1. University-Business Co-operation: Innovation: EIT Co-Location Centre model
Wojciech GREGA
KIC InnoEnergy,
CC Poland Plus
Tomasz Barszcz,
EC Systems Sp. z o.o.
Krakow
Meeting of the Directors General of Higher Education, Dublin 22nd–23rd April 2013

2. Agenda: EIT overview and objectives KIC model
KIC InnoEnergy in operation
KIC InnoEnergy: propositions for industry
KIC InnoEnergy: propositions for HEI
Example of KIC operation: CC Poland Plus
Case study: SME experience with KIC InnoEnergy

3. EIT is as an integral part of Horizon 2020

4. The European Institute of Innovation and Technology (EIT)
Mission: To contribute to sustainable European economic growth by reinforcing the innovation capacity of the Member States and the EU
higher education
business/ innovation
Concept: … by integrating higher education, research and innovation, and buissnes development of the highest standards (the knowledge triangle)
research

5. EIT – objectives new business creation through innovation
the transfer of higher education, research and innovation activities in a business context
support of innovation-driven research in strategic areas
development of talented, skilled and entrepreneurial people through education and training activities

6. The EIT designated its three first KICs in December 2009:
EIT operations – KICs’
The EIT designated its three first KICs in December 2009:
sustainable energy (KIC InnoEnergy)
climate change adaptation and mitigation (ClimateKIC)
future information and communication society (EIT ICT Labs)

7. Main characteristics of KICs:
high degree of integration (each KIC is a legal entity)
long-term strategic approach (each KIC is set up for a minimum of 7 years)
high degree of commitment of partners (EIT funding to KICs is 25% over time, the rest must be co-funding - from other sources)
the collocation model (each KIC consists of cluster-like nodes with a clear geographic location)
clear deliverables (each KIC sets up a business plan with measurable deliverables)

8. KIC InnoEnergy structure and basic facts
Partners are regionally mapped in six collocation centres (CC) across Europe, and are either Formal, Associated or Network, depending on their contribution to the industrial plan, and resulting in different participation in the equity in the different legal structures .
Smart Cities
Smart Grids
Clean Coal
Chemical Fuels
Renewables
Convergence
Nuclear - Renew
KIC InnoEnergy is a commercial company, with 29 founding shareholders, incorporated as SE, with head quarters in The Netherlands. 8 8

9. Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy in operation
Innovation
Education
Practice
Generic
master
MSc
thematic
masters
PHD
School
Learning
Modules
Skills
Market
Knowledge
Needs
Technical
relevance
Consortium
Entrepreneurship
Business
creation
Services
Idea
exploration
Technology
transfer
Copyright © 2013 KIC InnoEnergy

10. Industry involvements
Industry presence in partnership: (from 14 in 2010 to 55 in 2011 to 95 in 2012) 10 10 10

11. Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy proposition for industry
What does industry get from Education?
The talents adapted to their needs
Manpower for industry based project
Life-Long Learning
What does industry get from Innovation projects?
New product and services for their own Business Processes
A bit of financial complementarity
A trusted network, with the best university partners
What does industry get from Business Creation?
Early adopters of new technology
Support for internal spin-offs
Investment possibilities
What does industry get from such a governance?
Long term commitment => If no 7 years, then no industry
Stability in the network
Governance rules close to theirs own
Copyright © 2013 KIC InnoEnergy 11 11 11 11

12. Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy proposition for HEI
Public Private Partnership (PPP): Industry becomes a founding member of the collaborative environment. The only way to compete against other “world” powers.
What does HEI get from Education?
New type of education in the energy field, mobilising the innovative and entrepreneurial spirit of the students.
The novel approach proposed and high level of industry involvement are attracting the talents (MSc: 3-4 candidates/ 1 place)
Industry involvement in education as a a chain: programs designs, promotion, thesis proposed by industry, internships, transition to the labour market
Financial complementarities
A trusted network, with the best European universities and industrial partners
mobilityEntrepreneurship
EIT labelled:
hands on (intern)
business case
market orientation
mobility
Copyright © 2013 KIC InnoEnergy 12 12 12 12

13. Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy proposition for HEI
Public Private Partnership (PPP): Industry becomes a founding member of the collaborative environment.
What does HEI get from Innovation projects?
Complementing projects supported by other instruments (ETP, Regional, National Funds , DG R&D, DG ENER)- including
financial complementarity
Shorter time to market
A trusted network, with the best industrial partners
What does HEI get from Business Creation?
Improvement of business side of the proposals
KIC InnoEnergy joins idea owners with industrial and capital partners
Early adopters of new technology
Support for internal spin-offs
Copyright © 2013 KIC InnoEnergy 13 13 13 13

14. Copyright © 2013 KIC InnoEnergy
KIC value proposition for industry
KIC InnoEnergy can be seen as USP (Unique Selling Proposition)
The only existing “one stop shop” where you can find such an ambitious portfolio of activities requiring collaborative innovation, delivered by the best actors of the knowledge triangle, in a commercial joint vehicle that is run as a business. :
Copyright © 2013 KIC InnoEnergy 14 14 14

15. Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy: achievements after 30 months
370 students in our 120 ECTS Masters
84 engineers in our PhD School
49 professionals in our Exec. programs
20 patents filled (1/1M€; 1/67M€ in FP7)
26 new technology products & services
51 ventures bring up in our Highway
Copyright © 2013 KIC InnoEnergy 15 15 15

16. KIC InnoEnergy business model in Education
€ SUSTAINABILITY
Off-setting tuition costs
MOOC/LM
Reinvesting all revenues
USP
1. Quality of HE institutions
2. Program contents
3. Mobility
4. Double degree
OUTPUT
“CxO” of energy companies
Top researchers
A PREMIUM PRODUCT
Msc School (7 programs)
PhD School
Executive Programs
LLL/LM
MOOC
CUSTOMERS
Bachelors
Engineers
Mid Career professionals
MOOC Customers
MEANS
Top Universities
Industry in all the value chain
Top Business Schools
Copyright © 2013 KIC InnoEnergy

17. Copyright © 2013 KIC InnoEnergy
Example of KIC operation model:
CC Poland Plus
Current implementation process of KIC strategy (CC Poland Plus)
Partner (from other CC)
Partner
1. Ideas generally come from partners network. Partners organize themselves in consortia
Partner
Partner
Partner
Idea
(inno/bcs)
2. On BCS capture, ideas are identified by KIC
KIC/
CCPP
Partner
Partner
3. KIC by selection criteria or by education improves business side of the proposals
Only BCS
Partner
Partner
4. The consortia are implementing a project with business oriented goals
External entities
(mostly techno parks)
Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka 17

18. Example of KIC operation model: CC Poland Plus
New approach to of KIC strategy implementation (CC Poland Plus)
All external actors
Partner (from other CC)
Natural persons
Partner
1. KIC InnoEnergy actively searches for new external (and internal) ideas/opportunities
Partner
Universities&
Research Inst.
2. KIC by selection criteria or by education improves business side of the proposals
Partner
Public and regional agenties
KIC/
CCPP
Partner
Industry
3. KIC InnoEnergy joins idea owners with industrial and capital partners (based on resource need for implementation)
Business&
Capital partners
Idea
(inno/bcs)
Partner
SMEs
4. Partners will provide resources and implement
a project.
Partner
Techno parks,CTT
Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka 18

19. KIC InnoEnergy | Supervisory Board 24Nov2010| Speaker: DP
Case study: EC Systems experience with KIC InnoEnergy
KIC InnoEnergy | Supervisory Board 24Nov2010| Speaker: DP

20. Who we are? Engineering company from Kraków, Poland
Systems for industrial customers
Embedded systems
Software (from firmware to advanced analysis)
70% sales to foreign markets (DE, CH, DK, FR)
Key industries: power generation (conventional, gas, wind), automotive, railway, oil & gas, printing, food, …
Staff: 50 people, mostly HW, SW specialists
We bridge the gap …

21. Why bridging the „Valley of death”?
Despite a large number of Research & Development projects, only a fraction turns into successful products. The especially important gap spans between a laboratory test as a result of a university project and heavy duty proven product launch
Happy developers in a lab is only a start…
… it needs a lot of time and money to make their system work in a demanding environment

