THE EUROPEAN
INSTITUTE OF
INNOVATION &
TECHNOLOGY (EIT)
DRIVING INNOVATION THROUGH
ECOSYSTEMS THAT FOSTER
ENTREPRENEURSHIP
Alexander von Gabain
Chairman of the EIT Governing Board
19. February, 2014
University of Warwick
SOCIETAL CHALLENGE: CLIMATE
CHANGE
Retreat of
Pasterze
Glacier
Austria
© Sammlung Gesellschaft für ökologische Forschung/ Wolfgang
Zängl
INNOVATION MAY COME TO RESCUE, BUT
DO WE UNDERSTAND ITS NATURE?
Discovery:
Finding out something
not yet known
Invention:
creating or designing
something not existing
before
Translation:
processing discoveries
and/or invention into
innovation
Innovation:
making changes with
societal impact based on
discoveries and/or
invention
Excellent science are research are necessary yet not sufficient
ingredients for innovation
Academia, innovation & industry:
traditional model (Francis Bacon; 1561 – 1626)
LINEAR TECHNOLOGY EVOLUTION
Academic
research
Basic
research
Applied
research &
technologies
Added
value
Academia, innovation & industry:
the Californian model (Adam Smith; 1723 –
1790)
BRANCHED TECHNOLOGY EVOLUTION MODEL
Old
technology
(industry)
New
technology
(industry)
Acad.
research
Added
value
NEW PARADIGMS IN INNOVATION:
FROM SINGLE GENIUSES TO COMPLEX NETWORKS
•
•
•
•
•
Go for the best individuals
Make sure they understand the master plan
Make sure they form a strong team
Create respect for the involved competence areas
Complement strength/weakness profiles of the team members
Source: Science,
Vol. 308,
p. 640
TODAY INNOVATION IS COMPLEX, TAKES
TIME, NEEDS INVESTMENTS AND IS RISKY
Example: development of new pharmaceuticals
Research
Likelihood of
success
(percent)
Cost
(m US$)
Clinical development
Development
Phase
(pre-clinical) Phase I
Phase II
III
1st year 1 - 2 year
3 - 4 year
Submission
of license
5
10
10 - 20
20 - 50
50 - 90
90 - 95
99
10 - 40
20 - 225
20 - 200
50 - 175
100 125
10 - 15
5 - 10
$ 215 1.000
Time
(years)
Product
licensing
4-6
1-2
4-6
1
MANY PROPOSALS & SMART IDEAS THAT
COULD HELP TO IMPROVE INNOVATION
Communication cross
disciplines is key: Creative
Ideas are children of solitude,
yet are rarely conceived in
isolation
G Schatz, Former President of the
Swiss Reserch Council
Science, 2011
Fund early stage ventures
Support innovative companies
Invest into Education
Celebrate entrepreneurs
F Brown, Dean of Insead
J-P Courtois, President of
Microsoft , The Wall Street
integrateJournal, 2009
How to
all them?
Innovation is
fostered best in
Multicultural,
Interdisciplinary &
Game-changing Environment
M Schuurmans; Founding Chair
of he EIR, at the Semmering
Symposium 2011
Scientists must be taught
to manage
J. Seliger, Ass. Prof,
Nature 2012
EUROPE‘S UNLOCKED POTENTIALS TO
SUPPORT WORLD-CLASS INNOVATION
• High level of education & solid academic base
• Historical power houses of research & science
• Increasing number of centres of excellence
• Impressive corporations and SMEs
• Long tradition of product development
• Growing European interactions between national R&D
players
RISK CAPITAL AND ENTREPRENEURS:
THE YING YANG TWINS OF INNOVATION
European VC Investment continues to lag the US
Share of GDP
Nesta,
Research
Report
2011
THE SMOKING GUN; AGE DISTRIBUTION OF
INNOVATIVE COMPANIES
New firms set-up
in the last 25
years
US: approx. 21%
EU: approx. 2%
Bruegel policy brief 2009 Reinhilde Veugelers
ENTREPRENEURSHIP AS DRIVER OF
INNOVATION
OUR HORIZON NEEDS TO BE RESHAPED
Joseph Schumpeter:
“The entrepreneur drives economy by combining assets (including
technologies) in new ways, creating new opportunities, new markets,
new economic values and effectively new demand and supply curves
The aforementioned entrepreneurs succeeds by combining technologies
eventually even developed by others, capital accumulated by others,
equipment manufactured by other businesses and the eagerness of
million of people as consumers seeking to improves their lives
HOW TO ENCOURAGE THE GROWTH OF
YOUNG VENTURES IN EUROPE?
