Transcript Role of Chemistry and Chemicals in innovation

EU Commission Ad hoc Group « Innovation & Human
Resources »
Role of Chemistry and Chemicals in innovation
October 1st 2007
Gernot Klotz
Executive Director for
Research&Innovation
[email protected]
02/676.73.28
Content
• Why is innovation crucial
• Demands for chemical solutions (examples)
• Drivers and critical factors
• Basic needs
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Humanity’s top ten problems
for next 50 years
Energy
Water
Food
Environment
Poverty
Terrorism & War
Disease
Education
Democracy
Population
The World Population
2003
2050
6.5 billion
8-10 billion
Source: Prof. R.E. Smalley, “Our Energy Challenge”, Columbia University, NYC, 23 September 2003
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Societal drivers
• Energy
• Information and Communication Technologies
• Health care
• Quality of life
• Transportation
• Citizen’s protection
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Important sub sectors in the chemical
industry
Total EU chemicals production* in 2005: € 455 bn
Source: Cefic
*Sales based on local production (excluding pharmaceuticals)
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Strong productivity gains
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EU Chemical Industry Energy Intensity*
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Chemicals and pharmaceuticals, the industries
with highest value added per employee
Added value per employee
(thousand €)
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Content
• Why is innovation crucial
• Demands for chemical solutions (examples)
• Drivers and critical factors
• Basic needs
9
Innovation engine for downstream industries
Customer sectors of the chemical* industry
% of chemical domestic consumption
Textile & clothing
6.3
Agriculture
6.4
Electrical goods
3,9
Construction
5,4
Automotive
5,3
Paper & printing
products
4,5
Office machines
0,7
Industrial
machinery
1,9
End users**
30,3
Metal products
2,5
Services
16,4
Rest of
Rest of Industry
Manufacturing
10,3
6,1
Sources: Cefic & Eurostat Notes: Percentage shares are calculated by taking into account the re-allocation of domestic
consumption to downstream customers of chemicals self consumption & consumption by
rubber and plastic processing industries
*Including pharmaceuticals
** End users: Final Consumption = Final consumption in households + government consumption + non profit organisations
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EU is leader in chemical innovation
Patent applications in chemistry*
other countries
10%
EU 25:
38%
USA
26%
Japan
26%
Source: Fraunhofer-Institute (ISI), calculation based on EPPATENT and WOPATENT
* Chemicals excluding pharmaceuticals, 2005
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New Demands for Chemical Solutions
through products and technologies
new systems for down stream users
innovative consumer products
active ingredients
new materials for societal requests (e.g. nanomaterials,
renewabel resources, biobased materials)
mitigation and adaptation to climate change
improved technologies for production
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Chemical Industry and it`s products
Chemical
industry
Consumer
Other sectors
Consumer
Consumer
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Industrial Biotechnology:
Areas of Application and Chemicals Involved
In the field of industrial biotechnology, products or
processes will be developed in the sectors of
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Basic chemicals (bio-plastics…)
Specialty & Fine chemicals (solvents, flavors, surfactants,
fragrances…)
Active pharmaceutical ingredients
Agriculture (bio pesticides, plant agriculture…)
Enzymes
Environment (bio cleaning, water treatment…)
Food (additives, complements…)
Paper and pulp
Textiles
•
Bio-fuels (bio ethanol, bio diesel, bio gas)
Sources : Suschem report, EuropaBio - Biotechnology in Europe, 2006, comparative study,
Biotechnology Industry Organization (US)
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Nanotechnology for the Development
of New Materials
• World sales of nanotechnologies
- > € 40 bn in 2001 (European Commission)
- Forecast to increase to € 700 bn in 2008
- Over the period 2010 - 2015:
• Sales of € 1,000 bn a year
• and employment of nearly 2 mn people worldwide
• In 2010, an expected products market volume of € 500 bn
and of components market volume of € 50 bn
(nano porous materials, formulations, nano composites,
thin films and coatings…)
Source : Suschem report.
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Chemical Solutions to deal with Climate Change
> Climate Change will be one of the main global challenges
of the next decades
 Chemicals and chemical innovations offer important
solutions to combine a stable climate with a high quality of
lifestyle
 Chemical products enable adaptation to changing climate
> Chemicals contribute to a reduction of CO2 emissions by
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energy generation
storage of energy
usage of energy
saving energy
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Examples for chemical solutions to cope with
Climate Change
Energy generation:
materials for photovoltaic and thermoelectric energy generation
bio catalysis (renewable resources, coal)
Storage of energy:
materials for battery systems
hydrogen technologies
Usage of energy:
fuel cells (mobility)
LEDs/OLEDs (light)
Energy saving:
insulating materials (housing)
light materials for cars, planes, ...
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Biomass from Renewable Resources:
Bio-ethanol and Bio Diesel Production 2000 - 2008
Bio-ethanol and bio diesel production worldwide
have been stimulated by political measures
Growth of bio-ethanol production 2000 - 2005: US : + 19 % ; EU : + 25 % p.a.
Growth of bio diesel production 2000 - 2005 : US (hl mn) : + 104 % ; EU : + 35 % p.a.
