Value chain analysis of promising KETs-based products www.pwc.com Value chain analysis of promising KETs-based products EUROPEAN COMMISSION, Executive Agency for Small and Medium-sized Enterprises (EASME), Department A – COSME, H2020 SME and EMFF, Unit A1 - COSME KETs Observatory Phase II Smart Specialisation Platform for Industrial Modernisation - 2nd Steering Committee Meeting, Valencia, 8 November 2017 Brussels, 14 January 2014 Pre-event to the GROW your REGIOn Conference

Value chain analysis of promising KETs-based products Objectives and scope to provide stakeholders with an analytical base helping to strengthen cross-regional cooperation mechanisms to boost the deployment of KETs in Europe Focus on products with a high potential for large-scale manufacturing in Europe: products where Europe could maintain/achieve global leadership specifically in manufacturing; Manufacturing potential stemming from capacities of multiple EU-based companies located in different regions/MS. Selection of 8 cases based on the inputs and priorities from the regions (S3P- Industrial Modernisation) Bottom-up approach S3P-Industrial Modernisation, 2nd Steering Committee Meeting 8 November 2017

Value chain analysis of promising KETs-based products Report structure Introduction Background, objectives and target audience Key product facts Nature of product, market potential, relevance to the EU competitiveness Value chain analysis Value chain structure, key players, key constraints Analysis of the EU competitive positioning Strengths, potential and opportunities for the EU regions, key risks and challenges Policy implications Measures with immediate and long-term focus S3P-Industrial Modernisation, 2nd Steering Committee Meeting 8 November 2017

Overview of produced analytical reports on promising KETs-based products 8 Analytical reports: Smart textiles for sports  (Textile innovation) Bio-based aromatics (Bioeconomy) Perovskite solar cells (New nano-enabled products) Refurbishment of medical equipment (ESM) Indium Phosphide- (InP) based Photonic Integrated Circuits (PICs) for data centre applications (Photonics) 3D-printed medical devices (3DP) Cyber-Physical Production Systems for less developed European regions (PPMS) Sensing & monitoring systems for offshore wind turbines in harsh environments (ADMA Energy) S3P-Industrial Modernisation, 2nd Steering Committee Meeting 8 November 2017

Sample value chain Value chain for Perovskite solar cells (stand-alone perovskite modules) Research & Development Design Production Logistics Marketing Services Value-adding activities Inputs Product development and manufacturing Product Distribution & support Markets Substrate preparation Company-owned dealers/distributors Independent accredited installers Construction Fine chemicals E.g. smart glass, building-integrated PV (BIPV), outdoor furniture, portable devices, etc. Blocking layer deposition + firing Automotive Direct sales Mesoporous layer deposition + firing Substrates Electronics Sensitizer deposition Combined with other components Systems EPC sales Utility Equipment Hole transport layer deposition Arrays … Conductor deposition + curing Agents Partners Super-stores Modules of perovskite solar cells Final assembly + encapsulation Supply chain Supporting environment Research support and facilities Demonstration and piloting support and facilities Business development support Finance Trade & industry organisations S3P-Industrial Modernisation, 2nd Steering Committee Meeting 8 November 2017

Value chain analysis of promising KETs-based products Examples of identified common patterns Need to stimulate SME engagement in development and commercialisation activities (SME support centres); Need for fully operational pilot lines (to demonstrate the feasibility of every step of the production process); Need for ensuring continuous investments in research (both basic research and research targeted at the highest TRL levels); Need for measures ensuring long-term protection of Europe’s investment in cutting edge innovations (e.g. protection from IP looting); Need for state-of-the-art education and training (dual learning, solving real-world problems in the classroom, lifelong learning); Need for accelerated development of relevant standards. S3P-Industrial Modernisation, 2nd Steering Committee Meeting 8 November 2017

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