Europe has a history
of brilliant
entrepreneurs but
data suggest we
need an
‘entrepreneurial
renaissance’
to strengthen our
ability to compete
globally
THE CORE OF INNOVATION IS THE
KNOWLEDGE TRIANGLE
Business
ENTREPRENEURIALLY
DRIVEN
INNOVATION
Higher
Education
Research &
Technology
Actors within the knowledge triangle are at the core of the
innovation web beyond the traditional collaborative R&D
consortia
RESUME:
HOW TO STEP UP INNOVATION IN EUROPE
Seed trans-European ecosystems where
research, business and education come
together on topics of societal challenges:
•
to build interconnected knowledge hubs,
•
to breed entre- and entrepreneurs and,
•
to create trust of venture capital and other
investors
EUROPEAN INSTITUTE OF
INNOVATION & TECHNOLOGY (EIT)
• EIT was set up in 2008 to unlock the European innovation
landscape through a new agenda at EU level.
• EIT is the first initiative of the EU bringing together the three
sides of the knowledge triangle.
• With the entrepreneur in the driver’s seat to form the necessary
links between higher education, business and research.
Higher
Education
Research &
technology
Industry
& SMEs
THE EIT STRATEGY
Place ownership,
accountability &
entrepreneurship into
the centre of innovation
Overcome the silo
mentality of the
players within and
between Member States
Create innovative
ecosystems with global
impact,
targeting societal
challenges
Seed-fund & catalyse
the integration of
the innovation triangle
EUROPEAN INSTITUTE OF
INNOVATION & TECHNOLOGY (EIT)
The EIT’s mission is
To increase European
sustainable growth
and competitiveness
To create the
entrepreneurs of tomorrow
and prepare for the next
innovative break-throughs
To reinforce the innovation
capacity of the EU and its
Member States
To become the catalyst for
a step change in the
European Union’s innovation
capacity and impact
EUROPEAN INSTITUTE OF
INNOVATION & TECHNOLOGY (EIT)
The EIT’s aim is to approach innovation differently in Europe with
emphasis on people
From lab to
market
by integrating the three sides of the knowledge triangle in areas of
high societal need
THE EIT’s “INNOVATION FACTORIES”
Knowledge and Innovation Communities (KICs)
• highly integrated, creative and excellence-driven
autonomous long-term partnerships
• internationally distributed but thematically convergent
partners
• driven by societal challenges and fostering the
emergence of entrepreneurs
20
THE KIC MODEL (1/2)
• High degree of integration: each KIC is an independent legal
entity, gathering world-class KIC partners from the knowledge
triangle based on a contractual relationship/partnership with the
EIT.
• Long-term strategic approach: each KIC is set up for a
minimum of 7 years to eventually become self sustainable.
• Sufficient
autonomy
and
flexibility:
to
determine
organisational structure and activities governed by a Board of KIC
partner organisations.
• Effective governance: run by a CEO and a lean management
team at central and co-location level.
THE KIC MODEL (2/2)
• Smart funding & high degree of commitment of partners:
EIT funding to KICs is max. 25% of their total budget over time
with 75% to be attracted from other sources, both public and
private.
• The co-location model: each KIC consists of 5-6 world class
innovation hotspots building and leveraging on existing European
capacities.
• Results & high impact oriented activities: KICs implement a
Business Plan with measurable deliverables, results and impact.
• Culture: KICs are shaped by strong entrepreneurial mindsets and
cultures.
• Financial Sustainability: out of own income sources
HOW DO THE KICS WORK IN
PRACTICE?
23
THE FIRST 3 KICs
Designated in December 2009 by the EIT Governing Board with their
governance and management set up in 2010
KICs’ INTERCONNECTED
ECOSYSTEMS THROUGH CLCs
•
Climate-KIC:
Co-location Centre
RIC (Regional Implementation and
Innovation Centre)
•
EIT ICT Labs:
Co-location Centre
Associate Partner
•
KIC InnoEnergy
Co-location Centre
EXAMPLE: CLIMATE-KIC
• Mission: to accelerate significantly the innovation required for a
transformation to a low-carbon economy, and to ensure Europe
benefits from new technologies, company growth and jobs
• Thematic Focus Area: assessing climate change and managing its
drivers, transitioning to resilient, low-carbon cities, advancing
adaptive water management and developing zero carbon production
systems
• Governance: CEO - Mary Ritter, Chairman - John Schellnhuber
• Partners inc. Bayer, EDF, GDF Suez, DSM, Schipol Airport ETH
Zurich, Imperial College London, Potsdam Institute for Climate
Impact
Research
PIK,
Technische
Universität
Berlin,
Forschungszentrum Jülich GmbH, l’Institut national de la recherche
agronomique INRA, Delft University of Technology & Utrecht
University,…
Sheltered innovation at Climate KIC:
Partnership with Sainsbury
• Sainsbury’s
– Reduced carbon footprint of stores
– Carbon neutral products at low prices
– Want innovators to work with them and their
suppliers, e.g. farmers (sheltered innovation)
– Offer stores as a test bed
– Host student masters and PhD projects
• Large cascade effect via suppliers
• Model for other businesses
KIC PARTNERS: 2010-2013
80
70
In 2013, the three KIC brought together over 350 partners
68
60
60
50
40
32
30
35
30
30
25
24
19
17
20
9
10
3
0
Climate-KIC
Business
EIT ICT Labs
Higher Education
Research
KIC InnoEnergy
Cities & Regions
EIT FUNDING: 2010-2013
Leverage impact and sources of
funding
KIC ACHIEVEMENTS SINCE THEIR
IMPLEMENATION IN 2010
• 17 innovation hotspots spread across Europe
• More than 350 partners from business, higher education and
research and other relevant institutions
• Approx. 300 million € EIT investment into the existing three
KICs with more than 1.1 billion € leveraged from external
sources
• KICs have recruited more than 1000 students into about 20
specific educational programmes integrating interdisciplinary
innovation and entrepreneurship
• Approx. 90 innovation projects initiated by the KICs, 108 startup companies, 400 business ideas incubated.
