KETs Strategy and Supporting Instruments Doris Schröcker Head of Unit Industrial Technologies – Strategy DG Research & Innovation

Investment in Manufacturing and R&I expenses This conference is about re-industrialising Europe and what role research, technology and innovation play. For this reason this presentation starts with an illustration which show the decline of Europe's world market share in manufacturing (look at the blocks in blue on the left). What is more worrying, is the gap between private R&I investments in Europe compared to South Korea, Japan or the United States (in orange). Business enterprise sector expenditure counts for 64% of R&D expenditure in Europe, but its share of GDP is still lower than in the other mentioned countries, even though it has slightly grown between 2002 and 2014. Although the public R&D system is of prime importance for generating the knowledge and talents needed by innovative firms, it is only through business R&D investment that the full impacts of R&D could be realised. Therefore, public R&I investments need to go hand in hand with efforts to improve the broader innovation system. My presentation will show, how we position in this context the Horizon 2020 part on Industrial Leadership and Key Enabling Technologies. Source: Eurostat, Smarter, greener, more inclusive? Indicators to support the Europe 2020 Strategy, 2016 edition KETs HLG 2015

Strategic context: Importance of EU Manufacturing 64% of private R&D investment 2.1 million enterprises (9% of total) 30 million jobs (22% of total – non-financial economy) + twice as many indirect jobs via related services Turnover: €7.080 trillion Value added: €1.630 trillion (26% of European value added) Biggest purchaser and user of KETs Huge potential for innovation Source: Eurostat: Key indicators, manufacturing (NACE Section C), EU-28, 2013 The figures on this slide show how important the manufacturing and processing industry is for Europe. Investment in R&D is crucial for transforming the EU into a successful and competitive knowledge based economy.

Challenges (Faster) growth is « elsewhere » - global markets Fast growing competitors Investments outside EU Still good in patenting, less good in turning R&D into innovation and business (e.g. KETs) Taking care of the SME landscape, value chains, « eco-systems » Bottlenecks in access to financing Keeping and developing skills and competences How to make industry invest and create jobs in Europe, renew and extend global leadership and generate returns for Europe. The reasons why the emphasis is now on private sector investments into jobs and growth lie also in developments on the world markets.

EU Policy Context R&I in the context of European policy priorities (Political Guidelines for the Juncker Commission, July 2014) To boost jobs, growth and investment; To realise a connected digital single market; To implement a resilient Energy Union with a forward looking climate change policy; To make Europe a stronger global actor Priorities of Commissioner Moedas: Open innovation, Open science, Open to the world These are four out of the 10 Commission priorities to which Horizon 2020 and in particular also the LEIT NMBP programme contribute. With regard to the priority setting of Commissioner Moedas on openness, there is a bood to explain the approach behind, interesting to read. It builds on the observation that in science as well as in business, quantum leaps in market-creating innovation, in new scientific discoveries and validation of results, in testing ideas, can only be done by sharing. http://bookshop.europa.eu/en/open-innovation-open-science-open-to-the-world-pbKI0416263/

Horizon 2020: Key elements Excellent Science Industrial Leadership A single programme with 3 pillars: Excellent Science Industrial Leadership Societal Challenges Less prescriptive topics – strong emphasis on expected impact More emphasis on innovation and involvement of industry e.g. industrial deployment of key enabling technologies, Public-Private Partnerships Strategic approach, two-year work programmes Focus areas bring together different technologies Simplification – in access and in participation rules

Key Enabling Technologies at the heart of the European Competitiveness If we speak about industry, we speak Key Enabling Technologies. They are everywhere, in products across sectors and an important asset of European and global value chains in transport, energy, construction, for digitising industry, work and life, at the heart of the so-called "4th industrial revolution". There is no smart product without smart materials (eg "Internet of Things", smart textiles, personalised medicine and health technologies). They need smart – advanced – manufacturing, which involves technological and organisational innovation, and the "Industry 4.0" concepts go a big step further in bringing the data economy and smart factory concept: Full customer value through "lot-size 1" customisation Sustainability through new opportunities to save energy, water, material resources, time in manufacturing/processing and supply-chain cooperation. KETs Info graphic (2016)

Leadership in enabling and industrial technologies KETs - NMBP in Horizon 2020 Leadership in enabling and industrial technologies SPACE ICT NMBP Nanotechnologies Advanced Materials Biotechnology Advanced Manufacturing & Processing Nano- and Micro- electronics Photonics Indicative Budget: 16.5 billion € * Out of it for NMBP: 3.8 billion € * Leadership in enabling and industrial technologies Access to Risk Finance Innovation to SME Industrial Leadership Indicative budget: 75 billion € * Horizon 2020 - A single programme with three pillars: Excellent Science Industrial Leadership Societal Challenges Less prescriptive topics – strong emphasis on expected impact More emphasis on innovation and involvement of industry e.g. industrial deployment of key enabling technologies, Public-Private Partnerships Strategic approach, two-year work programmes Focus areas bring together different technologies Simplification – in access and in participation rules * July 2015 – includes EIT, JRC, "Science with and for Society", "Spreading Excellence / Widening Participation", in addition to three priorities above

