Bucharest, 14th May 2004 The future of manufacturing in Europe and the role of nanotechnologies Ezio ANDRETA Director Industrial Technologies Research Directorate-general European Commission These pages do not represent any commitment on behalf of the European Commission. Please refer to official documents. See, e.g.:

Bucharest, 14th May 2004 Manufacturing today worldwide… 22% in EU Around 25% of GDP (22% in EU) In Europe about 2.5 million enterprises (of which 99% SMEs) and 28% of employment European strengths: knowledge generation, products customisation, creativity European weaknesses: low productivity growth, low development of high-tech industries, low innovation, skill gaps

Bucharest, 14th May 2004 Important economic changes to come …

Bucharest, 14th May 2004 Source : Will Made in USA Fade Away, Fortune Nov 24, 03

Bucharest, 14th May 2004 GLOBALISATION ICT EFFICENCYDIMENSION NEW CHALLENGES

Bucharest, 14th May 2004 Economic development: a vision OLD Time: extended Space: local NEW Time: zero (real time) Space: global timeefficiency zero Sustainability subsidiarity space - Concentration on added value - collaborations role dimension organisation global

Bucharest, 14th May 2004 LINEARITY = a simple function expanded step by step in time COMPLEXITY = a system composed of many linear functions characterized by a global dynamic which is different from the dynamic of each function LINEAR APPROACH = chain of production COMPLEX APPROACH = simultaneous engineering

Bucharest, 14th May 2004 SIX MAIN CHANGES From linearity to complexity From individual to system competitiveness From resources-based to knowledge-based economy From macro to micro From top down to bottom up production systems From mono-disciplinarity to trans-disciplinarity

Bucharest, 14th May 2004 Transition from a « traditional economy » based on traditional resources to a new economy based on knowledge The triplet « land-labour-capital » is replaced by knowledge –capital …this implies moving from an economy of quantity to an economy of quality, from an economy of use and waste to a sustainable economy

Bucharest, 14th May 2004 OLD Compact enterprise Production chain Mass production Quantity driven Resource-intensive Production driven Linear approach (Taylorism in production) NEW Extended enterprise Network of suppliers Focus to added value Quality driven Brain intensive Demand driven Simultaneous approach

Bucharest, 14th May 2004 Novel activities and the new generation of high-tech industries are showing up on the market The shift from labour-intensive to brain–intensive operations modifies jobs and skills required

Bucharest, 14th May 2004 CONVERGING DISCIPLINES TECHNOLOGIESFROM TO MONOMULTIINTERTRANS INFO BIO NANO COGNITIVE INFO/BIO NANO/BIO NANO/INFO NANO/INFO/BIO NANO/INFO/ BIO/COGN

Bucharest, 14th May 2004 A Competitive R&D System Industries Universities Research inst. Finance Policy makers Ethics, health & safety Information + dialogue Acceptance Interdisciplinarity Entrepreneurship Fiscality Finance Patents, IPRs Norms/regulations Administrative rules Demand Main challenges

Bucharest, 14th May 2004 The importance of the multi-disciplinary approach to improve EU competitiveness in the context of socio-economic sustainability Highlight the importance of international co- operation Improve the image of Manufacturing The need of a competitive EU research To conceive the entire production system in such a way that high added value and quality of final products and services can substantially absorb labour costs To build up competitive knowledge-based systems Finally, two main challenges: Key issues from the Conference Man u future

Bucharest, 14th May 2004 Rapid Growth of Interest in Nanotechnology R&D Public expenditure in nanotechnology is growing by ~40% annually to around 3.5 billion /$ in Public expenditure ( 1 = 1$ ) NNI (USA) FP6 (EU) Source: European Commission (2003) Our Nano Economy in the next Years…? Total: 1,000 Billion US$ p.a.

Bucharest, 14th May 2004 Why is nanotechnology important for European society and industry? Why is nanotechnology important for European society and industry? Analysts estimate that the market for products based on nanotechnology could rise to hundreds of billion by 2010 and exceed one trillion after European Activities in Nanotechnology R&D: l l Several countries started national nanotechnology between the mid-1980s and mid- 1990s l l Overall investment of around 200 million in 1997 has risen to around 1,000 million in 2003 l l Levels of public investment vary considerably between 0.05 and 5.6 per citizen l l Transnational projects in the EUs 4th (~30M/year) and 5th (~45M/year) Framework Programmes l l Nanotechnology identified as a main priority area in the 6th Framework Programme (~250M/year)

Bucharest, 14th May 2004 Nanotechnology Applications Medicine and Health Information Technology Materials Science Food, Water and the Environment InstrumentsEnergy Production / Storage GMR Hard Disk Hydrogen Fuel Cells Lightweight and strong Drug delivery Tunneling microscopy Remediation methods Expected to impact upon virtually all technological sectors as an enabling or key technology

Bucharest, 14th May 2004 The European approach: integrated and responsible Research and Development Societal Issues Infrastructure Human Resources Industrial Innovation International Cooperation Health, safety, environmental and consumer protection Nanotechnology R&TD+I require actions on several fronts COM(2004)/338

Bucharest, 14th May 2004 R&D: Building the Momentum l public investment increase by a factor of 3 by 2010 l European public investment in nanotechnology R&D should increase by a factor of 3 by 2010 l transforming our knowledge l Focus upon transforming our knowledge into wealth generating products and processes l critical mass, transnational collaboration and competition l Reinforce the next FP for added-value via critical mass, transnational collaboration and competition l coordination of national programmes l Effective coordination of national programmes with both OMC and ERA-NET mechanisms l public and private stakeholders together l Bring public and private stakeholders together to strengthen roadmap and foresighting activities

Bucharest, 14th May 2004 Market National European Globalised E-commerce Knowledge oriented & user driven based society Indust. approach Supplier Market Environment & ConcentrationHigh A.V. & oriented oriented customer driven & Networkingintegration RTD approach Technology Market System Society Sustainability Radical push pull oriented oriented & problem- innovation solving & Break- through years Single act Maastricht 1997 Amsterdam 1999 Euro 2000…... Enlargem. EU RTD FRAMEWORK PROGRAMMES FP 1 ( ) FP 2 (87-91) FP 3 (90-94) FP 4 (94-98) FP 5 (98-02) FP 6 (02-06)