THE EUROPEAN INSTITUTE OF INNOVATION & TECHNOLOGY (EIT) Powering Entrepreneurial Innovation In Europe

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1 THE EUROPEAN INSTITUTE OF INNOVATION & TECHNOLOGY (EIT) Powering Entrepreneurial Innovation In Europe

2 WHY A DIFFERENT APPROACH TO INNOVATION IN EUROPE?

3 DISCOVERY, INVENTION, TRANSLATION & INNOVATION ARE NOT THE SAME THING Discovery: Finding out something not yet known Invention: creating or designing something not existing before Translation: processing discoveries and/or invention into innovation Innovation: making changes with societal impact based on discoveries and/or invention Excellent science are research are necessary yet not sufficient ingredients for innovation

4 AGE DISTRIBUTION OF WORLD LEADING INNOVATORS New firms set-up in the last 25 years US: approx. 21% EU: approx. 2% Bruegel policy brief 2009 Reinhilde Veugelers

5 HOW TO ENCOURAGE THE GROWTH OF YOUNG VENTURES IN EUROPE? Europe has a history of brilliant entrepreneurs but data suggest we need an entrepreneurial renaissance to strengthen our ability to compete globally

6 THE CORE OF INNOVATION IS THE KNOWLEDGE TRIANGLE Business Higher Education ENTREPRENEURIALLY DRIVEN INNOVATION Research & Technology Actors within the knowledge triangle are at the core of the innovation web beyond the traditional collaborative R&D consortia

7 WHAT IS THE EIT S AGENDA, ITS MISSION AND AIM?

8 EUROPEAN INSTITUTE OF INNOVATION & TECHNOLOGY (EIT) EIT was set up in 2008 to unlock the European innovation landscape through a new agenda at EU level. EIT is the first initiative of the EU bringing together the three sides of the knowledge triangle. With the entrepreneur in the driver s seat to form the necessary links between higher education, business and research. Higher Education Research & technology Industry & SMEs

9 EUROPEAN INSTITUTE OF INNOVATION & TECHNOLOGY (EIT) The EIT s mission is To increase European sustainable growth and competitiveness To reinforce the innovation capacity of the EU and its Member States To create the entrepreneurs of tomorrow and prepare for the next innovative break-throughs To become the catalyst for a step change in the European Union s innovation capacity and impact

10 EUROPEAN INSTITUTE OF INNOVATION & TECHNOLOGY (EIT) The EIT s aim is to approach innovation differently in Europe with emphasis on people From lab to market by integrating the three sides of the knowledge triangle in areas of high societal need towards a pan-european ecosystem

11 WHAT ARE KICs AND HOW DO THEY PARTNER WITH THE EIT?

12 THE EIT s INNOVATION FACTORIES Knowledge and Innovation Communities (KICs) highly integrated, creative and excellence-driven autonomous long-term partnerships internationally distributed but thematically convergent partners driven by societal challenges and fostering the emergence of entrepreneurs 12

13 THE KIC MODEL (1/2) A Business logic High degree of integration: each KIC is an independent legal entity, gathering world-class KIC partners from the knowledge triangle based on a contractual relationship/partnership with the EIT. Long-term strategic approach: each KIC is set up for a minimum of 7 years to eventually become self sustainable. Sufficient autonomy and flexibility: to determine organisational structure and activities governed by a Board of KIC partner organisations. Effective governance: run by a CEO and a lean management team at central and co-location level.

14 THE KIC MODEL (2/2) An Investment logic Smart funding & high degree of commitment of partners: EIT funding to KICs is max. 25% of their total budget over time with 75% to be attracted from other sources, both public and private. The co-location model: each KIC consists of 5-6 world class innovation hotspots building and leveraging on existing European capacities. Results & high impact oriented activities: KICs implement a Business Plan with measurable deliverables, results and impact. Culture: KICs are shaped by strong entrepreneurial mindsets and cultures.

