University-Business Co-operation: Innovation: EIT Co-Location Centre model

Wojciech GREGA KIC InnoEnergy, CC Poland Plus

Meeting of the Directors General of Higher Education, Dublin 22nd–23rd April 2013

Tomasz Barszcz, EC Systems Sp. z o.o.

Krakow

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

EIT is as an integral part of Horizon 2020

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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

business/innovation

higher education

researchConcept: … by integrating higher education, research and innovation, and buissnes development of the highest standards (the knowledge triangle)

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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

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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)

EIT operations – KICs’

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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)

25%

75%

EIT

Financial model

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Smart Citie

sSm

art Grids

Clean Coal

Chemical Fuels

Renewables

Convergence

Nuclear - R

enew

KIC InnoEnergy structure and basic facts

KIC InnoEnergy is a commercial company, with 29 founding shareholders, incorporated as SE, with head quarters in The Netherlands.

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 .

Entrepreneurship

Generic master

MSc thematic masters

PHDSchool

LearningModules

Business creation

Services

Idea exploration

Technology transfer

EducationInnovation

Skills

Practice

NeedsMarketKnowledge Technical

relevance

Consortium

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KIC InnoEnergy in operation

Copyright © 2013 KIC InnoEnergy

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

Industry involvements

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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

11Copyright © 2013 KIC InnoEnergy

KIC InnoEnergy proposition for industry

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

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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

•

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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.

EIT labelled:

• mobilityEntrepreneurship

• hands on (intern)

• business case

• market orientation

• mobility

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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-offs13Copyright © 2013 KIC InnoEnergy

KIC InnoEnergy proposition for HEI Public Private Partnership (PPP): Industry becomes a founding

member of the collaborative environment.

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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.

:

KIC value proposition for industry

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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

www.kic-innoenergy.com/achievements

KIC InnoEnergy: achievements after 30 months

Copyright © 2013 KIC InnoEnergy

KIC InnoEnergy business model in Education

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MEANS

Top Universities

Industry in all the value chain

Top Business Schools

€ SUSTAINABILITYOff-setting tuition costs

MOOC/LM

Reinvesting all revenues

USP

1. Quality of HE institutions

2. Program contents3. Mobility

4. Double degreeCUSTOMERS

Bachelors

Engineers

Mid Career professionals

MOOC Customers

A PREMIUM PRODUCTMsc School (7 programs)

PhD SchoolExecutive Programs

LLL/LMMOOC

OUTPUT“CxO” of energy companies

Top researchers

Example of KIC operation model: CC Poland Plus

KIC/

CCPP

Partner

Partner

Partner

Partner

Partner Partner

Partner

External entities(mostly techno

parks)

Only BCS

Current implementation process of KIC strategy (CC Poland Plus)

1. Ideas generally come from partners network. Partners organize themselves in consortia

2. On BCS capture, ideas are identified by KIC

3. KIC by selection criteria or by education improves business side of the proposals

Partner (from

other CC)

Partner

Idea(inno/bcs)

4. The consortia are implementing a project with business oriented goals

17KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał MrówkaCopyright © 2013 KIC InnoEnergy

KIC/

CCPP

Partner

Partner

Partner

Partner

Partner

Techno parks,CTT

New approach to of KIC strategy implementation (CC Poland Plus)

Partner (from

other CC)Partner

Industry

Public and regional agenties

Universities&Research Inst.

Natural persons

All external actors

1. KIC InnoEnergy actively searches for new external (and internal) ideas/opportunities

3. KIC InnoEnergy joins idea owners with industrial and capital partners (based on resource need for implementation)

4. Partners will provide resources and implement a project.

2. KIC by selection criteria or by education improves business side of the proposals

Business&Capital

partners

SMEs Idea(inno/bcs)

18KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał MrówkaCopyright © 2013 KIC InnoEnergy

Example of KIC operation model: CC Poland Plus

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KIC InnoEnergy | Supervisory Board 24Nov2010| Speaker: DP

Case study: EC Systems experience with KIC InnoEnergy

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 …

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

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)

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

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

Focus on common part

End usercompany

Spin offcompany

Academia

Consulting

New technology

development

Waste of money

Business as usual

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

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

Main milestones to achieve

M1 9 months Embedded prototype (HW&SW) V1

M2 18 monthsEvaluation on the KAStrion test benchLocal GUI and data transfer software

completed

M324

monthsEvaluation on 2 onshore wind turbines

M425

monthsGoTo Market

M530

monthsEvaluation over 6-month onshore tests

M636

monthsEvaluation over 6-month offshore tests

Final Version of KAStrion

KAStrion: 36 months

• 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 TotalMaster Students 0 1 2 0 0 1 0 4Phd students 0 0 1.5 0.5 0 1 0 3

Year 1 Year 1&2 Total

EIT requested 545 698 € 1 337 139 € 1 882 837 €Own resources 1 566 310 € 3 717 724 € 5 284 034 €TOTAL 2 112 008 € 5 054 863 € 7 166 871 €EIT funding rate 25,8% 26,5% 26,3%

Partners setup

EC Systemsdevelopment, sales

CETIMtesting

GRAVITinnovation support

Grenoble - INPdevelopment

INPTdevelopment

CNRSdevelopment

MARKET

VALEMOuser

MECALuser

Cash flow Products, services

Products, services

Cash flow

dissemination, promotion

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

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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

Conclusions

KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka 32

Thank you for your attention!

KIC InnoEnergy is funded by:

wojciech.grega@kic-innoenergy

More to know http://www.kic-innoenergy.com