Workshop on The role of European Clusters and Regions

in Electronic Components and Systems

Willy Van PuymbroeckDresden

07/10/2015

Overview

• Introduction – some facts and figures• Micro- and Nanoelectronics as a key KET

• The European Strategy for Micro- and Nanoelectronics Components and Systems• Progress since 23 May 2013

• Focus on the role of Regions and Clusters• A brief state of play

• Focus on Access to Finance• Beyond grants

• Conclusions and Expectations

Key Enabling Technologies (KET) –Introduction and Reminder

• KET are 'knowledge intensive and associated with high R&D intensity, rapid innovation cycles, high capital expenditure and highly skilled employment. They are multidisciplinary, cutting across many technology areas with a trend towards converge and integration. KETs are instrumental in modernizing Europe's industrial base and in driving the development of entirely new industries'

• There are six KETs• Advanced Materials • Nanotechnology • Micro- and Nanoelectronics• Industrial Biotechnology• Photonics• Advanced Manufacturing Technology

Value created through KETs

Source: KETs Observatory

11 % of world value production

30 % of world value production

Digital value chain: EU strengths and weaknesses

Absolute KETs enabled employment in EU-28

Source: KETs Observatory

Micro- and Nanoelectronics enabled employment in EU-28

Share in employment and share of production for the TOP 10 EU-28 countries in Micro- and Nanoelectronics (in %)

Source: KETs Observatory

The European Strategy for Electronic Components and Systems

• 23 May 2013: Commission proposes a new EU wide strategy for the field with the aim of reversing the decline of EU's share of world's supply– Highlights the importance of the sector and the need to act– Identify Europe's strength and weaknesses

• Importance of centres of excellence and wider supply chains• Leading in essential vertical markets almost absent in some large

segments• Undisputed European leadership in materials and equipment• Relatively modest investment of EU companies

– Proposes an 'aggressive, bold and holistic' strategy – beyond business as usual• One strategic framework for Europe, use all available instruments• Focus, build on strengths and seize opportunities• Coverage full value and innovation chain • Be at the forefront of technology development

Main Actions – Roadmap by ELG

• Dialogue with Stakeholders, Set-up Electronics Leaders (ELG) Group to elaborate and help implement a European Electronics Industrial Strategic Roadmap• ELG set-up September 2013, Roadmap delivered February

2014 and Implementation Plan delivered June 2014 • Overall objective

• Double the economic value of semiconductor production in Europe

• Overall approach • A combined market-pull-supply-drive to optimise impact• Three market opportunities:

• areas where Europe is strong, emerging system areas, and converging mobility

• Three axes of action: • demand, supply, and enhanced framework and infrastructure

• Involve the full value chain/innovation eco-system

Main Actions – Capital Investment

• Capital investment in production in Europe – Explore how to simplify and accelerate state aid approvals • Guidelines on Criteria for the analysis of the compatibility with

the internal market of State aid to promote the execution of Important Projects of Common European Interest (IPCEI) adopted by the Commission

• Elaboration of an IPCEI on Electronics ongoing • Industry-led • Indicative budget of several billions of Euro investment next

two years• A single integrated IPCEI - focus on but not limited to More

than Moore• Build, but not exclusively, on pilot lines supported under

ENIAC JU• Involvement of relevant Member States and Regions• Window of Opportunity

Main Actions – Launch ECSEL JU

• Adopt Council Regulation and Launch of ECSEL• Council Regulation on ECSEL JU adopted on 6 May 2014• Call 2014 completed

ECSEL JU Supports Twelve Projects investing 710M€ in Electronic Components and Systems Research and InnovationFocus on supporting Innovation Actions – higher Technology Readiness

• Call 2015 ongoingTwo-stage submission: evaluation of the second stage ongoing

• Multi-Annual Strategic Plan (MASP) and Work Plan 2016 under development

Revision of Multi-Annual Strategic Research and Innovation Agenda – see Stakeholders' Forum GrazNew concept under consideration: Flagship Projects/InitiativesWork Plan to be adopted by end 2016

