When Innovation Means Business!

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1 EUREKA When Innovation Means Business! Research Money, Ottawa May 12th 2011 Luuk Borg Head of the EUREKA Secretariat Doing business through technology

2 EUREKA What is it? > 2 > > EUREKA is a public network supporting R&D businesses > > Established in 1985 by French President Mitterrand and German Chancellor Kohl EUREKA is : Intergovernmental initiative (40 Members EU 27, European Commission + 12 other European countries) Financed using national public and private funding Market-oriented (Projects must result in a marketable product, process or service) Bottom-up (The consortium decides on the project aim. No thematic restriction) Doing business through technology

3 EUREKA member countries Doing business through technology Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia European Union Finland France FYROM Germany Greece Hungary Iceland Ireland Israel Italy Latvia Lithuania Luxembourg Malta Monaco The Netherlands Norway Poland Portugal Romania Russian Federation San Marino Serbia Slovakia Slovenia Spain Sweden Switzerland Turkey Ukraine United Kingdom > 3

4 EUREKA Programmes > EUREKA supports three types of projects > 4 > Cluster Projects > Medium-term, strategically-significant initiatives > Large number of participants, many from Europe s major companies > Develop generic technologies of key importance to European competitiveness > Individual Projects (E!1782; E!1784 ) > Small, shorter-term projects > Involve participants from at least two member countries > Result in a product, process or service with a significant advance in their sector > Eurostars Projects > Small, short-term projects, involving participants from at least two member countries > Consortium leader is an R&D-performing SME > Programmed jointly with the European Commission Doing business through technology > Umbrellas; Thematic network of public authorities and sectoral experts

5 Success stories > 5 A few success stories Doing business through technology

6 Doing business through technology > 6

7 EUREKA Future Innovation : The 3D TV! > 7 Doing business through technology

8 EUREKA Future Innovation : Next Car Generation > 8 Doing business through technology

9 EUREKA > 9 Ø In 25 years, EUREKA has endorsed 4000 projects for a total value of 29 Billions euros Ø 3096 projects are Individual projects, 567 are Clusters type and 346 are Eurostars Ø 7.6 B for Individual projects, 21 B for Clusters and 0.5 B for Eurostars Doing business through technology

10 Trends in Europe (corporate) > More focus on Innovation/Entrepreneurship 2. Innovative based young companies provide growth 3. More focus on product development 4. International co-operation is a must 5. Outsourcing of research large companies 6. Growth of technology based start up companies 7. Open innovation Doing business through technology

11 Trends in Europe (governmental) > For governments there is less solidarity to implement a real common pot 2. Need for international programmes 3. Trend towards flexibility and simplicity 4. Fast track programmes with reduced time to contract 5. Less Grants, more Loans 6. Joint Programmes/Programming with or without EU 7. Huge focus on innovative SME Doing business through technology

12 > 12 EUREKA Type of Participants EUREKA : Type of Participants (not including clusters participant data from 1999 onwards) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 85H 86L 86S 87M 88C 89V 90R 91H 92T 93P 94L 95I 96B 97L 98L 99I 00H 01M 02T 03C 04P 05M 06P 07R 08L* 09L* 10B SME Large company Research Institute University Other *Includes Eurostars data Assumption for 2010 Doing business through technology

13 Portfolio Type of Participants > 13 Doing business through technology

14 EUREKA & FP7 Programmes > 14 80% Industrial Participants Eurostars generates as many applications per year a Not enought data to compare Clusters and JTIs Doing business through technology

15 Contribution of business start-ups to overall employment and the net employment and growth (US, ) > Percent Share of Employment Share of Net Growth Doing business through technology 15 Source: Who Creates Jobs? Small vs. Large vs. Young (Haltiwanger, Jarmin and Miranda, February 2010)

16 New firms are very important to innovation... > 16 Patenting activity of young ( <5 years) firms, PCT patent filings by young firms as a percentage of filings by firms in each country % Share of countries in PCT filed by firms (%) Share of patents filed by firms under 5 years old United States Germany France Netherlands United Kingdom Sweden Finland Italy Denmark Belgium Austria Spain Norway Source: OECD (2010), Measuring Innovation: A New Perspective, Doing business through technology 16 OECD, Paris. Note : Data refers to patent applications filed under the Patent Co-operation Treaty (PCT) with a priority in Patent counts are based on the country of residence of the applicants. The share of young firms is derived from the set of patent applicants successfully matched with business register data.

17 Firms collaborate with each other. > 17 Companies collaborating on innovation, as a percentage of all firms, Source: OECD (2010), Measuring Innovation: A New Perspective, OECD Paris based on CIS and national sources. Doing business through technology 17

18 The Eurostars Programme > 18 > Eurostars Programme is the first European funding and support Programme to be specifically dedicated to R&D performing SMEs. It s a multi-annual joint programme ( ) between EUREKA and the European Communities, which combines: > National R&D programmes from 33 countries (EUREKA Members) (300 M committed) > FP7 (up to 100 M committed) > EUREKA Secretariat (25 years of experience in national R&D programmes coordination) The Eurostars Programme is powered by EUREKA and the European Community

19 33 Eurostars member countries > 19 Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Latvia Lithuania Luxembourg Malta The Netherlands Norway Poland Portugal Romania Slovakia Slovenia Spain Sweden Switzerland Turkey United Kingdom Status November 2010 The Eurostars Programme is powered by EUREKA and the European Community

