NH – KB economy Kowi – Nov 101
Europe’s Response to the Europe’s Response to the Global ChallengesGlobal Challenges
Nicholas Hartley –Head of Unit, Policy and Strategy
European Commission, DG – Research « Industrial Technologies »
KoWi, Brussels, 10th November 2005
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Challenges: an increasing role
for EU Research
Objective “Lisbon”: to become the most dynamic and most competitive knowledge-based economy within 10 years
Objective “Göteborg”: sustainable development (environment, health, economy, employment)
“Barcelona” targets: 1,9% 3,0% of GDP with 2/3 financed by private sector; towards 700.000 researchers
European Research Area (ERA): …Integrating, reinforcing, structuring RTD capacities, improving coordination of policies, overcoming fragmentation of efforts… and stimulating investment in RTD
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EU-25 US Japan
R&D intensity (% of GDP) (3) 1.97 2.59 3.12
Share of R&D financed by industry (%) (2) 55.9 63.1 73.9
Researchers per thousand labour force (FTE) (3) 5.5 9.0 9.7
Share of world scientific publications (%) (3) 38.3 31.1 9.6
Scientific publications per million population (3) 639 809 569
Share of world patents (%) (1) 31.5 34.3 26.9
Patents per million population (1) 30.5 53.1 92.6
High-tech exports as a share of total manufacturing exports (%) (3) 19.7 28.5 26.5
Share of world high-tech exports (%) (2) 16.7 20.0 10.6
Note: (1) 2000 data (2) 2002 data (3) 2003 data
R&D – European weaknesses
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1,8
2,0
2,2
2,4
2,6
2,8
3,0
3,2 Japan: 3.0
USA: 2.7
EU-15: 1.9
Research: filling the gap
Total expenditure on R&D, % of GDP
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-2
-1,5
-1
-0,5
0
0,5
1
1,5
2
2,5
-2 -1,5 -1 -0,5 0 0,5 1 1,5
Economic performance
R&
D inve
stm
ent
● P● E
● EL
● I
● IRL● EU
● F● A
● B● UK● NL
● DE
● FI
● DK ● SE
Research and economic performance
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Transition from a « traditional economy » based on traditional resources to a new economy based on
knowledge
The triplet « land – labour - capital » is replaced by knowledge – capital
…this implies moving from an economy of ‘quantity’ to an economy of ‘quality’, from an economy of ‘use and waste’ to a sustainable economy
Implications…
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Cancellation of the ‘resource-based’ differences Cancellation of the ‘resource-based’ differences between competitors between competitors
Focus on Added ValueFocus on Added Value
Added Value products ≠ high-tech products
Role of knowledge: new factor of productionRole of knowledge: new factor of production
Towards new paradigms
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Industrial Transformation
In the globalised economy, EU industry must focus upon creating products with more added-value – it’s a question of survival!
Such a transition is producing discontinuities in: products, industries, people and approaches
Six main changes include moving from: Linearity to complexity Individual to system competitiveness Resource-based to knowledge-based economies Macro → micro → nano “Top-down” → “bottom-up” production Mono-disciplinarity → interdisciplinarity → convergence
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OLD INDUSTRIES
(resource-based)
Compact enterprise Production chain Mass production Quantity driven Resource-intensive Production driven Linear approach (Taylorism in
production)
NEW INDUSTRIES
(knowledge-based)
Extended enterprise
Network of suppliers
Focus to added value
Quality driven
Brain intensive
Demand driven
Simultaneous approach
The fundamental The fundamental changeschanges
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Delocalisation Delocalisation of traditional industries towards areas where of traditional industries towards areas where labour and environmental costs are less constraininglabour and environmental costs are less constraining
‘‘Dematerialisation’ Dematerialisation’ of production and organisation of production and organisation
Novel activities and Novel activities and new generation of high-tech industriesnew generation of high-tech industries
Vanishing Vanishing of some industriesof some industries
The shift from labour-intensive to knowledge-intensive operations The shift from labour-intensive to knowledge-intensive operations modifies modifies jobs and skillsjobs and skills required required
Transition phase = crossing Death Valley
Phases
Conditions
Finance
Initial
Favorable
Start up
Spin off
Growth
Adaptation
Venture Cap.
Business angels
Developm.
Optimisat. resources
Cash flow
Loans
Critical
Knowledge
relevance
Loans
End of life
Loss
Debts
Tu
rnover
Tu
rnover
Enterprise life curve
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MarketMarket National European Globalised oriented
Indust. Indust. approachapproach
Supplier Market Environment & oriented oriented customer driven
RTD RTD approachapproach
Technology Market System push pull oriented
yearsyears1983 1986
Single act1990 1993
Maastricht
FRAMEWORK PROGRAMMES
FP 2(1986-90)
FP 1(1983-86)
FP 3(1990-94)
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MarketMarket e-commerce Knowledge-based & user driven society
Indust. Indust. approachapproach
Concentration High added-value & Networking & integration
RTD RTD approachapproach
Society Sustainability Radical Convergingoriented & problem innovation technologies &
solving Breakthrough
yearsyears1999Euro
2000Enlargement
1997Amsterdam
2007…..Lisbon
FP 4(1994-98)
FP 5(98-02)
FP 6(02-06)
FP 7(07-13)
FRAMEWORK PROGRAMMES (cont.)
