FRAUNHOFER-GESELLSCHAFT
Institutional approach to promote innovation
Harald Egner
23rd April 2010
© Fraunhofer
 Fraunhofer Introduction
 Alignment of funding models (FhG/UK)
 Human resources
 Cooperation activities UK
© Fraunhofer
The Fraunhofer-Gesellschaft
The Fraunhofer-Gesellschaft undertakes
applied research of direct utility to private and
public enterprise and of wide benefit to society.
Our Customers:
 Industry
 Service sector
 Public administration
© Fraunhofer
Guiding Principles of the Fraunhofer-Gesellschaft
Mission
The Fraunhofer-Gesellschaft promotes and undertakes applied
research in an international context, of direct utility to private
and public enterprise and of wide benefit to society as a whole.
By developing technological innovations and novel systems
solutions for their customers, the Fraunhofer Institutes help to
reinforce the competitive strength of the economy in their
region, throughout Germany and in Europe. Their research
activities are aimed at promoting the economic development of
our industrial society, with particular regard for social welfare
and environmental compatibility.
As an employer, the Fraunhofer-Gesellschaft offers a platform
that enables its staff to develop the necessary professional
and personal skills that will enable them to assume positions
of responsibility within their Institute, in industry and in other
scientific domains.
© Fraunhofer
The Fraunhofer-Gesellschaft
in Germany
Rostock
Itzehoe
Lübeck
Bremerhaven
Bremen
Hannover
 59 Institutes
 17 000 employees
Potsdam
Braunschweig
Teltow
Magdeburg
Cottbus
Oberhausen
Dortmund
Duisburg
Schmallenberg
St. Augustin
Aachen
Euskirchen
Wachtberg
Darmstadt
St. Ingbert
Halle
Schkopau
Dresden
Jena
Chemnitz
Ilmenau
Würzburg
Kaiserslautern
Leipzig
Erlangen
Fürth
Nürnberg
Saarbrücken Karlsruhe
Pfinztal
Ettlingen
Stuttgart
Freising
Freiburg
Kandern
EfringenKirchen
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Berlin
München
Holzkirchen
Demands on a Fraunhofer Institute
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Scientific competence
proved by the recognition
of the scientific community
Well-balanced financial
mix
of different independent
sources
Market success and
entrepreneurial
competence
proved by contracts with
industry and government
Professional networking
with other Fraunhofer
Institutes and externals
The Profile of the Fraunhofer-Gesellschaft
 59 Institutes
 17 000 employees
7 Groups:
 Information and Communication Technology
 Life Sciences
 Microelectronics
 Light & Surfaces
 Production
 Materials and Components - MATERIALS
 Defense and Security
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Fraunhofer Alliances
 Adaptronics
 Optic Surfaces
 Advancer
 Photokatalysis
 Ambient Assisted
Living
 Polymer Surfaces
 Building Innovation
 Cleaning Technology
 Digital Cinema
 Simulation
 eGovernment
 Water Systems
(SysWasser)
 Traffic and
Transportation
 Energy
 Food Chain Management
 Grid Computing
 Nanotechnology
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 Additive Manufacturing
 Vision
Development of the Fraunhofer Institutes since 1949
8 GMD Institutes
60
Institutes of the
eastern German Länder
50
40
30
20
10
Contract Research with own Institutes
without own Institutes
Zentrale/P2/Stand: 02-2008
© Fraunhofer
Establishment of the “Fraunhofer Model“
08
00
95
90
85
80
75
70
65
60
55
49
0
Key Activity Contract Research
(million euros)
1 291
1 339
129 million € Other Revenues
1 164
1 068
63 million € Revenues EU-Projects
1 032
320 million € Revenues Public Projects
(Federal, German Länder)
407 million € Revenues Contract Financing
(Industry)
420 million € Institutional Funding
2005
2006
2007
2008
2009
(preliminary)
© Fraunhofer
Key Activity Contract Research
(million euros)
1 291
1 339
129 million € Other Revenues
1 164
1 068
63 million € Revenues EU-Projects
1 032
Public Project Funding
320 million € Revenues Public Projects
(Federal, German Länder)
407 million € Revenues Contract Financing
(Industry)
Contract Research (Industry revenue)
420 million € Institutional Funding
2005
© Fraunhofer
2006
2007
2008
2009
(preliminary)
Performance related
Institutional Funding
Allocation of Institutional Funding
Target Figures in 2009: 244.9 million €
Performance related
allocation criteria for
institutional funding
Institutional funding for a
Fraunhofer Institute
G3 = 10% respectively
40% of industry revenues
G1: Fixed amount
G2: Budget of Institute