Key Enabling Technologies (KETs) What are KETs? Six strategic technologies Driving competitiveness and growth Contributing to solving societal challenges Knowledge- and Capital- intensive Cut across many sectors European KET Strategy: EC Communications (2009)512 & (2012)341 KET High-level Group: final report 'KETs: Time to Act', June 2015 Nanotechnologies Advanced Materials Biotechnology Advanced Manufacturing and Processing Micro- and nano-electronics Photonics KET? Há 6 Tecnologias facilitadoras chave Que visam o crescimento e a competitividade; Contribuem para resolver os desafios de sociedades 4 tecnologias estão da responsabilidade do programa NMBP Nanotecnologias Materiais avançados Biotecnologia Manufatura Avançada e Processamento

LEIT - NMBP part of Horizon 2020 Emphasis on: R&D and innovation with a strong industrial dimension and in partnership with industry; Activities primarily developed through relevant industrial roadmaps (ETPs, PPPs) Requirements for business cases and exploitation strategies for industrialisation Strengthening industrial capacities including SMEs, including through synergies with other funds (private – public); Cross-cutting KETs, including pilot lines and demonstrators, addressing societal challenges Outcome and impact orientation, developing key technology building blocks and bringing them closer to the market: Technology Readiness Level (TRLs) from 3-4 to 6-7 with emphasis on expected impact; Total budget under Horizon 2020: 3.8 billion €

What does H2020 fund? Research and innovation actions Consortia with minimum 3 partners from minimum 3 different MS or associated countries Coordination and support actions SME Instrument ERA-NET co-fund actions Networks of funding agencies, funding research calls with minimum 2 partners from 2 different MS or associated countries

Public Private Partnerships (PPPs) Industry plays a leading role in defining research priorities Pre-defined budget ensures continuity and commitment Focused on enabling industrial technologies Increased use of SME-friendly instruments and demonstration Roadmaps prepared with large stakeholder involvement and public consultation Concrete technological and sector related objectives – commitment from industry to reach them and to provide the necessary R&D+I investments Using fully open H2020 calls Industry commitment for leverage and further investments Public private partnerships have a defined framework for Commission –industry cooperation. The private structures are representative for industry in the selected sectors, and the roadmaps were developed in open consultations. Appeal to all: participate! In particular also industry from countries who are not so strongly represented yet. Analyse your strenghts and weaknesses and establish your development strategies. Network!

Public Private Partnerships (PPPs) in HORIZON 2020 Institutionalised PPPs Contractual PPPs Innovative Medicines (IMI) Clean Sky Single European Sky ATM Research (SESAR) Fuel Cells and Hydrogen (FCH) Electronic Components and Systems (ECSEL - old ARTEMIS + ENIAC) Bio-based Industries (BBI) Shift2Rail Factory of the Future (FoF) Energy-efficient Buildings (EeB) Sustainable Process Industry (SPIRE) Green Vehicles (EGVI) Future internet (5G) Robotics Photonics High Performance Computing Big Data Cyber-Security Explain the NMBP PPPs: Factories of the future SPIRE Energy-efficient buildings BBI Contributions to Green Vehicles

Technology Readiness Levels (TRLs) The LEIT part of Horizon 2020 targets TRLs from 3-4 up to 7 with a centre of gravity on 5-6 Highest TRLs for cases with a strong industrial commitment Beyond TRL 7: explore paths to commercial exploitation, to deploy technologies funded under Horizon 2020 TRLs are an accepted indicator for technological maturity on the pathway to the market. The H2020 NMBP activities are on average in the area of 4 to 7, with the aim of reaching maturity of technologies (validated at TRL 6-7 in an industrial environment!) so that industry, private investors or other funding and financing sources can take over. The success of this depends on the technology and the structure of the sector, as well as the capacities and capabilities of the organisations involved. Realistically, it can also happen that work on the higher TRLs involve questions which are research questions at lower TRL. So, TRL are an approach to structure and explain maturity, within a certain degree of flexibility to respond to unexpected results. There is a reason that KETs deserve special visibility, which is the need for relatively high capital investments at relatively high TRLs and still relatively high risks. As it is not that easy to attract in particular private investors, we are working with the EIB as well as with regions who have funds available for R&I investments in order to develop synergies.

