THE EIT - DELIVERING NEW SOLUTIONS TO THE EUROPEAN INNOVATION LANDSCAPE FINAL CONFERENCE of the FIDIBE PROJECT 1 December 2011, Székesfehérvár Szabolcs BORDA, EIT Finance Officer

TABLE OF CONTENTS: General Introduction I.EIT Mission and Governance II.KIC Basics + Updates III.Cross-KIC Agendas IV.EIT Strategy ( )

GENERAL INTRODUCTION

ABOUT DISCOVERY, INVENTION, TRANSLATION & INNOVATION Discovery: Finding out something not yet known Invention: creating or designing something not existing before Translation: processing discoveries and/or invention into innovation Innovation: making changes with societal impact, based on discoveries and/or invention Science & Research are necessary, but not sufficient for innovation

AGE DISTRIBUTION OF COMPANIES’ CONTRIBUTION TO INNOVATION: EUROPE V. US AND OTHERS US: approx. 21% EU: approx. 2% Bruegel policy brief 2009 Reinhilde Veugelers

BEHRING, NOBEL, CITROEN, SIEMENS, REUTER = = EUROPEAN HISTORY BOYER, GATES AND ZUCKERBERG = U.S. REALITY! WANTED HOW to motivate kids to set up garage companies in Europe? wanted

EARLY PUBLIC SEED MONEY TO LEVERAGE HIGH IMPACT INNOVATION INVESTMENTS

I.EIT MISSION AND GOVERNANCE

EUROPEAN INSTITUTE OF INNOVATION AND TECHNOLOGY (EIT) EIT to unlock the European innovation landscape through a new agenda at EU level EIT is the first initiative of the EU bringing together the three corners of the knowledge triangle with the entrepreneur in the driver’s seat to form the necessary links between education, business and research MISSION: “To become the catalyst for a step change in the European Union’s innovation capacity and impact”

Higher Education Business Research & Technology THE CORE OF INNOVATION IS THE KNOWLEDGE TRIANGLE (KT) Actors in the knowledge triangle are at the core of the innovation web ENTREPRENEURSHIP: Driver of KT

EIT CURRENT STRATEGIC STRANDS 1.Further development of each KIC co-location centre as a hotspot driving innovation effectiveness, results and impact; 2.Consolidation of EIT Budapest as a knowledge pull driving simplification, result orientation and good practice 3.Further development of entrepreneurship education within KIC higher education institutions, branded by an EIT label; 4.Continued focus on world-class new business creation.

EIT STRUCTURE Governing Board Executive Committee EIT Director Corporate Forum for KICs EIT Foundation EIT Roundtable of Top Entrepreneurs EIT Annual Innovation & Entrepreneurship Summit (Stakeholders Platform )

EIT FOUNDING GOVERNING BOARD (in alphabetical order): João CARAÇA, Manuel CASTELLS, Bertrand COLLOMB, Giovanni COLOMBO (Member of the Executive Committee), Ellen DE BRABANDER, Anders FLODSTRÖM (Vice-Chairman of the Board), Wolfgang HERRMANN, Julia KING, Morten LOKTU, Karen MAEX, Bálint MAGYAR, Erna MÖLLER, Yrjö NEUVO (Member of the Executive Committee), Martin SCHUURMANS, Daria TATAJ (Member of the Executive Committee), Peter TROPSCHUH Peter, Linnar VIIK, Alexander VON GABAIN (Chairman of the Board)

EIT GOVERNANCE 1.EIT GOVERNING BOARD Chairperson: Alexander von Gabain Governing Board of 22 Members (18 appointed, 4 representative) 1.EIT GOVERNING BOARD Chairperson: Alexander von Gabain Governing Board of 22 Members (18 appointed, 4 representative) 2. EIT HEADQUARTERS Director: Jose Manuel Leceta EIT Headquarters in Budapest, currently 40 members of staff 2. EIT HEADQUARTERS Director: Jose Manuel Leceta EIT Headquarters in Budapest, currently 40 members of staff

KICs GOVERNANCE 1. Climate-KIC Chairman: Hans-Joachim Schellnhuber CEO: Mary A. Ritter 1. Climate-KIC Chairman: Hans-Joachim Schellnhuber CEO: Mary A. Ritter 2. KIC InnoEnergy Chairman: Karl-Friedrich Ziegahn CEO: Diego Pavia 2. KIC InnoEnergy Chairman: Karl-Friedrich Ziegahn CEO: Diego Pavia 3. EIT ICT Labs Chairman: Henning Kagermann CEO: Willem Jonker 3. EIT ICT Labs Chairman: Henning Kagermann CEO: Willem Jonker

RECENT DEVELOPMENTS DRIVEN BY THE EIT DIRECTOR’S TEAM Showcase Success Stories emerging from the three KICs First evidence presented to support institutional dialogue between the Commission and the Parliament through the ‘Friends of EIT’ Corporate Forum for KICs : 3 KIC CEOs + EIT Director Develop a strong EIT / KIC corporate identity and culture, including common policies (finance, monitoring, communication management) Service oriented HQ increasing accountability and added value Beyond corporate services, Units are aligned with the three Director’s roles: Build an effective team, energize KICs results and implement GB strategies.

