Digital Innovation Hubs

Arian Zwegers

Technologies & Systems for Digitising Industry, DG CONNECT/A2, European Commission

#DigitiseEU

State of play of the DIHs policy initiative and future plans within Digital Europe Programme

• Digital Europe Programme negotiations are ongoing in the Telecom Council

• We are also discussing with the MS representatives in the working group on Digital Innovation Hubs in order to prepare the high-level governance meeting of the Platform of National Initiatives on Digitising Industry in Warsaw on 27 November

• We are preparing together a successful implementation of Digital Innovation Hubs during the period 2021-2027, not negotiating in parallel.

• What I say today is based on the proposal of the Commission. The results of the Council negotiation might imply changes.

Disclaimer

Level of digitalisationvs size of company, sector, and country

68% of companies in computer programming, consultancy and information services are highly digitised. Only around 8% of companies in construction are highly digitised.

58% of large companies is highly digitised in EU vs 18% of SMEs

Only a fifth of companies in EU-28 are highly digitised, but 40% of companies in Denmark and the Netherlands and around 12% in Bulgaria, Romania and Latvia.

Largest companiesTypically technology providers

Prof. Svenja Falk, https://ec.europa.eu/newsroom/dae/document.cfm?doc_id=54933

Digitising European Industry

Digitising European Industryhttps://ec.europa.eu/digital-single-market/en/news/digitising-european-industry-2-years-brochure

Digitising European IndustryExisting national initiatives

Analysis of National Initiatives on Digitising Industryhttps://ec.europa.eu/futurium/en/implementing-digitising-european-industry-actions/national-initiatives-digitising-industry

Digital Innovation Hubs

Digital Innovation Hubs support companies – in particular SMEs –and public organisations in their digital transformation

Digital Innovation HubsExample of an experiment

Cloud-based CFD simulation for hypercars

• CFD aerodynamics simulation needed - but in house HPC resources not affordableSolution: Cloud-based pay-per-use HPC

• Results

– 30% saving in design costs plus 50% reduction in wind tunnel and physical testing

– Development savings of €90K per year

– 30% decrease in time to market

• 250k€ Funding vs 4M€ benefit to company over 5 years using cloud-based pay-per-use HPC and simulation software

Partners:End-user SME: KOENIGSEGG – SEISV-SME: ICONCFD – UKHPC centre: CINECA – ITHPC centre: EPCC - UK

European Catalogue (yellow pages)

of Digital Innovation Hubs:

Operational Hubs + Hubs in Preparation

October 2018

• €500 million EU funding for Digital Innovation

Hubs (2016-2020)

• A pan-European network of over 200

operational Digital Innovation Hubs

• 500 Start-ups, SMEs and mid-caps tested

digital innovations in collaboration with more

than 150 Digital Innovation Hubs in 370

innovation experiments

• 13 EU countries included Digital Innovation

Hubs in national digitalisation strategies

• Coaching more than 60 potential Digital

Innovation Hubs in regions with slower adoption

of digital technologies, with focus on EU13.

Achievements since 2016

…

…

Digital Innovation Hubs in Digital Europe

Digital Innovation Hubs will diffuse digital capacities – high performance computing, artificial intelligence, cybersecurity, digital skills – across the

economy enabling the digital transformation of industry and public sectors

EU regions EU countries EU

Set-up and

reinforce regional

DIHs through local

and European

Regional

Development Funds

Support DIHs

through their

national strategies

Provide adequate

funding and

incentives

Create EU-wide

networks of DIHs

Foster access to

competences and

testing facilities not

locally available

Joint support and co-investment

Member States/Regions:

Local services

Digital Europe:

Pan-European services

Initial screening and feasibility assessments, brokering

Import services: expertise from

other DIH is imported to help a

local SME

Digital transformation services with local SMEs

Export services: Local DIH works

with other DIHs to serve SMEs in

other regions

Co-investment and cost items to be supported

Specific cost items (Digital Europe grants)

Equipment, software and tools

Human resources of the DIH to deliver services to SMEs

Matchmaking tools and events to create marketplace

Travel grants for local SMEs

Delineation with other Programmes MFF 2021 - 2027

Horizon Europe: Support to SMEs and

midcaps to experiment with highly innovative

digital technologies in a cross-border setting.

European Digital Innovation Hubs and others

may apply for these grants, and cascade a

large part of the funding to SMEs

European Regional Development Fund:

Investments allocated by the Member States to

build up or strengthen the Digital Innovation

Hub infrastructures in their territories and

reduce the digital divide. ERDF can be used by

Member States to co-invest with Digital Europe

in DIHs.

Digital Europe: Support to the facilities and

personnel of the European Digital Innovation

Hubs. They will focus on broad roll-out of

digital innovations across SMEs and

administrations.

InvestEU: Incentives and risk reduction

programmes to help companies find follow-up

investment to further complete their digital

transformation. The work of the digital

innovation hubs will diminish the knowledge

gap that exists.

Digital Europe for Digital Innovation Hubs at a glance

EU support for one DIH per region

Co-investment with Member

States

Focus on SMEs and public services

Focus on HPC, AI, Cybersecurity and Digital Skills

A strong European network of Digital Innovation Hubs

Ongoing work

• 12 October: Meeting with MS at working level to discuss

implementation of DIH in DEP

• Written contribution:

• What are you plans to reinforce Digital Innovation Hubs in the period

2021-2027? What is the level of investment foreseen, in which areas?