• In addition R&I ongoing as part of H2020

Main Actions – building blocks and market-pull

• Invest in building bricks (education, training)– foster a favourable engineering environment in Europe• Workshop on 'Education, Training and Skills: Connecting

students and employers – the case of Electronics', 13 October 2015, Brussels

Young people in the digital job worldA taxonomy of skills for electronicsFostering skills development

• REGIO Open Days, 14 October 2015 BrusselsUnderline best practices of regions utilizing public and private funding to

implement successful ICT learning programmesAddress the role of industry in closing the skills gap affecting the economy

• Elaborate and implement a market-pull strategy • HIGHLIGHT: Focus Area Call in ICT HORIZON 2020 Internet of

Things (IoT)Large scale pilotsHorizontal activitiesR&I on IoT integration and platforms

Focus on the role of Regions and Clusters

• Regions

• European Structural Investment Funds

• Mapping Smart Specialisation and Participation in R&I

• Short recap of the recommendations of the Smart Specialisation

workshop held in Villach, 26 to 28 May, 2014

• Clusters

• Clusters in COSME

• PwC study results

European Structural and Investment Funds (ESIF)

European Structural and Investment Funds (ESIF)

Source: Final and draft partnership agreements as of October 2014

Regional dimension (Eye@RIS3)

• EU priority: KETsSubcategory: Micro/Nano-electronics

Region/Country Name Description

Flemish Region Micro- and nano-electronics and embedded systems

Czech Republic Engineering industries and electrotechnics.

Baden-Württemberg Micro- and nano-technologyRheinland-Pfalz Micro systems technology

Sachsen Microelectronics including organic and polymer electronics (semi-conductors)

Dytiki Ellada Microelectronics

Galicia

Boost ICTs as the driving sector of the Galician knowledge-based economy just like in the case of other KETs [Boost Knowledge-based Economy]

Centre The design of systems of energy storage

Aquitaine Embedded networking software and connected objects

Limousin ElectronicsSicilia Nano & micro systems/electronics

Slaskie ICT: Micro/ Nano-electronics (Computer programming

Regional dimension (Eye@RIS3)

• Keyword: electronics (in any field): 39 regions• Better coverage of known/relevant regions

Region/Country Name Further keywords

Flemish Region Micro- and nano-electronics and embedded systemsCzech Republic ICTStrední Morava Electrotechnics

Baden-Württemberg Micro- and nano-technology

Berlin OpticsBrandenburg Optics

Rheinland-Pfalz Micro systems technologySachsen PhotonicsKentriki

Makedonia Electronics

Dytiki Ellada Microelectronics

GaliciaBoost ICTs as the driving sector of the Galician knowledge-based economy just like in the case of other KETs [Boost Knowledge-based Economy]

CataluñaIndustrial systems: Activities focused on the management and development of efficient industrial systems (plant and machinery; robotics; data-processing

Centre The design of systems of energy storage

Basse-NormandieDigital society: 1) secure electronic transactions (fixed & wireless; digital identity; contactless transactions) 2) scanning/digitalisation of documents 3) virtual reality.

Pays de la Loire advanced production technologies: machines

Bretagne Microelectronics including organic and polymer electronics (semi-conductors)

Aquitaine Support the development of the existing industrial and reserch excellence in laser

Limousin ElectronicsRhône-Alpes Digital technologies & user-friendly systems

Region/Country Name Further keywords

Guyane Remote technology & sensingÉszak-

Magyarország Photonics

Ireland Future Networks & CommunicationsSicilia Nano & micro systems/electronics

Provincia Autonoma di

TrentoMechatronics

Emilia-Romagna MechatronicsToscana Photonics

Luxembourg New Functional and Intelligent Materials and Surfaces and New Sensing Applications

Eastern Netherlands laser technology for skin diagnostics

Slaskie ICT: Public health & well-being (Human health activities (medical services)