II. KICs – BASICS

EIT’s INNOVATION FACTORIES: ITS KNOWLEDGE AND INNOVATION COMMUNITIES (KICs) KICs highly integrated, creative and excellence-driven autonomous partnerships under the leadership of a CEO; internationally distributed but thematically convergent partners  driven by societal challenges KIC partners key actors from the knowledge triangle: research, higher education and business First three KICs –Climate KIC (Climate Change Mitigation and Adaptation) –EIT ICT Labs (Future Information and Communication Society) –KIC InnoEnergy (Sustainable Energy)

Climate KIC: Co-location centre RIC (Regional Implementation and Innovation Centre ) EIT ICT Labs: Co-location centre Associate Partner KIC InnoEnergy Co-location centre KICs EUROPEAN IMPACT AND GOOD PRACTICE

INNOVATION FACTORY (KIC) MODEL (1/2) High degree of integration: each KIC is an independent legal entity, gathering world-class KIC partners from the knowledge triangle. Effective governance: run by a CEO, supported by a lean management team at central and co-location level. Long-term strategic approach: each KIC is set up for a minimum of 7 years. Annual Business Plans presented, evaluated and approved by EIT HQ.

INNOVATION FACTORY (KIC) MODEL (2/2) Culture: KICs are shaped by strong entrepreneurial mindsets and cultures of their partners, pulling together for common visions and goals. High degree of commitment of partners/smart funding: EIT funding to KICs is 25% of their total budget over time (75% to be attracted from other sources, public and private). The co-location model: each KIC consists of typically 5-6 world class innovation hotspots building and leveraging on existing European capacities. Results/High-Impact-oriented activities: KICs implement a Business Plan with measurable deliverables, clear targets, results and high-impact- oriented activities.

THE FIRST 3 KICs Designated in December 2009 by the EIT Governing Board

EIT AND KICs MAIN ACHIEVEMENTS What the EIT and KICs have achieved so far has never been achieved on a European scale before! With a trial and error approach and an ‘can do’ attitude, the EIT selected and signed ground breaking agreements with its first 3 KICs in less than 2 years following the Call for Proposals. Meanwhile, KICs are producing evidence on entrepreneurship education and business creation (Success Stories). EIT HQ will foster simplification, results and good practice. What the EIT and KICs have achieved so far has never been achieved on a European scale before!

SOME EARLY RESULTS FROM THE KICs Climate-KIC : As a result of a business plan competition, two Climate KIC projects have been awarded seed funding. One group, DeCo! won the International SEED Award 2010 through a business plan competition EIT ICT Labs : InterneT of ThiNGs (FITTING) project has received € 5.8 million funding from the French national research agency (ANR) to develop new internet technology KIC InnoEnergy : Its postgraduate degree programmes are hugely popular already in their first year: 850 students applied for 220 available places

KIC PARTNERS UP TO 2011 EIT ICT Labs 41 KIC Partners Climate-KIC 87 KIC Partners KIC InnoEnergy 67 KIC Partners In 2011, there are over 200 KIC Partners and 3 KIC LEs. In 2010, there were 75 KIC partners and 3 KIC LEs. 2 8

KIC FUNDING SOURCES GA GA 2011 EITTotal% Climate-KIC 21,1142,014,9% EIT ICT Labs 27,4116,023,6% KIC InnoEnergy 33,6154,721,7% Total 82,1412,719,9% Figures in Million Euros

3 KICs were set-up (legal, governance, financial, organisational and operational), are up and running and delivering in record time Until now, Over 200 KIC partners; total investment exceeding 400 MEUR (EIT contribution of 85 MEUR in 2010 and 2011) KICs are unique entities in EU/global innovation landscape (see Ernst & Young/CEPS 2011 report) with huge potential to deliver significant results EIT HQ acts as a knowledge pool benefitting Europe through continuous drive in simplification, result orientation (Scoreboard/KPIs) and good practice dissemination CONCLUSIONS EIT–KIC MODEL

II.1 CLIMATE KIC

CLIMATE-KIC: EUROPEAN LEADERSHIP IN CLIMATE CHANGE INNOVATION VISION Catalyse climate change innovation Create a community for climate change innovation Deliver integrated climate change innovation Transform Europe’s response to climate change Co-location centre Regional Innovation Centre

CLIMATE-KIC: SOME RESULTS IN 2010 Establish KIC leadership and structures (KIC LE is an Association based in the Netherlands) Set-up of co-locations Recruit world leading scientists to head up key innovation areas Launch first innovation projects Set up first venture fund Recruit first class of students (50 Masters and PhD students; 59 participants in Pioneers into Practice Programme) Launched Summer School (Paris, Zurich and Berlin) and 2 spin-outs Highlight. Click to edit text and resize the circle when needed. Align centered.

