research (AIRI),

21 In the energy sector, photonics has a key role for the national industry regarding technologies for solar energy harvesting (advanced photovoltaics, concentrating solar power CSP- technologies) and for the development of energy management systems (smart grid/smart metering/smart energy). In the pharma and bio sector, photonics is contributing to minimally invasive technologies (e.g. photo dynamic therapies) and molecular imaging. In the transport sector photonics regards the technologies to optimise security, quality and costs and maintaining performance and recycling standards of vehicle systems (such as image sensors, LEDs, OLEDs and other lighting solutions) and the technologies to improve energy efficiency of vehicle systems (in particular photovoltaics). In the manufacturing sector, photonics contributes in particular to high performance sensors and mechatronics components, and technologies for control, monitoring, maintenance, diagnostic of manufacturing systems, aiming to improve systems life cycle, quality and efficiency. Fotonica Transport (ground, rail, marine) 5 Aereonautics 1 Pharma & Bio 2 Manufacturing 2 Chemistry 1 Energy 3 ICT 4 Microelectronics - Semiconductors 5 Fig. 7: Distribution per sector of the 23 priority technologies to which photonics contributes Italian Association for Industrial Research (AIRI),

22 Advanced materials Overview of the KET Advanced materials are easily recognized as an enabling, cross cutting technology: they are at the beginning of the value chain of manufactured products, in a variety of sectors, as well as a product themselves (such as in the chemistry and pharma sectors, etending the material concept also to biological and bioactive substances). Advanced materials allow realising products having novel and improved properties and functionalities, and substituting eisting materials with others having improved performances, efficiency, environmental impact. They play an essential role both concerning shortage of raw materials and product sustainability. Definition Advanced materials offer major improvements in a wide variety of different fields, e.g. in aerospace, transport, building and health care. They facilitate recycling, lowering the carbon footprint and energy demand as well as limiting the need for raw materials that are scarce in Europe. (HLG, 2009) Considering only the market of advanced materials (not of products related to these materials) estimates are in the range of billion euro. Amongst the sectors most affected by advanced materials are ICT, health, energy, environment, transport (EC1, 2009). At the national level, a strong contribution to advanced materials is given by the chemical manufacturing sector, being Italy third at European level behind Germany and France. Impact on the priority technologies of the national industry Advanced materials are related to all 8 industrial sectors considered in the AIRI report, with a large and cross cutting impact, likely even more relevant than their eplicit indication in the report (55% of priority technologies). They are mentioned in almost all priority technologies related to the transport sector and in the majority of those for aereonautics, chemistry and energy sectors. The national industry is increasingly looking for materials with tailored, specific property and functionalities, for qualifying and adding value to products and processes, and realising innovative components and structures. All industrial sectors and priority technologies take advantage of a wide range of advanced materials. These are designed and implemented in the value chain to improve structural performances, characteristics and functionalities, providing novel physical-mechanical, chemicalphysical, electro-magnetical, aesthetic properties, active, intelligent, etc. Sustainability is another common and acknowledged driver for materials development in the national industrial sectors taken into consideration, both in terms of advantages that they can enable and of requirements needed for their use in industrial processes and products. Italian Association for Industrial Research (AIRI),

23 Key aspects are improvements in the environmental impact and the energy efficiency of industrial processes and products, and ensuring an high level of attention regarding health and safety issues (this latter aspect is considered in detail in the chemistry sector, within the framework of REACH 6 ). Some eamples of priority technologies (and related applications) are hereafter cited, including only the case where advanced materials are considered as an integral part of the objective of priority technologies (overall correlation is reported in Anne I) - In the microelectronics and semiconductors sector the materials alternative to silicon, such as Silicon Carbide (SiC) and Gallium Nitride (GaN). - In the energy sector, the technologies for power generation and advanced materials (combined cycles and advanced materials; natural gas power plants; supercritical cycles and advanced materials for clean coal technologies; fuel cells). - In the chemistry sector the structural materials for the manufacturing industry (concrete formulations; hybrid organic and inorganic materials; active, intelligent and barrier materials for food packaging) and the technologies for the use and production of biopolymers for rubber production. - In the pharma and bio sector the minimally invasive technologies, including biocompatible materials for orthopedics and cardiovascular diseases (e.g. pyrolitic carbon for artificial heart valve). - In the transport sector the green automotive materials for energy efficiency and performances of the vehicle. - In the aeronautic sector the technologies for materials, production and maintenance processes for aerostructures and engines. - In the manufacturing sector the structural materials for components, machines and systems to improve performances, reduce use of resources and environmental impact. Materiali avanzati Manufacturing 4 ICT 1 Microelectronics - Semiconductors 6 Transport (ground, rail, marine) 16 Aereonautics 4 Energy 6 Chemistry 7 Pharma & Bio 2 Fig 8: Distribution per sector of the 46 priority technologies to which advanced materials contributes 6 R.E.A.C.H. - Registration, Evaluation, Authorisation and Restriction of Chemical substances, Regulation (EC) n. 1907/2006 European Parliament and the European Council, December 18 th, Italian Association for Industrial Research (AIRI),