What kind of impact are we looking for? Technological ambitions, including goals for environmental sustainability, cost reduction, human aspects etc. Take-up of results for industrialisation/commercialisation, including upscaling, investments, addressing different markets (preparation through business cases and exploitation strategies for industrialisation) Building new test/experimentation/validation infrastructure and services (for SMEs) Reach out to new stakeholders (e.g. SMEs) and civil society, citizens; dissemination goals Proposal evaluation => excellence and impact criteria equally important, attention to higher weighting for impact for Innovation Actions! We are very focussed on impact. So what does this mean, how does this look like in the Work Programme and in the projects? This slide lists the different types of impact we are seeking through the funded projects, including longer term effects beyond their lifetime. Technological ambitions eg new advanced materials with defined performance goals, customer added value through advanced manufacturing, reduction of energy/resource consumption, waste, validation of components in demonstrators/pilot lines etc.) Take-up of results for industrialisation/commercialisation, including upscaling, investments, addressing different markets (preparation through business cases and exploitation strategies for industrialisation) New test/experimentation/validation infrastructure and services (for SMEs) – "open access pilot lines" Reach out to new stakeholders (e.g. SMEs) and civil society, citizens; dissemination goals Proposal evaluation => excellence and impact equally important, but higher impact for innovation Actions;

Digitising European Industry and Open Data – the data economy for industry and SMEs Horizon 2020: Open Data by default! (with opt-out possibility) – requirements for Data Management Plans Industrial/SME Data: be aware of data and their value – balance between sharing and protection Data at the heart of the "4th industrial revolution" Commission policy initiatives and ongoing work: European Cloud Initiative and Science Cloud "Digitising European Industry" (Communication April 2016) Industrial platforms (e.g. "Connected smart factory") Digital Innovation Hubs (for SMEs) Skills Standards Digital Single Market – examining need for rules and standards: e.g. "Free flow of data" – data ownership & liability questions Digitisation is a major driver of industrial and societal developments, with the potential of game-changing in established markets and creating new ones. Data and data management are the essence of new services related to digital technologies, processes and services, and it is important that all those who produce and use data from an increasing variety of sources, are aware of their value. For H2020 the Commission has therefore turned the previous Open Data pilot into a default feature, requiring Data Management Plans for participation in Open Data as well as for the Opt-Out Option. For those who work or anticipate work with automated systems, robotics, big data and artificial intelligence it could be useful to watch the developments with regard to the free flow of data, where the Commission is examining the need for rules on data ownership and liability.

Leveraging further investment Public – through: Synergies with ESIF (European Structural and Investment Funds) EMPIR (European Metrology Programme for Innovation and Research) 300M€ Private – through contractual PPPs and JTIs: Factories of the Future 1,150M€, leverage 5-10 Sustainable Process Industries (SPIRE) 900M€, leverage 5-10 Energy-efficient Buildings (EeB) 600M€, leverage at least 4 Bio-based Industries JTI (BBI), 150M€ contribution from NMBP European Investment Bank instruments: Loan / Equity, InnovFin EFSI: European Fund for Strategic Investments, to mobilise 315 billion € in support of innovation, infrastructure and SMEs Prepare ground for IPCEIs (important projects of common European interest) Leveraging further investment is at the core of our strategy for Horizon 2020. When we speak about synergies, we have different possibilities in mind, and it is in the hand of industry and SMEs to examine and choose the most appropriate. As regards the new possibilities of regions to fund R&I and industrial investments, we are now reaching out to the regions in order to find ways to make our quest for synergies concrete. There are regions with experience already, there are cooperation structures across regions which should lead to concrete projects, there are regions which are still seeking how best to implement their specialisation strategies. The Commission has created a new platform for Industrial Modernisation where regions can define their own cooperation strategies, and we will do our best to connect this to H2020 activities. Spotlight should also be put on private investments. The PPPs have formally committed their members and sectors to multiply the R&I investments under H2020, and to support this there are also European financial instruments such as InnovFin and the EFSI in place.

Creating favourable conditions for innovation Innovation principle Better regulation – "future proof" regulation Stimulate demand-side actions; Public procurement Better collaboration between the public/private sectors to stimulate investments (e.g. links between Horizon 2020 and European Fund for Strategic Investments – EFSI) Financing (e.g. Capital Union, new approaches for SMEs, risk-sharing, risk-financing) Standardisation New skills / training / education Promoting entrepreneurship (e.g. KIC on Added Value Manufacturing) Working at higher TRL involves that we look much more strategically also at regulatory framework conditions for innovation and the take-up of R&I results in industry.