15 THE EIT s FIRST THREE KNOWLEDGE & INNOVATION COMMUNITIES (KICs)

16 THE FIRST 3 KICs Designated in December 2009 by the EIT Governing Board with their governance and management set up in 2010

17 KICs INTERCONNECTED ECOSYSTEMS THROUGH CLCs Climate-KIC: Co-location Centre RIC (Regional Implementation and Innovation Centre) EIT ICT Labs: Co-location Centre Associate Partner KIC InnoEnergy Co-location Centre

18 EIT FUNDING EVOLUTION: Leverage impact and funding sources EIT Grant Awarded National/Regional/Private Other sources 18 KIC partners EU / non EIT

19 Aggregated EIT Level Achievements * Core KPIs for KICs (foreseen) 14,155 Attractiveness of education programmes ** 318 Number of new graduates 404 Number of business ideas incubated 108 Number of start-ups created 146 Knowledge transfer and adoption 89 New or improved products, services, and processes launched ** 13 applicants per offered seat

20 HOW DOES THE EIT WORK WITH ITS KICs?

21 A UNIQUE OFFERING: WHAT WE DO EDUCATION Promoting excellent education for creativity, innovation and entrepreneurship by high quality EIT labelled degree programmes. ENTREPRENEURSHIP Promoting a mindset and culture by creating more favourable environments for entrepreneurial talent and entrepreneurship driven innovation to flourish. INNOVATION Networked ecosystems across European borders, exploiting synergies and complementarities to accelerate growth of globally successful leading innovators.

22 SUCCESS STORIES FROM THE KICS Enerstone Lionel Chaverot VENTURE Award 2013 Winner Key words: The future of rechargeable batteries Project aim: To help battery manufacturers prolong battery lifespan and reduce the environmental impact of their products EIT connection: KIC InnoEnergy Highway supported venture Biowaste to Biocoal Key words: Carbon neutral coal Project aim: To make our biomass conversion green energy technology available on a global scale EIT connection: Winner of the Climate-KIC UK 2012 Venture Competition Dominik Peus VENTURE Award 2013 EIT Winner

23 SUCCESS STORIES FROM THE KICS David Tacconi VENTURE Award 2013 EIT Winner CoRehab (main product: Riablo) Key words: Enjoy, control, rehabilitation Project aim: To increase the international sales of Riablo, an innovative rehabilitation product EIT connection: EIT ICT Labs support at their Node in Trento Solar Lighting for Africa Key words: Focus, empower and grow! Project aim: To develop a solution to help SolarAid, an international charity specialising in clean, affordable solar product distribution in Africa, to achieve 1 million sales through its social enterprise EIT connection: KIC InnoEnergy Master School - SELECT Programme student ( ) Eduardo Appleyard C.H.A.N.G.E Award 2013 EIT Winner

24 SUCCESS STORIES FROM THE KICS From student to entrepreneur HOMEBUDDY Dorottya Maksai C.H.A.N.G.E Award 2013 EIT Winner Key words: Connecting generations Project aim: To develop Homebuddy into a sustainable social enterprise EIT connection: EIT ICT Labs Master School student (2012 onwards) Key words: Sustainable urban farming Project aim: To demonstrate a sustainable, commercial model for urban agriculture through vertical growing and aquaponics EIT connection: Climate-KIC Contextual Learning Journey student and EIT Foundation Young Leaders Programme GrowUp Kate Hofman C.H.A.N.G.E Award 2013 EIT Winner

25 A UNIQUE OFFERING: HOW WE DO IT MONITORING Instrumental outputs, then long term impacts, including public value beyond socio economic. SIMPLIFICATION Integral part to EIT strategy as an engaged impact investors in its KICs, facilitating partnership and operations. OUTREACH First offerings include the Regional Innovation Scheme (RIS), the EIT Stakeholders platform and the setting up of the EIT alumni community.

26 EIT MONITORING Horizon 2020 Interface to H2020 & Innovation Union EIT Specific Indicators (Institute) Cross KIC Scoreboard (Core KPIs) Indicators reflecting EIT organisational objectives such as operational excellence and dissemination and cross-kic support Indicators reflecting the EIT strategic objectives and applying to all KICs EIT PERFORMANCE MEASUREMENT SYSTEM KIC Specific Indicators KIC 1 Individual KPIs defined in Business Plans KIC 2 Individual KPIs defined in Business Plans KIC 3 Individual KPIs defined in Business Plans

27 BOTTOM-UP KIC-DRIVEN SYNERGIES Source: Granieri and Renda (2012), Innovation Law and Policy in the EU. Towards Horizon2020, Springer, Ernst & Young Report

