Security
Industrial policy +
Horizon 2020
Secure Societies
• Khoen Liem
•
Policy and Research in security
DG Enterprise and Industry
Helsinki, 25 March 2014i 2013
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Content
 Industry policy for security sector
 FP7 - achievements
 Horizon - 2020
 "Secure society"
 (Outlook for 1st SEC call H-2020)
 Pre Commercial Procurement
 European Council December 2013
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Industrial Policy - Background
• The Commission announced a policy initiative
for the EU security industry in the EU 2020
flagship initiative "An Industrial Policy for the
Globalisation Era Putting Competitiveness and
Sustainability at Centre Stage". COM(2010) 614
• This lead to the dedicated Communication
"Security Industrial Policy - Action Plan for an
innovative and competitive Security Industry"
COM(2012) 417
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Communication on the Security
Industrial Policy – COM(2012)417
Action Plan for an innovative and competitive
Security Industry
Objectives:
1. Overcoming the fragmentation of the EU
security market
2. Reducing the gap from research to market
3. Better integration of the societal dimension
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1. Overcoming market fragmentation
• Standardisation
• Certification/ conformity assessment procedures
• Synergies between security and defence
technologies ("Dual-Use research")
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2. Reducing the gap from research to market
• Aligning funding programmes, exploiting IPR
routes
• Pre-commercial procurement (PCP)
• Access to international procurement markets
• Third party liability limitation
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3. Better integration of the societal dimension
• Societal impact: “checking” during the R&D phase
• Privacy by design and privacy by default during
the design phase
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Security research &
the 7th Framework
Programme (FP7)
•FP7-Security (2007-2013):
 1,400 Mio EUR (20% to SMEs)
 More than 250 projects and 2,500 participants
• EU funding: more than 40% of total European funding
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The new "Horizon–2020"
• Aim: securing Europe's global
competitiveness by investing in
science and innovation
• Budget: €79 000 million
• Duration: 2014-2020
What has changed in H-2020?
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Strong challenge-based approach
Focus on societal challenges facing EU society
Simplified list of possible actions
Mainstreaming of cross-cutting issues
Coupling research to innovation: from research to
retail, all forms of innovation
• Participation is easier:
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easier access
easier applications
less reporting
shorter time to grant
quicker payments
fewer audits
H-2020 Key pillars
 Supporting Europe's excellent
science base
 Building industrial
leadership in Europe
 Tackling societal challenges
for a better society
 Secure societies
Security: a societal challenge
It concerns the protection of citizens, society and economy
as well as Europe's assets, infrastructures and services, its
prosperity, political stability and well-being.
Any malfunction or disruption, intentional or accidental,
can have a detrimental impact with high associated
economic or societal costs.
Secure Societies: does industry matter?
The security industry is one of the sectors with highest
potential for growth and employment in the EU. In 2011, the
sector employed 180,000 people, with an annual turnover of
approximately €30 billion.
•Overcoming market fragmentation through EU-wide
standards
•Reducing the gap from research to market by introducing
new funding schemes such as Pre-Commercial
Procurement
•Better integration of societal considerations by thoroughly
assessing the impact of security technologies on
fundamental rights
Security Research
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Maintains its mission driven character
Supports EU internal and external security policies
Supports the EU industry to be competitive
Strengthens the involvement of the end-users
Takes more into account the Societal Dimension
Includes Cyber-Security
Security Research
Lisbon Treaty
• Maintains its mission driven character
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Supports EU internal and external security policies
Supports the EU industry to be competitive
Strengthens the involvement of the end-users
Takes more into account the Societal Dimension
Includes Cyber-Security
Security Research
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Maintains its mission driven character
Supports EU internal and external security policies
Supports the EU industry to be competitive
Strengthens the involvement of the end-users
Takes more into account the Societal Dimension
Includes Cyber-Security
European Cyber
Security Strategy
Strong link to EU policy initiatives
- The EU Internal Security Strategy in Action,
COM(2010)673
- Towards a stronger European disaster response: the role of civil
protection and humanitarian assistance, COM(2010)600
- The EU Action Plan on combating terrorism
- The Security Industry Policy Action Plan
COM (2012) 417
- Cybersecurity Strategy of the European Union: An Open, Safe and
Secure Cyberspace JOIN(2013) 1 final
- Flagship Initiative 'Digital Agenda for Europe'
- The EU Strategy towards the Eradication of Trafficking in Human
Beings 2012–2016, COM(2012) 286
- European Programme for Critical Infrastructure Protection (EPCIP),
COM(2006)786
- Civilian Headline Goal 2008
- EU Maritime Security Strategy……(2014)
Stakeholder involvement
Security is an issue that can only be tackled effectively if all
stakeholders cooperate. Representatives of the public and
private sector need to work together across borders. The
Work Programme is addressed to:
- private companies
- industrial corporations
- institutional stakeholders
- civil society organisations
Features
 Strengthened coordination with relevant EUAgencies: FRONTEX, EUROPOL, ENISA, EMSA, euLISA etc.