20 Eligibility criteria > 20 > Consortium Leader is an R&D-performing SME* > At least 2 participants that are Eurostars members > Project duration is less than 3 years > Market introduction is foreseen within 2 years after project completion > The R&D performing SMEs are undertaking at least 50% of total R&D cost > Well balanced partnership (no country responsible for more than 75% of the project costs) > No restriction on thematic area (bottom up) * 10% FTE dedicated to R&D or 10% turnover dedicated to R&D The Eurostars Programme is powered by EUREKA and the European Community

21 Application, Eligibility and Funding > 21 The Eurostars Programme is powered by EUREKA and the European Community

22 Do it yourself > 22 The Eurostars Programme is powered by EUREKA and the European Community

23 > 23 The Eurostars Programme is powered by EUREKA and the European Community

24 Eurostars Key Figures > Eurostars State of Affairs Applications Submitted and Funded As of 2010, 2 cuts off per year At the begining of the programme, the forecast was 150 applications submitted per year. It has been multiply by 5 since (e.g 744) Number of applications submitted Number of applications approved for funding 71 projects have been approved for funding in the first cut off of The second cut off of 2011 is curently being evaluated The Eurostars Programme is powered by EUREKA and the European Community

25 EUREKA : Number of Projects > 25 EUREKA Projects Endorsed By number of projects Eurostars Clusters Individual Projects H 86L 86S 87M 88C 89V 90R 91H 92T 93P 94L 95I 96B 97L 98L 99I 00H 01M 02T 03C 04P 05M 06P 07R 08L 09L 10B The Eurostars Programme is powered by EUREKA and the European Community

26 Project profile > 26 Cut-Off1 Cut-Off2 Cut-Off3 Cut-Off4 Cut-Off5 Average Cost (M ) Average Participants per projects Average Countries per project Average Duration (months) The Eurostars Programme is powered by EUREKA and the European Community

27 Eurostars Type of Participants > % Eurostars Participant Type overview 90% 80% 70% 60% 50% 40% 30% Other University Research Institute Large company SME 20% 10% 0% Cut-Off 1 Cut-Off 2 Cut-Off 3 Cut-Off 4 Cut-Off 5 The Eurostars Programme is powered by EUREKA and the European Community

28 Eurostars Type of Areas > % Eurostars Tech Areas overview 90% 80% 70% 60% 50% 40% 30% Agrofood Agriculture Safety Technology Energy Industrial Biotech ICT 20% 10% 0% Cut-off 1 Cut-off 2 Cut-off 3 Cut-off 4 Cut-off 5 The Eurostars Programme is powered by EUREKA and the European Community

29 Main motivations > 29 Main motivations for participating in Eurostars % 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Develop new products/services/ processes Complement skills with the skills of other participants Obtain public funds Access new markets Mutual sharing of existing know-how Mutual sharing of human and financial resources Share the risk Develop strategic co-operation with competitors Other The Eurostars Programme is powered by EUREKA and the European Community

30 Eurostars SMEs Profile > 30 Eurostars SMEs Profile Number of Employees 50% 45% 40% 44% % 35% 30% 25% 20% 39% 0-9 employees employees employees 15% 10% 17% 5% 0% Eurostars (Approved C0 1-4) 4 out of ten Eurostars SMEs have less than 10 employees (micro SMEs) 4 out of ten have between 10 and 49 employees (small SMEs) 2 out of ten have between 50 and 249 employees (medium SMEs) The Eurostars Programme is powered by EUREKA and the European Community

31 Eurostars SMEs Profile > 31 Eurostars SMEs Profile R&D Intensity (R&D workers / Nb of Employees) 60% 50% 57% % 40% 30% 20% 42% 32% 0-9 employees employees employees 10% 0% Innovative SMEs with high R&D intensivity The more employees, the less R&D intensive (= more productive) The Eurostars Programme is powered by EUREKA and the European Community

32 Eurostars SMEs Profile > 32 Eurostars SMEs Profile Expected Turnover Growth 180% 160% 140% 168% 120% % 100% 80% 0-9 employees employees employees 60% 40% 66% 20% 0% 1 12% Eurostars SMEs have a high growth expectations The less employees, the more impact is expected (= need to grow fast) The Eurostars Programme is powered by EUREKA and the European Community

33 Expected Growth impact > 33 Average Employement Growth Expected (% of FTE) Average Annual Turnover Growth Expected (% of Annual turnover) 70% 200% 60% 180% 50% 40% 58% 160% 140% 120% 181% 100% 30% 80% 20% 60% 40% 10% 0% 4% 3% 2% 20% 0% 6% 4% 3% RD SME Large company Research Institute University RD SME Large company Research Institute University The Eurostars Programme is powered by EUREKA and the European Community

34 EUREKA Support along the Company Life Cycle > 34 Regional National International Grants Eurostars Individual Projects Clusters Grant Regional Funding Body Grants or Loans National Funding Body Loans EUREKA 2 nd Round Private Sector Grants Eurostars Individual Projects Clusters Idea Development Market Introduction Growth & Maturity Decline or Re-invention The Eurostars Programme is powered by EUREKA and the European Community

35 3rd Country Project Participation > Number of Projects Total Canada South Korea U.S.A. China Singapore Brazil Morocco Japan

36 Canada > 36 3 Projects Generated by Canada Announced Projects Withdrawn Projects

37 Canada > 37 Type of Participating Organisation University 10% SME 30% Large company 50% Research Institute 10%

38 Canada > 38 Tech Area of Projects Biotechnology 7% New Materials 13% ICT 34% Lasers 13% Energy 13% Environment 20%

39 Canada > 39 Top 10 Collaborating Countries by Number of Projects Czech Republic Norway Belgium France United Kingdom Switzerland Germany Italy Denmark Spain

40 Thank you! > 40 Doing business through technology

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