Podkarpackie PhotonicsOpolskie Electro-technique & electronics industry

Pomorskie Electrical engineeringSweden ICT - electric components and systems

Östergötlands län

Smart and secure connected products and systems. systems of secure

Slovenia Smart cities and communities - manufacture of electric and electronic components and equipment

Slovakia Consumer electronics and electrical equipment.Bratislavský kraj Navigation systems

Wales Advanced materials. Photonics. Compound semi conductorsNorthern Ireland Cloud computing

Mapping top 55 R&I participants and Smart Specialisation Regions in Electronics

EU Regions with encoded S3 Priorites

EU Countries with encoded S3 Priorites

Villach Recommendations

Results of Workshop on 'How to make it work for the Key Enabling Technologies at the example of microelectronics'•Villach, 26 – 28 May 2014•The implementation of a sustainable Smart Specialisation strategy with a technological focus needs

• Determination and critical mass• Clustering and connectivity• Reinforcing cooperation across the innovation eco-system• Value and supply chains• Research and Technology Organisations

Villach Recommendations – excerpt

• At regional level• Develop a common vision, communicate it and include it into

regional development plans• Develop and communicate a comprehensive 'big picture'• Develop a regional policy mix well beyond but including R&D and

innovation• Promote existing strengths and consider approaches to create the

right framework conditions for future competitiveness• Define industrial frontrunners• Include universities and research institutions• Strengthen regional clusters• At national level• Ensure national policies to support a KET oriented policy mix• Coordinate national and regional R&D&I priorities• Strive for pragmatic and effective implementation procedures and

reduction of bureaucracy• Support R&D infrastructure for SME should involve R&D centres

capable of supporting on high TRL

Villach Recommendations – excerpt

• At European level• Increase visibility and information of results as enabler for cross-

programme benefits• Intensify the interaction of Horizon 2020 and Structural Funds• Harmonise accounting principles between Horizon 2020 and ERDF • At all levels• Adjust the European competition framework to strengthen the global

competiveness of the European industry• Support high TRL • Take advantage of existing European technical strengths• Implement the European Industrial Strategic Roadmap for Micro- and

Nanoelectronics Components and Systems• Use IPCEI instrument

Clusters in COSME

Clusters in COSME

Clusters in COSME

European Cluster Observatory

• European Cluster Panorama & cluster mapping tool(analyse sectoral and cross-sectoral cluster strengths)

• European Cluster Trends reports (analyse cross-sectoral linkages and value chains)

• Regional eco-system scoreboard (analyse framework conditions for clusters)

• European stress test for cluster policies(analyse cluster policies)

• Model regions for modern cluster strategies(provide advisory services to model regions)

Cluster Analysis

European Cluster Observatory

Clusters in COSME

Clusters in COSME

Cluster Internationalisation Programme for SMEs

• Further develop the European Cluster Collaboration Platform;

• Organise international cluster matchmaking events in third countries and in Europe;

• Implement the new concept of European Strategic Cluster Partnerships to go international jointly - "Cluster Go International" action.

Promote cluster

cooperation

Clusters – PwC study

• Title of study: 'Comparison of European and non-European regional clusters in KETs: The case of semiconductor.'

• Carried out by PwC – final report in 2013• Based on a study of global semiconductor hotspots

• Grenoble• Silicon Saxony• DSP Valley and Eindhoven ASML• Silicon South West• Silicon Valley (San Francisco Bay Area)• Tech Valley (Albany)• Zhongguancum (Beijing)• Hsinchu Science and Industrial Park (Taiwan)

• Recommendations• Stimulate technology transfer from research organisations to companies -

through specific programmes• Stimulate R&D&I skills – towards an integrated and systematic European-level

approach • Tax incentives – innovation friendly tax incentives• Innovation and industrial policy regimes – recognise role of large enterprises• State aid – competition is from the outside

Access to Finance

• H2020 – The example of Smart Everything Everywhere (SAE)

• Work in Hand, What is next

• Beyond Grants – European Fund for Strategic Investment

Smart Everything Everywhere (SAE)

• Smart Anything Everywhere Initiativelaunched in February 20154 projects:• 25 M€/ ~100 Experiments• Target involvement of SMEs/mid caps: +-200

• EuroCPS[8.2M€]:A network of design centres boosting and initiating synergies between SMEs, major CPS Platforms and competency providers to capture the emerging markets of IoT products.30 experiments initiated and led by SMEs.