II.2 EIT ICT LABS

EIT ICT LABS Highlight. Click to edit text and resize the circle when needed. Align centered. Complete and complementary world class innovation hotspots EindhovenBerlinStockholmHelsinki Otaniemi Science Park Paris Pôles de Competitivité Associate clusters in Budapest, London, Trento Systematic build-up of innovation hotspots outside initial nodes + Each Co-location features at least:  One strong research institute  One major university  One European-based multinational company

EIT ICT LABS: SOME RESULTS IN 2010 Establish KIC leadership, governance and structures (KIC LE set as an Association based in Belgium) Set up of co-locations Develop the concepts of EIT ICT Labs Master and Doctoral Schools Launch pilot activities in Education, Research and Business (Digital cities of the future; Smart spaces; Internet technologies and architectures; Computing in the cloud; etc) Organise EIT ICT Labs Summer School and first innovation camp Develop and implement EIT Innovation Radar Launch Entrepreneurs club Highlight. Click to edit text and resize the circle when needed. Align centered.

II.3 KIC INNOENERGY

KIC INNOENERGY: A WORLD CLASS ALLIANCE OF TOP EUROPEAN PLAYERS WITH A PROVEN TRACK RECORD 13 companies, 10 research institutes, 13 universities ~50% industry partners (incl. associated partners) >50% of key research players in Europe Covering the whole energy mix Knowledge triangle balanced along all dimensions Strong connection with VCs and local governments

KIC INNOENERGY: SOME RESULTS IN 2010 Establish KIC governance and structures (KIC LE set up as a company based in the Netherlands) Entrepreneurship program “From Science to Business”, with great impact on the 27 PhD students First Clean Tech Venture Capital Day in Stockholm, with 250 participants (investors, selected start-ups) Launched 33 innovation projects and 4 Lighthouse Innodrivers Launched Smart Grid PhD (Lead by KTH); MS on Sustainable Energy; Pilot MS on Nuclear Engineering Launched “KIC InnoEnergy Highway” business creation services (incubator)

III. CROSS-KIC AGENDAS

EIT FOSTERS ‘CROSS-KIC AGENDAS’ Education: Promoting entrepreneurship education by high quality EIT labelled degree programmes and fostering EIT Alumni and risk culture in Europe Entrepreneurship: Recognising the best KIC-driven ventures through an ‘EIT Entrepreneurship Award’ and fostering role models by an ‘Annual EIT Roundtable of Top Entrepreneurs’ World-Class Innovation: Developing innovative ecosystems to create and grow world-class, breakthrough innovation exploiting KIC synergies and complementarities

EIT’S EDUCATIONAL MISSION AND STRATEGY : fostering a new generation of entrepreneurially minded Europeans create an entrepreneurial mindset in Europe, including the development of students as the next generation of entrepreneurs deliver a unique brand of excellent and relevant education responsive to both business and societal demands, focused on innovation, entrepreneurship and creativity  EIT labelled degrees and diplomas at Master and PhD level, awarded by the higher education institutions participating in the KICs, based on four main criteria

EIT LABELLED DEGREES: a unique brand of excellent education at Master and PhD levels 1.Robust entrepreneurship education 2.Highly integrated, innovative "learning-by-doing" curricula 3.Mobility, European dimension and openness to the world 4.Outreach strategy and access policy

1.ROBUST ENTREPRENEURSHIP EDUCATION Entrepreneurship embedded in the curricula to train future entrepreneurs and the use of the co-location centres to engage students in entrepreneurship activities On-the-job learning and exposure to real life in industry and business. Open concept innovation and entrepreneurship Facilitate the acquisition of transferable skills, in particular entrepreneurship, innovation and creativity skills EIT overarching learning outcomes

2. HIGHLY INTEGRATED, INNOVATIVE, ‘LEARNING BY DOING’ CURRICULA Cross-disciplinary approach Active collaboration between universities and engagement of business Student-centred teaching and learning methods, application of innovative tools and delivery mechanisms Support for knowledge transfer Promotion of joint or multiple degrees

3. MOBILITY, EUROPEAN DIMENSION AND OPENNESS TO THE WORLD European transparency tools, Qualifications Framework EHEA Integrated “mobility windows” for international and cross-organisational mobility Smooth transitions between academia and industry Quality culture A strategy for global cooperation – recruitment of international students and staff, cooperation with global innovation hotspots

4. OUTREACH STRATEGY AND ACCESS POLICY Joint strategy for knowledge sharing with society involving the different KIC partners Joint student selection and admisison Structured links with future "EIT" alumni