G3: Percentage of industry revenues
G2 = 12% of budget
G4: Percentage of EU revenues
G1 = fixed amount 0,6 Mio €
25
© Fraunhofer
55
%
Revenue Industry
Fraunhofer Institute - Dual Institute Model
Academia,
university
(more) basic
research
Human
Resources
Academic
career
- PhD
- Lecturing
University Institute
© Fraunhofer
Contract
Research
(Industry)
Public
funded
Projects
Institutional
Funding
Fraunhofer
Institute
Rules
incentives
The German Research Landscape
*overall budget in billion euros
Characteristics of Research
Applied
Research
Fundamental
Research
Fraunhofer*
1,43
Federal/
German
Länder
Institutes
0,9
MPG*
1,442
Industry (internal
and external
expenditures)
WGL*
1,122
55,41
AiF
~ 0,25
HGF*
2,42
Universities
9,2
Funding
predominent institutional
predominant private
1
HGF
WGL
AiF
MPG
Hermann von Helmholtz-Gemeinschaft
Wissenschaftsgemeinschaft Gottfried Wilhelm Leibniz
Arbeitsgemeinschaft industrieller Forschungsvereinigungen
Max-Planck-Gesellschaft
© Fraunhofer
estimation Wissenschaftsstatistik 2008,
Stifterverband
2 2007
3 2008
Source:
Stifterverband für die Deutsche Wissenschaft, Destatis
 Fraunhofer Introduction
 Alignment of funding models (FhG/UK)
 Human resources
 Cooperation activities UK
© Fraunhofer
Technology Readiness Level
Technology
Assessment
& Proving
PreProduction
Production
Implementation
TRL
9
8
7
6
5
Pre-production
 Process optimised for capability
and rate using production standard
equipment
4
3
2
1
© Fraunhofer
Production Implementation
 Fully production capable process
qualified on full range of parts
over extended period
Technology Assessment and proving
 Process Validated in Lab using
development equipment
Alignment of Funding Models
UK Funding
Bodies
TRL / UK
EPSRC
1
2
TSB
3
4
5
6
7
8
9
Fraunhofer
Funding
Mechanism
Institutional
Funding
(3 – 5 years to
market)
© Fraunhofer
Project
Funding
(2 - 3 years to
market)
Industrial
Contracts
(industry buying
knowledge,
applications
0.5 – 1 year)
Fraunhofer Funding Model translated into TRL
money to make
knowledge
1
knowledge to
make money
2
3
4
5
6
7
8
9
Fraunhofer
Funding
Mechanism
Institutional
Funding
(3 – 5 years to
market)
© Fraunhofer
Project
Funding
(2 - 3 years to
market)
Industrial
Contracts
(industry buying
knowledge,
applications
0.5 – 1 year)
Creating competitive advantage for companies
Creating
Competitive Advantage
for Companies
TRL / UK
1
2
3
4
5
6
7
8
9
Fraunhofer
Funding
Mechanism
Short
term
solutions
Institutional
Funding
(3 – 5 years to
market)
© Fraunhofer
Value
for
Money
Project
Funding
(2 - 3 years to
market)
Industrial
Contracts
(industry buying
knowledge,
applications
0.5 – 1 year)
Delivery
Integrated Fraunhofer Model
TRL / UK
Fraunhofer
Funding
Mechanism
1
2
3
4
5
6
7
Uni
Fraunhofer Institute
Department inside institute
Working group inside department
© Fraunhofer
8
9
Development of technology area over time
TRL / UK
-2 years
1
Uni
Uni
+2 years
Uni
time
© Fraunhofer
2
3
4
5
6
7
8
9
Market driven use of institutional funding
TRL / UK
-2 years
1
2
3
4
Uni
5
6
7
8
9
Creating
performance related
institutional funding
annual effect
+2 years
time
Investing
institutional funding
in industrial needs / markets
typically 3-5 year effect
© Fraunhofer
Product Life Cycle of technology area
revenue
Turning SoA;
becoming available through
commercial providers
(companies, consultants)
Industrial
Relevance
for institute
© Fraunhofer
time
Need for Innovation/Business Continuity
revenue
time
© Fraunhofer
Summary of Fraunhofer principals
 High autonomy of institutes
 Integrated approach / responsibility TRL 2/3 to 8/9
 Performance related institutional funding inside Fraunhofer
and inside institutes
 Market driven investment of institutional funding
on business unit level  risk mitigation
 Companies buying knowledge to achieve competitive advantage
 Fraunhofer brand
 „Spring board“ to high level career in industry
© Fraunhofer
 Fraunhofer Introduction
 Alignment of funding models (FhG/UK)
 Human resources
 Cooperation activities UK
© Fraunhofer
Joseph von
Fraunhofer
Discovery of
“Fraunhofer Lines“ in
the sun spectrum
New methods of lens
processing
Head of
Royal Glass Factory
© Fraunhofer
The FraunhoferGesellschaft
Researcher
Inventor
Entrepreneur
e.g.: Innovation
Award 2004 of the
German Federal
President for Electric
Biochip Technology
e.g.: 2 patent
applications each
working day
e.g.: ~ €450 million
revenues from
industry (about 4000
contracts) p. a.
