Smart manufacturing and the EU’s ‘Digitising Industry’

initiative

Willy Van Puymbroeck

DG CONNECT

10th SEMI Brussels Forum– 26/05/2016

Outline

• Total/Multifactor Productivity Gap – my first steps in economics

• Digital Single Market – 16 actions for delivery

– Update as of 25 May 2016

• Digitising European Industry – adopted on 19 April 2016. Focus on Digital Innovation Hubs & Public Private Partnerships

• Update on the implementation of the Competitive Electronics Industry Strategy

– Demand: IoT Large Scale Pilots, ECSEL Lighthouse initiatives

– Supply: Important Project of Common European Interest, ECSEL Innovation Actions

• Conclusions

Total/Multifactor Productivity Gap

• 2016 Economic Report of the President of the USA transmitted to the congress, February 2016, together with the annual report of the council of economic advisers – Chapter 5: Technology and Innovation

– Productivity growth is critical to the well-being of the American economy, its workers, and its households. … Labour productivity … comes from three sources: increases in capital, improvements in the quality of labor, and "total factor productivity"…. Such TFP improvements happen when innovators, entrepreneurs, and managers create new products or make improvements to existing products, often in response to market incentives. …

• DG RTD - Science, Research and Innovation Performance of the EU (Source for below diagram)

The EU Digital Single Market

"Industrial package": adopted on 19 April 2016

The Digital Single MarketDelivery day 25 May 2016

• Boost e-commerce, by

– Tackling geo-blocking

– Making cross-border parcel delivery more affordable and efficient

– Promoting customer trust through better protection and enforcement

• 'Content Package'

– Policy guidance on online platforms

– Revised Audio-visual Media Services Directive

Digitising European IndustryRationale

Digitising European IndustryValue creation

"Digital inside": Innovations in products (all types)

Digital transformations of processes

Radical/disruptive changes in business models

~40 % AV growth ~50% ~40% ~80%

Products Services

ICT sector

Products Services

ICT sector

The trend

Digitising European IndustryDisparities in Europe

8

Courtesy: Roland Berger

Digitising European IndustryEuropean Initiatives on Digitising Industry

Digitising European IndustryEC Communication adopted 19 April 2016

Focus on Digital Innovation Hubs

Target

– Access to digital technologies and expertise

• Within "working distance"

• For any industry in Europe

• With a focus on: SMEs, mid-caps, non-tech

How

– "Digital Innovation Hubs" across Europe :

• Provide industry with access to technology, expertise, testing,.. based on world-class specialised competence centre

– Networking DIH to ensure a one-stop-shop for industry

– Public procurement of innovations

• Sharing innovation risk with industry

– Thematic smart specialisation platform

• Industrial modernisation

Focus on Digital Innovation Hubs

• Regions/MSs

– Establish/reinforce competence centres

• Across Europe – specific support for regions without DIH

• Implement relevant activities if needed (incentives, …)

– Collaborate with digital innovation hubs of other regions

• to fill gaps and facilitate specialisation and excellence

• Commission

– Support pan-European networking of Digital Innovation Hubs

• Share best practices, success stories, training

• Develop catalogue of Hubs, competences, etc

– Promote use of EU and other funds (ESIF, EFSI)

• Industry

– Engage with competence centres, help set priorities,..

Focus on Public Private Partnerships

Focus on Public Private Partnerships

• Target

– Alignment of EU-wide R&I effort, national initiatives and industrial strategies and

– Focus investments on

• Key technologies and their integration across all sectors

• Cross-sector digital platforms

• Development environment: reference implementation and experimentation environments in real setting.

• The challenge

– Reinforce the role of PPPs as vehicles for EU-wide strategies:

• Key strategic industrial priorities, e.g. The EU Cloud Initiative

• Mobilising EU and national investments

– Building on strengths in vertical markets

– Develop Europe's presence in cross sector platforms

• (IoT, Data, web, consumer,..)

– Work across silos

Smart Anything Everywhere

EuroCPS [8.2M€]: A network of design centres boosting and initiating synergiesbetween SMEs, major CPS-platforms and competency providers to capture theemerging markets of IoT products. 30 experiments initiated and led by SMEs.

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

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

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

IC

T2

IC

T1

Smart Anything Everywhere

UK CatapultU NewcastleU Teesside

IETyndall I

FRCEA, Thales, LAAS ONR AerospaceYOLE development

DE Fraunhofer IISB & IPMSFortiss, Offis, SteinbeisVDI/VDE, FinePowerHSG-IMIT, CiS

AT AVLCH

CSEM

IT U Bologna

SE KTHU LuleaIVF Swerea

FI VTT

HU U Budapest

ES IKERLAN-IK4INDRA

Participating Competence Centres

Competitive Electronics Industry Strategy

Demand pullSupply push Europe

Outside(imports)

Outside(exports)

“demand accelerators”

“supply accelerators”

Doubling the Added Value

Delivery of systems solutions

Demand – IoT Large Scale Pilots & to come ECSEL Lighthouse initiatives

Work Programme 2016

IOT Large Scale Pilots – crosscutting activities

Smart Living environments and ageing well

Smart farming and food security

Wearables and smart ecosystems

Reference zones in EU cities

Autonomous vehicles in a connected environment

100M€ EU funding

By 12 April 2016 27 Innovation Actions were submitted

ECSEL Lighthouse initiatives – see next presentation (Bert De Colvenaer, ECSEL JU)

