University-Business Co-operation:
Innovation: EIT Co-Location Centre model
Wojciech GREGA
KIC InnoEnergy,
CC Poland Plus
Tomasz Barszcz,
EC Systems Sp. z o.o.
Krakow
Meeting of the Directors
General of Higher Education,
Dublin 22nd–23rd April 2013
Agenda:
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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
Concept: … by
higher
education
business/
innovation
research
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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EIT operations – KICs’
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)
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Main characteristics of KICs:
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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%
EIT
Other
75%
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Financial model
KIC InnoEnergy structure and basic facts
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 .
KIC InnoEnergy is a commercial company, with 29 founding
shareholders, incorporated as SE, with head quarters in The
Netherlands.
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KIC InnoEnergy in operation
Innovation
Education
Practice
Generic
master
PHD
MSc
School
thematic
Learning
Modules
masters
Skills
Entrepreneurship
Market
Knowledge
Technical
relevance
Consortium
Business
creation
Idea
exploration
Needs
Technology
transfer
Services
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Copyright © 2013 KIC InnoEnergy
Industry involvements
Industry presence in partnership: (from 14 in 2010 to 55 in 2011 to 95 in 2012)
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KIC InnoEnergy proposition for industry
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
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
Copyright © 2013 KIC InnoEnergy
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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.
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
Copyright © 2013 KIC InnoEnergy
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KIC InnoEnergy proposition for HEI
Public Private Partnership (PPP):
Industry becomes a founding
member of the collaborative environment.
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-offs
Copyright © 2013 KIC InnoEnergy
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KIC value proposition for industry
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.
:
Copyright © 2013 KIC InnoEnergy
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KIC InnoEnergy: achievements after 30 months
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
Copyright © 2013 KIC InnoEnergy
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KIC InnoEnergy business model in Education
A PREMIUM PRODUCT
OUTPUT
Msc School (7 programs)
PhD School
Executive Programs
LLL/LM
MOOC
“CxO” of energy companies
CUSTOMERS
Bachelors
USP
1. Quality of HE
institutions
2. Program contents
3. Mobility
4. Double degree
Top researchers
€ SUSTAINABILITY
Off-setting tuition costs
Engineers
MOOC/LM
Mid Career professionals
MOOC Customers
Reinvesting all revenues
MEANS
Top Universities
Industry in all the value chain
Top Business Schools
Copyright © 2013 KIC InnoEnergy
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Example of KIC operation model:
CC Poland Plus
Current implementation process of KIC
strategy (CC Poland Plus)
Partner (from
Partner
1. Ideas generally come from
partners network. Partners
organize themselves in consortia
Partner
Partner
Partner
Idea
(inno/bcs)
2. On BCS capture, ideas are
identified by KIC
KIC/
Partner
CCPP
Partner
3. KIC by selection criteria or
by education improves
business side of the proposals
other CC)
Only
BCS
Partner
Partner
4. The consortia are
implementing a project with
business oriented goals
Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka
External entities
(mostly techno
parks)
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Example of KIC operation model:
CC Poland Plus
New approach to of KIC strategy
implementation (CC Poland Plus)
All external actors
Partner (from
Partner
1. KIC InnoEnergy actively searches
for new external (and internal)
ideas/opportunities
2. KIC by selection criteria or by
education improves business side of
the proposals
Partner
Universities&
Research Inst.
Partner
Public and
regional agenties
KIC/
3. KIC InnoEnergy joins idea owners Partner
with industrial and capital partners
(based on resource need for
implementation)
4. Partners will provide
resources and implement
a project.
Natural
persons
other CC)
CCPP
Business&
Capital
partners
Industry
SMEs Idea
Partner
(inno/bcs)
Partner
Copyright © 2013 KIC InnoEnergy
KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka
Techno
parks,CTT
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Case study: EC Systems
experience with KIC InnoEnergy
KIC InnoEnergy | Supervisory Board 24Nov2010| Speaker:
DP
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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
Industry
• Are „mad scientists” type
• Are boring and no sense of humor
• Prototype driven
• Requirements driven
• Learn by doing
• „Do it right the first time”
• Say „What if”?
• Say „Prove it”
• Nurture infant technology
• Kill the weak and move on
• Ask: „Can it be done”?
• Decide: „Should we do it”?
• Fill the funnel: create new options
• Narrow the funnel: increase focus
• Objective: UNDERSTANDING
• Objective: DELIVERY
Focus on common part
End user
company
Business
as usual
Spin off
company
New
technology
development
Consulting
Waste of money
Academia
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
• No predefined thresholds
• Failure detection by integrating the system kinematic
• Spectrum structure: no
bandwidth selection
• Reliability: monitoring of the machine wear based
on statistical model
• Independent of a database
• Automatic comprehensive report
• Reliability models
• Vibration & polyphase current
• « One click » approach
• Offline surveillance for more advanced and complete
diagnosis and to accelerate the learning curve using wind
turbine expert knowhow
Main milestones to achieve
M1
9 months
Embedded prototype (HW&SW) V1
M2
18 months
Evaluation on the KAStrion test bench
Local GUI and data transfer software completed
M3
24 months
Evaluation on 2 onshore wind turbines
M4
25 months
GoTo Market
M5
30 months
Evaluation over 6-month onshore tests
M6
36 months
Evaluation over 6-month offshore tests
Final Version of KAStrion
KAStrion: 36 months
Year 1
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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
EIT requested
Own resources
TOTAL
EIT funding rate
KIC requested
Master Students
Phd students
Year 1&2
545 698 €
1 566 310 €
2 112 008 €
25,8%
WP1
0
0
WP2
1
0
1 337 139 €
3 717 724 €
5 054 863 €
26,5%
Total
1 882 837 €
5 284 034 €
7 166 871 €
26,3%
WP3 WP4 WP5 WP6 WP7 Total
2
0
0
1
0
4
1.5
0.5
0
1
0
3
Partners setup
VALEMO
user
MARKET
MECAL
user
dissemination, promotion
Cash flow
Products,
services
GRAVIT
EC Systems
CETIM
innovation support
development, sales
testing
Cash flow
Products,
services
CNRS
Grenoble - INP
INPT
development
development
development
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
Conclusions
KIC InnoEnergy
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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
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Thank you for your attention!
KIC InnoEnergy is funded by:
More to know http://www.kic-innoenergy.com
wojciech.grega@kic-innoenergy
KIC InnoEnergy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka
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