EIT INNOVATION - AN INTEGRATED
APPROACH TOWARDS SUCCESFUL KICs
IMPACT
SUSTAINABILTY
HIGH QUALITY
JOBS
COMPETITIVENESS
SOLUTION TO
SOCIETAL
CHALLENGES
PRODUCTS
SERVICES
& FINANCIAL
SUSTAINABILITY
ENTRE & INTRAPRENEURS,
VCs, PRIVATE INVESTMENT,
PROMOTION, MARKETS &
CUSTOMERS
PARTNERS, TALENTS,
NETWORKS, EDUCATION,
MINDSET CHANGE, NOVEL
CONCEPTS & PLATFORMS
MILESTONES TO DATE
December
2009: 1st 3
KICs
designated
September
2008: 1st
meeting of
the EIT GB
2011-2012:
Consolidation of
EIT and KIC
activities
April 2010: EIT
Headquarters
open in
Budapest
April 2009:
1st Call for
KICs launched
March 2008: EIT set
up by Council and EP
2013: EIT
budget of 2.7
billion € for 20142020 to be
adopted
THE FUTURE OF THE EIT WITH 2.7 BILLIONS OF
INVESTMENT FROM 2014 UNTIL 2020
 Consolidate the current KICs and set up 5 further KICs
 Together with the KICs create ecosystems
•
that attract private investors and public funds (e.g.: EIB and EDB)
•
that become accepted and interconnected by/with the global
innovation arena
•
that become financially self sustainable in the long term
 EIT to become a hub providing knowledge to all stakeholders
within the innovation knowledge triangle
THE FUTURE KIC CALL - WHY?
To enhance impact and incentivise innovation in new areas of societal
challenges, the EIT will gradually expand its portfolio of KICs.
EIT 2014 – 2020
= 3 KICs + 5 new KICs
= EUR 2.7 bn
THE FUTURE KIC CALL
Themes for future KICs
2014
Healthy Living
& Active
Ageing
2016
2018
Added-Value
Manufacturing
Urban
Mobility
Raw Materials
Food
KIC SELECTION PROCESS – INDICATIVE
ROADMAP
DEC
2013
MID JAN
2014
14 FEB
2014
14 MARCH
2014
SEP
2014
DEC
2014
• After H2020 adoption
• Selection Criteria for KICs
• Framework of Guidance
• EIT Financial Rules
• EIT Principles for financing, monitoring and evaluating KIC activities
• Publication of the 2014 Call for KICs
• Information Day for applicants in Budapest
• Close of the 2014 call for KICs (at least 6 months after launch of the call)
• Designation of new KICs by EIT GB
36
KIC SELECTION PROCESS – WHAT CHANGES
FROM 2009?
Compared to the 2009 Call, there will be a
particular focus on:
• Economic and social impact
• The business model and financial plan
• Demonstrating commitment, including financial
commitment
• Strong and diverse partnership
KIC SELECTION PROCESS
• One single call in 2014 for Healthy living and active
ageing and Raw materials
• Same eligibility and selection criteria for all thematic
fields
• One proposal from each of the thematic fields will be
designated by EIT GB
• Simplified selection
numerous)
criteria
(more
specific,
• Overarching principles: excellence and innovation
less
RECOMMENDATIONS FOR INNOVATION FROM
THE EARLY LEARNING OF THE EIT AND KICS
• Focus
• Restrict investment to seed only
• Overcome silo mentality
• Intregrate all players
• Change mindset through light towers
• Create ownership and accountibility
• Establish corporate governance structures
• Allow failing and encourage restart
• Participate players at all levels and outside of the streamline
• Outreach globally
“RISKING MONEY ON TECHNOLOGY, SCIENTISTS AND
HUMAN BEINGS IS THE KEY OF SUCCEEDING IN
INNOVATION”
Moshe Alafi, seed
investor in Cetus,
Biogen, Applied
Biosystem, Qiagen
& Amgen
http://www.youtube.com/watch?v=VnGS4YcQNAg