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Open Innovation Ecosystems for
Horizon 2020 - New Approach
Helsinki/Espoo, April 2013
Bror Salmelin
Advisor to the DG, Innovation Systems
European Commission
[email protected]
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 panEuropean 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 President
Neelie Kroes (18/12/2012)
Very fast internet supply and demand
Broadband drives competiveness
Correlation Fixed Broadband Penetration and Competitiveness
WEF's Global Competitive Index score
5.8
Sweden
5.6
Finland
Japan
5.4
5.2
US
UK
Belgium
Austria
Germany
4.8
Netherlands
France
Luxembourg
5
Denmark
Korea
Ireland
Estonia
4.6
Spain
Czech Rep.
Portugal
Poland
4.4
Lithuania Italy
Hungary
4.2
Bulgaria
Slovakia
Cyprus
Slovenia
Malta
Latvia
Romania
4
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
Fixed broadband lines per 100 population
European Commission, 2011
A 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)
Sustainability
• Sustainable innovation is full of disruptions!
• Sustainable innovation is about (value) choices!
• Sustainable innovation is beyond (political)
buzzwords
• Sustainable innovation is holistic!
Diversity means breakthrough probability
high
•
Value of innovation
Breakthrough
average
insignificant
Low
High
Alignment of team members’ disciplines
low
New entrepreneurship -> new skills, attitude,
talent! Connectivity!
Policies
• Open innovation processes and environments
(e.g. Living Labs)
• Technology enablers (ICT, KET)
• Societal innovation
• -> Business model innovation a weak point
in Europe
Maslow 2.0 for organisations
Schwarz’ Universal Values
•
•
•
•
Innovation?
• Make things happen!
Science based linear innovation is NOT mainstream anymore!
User-centric innovation
Open innovation
Systemic innovation
Experimental mash-up
•Leadership with courage -> new management skills
parallel activities
Research
Prototyping
Pilot roll-out
Production
Each activity collects knowledge about product/market fit
Markets
Knowledge
Innovation as
Innovation moving out of the Lab
Centralized
inward looking
innovation
Closed
Innovation
Externally
focused,
collaborative
innovation
Open Innovation
Ecosystem
centric, crossorganizational
innovation
Innovation
Networks
Sources: Chesbrough 2003, Forrester 2004, von Hippel 2005
The European
Perspective
Europe 2020 “smart, sustainable and inclusive growth”
Innovation Union
Digital Agenda for Europe
Towards a
European
Digital
Single Market
Smart Cities and
Regions
Future Internet for
citizen-centric innovation
Regional/Cohesion
Policy
Contributing to
Smart growth
Other instruments:
Structural Funds,
National funding,
Financial Instruments
Common strategic Framework for Research and Innovation
HORIZON 2020
CIP/ICT-PSP
FP7/ FP8
ICT theme: FI PPP, EIPs, JTIs
EIT / KICs : bridging
Pilots in specific domains
education research innovation
across borders
Other policies: industrial policy for the globalisation era, youth on the move,
Agenda for new skills and jobs, resource efficient Europe, the green digital charter…
Essential drivers
•
•
•
•
connectivity
open
interaction
“organic” (OrganiCsations..)
• NON-controllable, only catalyzing possible
Innovation Activities (examples)
H2020 Instrument/scheme
Pilots (prototyping, pilot lines, demonstration,
testing)
Research and Innovation grant
Pre-commercial procurement
PCP
Public procurement of innovation
PPI
Result based award
Recognition, Inducement prizes
Targetting SME
SME instrument (also for individual
SMEs)
Non prescriptive calls; open, light and fast
Open Distruptive Innovation scheme
(using lumps sums and R&I grants)
Road-map based, critical mass
Contractual PPP (using all instruments),
JTI
Targetting societal challenge
European Innovation Partnership (using
all instruments)+Smart specialization
Clustering, bridge to accelerators, incubators
Coordination and Support action
ODI scheme using complementary H2020
Instruments
 Phase 1: Technical market feasibility and prototyping
 R&I grant lump sum x 3-9 months
 Phase 2: Validation & piloting of scalable solutions
 R&I grant covering eligible costs x 12-18 m
 Support measures
 Succesful projects reaching end of Phase 2 = EU Disruptive Innovation
Label/Prizes
 Exposure on dedicated platforms (e.g. crowd-funding and V.C. seeds)
Ph. 2
EU Disruptive
Innovation
Label
On-line assessment EU Disruptive Idea Label & Exposure on
EU Dedicated Platforms & events etc.
?
SME instrument
Pre-commercial
procurement
Phase 1:
Concept &
Feasibility
Assessment
Phase 2:
Demonstration
Market Replication
R&D
Phase 3:
Commercialisation
SME window EU
financial facilities
Idea to concept,
risk assessment,
technological &
commercial feasibility
IDEA
Demonstration,
prototyping, testing ,
market replication, scaling
up, miniaturisation,
research
continued support throughout the project
Quality label for
successful projects,
access to risk
finance, indirect
support
MARKET
20
Hierarchy of Prize schemes for ICT in H2020
PCP and PPI
complementary


PCP to steer the development of solutions towards concrete public sector needs, whilst
comparing/validating alternative solution approaches from various vendors
PPI to act as launching customer / early adopter / first buyer of innovative commercial
end-solutions newly arriving on the market
Public Procurement of
Innovative Solutions (PPI)
R&D / Pre-commercial Procurement (PCP)
Phase 0
Curiosity
Driven
Research
Phase 1
Solution design
Phase 2
Prototype
development
Supplier A
Supplier B
Supplier B
Supplier C
Supplier C
Supplier D
Phase 3
Original development
of limited volume
of first test products /
services
Supplier B
Supplier D
Phase 4
Deployment of commercial
end-products
Diffusion of newly developed
products / services
Supplier(s)
A,B,C,D
and/or X
Supplier D
 Two
–
–
possibilities in H2020 (for PCP/PPI) & CEF (for PPI)
EC can co-finance PCPs/PPIs carried out by grant beneficiaries
EC or EU agencies can carry out PCPs/PPIs on their own behalf or jointly with Member States
Integrating R and I
Grand Coalition
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 control
• Rules to share and build value
• Experimentation mentality (fail fast in small things, not in the big
one)
•
More information
www.ec.europa.eu/research/horizon2020
http://ec.europa.eu/digital-agenda
https://ec.europa.eu/digital-agenda/en/grand-coalition-digitaljobs-0
http://ec.europa.eu/digital-agenda/en/open-innovation
[email protected]