WORKSHOP ON EUROPEAN INDUSTRIAL

LEADERSHI IN ICT

Report from Workshopon 29 June 2011

Prof. Dr. Lutz HeuserVice-Chair of ISTAG

CTO AGT Group, CEO AGT Germany

Brussels, 4 July 2011

Content

1. Methodology

2. Recommendations from ISTAG

3. Recommendations from HLG KET

4. Selected Facts & Figures

5. Common message of ISTAG and HLG KET

6. Conclusions from the Discussions

Methodology

p Presentation and discussion:n 10 Recommendations from ISTAGn Report from the High Level Group (HLG) on Key

Enabling Technologies (KETs)

p Focused discussions in five blocks of questions:1. How to best address R&D&I on generic ICT versus

application-driven ICT? What are the links to societal challenges?

2. How to best cover the full innovation cycle, from frontier research, to industrial research, to innovation activities?

3. What are the new research challenges to be addressed and the impact to be targeted? Are there any "negative" priorities which should not be addressed anymore at European level?

4. What funding schemes and instruments are the most relevant ones for implementation, e.g. PPPs, open schemes?

5. EU versus Member States priorities - what are the best means for co-ordination (e.g. joint programming)?

1

Recommendations from ISTAG (I)

1. Strengthen Europe‘s competitiveness by investment in ICT as an enabling technology – keep ICT as a free standing area in the CSF with sufficient budget allocation

2. Aim at global leadership in Social Innovation and create a 'Balanced Progress' framework

3. Enlarge the stakeholder community as new, non-conventional actors become increasingly important

4. Focus on Europe’s strategic strength to manage complex systems and environments

5. Ensure the dependability of ICT with next generation of infrastructures

2

Recommendations from ISTAG (II)

6. Unleash the potential of a more rigorous end-to-end supply chain in R&D & innovation in ICT by bridging the gap between pre-competitive R&D and products

7. Create open fast-track schemes for innovation acceleration, amplification, and detection

8. Continue and strengthen the Future and Emerging Technologies (FET) scheme with new initiatives

9. Develop common EU-wide services and platforms in cross-border, co-funded initiatives and partnerships, and re-think the set-up of schemes involving Member State funds

10.Embrace ambiguity and unpredictability and enable a dynamic agenda

2

Recommendations from HLG about KET

1. Make KET to a technology priority for Europe definition 2. EU should apply the TRL scale R&D 3. Fully exploit the scope of relevant R&D definitions 4. Rebalancing of EU RDI funding programmes5. Strategic approach of KET programmes6. Establish an appropriate set of rules tom implement KET programs 8. EU shall adapt state aid provisions to facilitate RDI and investments in KET9. Globally competitive IP policy in Europe 10. Build, strengthen and retain KETs skills

3

7

Europe

Japan

13%

15%

42%

China/Taiwan

12%

First Solar

18%

% PV cell production share in 2009

29%

27%

42%

Asia2%

Photonics Patent Share

Others

%

Europe = 77 % of global

market

Source: Photon International Mars 2010, European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW)« JP Morgan, PV News, Oliver Wyman Analysis”

Source: High Level Group on Key Enabling Technologies

Selected Facts & Figures: Disconnection between patents share and manufacturing in PV Cell roduction

Ø Patents, Papers and Proposals are not enoughØ Turn invention into innovation: market success

4

Source : Yole, DOE manufacturing roadmap, Strategies Unlimited, Morgan Stanley

Materials Chips Com-ponents

Systems and luminaires

Market size 2009 $0,07B $0,23B $0,65B $1,97B

The LED value chain

CAGR 2009-2015 +55% +58% +59% +70%

+1000 new MOCVD reactors

installed in 2010-2012

• LED cities will have atleast 21 cities install a minimum of 10,000 LED streetlights each

• Guangdong Province (China): $90 Million budget to subsidize 30% of LED street lamp cost

2’’ equivalentper month

capacity X10Q4 2009 : 140,000

Q4 2011 : 1,465,000

Governmental

IncentivesUp to 50% of the costof a MOCVD

reactor

?

« …some Chineseprograms seem to

exist to copy western equipments.»

“… MOCVD equipment for LED production is almost monopolized by German AIXTRON and American

VEECO”

But until

when?

Services

Equipments$1B

DemandSide

Measures

Source: High Level Group on Key Enabling Technologies

Selected Facts & Figures: China is aggressively ram-ping up the value chain to address future system markets

4

Common message of ISTAG and HLG KET

Ways towards sustainable competitiveness in ICT

• Manufacturing• Deployment in EU-

wide services and platforms

• Joint pre-commercial procurement of complete systems to address societal challenges

Source: High Level Group on Key Enabling Technologies

Ø End-to-End value chain from R&D & innovation in ICT needed

+ Services + Systems

5

Conclusion from the discussion (I)

pEuropean Leadership in ICT is important both for industrial strength in the global market and for the support of solutions to societal challenges

pEurope‘s competitiveness must be strengthened by sufficient investment in ICT as an enabling technology, supported as a free standing area in the next EU framework

pResearch & Innovation (R&D&I) must see generic ICT and application-driven ICT as start and end of one process

n ICT research and innovation must include both horizontal (generic) and vertical (application-driven) activities: They are not orthogonal, but rather complement/enable/drive each other

6

Conclusion from the discussion (II)

p Covering the Full Innovation Cycle

n Establish powerful industrial policy and demand-side measures such as pre-commercial procurements and revise IP regimes to foster a successful innovation cycle

n Bridge the gap between pre-competitive R&D and products, including also support to e.g. customer pilots and pilot lines for fabrication

n Make the entire process short, simple and commensurate with the type of innovation

n Smoothen the transition between the different phases of the R&D&I cycle, and avoid compartmentalization of roles/actors

n Make access to these instruments attractive for SMEs

6

Conclusion from the discussion (III)

p Research & Innovation Challenges

n Aim at global leadership in 'Social Innovation', as the social dimension of technical innovation becomes increasingly visible and important; involve new, non-conventional actors

n Ensure strong support to communications & computing, systems & components, content & semantics, dependability, usability & utility

n Leverage European strengths, such as the capability of management and evolution of very complex systems

n Continue and strengthen the Future and Emerging Technologies (FET) scheme with new initiatives

6

Conclusion from the discussion (IV)

p Funding Schemes & Instruments

n Covering the Full Innovation CycleDevelop common EU-wide services and platforms in cross-border, co-funded initiatives and partnerships that require matching funds from the Member States

n Create open, fast-track and dynamic schemes for innovation detection, amplification, and acceleration

n PPPs are excellent set-ups for road-map based initiatives - for co-funding schemes that require matching funds from the Member States, improvements in implementation must be found to create efficient cross-border collaboration

6

Thank you