1. Innovation a key driver for competitiveness of Europe (including the Chemical Industry) Delivering the High Level Group results in the regions April 16, 2009 Ústí nad Labem Gernot Klotz Executive Director Research & Innovation gkl@cefic.be

2. 2 What’s at stake?

3. 3 The structural shifts represent a great challenge for Europe and its industry Balance manufacturing and service society Economic crisis and the need for change Demographic trends: ageing population Sustainable Development Impact from Climate Change Energy efficiency and security EU Governance/EU Enlargement Global Competition/Export region Balanced social models

4. 4 4 Sustainability has become a catalyst for innovation We have reached a Tipping Point Expectations are increasing Demanding not only safe, effective and affordable, but also sustainable Questioning everything Leveraging core competencies Delivering innovative solutions through new materials, consumer products, active ingredients for pharmaceuticals & crop protection, production technologies etc. Integrated approach across value chain and within Europe are a must!

5. 5 5 …in fact, we are a key part of the solution to achieving sustainability “The chemical sector in Europe is vitally important as a provider of chemical solutions and as a key player in our search for Sustainable Development”..” First report on Research, Innovation and Human Resources, European Union High Level Group (2007)

6. 6 “Innovation is a shy beast” System optimisation instead of discussion in silos Innovative process and tools Innovative Partnerships Outside factors Innovation Vision and Strategy Innovation and competitiveness Innovation organisation Policies Regulations Public debate Competition among Member States Financials

7. 7 Lots of good will, but where is direction and cohesion? EIT Lead Markets SET-Plan ERA Action Plans on Sustainable Consumption and Production and on Sustainable Industrial Policy Competitiveness Poles (France) Poles of Excellence (Belgium) Centres for Science, Technology & Innovation (Finland) High-tech strategy (Germany) Innovation Action Plan (Denmark) Center for open Innovation (NL) Regional Innovation Poles (Greece) Action Plan for Innovation in Enterprises (Italy) Strategy for sustainable urban development 6th environment action plan environment & health action plan KTN (UK)

8. 8 Consequences!

9. 9 ResearchDevelopmentPre - Marketing Innovation success =Competitiveness Time to market Investment in new approaches (higher risk) FP7 + MS Research funding Research clusters Creating new ideas Chemical industry of value Shortage of skills Innovation is investment EU patchwork of policies & regulations Value chain cooperation (demonstration) Intensity of policy actions Focused longer term strategic directions for industry - HLG* recommendations to accelerate innovation in the EU-  Translate research ideas into solutions  Reduce time to market  Balance technology with societal needs  Improve consumer & investor confidence *High Level Group on the Competitiveness of the Chemical Industry in EU Consumer & investor confidence recognised deficit

10. 10 Recommendation: Strengthen Innovation Networks Industry + Academia + EU + MS + NGO Improve process for demonstration “lighthouse projects” Set up full chain topical networks for strategic innovations Industry + EU + MS + StH Projects started: Biomass4Five, cooperation with Water platform; manufacturing 2020 WHO Continue cooperation with interested partners like ECRN: support recommendations for best practise Improve quality of innovation clusters Extended SusChem Industry + MS + EU ECRN + Industry + Academia + MS + StH Report of SusChem experience; learnings especially important in economic crisis Annual update of Implementation action plan; complementary approaches throughout Europe; add innovation element Why Who What

11. 11 Recommendation: Increase quantity and effectiveness of research and development Value chain concept to support innovation Sustainable chemistry Industry + MS + Academia + EU + NGO interpretation and metrics as guidance for innovation Industry + EU + MS strengthen ETP cooperation; pre-competitive consortia; PPP & economic recovery plan WhyWhoWhat

12. 12 Industry + MS + Academia + EU Forecast of skills need for innovation by industry Concept to forecast needs New profiles for profession, attract best brains Industry attract 12- 18 yrs old to innovation, Solutions & the sector Recommendation: Developing our human resources Why Who What