KICs EDUCATION – STATE OF PLAY KICs – currently starting/preparing their EIT-labelled Master and Ph.D programmes to start in 2011/2012 EIT working together with KICs to implement the quality criteria EIT HQ to update databases / reporistories of all Master and Ph.D programmes EIT HQ to facilitate a virtual Alumni community

FIRST ACTIONS 2010/2011 (1/2) Climate-KIC Summer School 2010/2011 Young entrepreneurs find their way into European market for climate change innovation KIC InnoEnergy: 2011: Start of 4 MSc programmes and 5 tracks in PhD school in Energy, Executive programme, Innovation and Entrepreneurship Master: 850 students applied for 220 available places 2010: From Science to Business Entrepreneurship course

FIRST ACTIONS 2010/2011/2012 Development of EIT ICT Labs Master School The EIT ICT Labs Master School will combine cross-node cutting edge technical and entrepreneurial education with strong industry collaboration. 7 technical majors: EIT Conferences: Leuven, December 2010 – the role of the EIT in the Education Landscape Krakow, October 2011 – Youth and Entrepreneurship

EIT’s ENTREPRENEURSHIP MISSION AND STRATEGY AGENDA DEVELOPMENT: To stimulate, facilitate and oversee the development and effectiveness of new innovation models and KIC business creation activities To drive and support the development and implementation of the EIT Entrepreneurial Alumni To add value to KIC-own operations

BUILDING THE EIT ENTREPRENEURSHIP AGENDA HOW to motivate kids to set up garage companies in Europe? EIT Entrepreneur- ship Charter EIT Culture “EIT-labelled Business Accelerator” EIT Entrepreneur- ship Award (incl. Venture Cup, Mentorship Scheme etc.) EIT Entrepreneur- ship Award (incl. Venture Cup, Mentorship Scheme etc.) EIT Round Table of Top Entrepreneurs Community Building EIT Entrepreneurship toolbox

FIRST EIT ENTREPRENEURSHIP AWARDS Brussels, February 2012 To promote a risk taking culture in the KICs and beyond by putting the spotlight on and encouraging entrepreneurial ventures. Three ventures will be selected for the award in 2012 from among the candidates proposed by the three KICs. First EIT Entrepreneurship Award Ceremony is scheduled for February 2012 in collaboration with Science Business The three 2012 Award winners will be granted EIT supported promotional activities, access to the EIT’s network of contacts, opportunities to expose their ventures to global experience, joint participation with the EIT in international trade fairs for a 12-month period. Mentoring with CEOs is also being discussed.

FIRST EIT ROUND TABLE OF TOP ENTREPRENEURS Budapest, July 2012 Annual ‘light tower’ event to exchange views and experiences with outstanding individuals with a record of excellence in entrepreneurial and innovative enterprises First Roundtable scheduled for July 2012 in Budapest To address topical entrepreneurship subjects through a mix of key note speeches, debates amongst panellists and interactions with the audience Forum for mutual inspiration and dialogue in the field of entrepreneurship and innovation between the EIT, the top level entrepreneurs and other stakeholders (students, European Commission top officials, MEPs, industry leaders, KIC and Co-location managers)

EIT FUTURE STRATEGIC AGENDA (2014 – 2020)

EIT’S GB PROPOSAL FOR A STRATEGIC INNOVATION AGENDA (SIA) Initial theme ideas proposed by EIT Governing Board for new KICs (to start in 2014): 1.Human Life and Health 2.Human Learning and Learning Environments 3.Food4Future 4.Manufacturing by and for Creative Human Beings 5.Security and Safety 6.Mobility and Smart Cities Coupled with follow-on support to existing three KICs

THE EIT’s ROLE IN THE EUROPEAN INNOVATION LANDSCAPE The EIT will be part of the Horizon 2020 while maintaining a strong link with the European Higher Education Area (EHEA) However, rules applying to the EIT will have to remain tailor-made and fully flexible to fit the EIT’s mission!

EIT’s VISION OF AN “ENTREPRENEURIALLY- DRIVEN, IMPACT INVESTMENT INSTITUTE” EIT Deliverables: Breakthrough Innovations & People for Europe! EIT contributes to European excellence, competitiveness and cohesion: – by leveraging entrepreneurship and innovation, from local to global, – by wide dissemination of KIC good practice across Europe. Further reinforce EIT as an Institute benefiting European citizens: -EIT Budapest as a knowledge pool and intelligent investor in KICs, -Innovation Factories structured in CLCs to become world-class innovation hubs generating Europe-wide benefits. Scale up EIT in budget to secure critical mass and macro impact.

L E A L E D R N L V A E R G E... Talent has no homeland! … … Innovation powered by EIT! … … Entrepreneurs in the making! …

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