Bioethanol and biodiesel productions
US bioethanol
EU bioethanol
EU biodiesel
Tons
20.000.000
15.000.000
10.000.000
5.000.000
2000
Source : EurObserv’Er 2006
2001
2002
2003
2004
2005
2006
2008
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Chemical solutions in consumer products–
system integration
Example: TV Flat screens
Material
Inks
Substrates
Component
Transparent
Conductors
Dispersions
Additives
Printed Circuits
Chemistry goes into electronics
Device
Final product
TFTs
Alarm-Sensors
Antenna
OLEDDisplay
RFID-tags
Price Tag
Electronics moves backwards
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Touchscreens
Polymere adhesive
Polymerfilm (e.g. PET)
Polymer ITO (Indium-Zinnoxide) Silver
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Content
• Why is innovation crucial
• Demands for chemical solutions (examples)
• Drivers and critical factors
• Basic needs
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Responding to market competition
• Innovation must respond to the competitive pulse of
the market
• In the global market:
• Over time if a company or region is systematically slow - it
will fail
• Over time if a company or region is systematically higher
cost - it will fail
• Initiatives to promote innovation must beat to the
pulse of the market
• Policy makers must balance political drivers with the
market realities
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What sort of innovation is needed for
Chemical companies in Europe?
You were asked which of the following 10 areas of innovation exist today & what are needed for the future .
Area of Innovation
Description
Yes,
exists today
% of total
Very or some
importance
for future
% of total
Business Model
How you to be competitive
64
86
Networks & Alliances
How you join forces with other companies for mutual benefits
83
100
Enabling processes
How you support company’s core processes and workers
58
86
Core processes
How you create & add value to your offerings
75
71
Product performance
How you design your core offerings
75
86
Product systems
How you link and/or provide a platform for multiple products
42
57
Services
How you provide value to customers and consumers beyond and
around your products
64
86
Channel
How you get offerings to the market
50
62
Brand
How you communicate your offerings
25
57
Customer experience
How you customers feel when they interact with your company and
its offerings
36
67
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Chemical Industry and it`s products
Chemical
industry
Consumer
Other sectors
Consumer
Consumer
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System integration is a key success factor for
the chemical industry in Europe
Material
Inks
Substrates
Component
Transparent
Conductors
Dispersions
Additives
Printed Circuits
Chemistry goes into electronics
Device
Final product
TFTs
Alarm-Sensors
Antenna
OLEDDisplay
RFID-tags
Price Tag
Electronics moves backwards
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“EU challenge” - Research is one element of
innovation, but…
Intensity of
innovation debate
in EU
•FP7
•Scienceindustry
research
interface
•Education
•Funding
•Regulations
•IPR
Customer
confidence??
Research
Development
Marketing
Consumer
confidence??
Marketing-success =
Competitiveness
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“Mont Blanc Syndrome” for innovation
•Ideas
•Patents
•Regulations
•Uncertainty
of markets
•Liability
•Start up
capital
•Investor
confidence
Research
•IPR
Development
•Dialogue,
understanding
in value chain
Marketing
•Standards
Competitiveness
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EU value chain base: Migration to low-cost
and growing countries
Import 90%
Share
LCC’s
(2004) 80%
Toys
Textiles
Leather
Computer Parts
60%
TV, Video, Radio
Shaver
40%
Semiconductor
Refrigerator
20%
Furniture
Cars/Car seats
Migration of
Industries
is no new
phenomenon
but the speed
has increased
during the last
5 years
0%
Years
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Only a few ideas are successful
Impact of innovation framework
3000 ideas
on business
300 refined
125 projects
9 significant
projects
4
developments
1 product
Innovation process
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“Innovation is a shy beast”
System optimisation instead of discussion in silos
Outside
factors
Innovative
Partnerships
Innovation Vision
and Strategy
Innovation culture
Innovation
organisation
Innovative process
and tools
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Content
• Why is innovation crucial
• Demands for chemical solutions (examples)
• Drivers and critical factors
• Basic needs
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Need for reality check
Lisbon/Barcelona objectives
2005 (EU-27)
• Research investments 1,7%
2010 (EU-27)
3,0%
(% GDP)
• R&D investments
€ 162 billion
€ 309 billion
• Researchers (FTE)
1.24 Mio
2.35 Mio
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Lots of good will, but where is direction and cohesion?
Lead Markets
ERA
EIT
6th
environment
action plan
environment &
health action
plan
SET-Plan
Action Plans on Sustainable
Consumption and Production and on
Sustainable Industrial Policy
Strategy for
sustainable
urban
development
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Harmonisation of political and innovation
timelines needed
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Company
Competitor
Standards, benchmark**
Downstream user*
Supply chain*
Consumer**
Technology**
Brand
* susceptible to direct impact of short term, trend oriented policy
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A Must for Europe !
Innovation
target
today
technologies
& products
confidence
Technologies confidence
& products
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Chemical Industry and it`s products
Chemical
industry
Consumer
Other sectors
Consumer
Consumer
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Some key areas for HLG
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Competitiveness based on technologies and products
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Additional focus on development and placing on markets; research is only start
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Develop messages and communication from HLG to improve public and
investor confidence
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Optimised and integrated EU system approach for innovation (no blockage by
“vertical discussions”)
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Shorter timelines for putting on the market innovative technologies & products
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Improve coherency of programmes of EU Commission and member states
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Position chemical industry as enabler/solution provider for societal demands
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