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CONVERGING DISCIPLINES
TECHNOLOGIES
FROMFROM TO
MONO MULTI INTER TRANS
INFOBIO
NANOCOGNITIVE
INFO/BIONANO/BIO
NANO/INFO
NANO/INFO/BIO NANO/INFO/BIO/COGN
NH – KB economy Kowi – Nov 1015
FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,
materials materials and new production technologiesand new production technologies
Overall objective : improve the competitiveness of EU industry (including SMEs) and ensure its transformation through:
the effective transition from a resource-based to knowledge-based industry
generation of new breakthrough, applicable, knowledge
strengthening EU leadership in nano, materials and production technologies
emphasis on integrating different technologies and disciplines across many sectors
Importance of Technology Platforms to help establish common research priorities and targets
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Four activities:
1. Nanosciences and nanotechnologies
2. Materials
3. New production
4. Integration of technologies for industrial applications
…good continuity with « NMP » activities in FP 6
FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,
materials materials and new production technologiesand new production technologies
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1. Nanosciences and nanotechnologies
Objective: increase and support the take up of knowledge generated in this revolutionary field for all industrial sectors
Topics include: interface and size dependent phenomena; materials properties at nano-scale; self assembly; metrology; new concepts and approaches; impacts on health and safety; convergence of emerging technologies
FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,
materials materials and new production technologiesand new production technologies
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2. Materials
Objective: generate new knowledge to enable new industrial products and processes to be achieved, exploiting the potential of interdisciplinary approaches in materials research.
Topics include: high performance, sustainable and knowledge-based materials; design and simulation; nano-, bio- and hybrid materials and their processing; chemical technologies and materials processing industries
FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,
materials materials and new production technologiesand new production technologies
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3. New production
Objective: create continuously innovating production capabilities to achieve leadership in industrial products & processes in the global marketplace.
Topics include: Knowledge-intensive production; new paradigms for emerging industrial needs; adaptive, networked and knowledge-based production; convergence of technologies for next generation of high value-added products (nano, bio, info, cognitive..)
FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,
materials materials and new production technologiesand new production technologies
NH – KB economy Kowi – Nov 1020
4. Integration of technologies for industrial applications
Objective: accelerate the rate of industrial transformation by exploiting the application potential of new generic technologies.
Topics include: Integration of nano, materials and production technologies in sectoral and cross-sectoral applications (e.g. health, construction, transport, energy, chemistry, environment, textiles & clothing, pulp & paper, mechanical engineering,…)
FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,
materials materials and new production technologiesand new production technologies
NH – KB economy Kowi – Nov 1021
Nano-sciences and technologies offer:
• Great challenges to the scientific community in terms of scientific, educational, and organisational multi-disciplinarity, i.e. « CONVERGING » of technologies
• Potential for innovation and applications in many areas
• Economic opportunities in many sectors
The strategic importance of “nano”
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Some Perspectives
“Nanotechnology”, as a new market, does not exist but there is a value chain e.g. from nanomaterials, to intermediate components and finished products
In 2004, $13 billion worth of products incorporates emerging nanotechnology, equivalent to <0.1% of manufacturing output (Lux Research)
In 2014, it is expected that this figure will rise to $2.6 trillion as nanotechnologies spreads across many sectors, ~15% of manufacturing output (ibid)
Europe needs to be at the forefront and ensure that it has the knowledge and capacity to benefit from this revolution
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Which role/implications for EU academic community?
EducationEducation - Multidisciplinarity
ResearchResearch - Knowledge creation (increase basic research and focus on
‘driver’/converging technologies)
InnovationInnovation - Development of new relationships with finance
Spreading of knowledge/popularisation - Increase credibility; dialogue
Science&Society
Governance - Contribute to the transition
Local development - Increase in knowledge use/application locally
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… and for industry?
FOCUS - Core business- Added Value- Miniaturization/security
REDEFINITION - Globalof ROLE - Niche
- Supplier- Assembling
ORGANISATION - New production paradigms- Global organisation- Flexible logistics
- Assembling relevance
- Knowledge integration
- New professional skills
NEW - AcademiaRELATIONSHIPS - Finance
NH – KB economy Kowi – Nov 1025
InformationInformation EU research: http://europa.eu.int/comm/research
Seventh Framework Programme and SPs: http://europa.eu.int/comm/research/future/index_en.cfm
Information on research programmes and projects:http://www.cordis.lu
RTD info magazine:http://europa.eu.int/comm/research/rtdinfo/
NMP Industrial Research Magazine http://europa.eu.int/comm/research/industrial_technologies/lists/magazine_en.html