4th industrial revolution - EBN congress 2016

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Transcript of 4th industrial revolution - EBN congress 2016

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Public Innovation Support

EUREKA in ERA

Pedro de SAMPAIO NUNES, Head of EUREKA Secretariat

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Although strong in science…

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ERA has 33% of scientific publications worldwide, US 24%, China 22% and Japan 8%

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• The rationale for the creation of EUREKA, was the acute feeling that, if the European Countries did not pool together their support for technology and innovation, the gap with the US would widen significantly.

• 30 years later, this prospect has become a reality. The US is leading in technology and innovation and the gap has never been wider. The pooling of Europe’s resources has so far been insufficient, as have the structural reforms designed to enable better innovation.

Europe is lagging behind in technology…

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In GDP, employment creation and companies valuation,

the US outperformed the EU

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Is public innovation support driving disruption?

World’s largest taxi company owns no taxis (Uber)

Largest accommodation provider owns no real-estate (AirBnB)

World’s most valuable retailer has no inventory (AliBaba)

Most popular media owner creates no content (Facebook)

World’s largest movie house owns no cinemas (Netflix)

Largest software vendors don’t write the apps (Apple & Google)

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Unicorns in 2016

European Unicorns

Cumulative value of the Unicorns ($bn)

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The US uses strong State support to innovation…

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Origins of the Apple iPod and iPhone

Source: Mariana Mazzucato, The Entrepreneurial State: Debunking Public vs. Private Sector Myths , p.109

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Public support for European R&D&I – 3 Pillars!

Community Intergovernmental National

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Public funding R&D&I

Where is Europe’s money for R&D&I?

EUREKAEurostars-2

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A very complex EU innovation support landscape

SMEs Mid-caps Larger Business

Collaborative

FTI Pilot

HORIZON 2020 ALL ALONG THE INNOVATION CYCLE

TRL 1 to 6 TRL 6 to 9

EIT KICs

Startup Europe

University / RTO

PPPs

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European R&D Instruments / TRL

1 2 3 4 5 6 7 8 9

12345678910

>10

FET

Societal ChallengesIndustrial

Leadership(RIA)

Societal ChallengesIndustrial

Leadership(IA)

RISE

SME Instrument

FTI

EUREKAEurostars

TRL

Part

ners

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EUREKA brings together the best innovators

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The joint GDP of EUREKA countries represents 34% of the world total, against 24% for the EU, 22% for the US, 12% for China and 6% for Japan.

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Openness to the world: Going global

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G20

Access to the world = Access to a large market

EUREKA members have 34% of the world GDP, EU 24%, US 22% and China 12%

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Ready for Industry 3.0 - Revolution or hype?

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Global manufacturing output

Shares of global manufacturing output

Source: UN National Accounts Main Aggregates Database

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Global manufacturing initiatives

“Those who are the leaders in the digital domain will take the lead in industrial production”

Providing and open Smart Manufacturing Platform to support real-time, high-value applications.

Transform China from a manufacturing giant into a world manufacturing power Improving manufacturing innovation, integrating IT and OT and promoting service-oriented manufacturing.

Enabling the French industrial sector for the next industrial revolution. Assist companies in their transformations towards a world where digital is closing the gap between industry

and services.

Technology and innovation centres work as gateways to access the best manufacturing talent and facilities.

INNOVATION IN MANUFACTURING 3.0 – KOREA

Bringing innovation to the manufacturing process in Korea, expanding the use of smart factories.

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Mapping the value

HUGE potential economic impact: 70% in B2B Factories

Economic impact of IoT applications could be from $3.9 trillion to $11.1 trillion per year in 2025

Business-to-Business applications to generate nearly 70% of potential value enabled by IoT and the 4th Industrial Revolution

Source: McKinsey Global Institute: The Internet of Things: Mapping the Value Beyond the Hype from $3.9 trillion to $11.1 trillion per year in 2025

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Advantages for SMEs

Keep production in Europe

Increases successful competitiveness

European leadership on world markets

Increases employment and growth

Speeds up production setup process

Knowledge-based high-tech approach

Reduces complexity

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Challenges for SMEs

Flexible organisational structures

Optimise framework conditions and support structures

New skills needed

Boost interdisciplinary thinking

Long-term commitment

Interdisciplinary collaboration

Single industry solution – wide spread impact

This is a revolution and not a smooth change

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Steps ahead

Explore unique industry requirements. Collaborate with Industry and Technology players to identify business

priorities and challenges. Identify opportunities for innovation and growth. Determine where best to deliver business process and technology

improvements and innovation. Develop a road map and partnership model. Leverage productivity and innovation improvements to accelerate

measurable business outcomes supporting the strategy

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EUREKA investment in Industry 4.0

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EUREKA Industry 4.0 projects – Market Areas

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EUREKA Industry 4.0 participation

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Some EUREKA Industry 4.0 projects

About the project

The goal is to instrument the factory objects with intelligent wireless sensors and transform them into smart networked objects, which detect and self-protect from failures. The focus business case is on rapid prototyping & low-volume production in injection molding. The PHOENIX system is a kit with several wireless sensors (pluggable to molds or machinery) and a base gateway connecting to the factory server/ERP system. The algorithms for damage detection are embedded on the sensors themselves

Germany, Romania, Netherlands€1.54 M

E! 9356 PHOENIXTowards the Resilient Factory:

Cyber-Physical Systems for Smart Factory Objects

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About the project

The objective of the project is to develop a robot recycler for end of life vehicles. The robot system utilises advanced pre-sorting processes, artificial intelligence, machine learning and material sorting technologies for achieving unprecedented purity of sorted materials.

Finland, Netherlands€1.32 M

E! 7897 ROBERROBotic End of life

vehicle Recycler

Some EUREKA Industry 4.0 projects

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Conclusions – Role of policy makers

Policymakers need to find the right balance of regulation. Future proofed policies need to be designed. Give an international scope to innovation initiatives supported by the

government Closely cooperate and allow for input from the industry Create an environment where private and public investments in innovation are

translated into productivity, jobs, economic growth

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Conclusions

Change of mind at European level needed to become a benchmark for world-wide innovation.

Overcome the SILO mentality and create a European innovative environment

Overcome the “planning for yesterday” concept

Encourage experimental entrepreneurship

Avoid excessive or obsolete regulation which can restrict growth.

Harmonise the rules for cross border transactions to facilitate innovation and create economies of scale

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EUREKA – Innovation Across Borders

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EUREKA – Innovation Across Borders