• Do you have any comment on the process for selection of Digital

Innovation Hubs and operations after selection?

• 27 November in Warsaw: High-level governance meeting of the

Platform of National Initiatives on digitising industry to discuss

implementation of DIH in DEP

• And of course a successful negotiation of DEP in the Telecom

Council

Further information

• Digital Innovation Hubs

https://ec.europa.eu/digital-single-market/en/digital-innovation-hubs

• Brochure on Digitising European Industry

https://ec.europa.eu/digital-single-market/en/news/digitising-european-industry-

2-years-brochure

• Catalogue of Digital Innovation Hubs

http://s3platform.jrc.ec.europa.eu/digital-innovation-hubs-tool

• Digital Europe Programme

https://ec.europa.eu/commission/publications/connecting-europe-facility-digital-

europe-and-space-programmes_en

Key Messages: DIH in Digital Europe

• DIH in DEP addresses broad adoption of “digital”

• Overall aim: 1 Digital Innovation Hub per region

• Joint selection and co-investment by EU/MS and regions

• MS/regions focus on local activities

EU focuses on EU added value

• DIH support in DEP focusses on:

• HPC, AI, Cybersecurity, Digital skills

• Industry – focus on SMEs; and Public Services

• Market failure: A large share of SMEs does not master its digital transformation

• Member States and the European Commission are both supporting Digital Innovation Hubs, but it is challenging to co-invest in a synchronised manner in the same hubs

• Through H2020 we only support highly innovative companies – the broad majority is not supported

• The existing infrastructure of DIHs is not strong enough to support the large amount of SMEs

• A fragmented coverage of DIHs across Europe

• Current business model for collaboration between DIHs is not solid enough

Why support to DIHs in Digital Europe?

• Build local capacity serving more than one country

• A new DIH supports digital transformation of maritime sector in Black Sea coastal regions of Bulgaria and Romania

• Export excellence

• A smart dairy farming DIH in country X helps farming SMEs from other countries

• Opening-up local experimentation facilities

• Advanced German model factory for the development of the next generation of cars to support SMEs from outside Germany to "test before invest".

• An advanced Swedish DIH opens its world’s first full-scale test environment for future road safety to users from all over Europe to test new smart sensor technologies for autonomous driving.

• Connect ecosystems

• Lithuanian robotic companies with their DIH work with the Danish DIH on robotics to serve the needs of the Danish users

• Collaborate with excellence centres supported in DEP

• Security audits, AI on demand platform

• Skills development

• Short term training courses and placement of trainees

Use cases of DIH in DEP

What is a Digital Innovation Hub?

Working Group report on DIHs:

https://ec.europa.eu/futurium/en/content/report-wg1-digital-innovation-hubs-mainstreaming-digital-innovation-across-all-sectors-final

one-stop-shop services for

companies

multi-partner

cooperation

specialist

expertise infrastructure

brokering/

matchmaking

awareness

creation

innovation

scouting

digital maturity

assessment

visioning and strategy

development

mentoring training

Access to

Finance investor readiness

services

Digital Innovation Hub

Competence Centre

Digital Skills

Digital

Transformation

Experiments

experimentation

and testing

pilot factories

Fab-labs

coaching

fabrication of

new products

Digital Innovation HubsKey elements and services

https://ec.europa.eu/futurium/en/content/report-wg1-digital-innovation-hubs-mainstreaming-digital-innovation-across-all-sectors-final

"Ensure that every business in Europe, whatever its sector of activity, wherever located and whatever its size, can take full

advantage of digital innovations and competences"

WP 2018-2020 - Focus area "Digitising and trans-forming European industry and services"

Support to HubsInnovation Actions, Coordination and Support Actions

• DT-ICT-01-2019: Smart Anything Everywhere – 48 + 1 M€ (2 Apr ’19)

• DT-ICT-02-2018: Robotics – Digital Innovation Hubs – 64 + 2 M€

• DT-ICT-03-2020: I4MS (phase 4) - uptake of digital game changers and digital manufacturing platforms

• DT-ICT-04-2020: Photonics Innovation Hubs

• DT-ICT-05-2020: Big Data Innovation Hubs

• DT-ICT-06-2018: Coordination and Support Activities for Digital Innovation Hub network – 1 M€

• In SC2: DT-RUR-12-2018: ICT Innovation agriculture – Digital Innovation Hubs for Agriculture (DG AGRI budget) – 20M€

Work Programmes 2018-2020https://ec.europa.eu/research/participants/portal/desktop/en/funding/reference_docs.html#h2020-work-programmes-2018-20

Innovation actions should have the following characteristics:

• Consortia should be deeply rooted in regional/national DIH

• Critical mass of highly innovative, cross border experiments. At least 50% of the budget should directly benefit SMEs or slightly bigger companies. Financial support to third parties may be used.

• Activities should aim at long-term sustainability and include a business plan for the DIHs, a plan to attract investors, to address training and skills development needs and dissemination. Established networks reaching out to SMEs like the Enterprise Europe Network and the NCP network should be used.

• Selected projects are expected to collaborate on building a network of Digital Innovation Hubs, covering most regions in Europe.

Work Programme 2018-2020 - Focus area 'Digitising and transforming European industry and services', Support to hubs

Upcoming open "cascading funds" calls