13. 13 Recommendation: Improve information and communication Criteria to measure impact on innovation Improve outreach to SMEs Industry + EU IPR and innovation – shorten time to market Industry + MS + ECRN Industry + Academia + EU + ECRN Improve CEFIC network WhyWhoWhat Impact assessments to include impact on innovation Identify best practice in PPP and promote in industry, academia and EU

14. 14  Kicked off by Cefic / EuropaBio / EU Commission – end 2004 SusChem : strategy update March 2005 Nov 2005 Dec 2006 Vision Strategic Research Agenda Implementation Action Plan 2009 Drive towards Innovation Update RSA / IAP

15. 15 SusChem Objectives Boost sustainable chemistry innovation in Europe Focus on societal needs, contribute to sustainable development Strengthen competitiveness of chemical industry in Europe based on technology leadership Improve EU economic and regulatory conditions to foster chemical/biotech innovation Engage the best researchers

16. 16 SusChem beyond Brussels Visualizing the importance of chemistry and industrial biotechnology in Europe Positive impact on individual European countries: various national (partner) platforms already exist Czech RepublicUK FranceNetherlands – in progress Germany Italy Poland Romania Slovenia Spain Belgium – in progress Others are encouraged to follow

17. 17 SusChem Objectives Boost sustainable chemistry research in Europe Focus on societal needs, contribute to sustainable development Strengthen competitiveness of chemical industry in Europe based on technology leadership Improve EU economic and regulatory conditions to inspire chemical/biotech innovation Engage the best researchers Task III Add business through innovation element to SusChem Task II Management of complex SusChem network Task I Ensure & improve input into EU + MS Research agenda

18. 18 Prioritized Topics for collaboration 1.Demonstration ) of best practices of integrated Water Management systems, for water footprint of 2020 : - by geographic specific situation ( inland, sea, etc ) - industry and municipal integrations - possible co-industry integration ( example: biotech ) 2. Process efficiency: Water use, energy, bio-based chemistry Water use: cooling/heating Energy: energy demand of water related processes Bio-based chemistry: bio-energy production 3. Safe water supply for consumers- New Materials and Process technologies

19. 19 Solutions Enabling technologies Nanotechnology Process technology System integration Catalysis Economics (shortage of fossil raw materials) Ecology (climate change) Politics (import dependence) Challenges The Energy Challenge Energy sources Energy storage Energy conversion Energy conservation

20. 20 Materials priorities for 2009-10: „Energy efficiency cluster“ Batteries –strategic importance for Europe, strong impact on energy sector and automotive industry. Strong research, weak commercialization in Europe (USA: A123) –material developments (electrodes/separators/electrolytes) –integration into stationary and mobile energy storage systems Organic electronics & photovoltaics –key topics shared by and SusChem (e.g. RFID, backplanes) –OPV: consider nano-interface phenomena and organic-inorganic hybrids Efficient lighting –not only OLEDs, but different technologies to produce light (e.g. LEDs, lasers) New topic alert - Self-assembled / smart surfaces: opportunistic (take strong research to innovations) –Materials for corrosion prevention: strategic importance.

21. 21 5 take home messages to ensure EU competitiveness & welfare through innovation Chemical Industry identified ways to contribute to Sustainable Development and consider partnership with other actors as essential Innovation is not only new technologies but also mindset (political, public, industry) Innovation is an investment which requires longer term vision and leadership as well as a guiding framework Research excellence and infrastructure must be complemented by innovation support tools to reach sustainable solutions The “EU Innovation system” must significantly improve in areas of complementarity (between regions, MS, EU) & optimized timelines

22. 22 CEFIC Research & Innovation publications www.cefic.org

23. 23 1 Take home message 5 + 1 The Chemical Industry stresses: The need for us all to implement the recommendations of the High Level Group through concrete actions in cooperation To include in the EU Competitiveness Council Conclusions (May 28/29 2009 ) on HLG’s text along the lines of : - Commission, Member States and Industry to implement the conclusions of the HLG - Commission to establish an action plan with a roadmap and concrete deliverables - Commission to monitor the development first report by end 2010 in close consultation with stakeholders

24. 24 Sustainable Innovation ?