EU Innovation Investments: The Challenges met by Innovation Infrastructures Today in Europe

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1 EU Innovation Investments: The Challenges met by Innovation Infrastructures Today in Europe Ronan Burgess Acting Head of Unit A1 Photonics Directorate A - Components and Systems DG CONNECT, European Commission 1

2 Digital innovations: What is at stake? Where does Europe stand? What to do about it? 2

3 Three dimensions of digital value creation "Digital inside": Innovations in products (all types) ~40 % AV growth ~50% ~40% ~80% Digital transformations of processes Radical/disruptive changes in business models Products ICT sector Services The trend Products ICT sector Services 3

4 Digital value chains across all sectors Critical Value chains ~40% of Added Value ~40% of Added Value ICTdevices Electronics, photonics ~40% of Added Value ~50% of Added value

5 IoT CPS, sensors, connectivity, low power, Cloud, HPC servers, Big data Analytics, storage, HPC,.. Innovation Digital in products, Transformation processes and business models AI Robotics, automation, machine learning 3D printing Additive manufacturing, laser based,.. 5

6 Demand Supply 6

7 Digital innovations: What is at stake? Where does Europe stand? What to do about it? 7

8 Professional and vertical markets (products and services) World class R&D hubs Good infrastructure Size of EU market (~27% of world ICT market) Consumer markets: Internet, web, On-line platforms, data Structural weaknesses: No DSM yet, reducing R&D investment 8

9 Slowness and disparities in adopting digital solutions across industries and regions Mainly SMEs and non tech sectors lagging behind Less than 2% of SMEs use advanced digital technologies New competition from non-eu internet/web industry e.g. Operating Systems, Web and Data platform owners Fragmented landscape of standards and lack of interoperable solutions Need for digital skills and re-skilling of work force Legislative and regulatory gaps 9

10 Digital innovations: What is at stake? Where does Europe stand? What to do about it? 10

11 A true Digital Single Market Proposed in May 2015 Key issues for industry e.g.: free flow of data, standardisation, security World class digital infrastructure: Telecom infrastructure: CEF +DSM + ESIF Cloud and data infrastructure: HPC and Science Cloud initiative Easy access to finance: European Fund For Strategic Investments (EFSI) (>300 B ) European Structural and Investment Funds (ESIF), Horizon 2020 National and regional programmes 11

12 For any industry in Europe (SMEs, non-tech, etc.) From vertical markets to mainstream Prioritisation, Reference implementations, test, benchmarks Eliminate barriers for digitisation Upskilling and rethinking the workplace 12

13 Access to digital technologies and expertise within "working distance" for any industry in Europe, especially SMEs, midcaps, non-tech A "Digital Innovation Hub" in every region based on: World class specialised competence centre able to provide industry with access to knowledge, technology development means and testing facilities honest broker between users, suppliers, investors,... Collaboration and networking between centres, ensuring a one-stop-shop for expertise, complementarity & specialisation Public sector sharing risk with industry in innovation

14 Establish/reinforce competence centres At least one per region Implement other relevant activities if needed (access to finance,.. Collaborate with digital innovation hubs of other regions to fill gaps and facilitate specialisation and excellence Support pan-european networking of Digital Innovation Hubs Share best practices, success stories, training Co-finance experimentation, Develop catalogue of Hubs, etc Promote use of EU and other funds (ESIF, EFSI) Engage with competence centres, help set priorities,.. Co-invest in risk taking and innovation projects in the hubs 14

15 Up to 500 M from H2020, extrapolating from current levels An additional 300 M from revision of MFF for Cloud and HPC Up to 5 B of investments National budgets, ESIF and EFSI Matching public funds Up to 5 B of co-investment in innovations More than 5 times more for investment in manufacturing DRAFT 15

16 under the Factories of the Future Building on, and expanding successful actions Status (EU support so far): ~150 M ( ) 14 projects 80 centres 400 experiments ~75 M in 2015 (in contracting phase) 16 Smart Anything Everywhere under Components & Systems

17 European leadership in key technology bricks and open digital platforms for industry Building on strengths in vertical markets, develop Europe's presence in cross sector platforms (IoT, Data, web, consumer,..) 17

18 Standardisation Set priorities for standards in Europe 6 priority areas IoT, big data, cybersecurity, cloud, 5G, digitisation of industry Accelerate standardisation processes in Europe Ensure International spread of EU standards Connect standardisation to R&D&I 18

19 Smart regulation for smart industry 19

20 Preparing the human capital for the digital change Member States and Regions to play the key role, EU to act as a facilitator Expanding Grand Coalition for jobs towards skills for digital transformation Using digital innovation hubs for skills development More attention to skills in R&I programmes Social dialogue on the impact of digitisation on work 20

21 THANK YOU Digitsing European Industry 21

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