22. Valley of Death
Valley of Death is the time when the government funding has finished, but there is no reliable product which can be offered to customers
In most cases it is a period between TRL 4 and TRL 7
Required investment is so high, that skeletons of many projects are left here
TRL: Technology Readiness Level (1…9)

23. How to bridge the gap?
The problem is researched by European and US agencies
Solution requires balanced partnership between government, academia and industry
Key element are motivated people, oriented on the market success
Most people say, that we simply need more money, but it is only partially true
Insufficient funding in critical TRL levels will kill the project
Too much money too early will cause waste of money
Proper decisions are based on the risk/ reward profile for a given case

24. Understand each other Academia Are „mad scientists” type
Prototype driven
Learn by doing
Say „What if”?
Nurture infant technology
Ask: „Can it be done”?
Fill the funnel: create new options
Objective: UNDERSTANDING
Industry
Are boring and no sense of humor
Requirements driven
„Do it right the first time”
Say „Prove it”
Kill the weak and move on
Decide: „Should we do it”?
Narrow the funnel: increase focus
Objective: DELIVERY

25. Focus on common part End user company Spin off company Academia
Business
as usual
End user
company
Spin off
company
New technology
development
Consulting
Waste of money
Academia

26. Wind turbines condition monitoring
Wind turbines are istalled over the world
Key element to profitability is proper maintenance
The biggest problem is failure of the gearbox
It can cost >500k€ and several months to replace
The exact knowledge about the current technical condition is necessary, but it is very hard due to varying operating conditions

27. Disruptive innovations vs. competitors
Advanced signal processing
Automatic data validation of non-stationary signals
Automatic peak detection and classification
Polyphase current analysis
Failure detection by integrating the system kinematic
Reliability: monitoring of the machine wear based
on statistical model
Automatic comprehensive report
Offline surveillance for more advanced and complete
diagnosis and to accelerate the learning curve using wind turbine expert knowhow
No predefined thresholds
Spectrum structure: no bandwidth selection
Independent of a database
Vibration & polyphase current
Reliability models
« One click » approach

28. Main milestones to achieve
9 months
Embedded prototype (HW&SW) V1 M2
18 months
Evaluation on the KAStrion test bench
Local GUI and data transfer software completed M3
24 months
Evaluation on 2 onshore wind turbines M4
25 months
GoTo Market M5
30 months
Evaluation over 6-month onshore tests M6
36 months
Evaluation over 6-month offshore tests
Final Version of KAStrion
KAStrion: 36 months
Year 1
Year 1&2
Total
EIT requested € € €
Own resources € € €
TOTAL € € €
EIT funding rate
25,8%
26,5%
26,3%
Students from French Universities
(G-INP, UTT) and Polish University (AGH Krakow)
3 PhD Grants requested to KIC
1 PHD Grant requested to G-INP
4 student masters requested to KIC
1 post-doctoral researcher requested to CNRS
KIC requested
WP1
WP2
WP3
WP4
WP5
WP6
WP7
Total
Master Students 1 2 4
Phd students
1.5
0.5 3

29. Partners setup EC Systems CETIM GRAVIT Grenoble - INP INPT CNRS MARKET
development, sales
CETIM
testing
GRAVIT
innovation support
Grenoble - INP
development
INPT
CNRS
MARKET
VALEMO
user
MECAL
Cash flow
Products, services
dissemination, promotion

30. Experience with KIC InnoEnergy
Pros:
Very much bussiness oriented, better than FP7
Simple application process
Quick feedback from KIC staff
Pro-active approach, helping attitude
Professional reviews from KIC experts
Cons:
Still in start-up phase, thus rules were changing in the beginning
Reporting not as easy as initially assumed
Participate in future profits

31. A company run as a company
Conclusions
KIC InnoEnergy
A new Innovation engine, impact oriented
Fully aligned with the SET plan (The European Strategic Energy Technology Plan)
Integrating Education, Research and Business
Demonstrating high efficiency of investment
Generally, positively assessed by the industrial partners
A company run as a company 31 31

32. More to know http://www.kic-innoenergy.com
3232
Thank you for your attention!
KIC InnoEnergy is funded by:
More to know
KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka 32 32