Possibilities and Benefits of International Collaboration for Innovative Companies Martin Wassell Managing Director European Institutes

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

Early Market Death Valley Bowling Alley TornadoMain Street (Early) Main Street (Mature) Main Street (Declining) Fault Line End Of Life Indefinitely Elastic Middle Period Frontier Research Application Innovation Product Innovation Process Innovation Value Chain Innovation Business Model Innovation Structural Innovation Time Revenue Growth What is an Innovative Company? Young Innovative Company (YIC) – less than 15 years old and spend at least 15% of expenditures on R&D

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

Why Collaborate ….. Internationally? Access the best suppliers, distributors and customers? Develop product, process and service solutions? Scale up to access markets National and International? Maximise product lifespan and profit? International expertise for concept Development and market compliance International markets through large customers, best suppliers and dist. Best in class R&D and technology development Customer, supplier and distribution Networks for rapid market access Extended product, process or service life market acceptance and penetration Innovation BarriersInternational Benefits? Access the best suppliers, distributors and customers? Develop product, process and service solutions? Scale up to access markets National and International? Maximise product lifespan and profit? International expertise for concept Development and market compliance International markets through large customers, best suppliers and dist. Best in class R&D and technology development Customer, supplier and distribution Networks for rapid market access Extended product, process or service life market acceptance and penetration Access the best suppliers, distributors and customers? Develop product, process and service solutions? Scale up to access markets National and International? Maximise product lifespan and profit? Select the best opportunity and balance risk/reward? Access the best suppliers, distributors and customers? Develop product, process and service solutions? Scale up to access markets National and International? Maximise product lifespan and profit?

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

Cooperation€32,365 Capacities€4,217 JRC€1,751 Ideas€7,460 Euratom€2,751 People€4,728 €1.4Bn 1.Thematically unrestricted 2.100% cost reimbursed 3.Excellent cash flow €1.4Bn 1.Thematically unrestricted 2.100% cost reimbursed 3.Excellent cash flow FP7 An Opportunity for Collaboration

Open Innovation …and the Smart Use of Public Funding

Developing the Value of New Ideas 95% of Costs Paid for by the EC International Distribution Network Creation of Full Value Chain Access to World Class R&D Resources Develop Key Customer Relationships The DNA of Successful International Business Development How This Programme Supports International Collaboration

Developing the Value of New Ideas 95% of Costs Paid for by the EC International Distribution Network Creation of Full Value Chain Access to World Class R&D Resources Develop Key Customer Relationships How This Programme Supports International Collaboration The DNA of Successful International Business Development

Customers Competences Developing The Value of New Ideas!

Quality Cost Delivery Performance Flexibility Functionality Customer Relationship Developing The Value of New Ideas! EC funding is about creating sales, wealth …and high value jobs!

Developing the Value of New Ideas 95% of Costs Paid for by the EC International Distribution Network Creation of Full Value Chain Access to World Class R&D Resources Develop Key Customer Relationships Developing the Value of New Ideas 95% of Costs Paid for by the EC International Distribution Network Creation of Full Value Chain Access to World Class R&D Resources Develop Key Customer Relationships The DNA of Successful International Business Development How This Programme Supports International Collaboration

The Value Proposition Develop the value & differentiation of new offering ideas Provide access to experts to outsource/co-deliver the R&D Develop your idea into a commercially validated prototype Build new technical capabilities into your value chain Develop new market access & customer relationships Create 95% cost leverage for you with no dilution of IPR & equity

Cost Leverage Potential When You Carry Out Part of the R&D Smart Use of Public funding

R&D Partner 1 University R&D Partner 2 SME R&D Partner 3 SME R&D Partner 4 Large Firm R&D Partner 6 SME R&D Partner 5 Research Inst You Total Project €3,500k costs €2,500k grant 71 % reimbursed €500k costs €375k grant 75% reimbursed €500k costs €250k grant 50% reimbursed

R&D Partner 1 University R&D Partner 2 SME R&D Partner 3 SME R&D Partner 4 Large Firm R&D Partner 6 SME R&D Partner 5 Research Inst You Total Project Effort Secured €3,500k €155k of your costs, leverage €3,500k of R&D creating IPR for you at 95% leverage

Cost Leverage Potential When You Outsource the R&D Smart Use of Public funding

Supply Partner 1 SME Supply Partner 2 SME Supply Partner 3 SME Customer Partner 4 Large Firm Distributor Partner 6 SME Distributor Partner 5 SME You Total Project €1,500k costs €1,125k grant 75 % reimbursed R&D Performer 1 Research Inst R&D Performer 1 Research Inst €1,125k grant pays R&D service provider costs €375kof SME costs Split 7 ways €53k each

R&D Partner 1 University R&D Partner 2 SME R&D Partner 3 SME R&D Partner 4 Large Firm R&D Partner 6 SME R&D Partner 5 Research Inst You Total Project Effort Secured €3,500k €80k of your costs, leverage €1,500k of R&D creating IPR for you at 95% leverage R&D Performer 1 Research Inst R&D Performer 1 Research Inst

EC Expertise Control of IPR Co-Investment Route to Market The Experts Available Through the Programme

No Cranks or Tyre Kickers!

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

Eurostars A Eurostars project European research and development project Address any technological area development of a new product, process or service Collaborative – minimum of 2 participants from 2 different Eurostars participating countries Main participant must be a research-performing SME from one of these countries Project should be market-driven with a maximum duration of 3 years Within 2 years of project completion product of the research should be ready for launch onto the market (except biomedical or medical projects, where clinical trials must be started within two years of project completion) First deadline – 8 th February 2008

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

“With this new alternative to invasive surgery, we see our market growing to over €100m. A key element of success was the access to R&D skills that we don’t have internally.” Andrew Lewis, Technical Director, Biocompatibles Ltd Improved Functionality Enables Pain Relief Uterine artery Polyvinyl Beads Fibro id Eluted drug

The project allowed us to investigate novel surface features to allow earlier product fixation resulting in the potential for implant longevity. Alan Taylor CEO, Finsbury Ltd Improved Product Function Improves Patient Outcome

This technology represents a major part of our product development programme for the next 10 years Allen Ritchie VP R&D DePuy plc, Decision Support Software Improves Flexibility For Orthopaedic Implants

Agenda What is an Innovative Company? Why Collaborate …. Internationally Barriers to Innovation Benefits of International Collaboration International Collaboration for Innovation Framework Programme 7 Eurostars Case Studies Questions

Thank You