24 Advanced Manufacturing Systems Overview of the KET Advanced manufacturing systems have a broad definition, cross cutting with the other KETs as well as across sectors, technologies and processes. As underlined by the European Commission High Level Group they can help improve cost, quality, energy use and safety aspects of products enabled by KETs alongside the value chain, by streamlining the design, manufacture, testing, handling, packaging, storage, distribution and recycling processes. (HLG 7, 2011). Production of AMS is enabled by the other 5 KETs, being themselves high tech and high value added goods. AMS are enabling for the manufacturing industry, and the first contributor to the EU economic growth. Overall, considering all sectors, European manufacturing turnover is estimated in some 7,000 billion euro with more than 2 million enterprises and 30 million employees directly employed. Definition Advanced Manufacturing Systems (AMS) comprise production systems and associated services, processes, plants and equipment, including automation, robotics, measurement systems, cognitive information processing, signal processing and production control by high-speed information and communication systems. AMS are essential for productivity gains across sectors such as the aerospace, automotive, consumer products, electronics, engineering, energy-intensive, food and agricultural as well as optical industries. (HLG, 2009) At the national level, overall manufacturing turnover is estimated in 840 billion euro, more than 4 million employees (directly employed) and 500,000 enterprises. The manufacturing industry in Italy is second at European level, just after Germany. Amongst the largest manufacturing sectors in Italy are mechanicals, machinery, chemicals, pharma, plastics, food and tetiles (WS). Impact on the priority technologies of the national industry AMS are related to all 8 industrial sectors considered in the AIRI report, with a large and cross cutting impact, llkely even more relevant than their eplicit indication in the report (55% of priority technologies). Some eamples are hereafter cited, selected from the most significant in terms of impact of the KET AMS. Overall correlation with priority technologies is reported in Anne I. In the ICT sector, AMS give a relevant contribution to the novel information technologies (e.g. managing, processing, storing of large and comple set of data, hardware and software solutions for energy efficient ICT systems), the broadband networking technologies, and the technologies for ICT-based logistics and mobility services (infomobility). Micro and nanofabrication tools and techniques are essential for the development of the whole microelectronics and semiconductor sector and therefore relevant for all 6 priority technologies of the sector. AMS are eplicitly mentioned regarding processes, fabrication techniques and design methods for heterogeneous Integration (3D packaging, including integration of passive Italian Association for Industrial Research (AIRI),

25 components, system-on-chip and printed circuit board and electromechanical and photonic components). In the energy sector AMS plays a relevant role in almost all priority technologies, concerning the improvement of industrial processes and equipments for energy production, transport, storage and distribution. Eamples include the technologies for power generation and advanced materials (e.g. combined cycles and advanced materials for natural gas power plants; supercritical cycles and advanced materials for clean coal technologies; fuel cells), the technologies for energy efficiency (e.g. absorption and adsorption solar cooling systems; industrial processes and systems for the eploration and use of geothermal energy; combustion technologies for CO2 captures), the technologies for smart grid/smart metering/smart energy. In the chemistry sector, eamples of contribution of AMS are the renewable resources technologies, including bio refinery and bio ethanol processes and the production of alternative feedstocks for energy and chemical products. In the pharma and bio sector eamples of use of AMS are in genomics, proteomics and metabolomics and in minimally invasive technologies. AMS are key for all the transport sector, both regarding manufacturing of vehicles, trains and ships and aspects related to the logistic of transport systems. As for the former, eamples of relevant contribution are in the power train technologies to reduce environmental impact, and in the technologies to improve energy efficiency, optimise security, quality and costs, maintaining performance and recycling standards of vehicles. As for the latter, eamples are the technologies to improve quality and efficiency of processes for people and goods transportations (Sea transportation) and the cross cutting area of multimodal transportation (communication and information management systems, command and control systems). In the aeronautic sector relevant eamples are the technologies for materials, production and maintenance processes for aerostructures and engines (e.g. structural health management, prognostic, maintenance repair and overhaul), the technologies for environmental impact reduction (e.g. eco-design and environmental impact modelling), the technologies for low emission engines (e.g. turbine thermal control systems, advanced modelling) and the technologies for conventional and innovative engine design. The KET AMS is almost coincident with the manufacturing sector considered by the AIRI report and to it are related all the 10 priority technologies identified for this sector. In particular: 1. Methodologies and standards for the design of comple machinery and manufacturing systems: IT tools and novel design approaches 2. Knowledge based CAD-CAM tools for the design and production of high quality, high variety products 3. Methodologies and standards for the automation and integration of comple manufacturing systems for on demand and just in time production 4. Internet based ICT technologies for supply chain Integration and real time decision making (retailer, supplier, manufacturers) 5. Technologies for control, monitoring, maintenance, diagnostic to improve life cycle and efficiency of manufacturing systems Italian Association for Industrial Research (AIRI),

26 6. Software technologies and solutions for real time planning and management of manufacturing and logistics (in the factory and along the supply chain), to address fleibility and time to market requirements 7. High performance sensors and mechatronics components for manufacturing and final products efficiency and quality 8. Environmental friendly machines and systems design and architectures, to optimise energy efficiency and environmental impact of manufacturing systems 9. Environmental friendly processes technologies to reduce emissions and use of resources of industrial processes 10. Structural materials for components, machines and systems to improve performances, reduce use of resources the environmental impact Manufacturing 10 Transport (ground, rail, marine) 10 Aereonautics 4 ICT 5 Chemistry 5 Pharma & Bio 1 Microelectronics - Semiconductors 6 Energy 6 Fig 9: Distribution per sector of the 47 priority technologies where advanced materials contributes AMS Italian Association for Industrial Research (AIRI),