28 OUTREACH & DISSEMINATION 1 ST and 2 nd STUDY PUBLISHED First examples of dissemination of its results and impact via outreach activities via the exchange of good practice EIT 2012 Publication Catalysing Innovation in the Knowledge Triangle: Practices from the EIT Knowledge and Innovation Communities EIT 2013 Publication: Analysis of potential synergies fostered by the European Institute of Innovation and Technology (EIT) in the EU innovation landscape

29 THE EIT STRATEGIC INNOVATION AGENDA FOR THE

30 The EIT and the KICs in HORIZON 2020 (H2020) The EU's flagship programme for research and innovation Horizon 2020 (H2020) brings together all existing Union research and innovation funding, including the Framework Programme for Research (FP), the innovation related activities of the Competitiveness and Innovation Framework Programme (CIP) and the EIT. Horizon 2020 focus on three priorities: 1) Excellent Science; 2) Industrial Leadership; and 3) Societal Challenges Over the period 2014 to 2020, the total budget of H2020 is EUR 77 billion

31 THE FUTURE KIC CALL - WHY? To enhance impact and incentivise innovation in new areas of societal challenges, the EIT will gradually expand its portfolio of KICs. EIT = 3 KICs + 5 new KICs = EUR 2.7 bn

32 THE FUTURE KIC CALL Themes for future KICs (SIA) TBC Healthy Living & Active Ageing Added-Value Manufacturing Urban Mobility Raw Materials Food4Future

33 Timeline of the 2014 KICs Call Key Dates Event 14 February 2014 Launch of the 2014 KICs Call 14 March 2014 Information Day in Budapest 10 September 2014 Closure of the 2014 KICs Call Sept.- Nov Evaluation of proposals with the assistance of external experts 9 December 2014 GB Hearings with representatives of shortlisted proposals December 2014 Designation of the new KICs by the EIT Governing Board

34 What are the key Call Documents? Call text (legally binding) Framework of Guidance (not legally binding) Principles for financing, monitoring and evaluation of KIC activities EIT Financial Regulation Strategic Innovation Agenda (SIA) EIT amending Regulation

35 KIC SELECTION PROCESS WHAT CHANGES FROM 2009? Compared to the 2009 Call, there is a particular focus on: Economic and social impact The business model and financial plan Demonstrating commitment, including financial commitment Strong and diverse partnership

36 KIC SELECTION PROCESS One single call in 2014 for Healthy living and active ageing and Raw materials Same eligibility and selection criteria for all thematic fields One proposal from each of the thematic fields will be designated by EIT GB Simplified selection criteria (more specific, less numerous): STRATEGY, OPERATIONS, IMPACT

37 Questions on the Call? Any questions to the EIT on the 2014 KICs Call should be submitted ONLY via the Contact Page on the EIT website: Information on the Call will be regularly updated on the EIT website, including answers to all questions submitted ALL INFORMATION ON THE EIT 2014 KICS CALL IS AVAILABLE AT

38 EIT VISION, ACHIEVEMENTS & NEXT STEPS

39 MILESTONES TO DATE December 2009: 1 st 3 KICs designated : Consolidation of EIT and KIC activities September 2008: 1 st meeting of the EIT GB April 2009: 1 st Call for KICs launched April 2010: EIT Headquarters open in Budapest 2013: EIT budget of 2.7 billion for to be adopted March 2008: EIT set up by Council and EP

40 FUTURE PRIORITIES 1. Investing in KICs: Consolidation of the existing 3 KICs 2. Investing in KICs: Consolidation of the existing 3 KICs 3. Enhance EIT impact via knowledge sharing 4. Enhance EIT impact via simplification and monitoring

41 EIT S VISION OF AN ENTREPRENEURSHIP DRIVEN IMPACT INVESTMENT INSTITUTE Direct deliverables: Breakthrough Innovations & People contributing to European excellence, competitiveness and cohesion: o o KICs CLCs as world-class innovation hubs working across borders. leveraging entrepreneurship-driven innovation, from local to global. Induced deliverables: Reinforce EIT as an Institute for Europe overall scaling up its operations, hence critical mass and impact: o o EIT Budapest as a knowledge pool and intelligent investor in KICs, including wide dissemination of KIC novel practice across Europe.

42 .Change mindsets Think outside the box Experience the journey eit.europa.eu