• CPSELabs[7.5M€]:CPS engineering infrastructure, knowledge and tools for realising novel CPS-based products and services. The CPS Elabs marketplace provides an open forum for sharing platforms, architectures and SW tools for the engineering of dependable and trustworthy CPS. 20 Focussed experiments (3-6partners) and fast-track (12-18 months) with innovation objective.

• GateOne[5.4M€]:Innovation service for European smartization by SMEs.20% of bioelectronics technologies. 50 small scale experiments to deliver innovation concept as demonstrators with SMEs engaged in testing phase.

• Smarter SI[4.5M€]: Smart access to manufacturing for systems integration. To develop a RTO Community Foundry Model (CFM) that will accelerate a wider deployment of SSI with greater access to design, manufacturing capabilities for prototyping, early validation and first production for SMEs to exploit in niche markets (low volume high value). A test bed to realise 10 application experiments

Outreach to all regions is our priority challenge

Four digital innovation hubs connected in one European network

Support around 100 experiments involving more than 200 SMEs and midcaps

Outreach actions to expand in next calls

Digitising European Industry:Next steps for Digital Innovation Hubs

Digital innovation hubs – "One world class innovation hub in every region"– Empower any business in EU to master its digital transformation– Exploit the regional dimension

Next steps:1.Reinforce the link between the existing competence centres in I4MS, SAE, etc. and their (mostly highly developed) regions2.Provide the glue/networking between EU, national, and regional "Industry 4.0"-type initiatives3.Stimulate the dynamic growth of the ecosystems through "exporting excellence in innovation"

– Innovation hubs in less developed regions– Link to smart specialisation– Mobilise investments from structural funds, and others

Dynamic and organic growth of Europe-wide innovation ecosystems

Existing and emerging EU networks of competence centrescomplemented by Satellite Nodes/ Digital Innovation Hubs

EU Investment Plan: 3 pillars

Boost investment in strategic projects and

access to finance via the European Fund for

Strategic Investments (EFSI) within EIB/EIF

Cooperation with National Promotional Banks

and the EIB

1. MOBILISING FINANCE FOR INVESTMENT

European Investment Project Portal

European Investment Advisory Hub:

technical assistance

2. MAKING FINANCE REACH THE REAL ECONOMY

3. IMPROVED INVESTMENT ENVIRONMENT

Predictability and quality of regulation

Removing non-financial, regulatory barriers

in key sectors within EU Single Market

Structural reforms at national level

1. European Fund for Strategic Investments (EFSI)

EU guarantee

€ 16bn

EU guarantee

€ 16bn

Infrastructure & Innovation window

Long-term investments ∼ € 240 bn

SMEs and mid-cap firms∼ € 75 bn

SME window

EFSI€ 21 bn

Total over 3 years:∼ € 315 bn

EIB financing EIF financing

€ 5bn€ 5bn

2. Making finance reach the real economy

• Transparency on the investments in Europe

European Investment Project Portal – any public/private entityMatching investment opportunities proposed by project sponsors with investors' interest

• Strengthening advisory services

European Investment Advisory Hub (EIAH) – EC/EIB/MSTechnical assistancePooling resources & expertise

3. Improved investment environment

Better and more predictable regulation at all levels

Capital Markets Union

Making most of the Single MarketEnergy UnionDigital Single MarketServices MarketBetter implementation and enforcement

Structural reforms in the Member States

Openness to international trade and investment

Financing stages: risk and company development

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