Supply – ECSEL Innovation actions & to come IPCEI

0

1

2

3

4

5

6

7

8

9

10

0 1 2 3 4 5 6 7 8 9 10 11

Tech

no

logy

Re

adin

ess

Le

vel

Manufacturing Readiness Level

Framework Programme ECSEL IPCEI"Mikroelektronik ist der Schlüssel zur Digitalisierung. Kein Computer, kein Auto, kein Personalausweis funktioniert mehr ohne diese Technologie. Wir müssen dieses Technologiefeld in Deutschland und Europa weiter ausbauen. Deutschland wird sich deshalb an einem europäischen Investitions- und Forschungsprojekt, einem sogenannten 'Important Project of common European Interest', beteiligen. Es geht darum, Investitionen in Produktionsanlagen in Europa zu fördern, die Zusammenarbeit mit dem Mittelstand auszubauen und so die Mikroelektronikforschung für die nächste Technologiegeneration fit zu machen. Die in Europa dafür vorgesehene Investitionssumme umfasst 6,5 Milliarden Euro, Deutschland wird daran einen wesentlichen Anteil haben. Source: www.bmbf.de

ECSEL - Innovation Actions

# projects # partners H2020 budgetH2020

contribution

2014 6 179 504,577,067.94 € 106,722,683.93 €

2015 5 193 427,600,750.50 € 91,975,432.31 €

Conclusions

• The EU is fully committed to a strong electronic components and systems industry in Europe feeding the whole economy

• The digitising of the industry and society brings huge opportunities for the electronics components and systems industry in Europe

– We cannot afford to miss it!

• It is about the delivery of systems/solutions

• And cooperation and partnering across

– Value chains

– Innovation networks

• Using all instruments

• With one strategy

THANK YOU

DG CONNECT (Communications Networks, Content and Technology):http://ec.europa.eu/dgs/connect/index_en.htm

Horizon 2020 on the web: http://ec.europa.eu/research/horizon2020/index_en.cfm

Willy.Vanpuymbroeck@ec.europa.eu

Additional slides

ICT Innovation for Manufacturing SMEs

110 M€ of EU funding - 11 large projects 70 competence centres 280 experiments: 75% cross-border 480 contractors. Out of which 340 industrial:

75% SMEs and mid caps, 50% users, 65% new in EU R&I Programmes

29 Members States and Ass. Countries Focus on 4 areas of ICT adoption in the FoF:

HPC cloud-based simulation and analytics services Industrial robotics systems Laser-based manufacturing, additive manufacturing Smart sensor systems, CPS and IoT

Expanding the ecosystem Provide "glue" for natl/regl initiatives Expand into "all" regions

I4MS is part of the Factories of the Future PPP

I4MS.eu

evolution

24

2013 2014 2015 2016 2017 2018 2019 2020 2021

Phase 1 – FP7 WP2013Start-up the I4MS Ecosystem

Phase 2 – H2020 WP 2014/15Organically grow the I4MS Ecosystem

Phase 3 – H2020 WP 2016/17Nurture the ecosystem:

Concentrate on EU added value

Organically grow the I4MS ecosystem

Regions/MSs with Digitising Industry initiatives

Establish a catalogue of initiatives EU-wide

Reinforce roots/links to national/regional initiatives

Further concentrate EU funding on cross-border experiments

Other regions, in particular less developed regions

Launch a Mentoring & Sponsorship programme for new hubs

Co-fund innovation hubs thru EFSI, ESIF, innovation vouchers

Identify international collaboration opportunities

Discuss at World Manufacturing Forum 2016

Overview of Digital Manufacturing Initiatives across Europe

Germany Industrie 4,0 Smart Service World Autonomik fur Industrie 4.0 It's OWL (Ostwestfalen-Lippe) Allianz Industrie 4.0 (Baden-

Württemberg)

NetherlandsSmart Industry

France Usine du Futur FoF Ile-de-France

United Kingdom High Value Manufacturing Innovate UK Action Plan for Manufacturing (Scotland)

SpainEstrategia Fabricacion Avanzada(Basque region)

Italy Fabbrica Intelligente Ass. Fabbr. Intell. Lombardia

SwedenProduktion 2030

Belgium Made Different Flanders Make/iMinds (Flanders)

EU-level Initiatives Application PPPs: FoF, SPIRE I4MS Smart Anything Everywhere ICT PPPs

Multi-region Initiatives Vanguard

AustriaProduktion der Zukunft

PortugalProdutech

European CommissionDG CONNECT, Unit A3, ML

European initiatives are in redNational initiatives are in blueRegional initiatives are in green

Finland FIMECC PPP Programmes

(MANU, S-STEP, SIMP, S4FLeet)

Industrial Internet Business Revolution

IoT pilot Factory (IoT PFF)

GreeceOperational Programme in Region Western Greece

Poland INNOMOTO INNOLOT Digital manufacturing for the SME

(Mazovia)