Fraunhofer-Gesellschaft Human Resources
2005
2006
2007
2008
2009
Regular Staff
8 200
8 390
8 950
9 850
11 280
of which are
limited contracts
2 780
2 990
3 480
4 230
5 220
Support Staff
4 200
4 380
4 680
5 190
5 600
12 400
12 770
13 630
15 040
16 880
Total
As at December 31 of that year, including part-time jobs
© Fraunhofer
The top employers chosen by German students
Universum Student Survey 2009
Natural Scientists
1. Max-Planck-Gesellschaft
2. Fraunhofer-Gesellschaft
3. Bayer
4. BASF
5. Roche
6. DLR
7. Novartis
8. Merck
9. Bayer Schering Pharma
10. BMW
11. Siemens
12. Boehringer Ingelheim
IT Specialists
1. Google
2. IBM
3. SAP
4. Fraunhofer-Gesellschaft
5. Microsoft
6. Apple
7. Porsche
8. Siemens
9. Audi
10. Max-Planck-Gesellschaft
11. BMW
12. Intel
Quelle: Universum Communications, Stand Mai 2009
© Fraunhofer
Engineers
1. Audi
2. Porsche
3. BMW
4. Siemens
5. Daimler
6. EADS
7. Fraunhofer-Gesellschaft
8. Robert Bosch
9. Lufthansa Technik
10. Volkswagen
11. DLR
12. ThyssenKrupp
In the employer ranking Fraunhofer comes in second
Universum Student Survey 2009
23 points
20 points
19 points
17 points
14 points
Quelle: Universum Communications, Stand Mai 2009
© Fraunhofer
„Spring board“ to high level career
 Integrated approach along TRL levels
 High throughput – opportunities for promotion
 Academic and professional career in parallel
 Market driven investment into new ideas
 Understanding needs of companies to achieve / maintain
competitive advantage
 Multidisciplinary and cross-sector approaches
 Building high quality networks
 Brand
© Fraunhofer
 Fraunhofer Introduction
 Alignment of funding models (FhG/UK)
 Human resources
 Cooperation activities UK
© Fraunhofer
Levels of Cooperation - Fraunhofer institute / UK
Cooperation level
 Joint research projects (FP7, EUREKA, bi-national)
 Joint research agenda (institute level)
 Joint research programme (DE / UK)
Institutionalised Cooperation (Centre)
 Starting as joint Research Group (3 – 5 years)
 Setting up formalised institution
 Further steps depending on success over 3-5 years
© Fraunhofer
Institutionalised Fraunhofer Cooperation
Fraunhofer DE
Academia,
university
Human
Resources
Academic
career
- PhD
UK
© Fraunhofer
Public
funded
Projects
- Lecturing
Institutional
Funding
University Institute
Institution UK
Rules, incentives
(more) basic
research
Contract
Research
(Industry)
Contract
Research
(Industry)
Public
funded
Projects
Institutional
Funding
FhI / DE
Formal Agreement
Thank you very much for your patience
harald.egner@ipa.fraunhofer.de
© Fraunhofer