 Closer coordination with the activities of EDA
 Pre-Commercial Procurement (PCP) instrument
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Structure of the Secure Societies
Work Programme
• Disaster Resilient Societies
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– ENTR (+ R&I)
Crisis management and civil protection, critical infrastructure protection
• Fight against Crime and Terrorism
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Forensics, law enforcement capabilities, ethical/societal dimension
• Border Security
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- ENTR
Border crossing points, information management, supply chain security
• Digital Security
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- ENTR
– CNCT (+ ENTR)
Privacy, access control, trust eServices, Secure information sharing
Time line
Call open: 25 March 2014
Call closed: 28 Aug 2014
Info on outcome of Evaluation:
end October 2014
Signature of Grant Agreements:
starting early 2015
Website: http://ec.europa.eu/research/participants/portal/desktop/en/home.html
Pre-Commercial Procurement (PCP)
In “Security Industrial Policy-Action Plan for an innovative and
competitive Security Industry” (COM(2012) 417 final) it is written :
“Pre-commercial procurement (PCP) is a very useful tool in bridging the
gap from research to market…..in particular in domains, where there is an
institutional market or a market largely driven by legislation, given that
public procurement of innovative products and services is vital for
improving the quality and efficiency of public services at a time of budget
constraints.
Eventually, PCP should enable public users to play a more central role in
the innovation cycle through the purchase of novel technologies.
Procurers should act as "agents of change".
The Commission intends to devote a significant part of the Secure
Societies budget in Horizon 2020 on this instrument.
Pre-Commercial Procurement (PCP)
PCP: using public-sector demand to drive
development of innovative solutions from
Europe’s research and private sectors.
It is an additional tool that can be used to
bridge the gap between research and
market.
PCP should enable public users to play a
more central role in the innovation cycle
through th purchase of novel technologies.
Pre-Commercial Procurement (PCP)
When?
Challenge requires R&D to get new solutions introduced. Problem
clear, but pros/cons of several potential competing solutions not
evaluated/validated yet. PCP: No commitment to deploy yet (PPI).
What?
Public sector contracts R&D to steer development of solutions to its
needs, gather info about pros/cons of alternative solutions to be
better informed to make specs for a possible PPI follow-up, to avoid
supplier lock-in situation (create competitive supply base)
How?
Public sector buys R&D from several suppliers in parallel (comparing
alternative solution approaches), in form of competition evaluating
progress after critical milestones (design, prototyping, test phase),
risks & benefits of R&D (e.g. IPRs) shared with suppliers to maximise
incentives for wide commercialisation
PPI - Public Procurement of Innovative Solutions
When?
Challenge requires solution which is almost on the market or already
on the market in small quantity but not meeting public sector
requirements for large scale deployment yet. No R&D involved
(already done, or not needed)
What?
Public sector acts as launching customer / early adopter / first buyer
for innovative products and services that are newly arriving on the
market (not widely commercially available yet)
How?
Public sector acts as facilitator establishing a buyers group with
critical mass that triggers industry to scale up its production chain to
bring products on the market with desired quality / price ratio within
a specific time. After potentially a test / certification / labelling, the
buyers group buys a significant volume of solutions.
PCP to steer the development of solutions towards concrete public
sector needs, whilst comparing alternative solution approaches from
various vendors
PPI to act as launching customer / first buyer of innovative commercial
end-solutions newly arriving on the market
Applied R&D / Pre-commercial Procurement (PCP)
Phase 0
Curiosity
Driven
Research
Phase 1
Solution design
Phase 2
Prototype
development
Supplier A
Supplier B
Supplier B
Supplier C
Supplier C
Supplier D
Supplier D
Phase 3
Original development
of limited volume
of first test products /
services
Supplier B
Supplier D
Public Procurement of
Innovative Solutions (PPI)
Phase 4
Deployment of commercial
volumes of end-products
Wide diffusion of newly
developed solutions
Supplier(s)
A,B,C,D
and/or X
Also normally multiple sourcing
here to keep competition going
Objectives:
– Price/quality products that better fit public sector needs
– Earlier customer feedback for companies developing solutions
– Better take-up/Wider commercialisation of R&D results
International Dimension
• All topics are open to international cooperation
• Some topics explicitly encourage international
cooperation:
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"In line with the EU's strategy for international cooperation in
research and innovation international cooperation is
encouraged, and in particular with international research
partners involved in on-going discussions and workshops, and
US homeland security research entities. Funding for third
countries is however still subject to the evaluations."
• Eligibility for funding: see Art. 10.2 of the Rules for
Participation
Conclusions of the European Council (19-20/12)
First thematic debate on defence since the entry into force of the
Lisbon Treaty.
Highlighted the importance of an effective Common Security and
Defence Policy (CSDP).
Recognised that financial constraints and fragmented defence
markets limit military capabilities and jeopardise the stability and
competitiveness of Europe's defence and security industry.
A number of priority actions were identified:
- Increasing the effectiveness, visibility and impact of CSDP
- Enhancing the development of capabilities
- Strengthening Europe's defence industry
European Council – Research & Dual-use
"To ensure the long-term competitiveness of the European defence
industry and secure the modern capabilities needed, it is essential to
retain defence Research & Technology (R&T) expertise, especially in
critical defence technologies."
-Civil and defence research reinforce each other
-Further dual-use research is encouraged
-Synergies between national and EU research should be maximised
-A Preparatory Action on CDSP-related research will be set up
…..….thank you
• Khoen Liem
• European Commission
• DG Enterprise and Industry
• ENTR-SECURITY-RESEARCH-INDUSTRY@ec.europa.eu
• http://ec.europa.eu/enterprise/policies/security/index_en.htm
(you can also find me in 'LinkedIn' - khoen.liem@gmail.com)
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