Internal Market, Industry, Entrepreneurship and SMEs Directorate General The path towards KETs Neuromorphic computing Workshop Brussels, 3 February 2017 Laure Baillargeon

KETs definition today High R&D intensity High capex Enabling and systemic Advanced Manufacturing Advanced Materials Industrial biotechnology Photonics Micro-/nanoelectronics Nanotechnologies

KETs as enablers of our future Importance of thinking in terms of : Value chain Combination of several technologies (currently called "Multi-KETs") Objective is solutions for big societal challenges from technologies developed, deployed and produced in Europe

KETs faced with increasing competition Patents & Export market shares in KETs-components For all six KETs Increasing competition from East Asia dominating now the market Market shares are increasing for Asia, decreasing for North America, and rather constant for EU-28 - Importance to take into account global positioning of Europe per technology, per market (e.g. Fraunhofer Study on EU global positioning on KETs for RTD D, e.g. reflection in micro-electronics on the key strengths of Europe – i.e. sensors, interaction between machines and their environment) Source: KETs Observatory

Value created through KETs KETs in regions: GDP growth; interregional spill-overs; industrial diversifi- cation Source: KET Observatory Source: KETs Observatory approx. 10.000 EU companies base their business on KETs High-performing, innovative but also capital-intensive industrial base further growth potential in coming years High-performing industrial base High-growth innovative companies

Structural Funds (TRL 2 – 9) European Investment Bank (TRL 2 – 9) EU support 2014-2020 Pillar 1: Technological Research Pillar 2: Product demonstration Pillar 3: First production Fundamental Research Horizon 2020 (TRL 1 – 8) Structural Funds (TRL 2 – 9) European Investment Bank (TRL 2 – 9) State aid rules modernised: higher notification thresholds & aid intensity Regional aid & IPCEI* * Important Projects of Common European Interest (C(2014)3290)

Funding opportunities for KETs Horizon 2020: EUR 6 bio under Industrial Leadership Pillar Structural Funds: EUR 118 bio for innovation Article 5, ERDF: "… pilot lines, early product validation, advanced manufacturing capabilities and first production, in particular in KETs" KETs are the highest R&I priority of regions with 65% of regions (15 out of 25 MS) indicating KETs-related priorities Reminder: KETs not only for Horizon 2020, but also for Regional Funds and for Financial Instruments. Importance of having coherent, cross-cutting priorities for industrial innovation under the different financial programmes, whatever they will be. EIB: EUR 12 bio of loans to KETs companies in 2013-2016 "…KETs companies struggle or fail to obtain adequate debt financing" (EIB report, March 2016)

KETs technology centres for SMEs https://ec.europa.eu/growth/tools-databases/kets-tools/kets-tc/map Currently 187 KETs Technology Infrastructures mapped 60% in only 4 countries (DE, ES, FR, UK) For each infrastructure: competences, TRLs, market sectors, services, trainings, SME contact… The first inventory of KETs Technology Centres (working with SMEs) has shown that 60% of SMEs in the EU are NOT likely to find the technology services they need in their Member State (or within "working distance"). But as a whole, the EU has much capacity. The current update of the mapping is OPEN. It will also analyse best practices to create EU networks of technology centres. Update ongoing