H2020 LEIT – NMBP: Participation overview – collaborative R&I 23.6 % SMEs Profile 21 % new (not in FP7) 45 % new to NMBP Beneficiaries Newcomers Member States NMBP: mastering and deploying enabling technologies For industry For societal challenges Emphasis on demonstrators (TRLs 5-7) Includes three cPPPs: manufacturing and process industries, energy- efficient buildings (~50%) Nanotechnologies, Advanced materials, Biotechnology (~50%) Based on industrial roadmaps, with ever increasing emphasis on impact Some key figures: RIA/IA avg success rate: 13% Industrial partners: 67% of distinct partners Newcomers: 45% of partners not in FP7-NMP Projects / topic: 3

Region's profile: THÜRINGEN FP7 Horizon 2020 Applicant success rates 20,1% 12,3% EC contribution to grant holders in EUR million (% EU-28) 90,13 (1,26% of DE, 0,22% of EU-28) 33,75 (1,08% of DE, 0,20% of EU-28) Contribution by programme part-ICT 22,92% 30,62% Contribution by programme part- NMP 11,89% 15,40% SME applicant success rate 20,09% 12,30% Top 5 collaborative links within EU-28 regions 1. FR1 - ÎLE DE FRANCE (204) 2. DE2 - BAYERN (168) 3. CH0 - SCHWEIZ/SUISSE/SVIZZERA (137) 4. DE1 - BADEN-WÜRTTEMBERG (121) 5. ITE - CENTRO (I) (113) 1. DE2 - BAYERN (45) 2. DEA - NORDRHEIN-WESTFALEN (37) 3. DED - SACHSEN (36) 4. CH0 - SCHWEIZ/SUISSE/SVIZZERA (36) 5. BE2 - VLAAMS GEWEST (35)

Total 27 billion € out of which for: ESIF in Germany: Total 27 billion € out of which for: Research and Innovation 4 billion € Competitiveness for SMEs 4 billion € Cross boarder/Transnational/ Interregional programmes- include research and innovation Interreg V-A and Interreg V-B Programme: Thüringen – European Social Fund Total 500 million € In Thuringia, private R&D expenditure is projected to increase from 1.03 % of GDP (2011) to 2 % (2023). Source: http://ec.europa.eu/contracts_grants/funds_en.htm

NMBP KETs - Work Programme 2017 – Open Calls Work Programme and calls published on the Participant Portal: http://ec.europa.eu/research/participants/portal/desktop/en/funding/reference_docs.html Public-Private Partnerships – 16 topics - 223,17 M€ Factories of the Future (FoF) : 5 topics – 86,18 M€ Energy-efficient Buildings (EeB) : 4 topics - 54,88 M€ Sustainable Process Industry (SPIRE) : 7 topics - 82,11 M€ Deadline (single stage) : 19 January 2017 NMP - 21 topics - 205,87 M€ Nanotechnologies, Advanced Materials, Advanced Manufacturing & Processing Deadline (two stage) : 27 October 2016 (1st stage) – 4 May 2017 (2nd stage) NMP Coordination and Support Actions (CSA) Deadline (single stage) : 21 January 2017 Biotechnology - 3 topics – 48 M€ Deadline (two stage) : 27 October 2016 (1st stage) – 4 May 2017 (2nd stage) Pilots - 3 topics – 48,66 M€ To conclude – a snapshot on the calls for 2017

Outlook on H2020 NMBP further on: The 4th Industrial Revolution- combining digital and physical advances for innovative new products and services Post-COP21 action- Energy and Climate, resource efficiency and the Circular Economy Health Technical upscaling and pilot lines; Cross-cutting activities; New ways of engaging with broader society International cooperation And an outlook on priorities. We hope that industry will make use of this.

Further information Horizon 2020: http://ec.europa.eu/research/horizon2020/index_en.cfm Key Enabling Technologies, R&I website : http://ec.europa.eu/research/industrial_technologies/index_en.cfm Participant Portal - Funding Opportunities and support services http://ec.europa.eu/research/participants/portal/desktop/en/home.html NMBP Work Programme : http://ec.europa.eu/research/participants/data/ref/h2020/wp/2016_2017/main/h2020-wp1617-leit-nmp_en.pdf http://ec.europa.eu/research/participants/data/ref/h2020/wp/2016_2017/main/h2020-wp1617-focus_en.pdf (cross-cutting - focus areas) National Contact Points in your country (NMP) http://ec.europa.eu/research/participants/portal/desktop/en/support/national_contact_points.html#c,contact=country/sbg//1/1/0&+person.last_name/desc National Contact Points website - webinars, presentations, guidance : http://www.nmpteam.eu/ Research Enquiry Service: http://ec.europa.eu/research/index.cfm?pg=enquiries CORDIS database with EU funded research projects : http://cordis.europa.eu/projects/home_en.html