1. Horizon 2020 Some reflections from a business perspective Dr Jan-Eric Sundgren Executive Vice President, Volvo Group Chairman of the Associate Group European Round Table of Industrialists

2. AB Volvo Volvo Group Brands *) 50% of the joint-venture company with Eicher Motor Limited was consolidated in the Volvo Group from August 1st 2008 UD TrucksRenault TrucksMack TrucksVolvo Trucks Mack Trucks Volvo AeroFinancial Services Mack Trucks Volvo PentaBuses Construction Equipment Eicher * 1 February, 2012 2

3. AB Volvo Informal forum bringing together 50 CEOs and chairmen of major multinational companies of European parentage Companies of ERT Members are widely situated across Europe, with sales to EU customers exceeding Euro 1 000 billion, thereby sustaining around 6.6 million jobs in the region 1 February, 2012 3

4. AB Volvo ERT Vision for a Competitive Europe in 2025 ERT launched vision for a competitive Europe in 2025 on 2 nd February 2010. The 5 elements of this Vision are: A global champion of sustainable growth Well-embedded and respected in global markets Unleashing innovative power People, education and culture drive productivity The model of decisive, reliable and transparent governance www.EuropeOnTrack.eu 1 February, 2012 4

5. AB Volvo 2010 ‘ The next Framework Programme for Research must reinforce the EU’s innovation capacity’ 1 February, 2012 5

6. AB Volvo 15 recommendations Strengthen focus on those Grand Challenges where the EU can create or maintain a leadership position while boosting sustainable economic growth. Greater prioritisation is recommended with the aim to further increase industrial and societal relevance. Encourage the transformation of research into innovation by increasing industrial relevance of EU research programmes and strengthening the focus on all stages of the innovation chain (research, development, demonstration and deployment). Concentrate resources around fewer co-ordinated efforts. Take a holistic approach that brings together in a coherent manner all the Commission Directorates-General concerned. Mobilise more resources behind common priorities by increasing the size of individual programmes and improving their focus. Reinforce the complementarity of instruments in the EU R&D and innovation landscape, building on the potential offered by the European Research Council (ERC), the Joint Technology Initiatives (JTIs) and the European Institute for Innovation and Technology (EIT). Streamline application and approval processes by reducing the overall administrative burden. This would speed up time-to-contract and encourage greater participation of Small and Medium-Sized Enterprises (SMEs). Take a more trust-based approach that is less risk-averse. Review Intellectual Property Rights (IPR) provisions governing the knowledge sharing and transfer in collaborative research. Consistently upgrade the quality of education in Europe and boost the understanding of the role of entrepreneurship, innovation and technological progress within a knowledge economy. Strengthen the links between education, research and innovation (the knowledge triangle). Re-design Europe-wide immigration rules to attract and retain the best talent in Europe Web-enabled developer communities can make research results available as a basis for further development into a large number of different applications. Co-location of company research and university research in a single physical location is one way that can lead to the creation of centres of innovation excellence. Public procurement can be a strategic innovation driver. As first customers and early adopters, public sector entities can support the development of pre-commercial prototypes, test them in a live environment and contribute to the perfection and market uptake of their commercial applications.. 1 February, 2012 6

7. AB Volvo 2 Excerpts Strengthen focus on those Grand Challenges where the EU can create or maintain a leadership position while boosting sustainable economic growth. Greater prioritisation is recommended with the aim to further increase industrial and societal relevance. Encourage the transformation of research into innovation by increasing industrial relevance of EU research programmes and strengthening the focus on all stages of the innovation chain (research, development, demonstration and deployment).. 1 February, 2012 7

8. AB Volvo 0 20 40 60 80 100 1101001000 Creating Growth # of products Cost Competetive market Demonstration of new technology R&D to develop new technology PPP solutions An early utilization require incentives to create a market 1 February, 2012 8

9. AB Volvo Discussion points Horizon 2020 - Industrial relevance - Industrial participation - SME issues - Driver of Innovation - Excellent science and enabeling technologies - Competence base 1 February, 2012 9