Power Electronics Volume and demands for research in Schleswig-Holstein & the Region of Southern Denmark. Report

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1 Power Electronics Volume and demands for research in Schleswig-Holstein & the Region of Southern Denmark Report

2 Executive summary Companies in the cluster Universities and institutions Partnership Universities and institutions Partnerships - Universities, companies and institutions The companies' needs Fraunhofer Risks and recommendations

3 Background and objectives In recent years, innovation within power electronics has become an increasingly important driver of growth in the Danish-German border region. Sustainable energy, motor control and mobile phone chargers power electronics plays a key role in applications like these. The Danish-German border region has a unique position within power electronics: Many of the Danish and German companies that work with power electronics are located in the Region of Southern Denmark and Schleswig-Holstein. The power electronics industry in the area is multi-faceted, growth-oriented and concentrated in a limited geographical area. This means that there are positive opportunities to create partnerships between the players and to exploit existing synergies in the border region. Exploitation of the synergies demands that the companies in the border region have access to the latest knowledge within the power electronics field. On this background, Epinion and DSN have carried out a survey into the need for a new research and knowledge centre in the region. The survey focuses on two primary issues: Mapping the existing research and scientific institutions, including: Existing partnerships with other universities Existing partnerships with companies Laboratory facilities Mapping of the companies' requirements for competences and knowledge, including: Delimitation of the relevant cluster of companies Description of the companies (revenue, employees, etc.) Identification of the areas in which companies particularly need knowledge and competences 3

4 Method The survey was based on the following sources and methods: Desk research: Review of available studies, analyses, etc. that are relevant to the issue Interviews with 20 key representatives (10 in the Region of Southern Denmark and 10 in Schleswig-Holstein) of the important corporate players in the region (Further details about selection criteria are given in the Companies section). The interview guides were discussed with the client. Interviews with 10 representatives (5 in Denmark and 5 in Schleswig-Holstein) of the research institutions with current or potential significance for research and development partnerships with companies in the region. The interview guides were discussed with the client. 2 interviews with representatives from Fraunhofer. Systematic database searches for statistical data (revenue, employees, etc.) Subsequent desk research and interviews concerning the companies' products and systematisation of research/development needs. Follow-up work: Correspondence and interviews with corporate and university players Ongoing discussions with the client The data collected was subsequently systematised and presented so as to illustrate the main issues in the best possible way. In some cases the data and information are incomplete. For example, because, for commercial reasons, the companies declined to respond to the questions or because the information was not available. In such cases, we have made estimates based on the available data. The comments and information provided by the individual companies are not quoted directly but rather anonymous. However, the overall totals, estimates and trends are the most interesting data to use when considering how to seek to cover the potential and requirements of the corporate cluster. 4

5 Executive summary Companies in the cluster Companies working with power electronics expect significant growth in coming years. 20% growth in revenue volume is a conservative estimate. The Danish cluster employs just under 11,000 while the German cluster employs at least 16,000 people. Existing research and scientific institutions Despite massive investment and several formal partnerships, the existing universities cannot meet the companies' needs. More intense research is required in the border region. The companies' needs The companies want to see more application-oriented research, qualified personnel, and better branding of the research and development environment in the region. Establishment of a Fraunhofer Center in the border region Fraunhofer has unique core competences and is a better marketing brand than the universities. Fraunhofer is also in a better position than the universities when it comes to acting as consultants for the companies. The survey has identified seven focus areas for a possible future institute, where applications, control and regulation, and power devices are the most important. More application-oriented research within these spheres is crucial to ensure growth in the border region. Risks and action standards Finance: Limited public research funding. Are the universities overlooked and Fraunhofer given preferential treatment? Organisation: Can the players be organised with sufficient mandate and strength to create appropriate distribution of roles and constructive agreements? The funding models and regional distribution of roles must be precisely defined.

6 Companies in the cluster Number Revenue Expectations

7 Identification, method and estimates Identification of the power electronics (PE) cluster A power electronics (PE) cluster was identified in DK in the following way: Available surveys in this field (see literature list) Companies identified by Lean Energy Ongoing as part of the interviews (knowledge of other companies) On the German side: Companies identified by Wirtschaftsförderung und Technologietransfer Schleswig-Holstein GmbH (WTSH) in Schleswig-Holstein. Own identifications From this cluster, 9+9 companies were selected for personal interviews. The selection criteria were pragmatic but included the following: Significant players/companies Key persons with a key role with respect to PE in the company 2/3 with significant research and development activities in PE 1/3 PE end-users A total cluster of 86 companies was thus identified. 33 companies in the Region of Southern Denmark and 53 companies in northern Germany as far as and including Hamburg. Key figures for the power electronics (PE) cluster The companies interviewed were asked how many people they employed and what proportion of these were engaged in research and development within the PE field. We sought to estimate the company's total revenue and the proportion of revenue for which PE development is of crucial importance. Based on the interview data, studies of lists and other searches for corporate material, we estimated the proportion of revenue that is dependent on PE for the remaining companies in the cluster*. It was not possible to identify revenue figures for a small number of the companies. In these cases, revenue was estimated based on the number of employees. (1 employee = DKK 1 million) Compared to the known figures for the cluster, this is a conservative estimate of revenue. Available reports Lean Energy & WTSH Power Electronics Cluster Interviews *Danfoss Power Electronics' key figures are omitted from the calculation used to make these estimates because the proportion of this company's revenue that is affected by PE development is assumed to differ significantly from the other companies in the cluster, 7

8 Key figures for the Power Electronics Cluster in the Region of Southern Denmark The nine companies interviewed in the Region of Southern Denmark: Total no. of employees: about 2, employees work with research and development of PE The companies generate total revenue of around EUR 1.2 billion (equivalent to DKK 8.95 billion). PE development is significant for about EUR 1 billion revenue (equivalent to DKK 7.9 billion). Companies in the PE cluster (Region of Southern Denmark) Automatic Syd A/S * OJ Electronics A/S * A/S Brødrene Eegholm AXA Power A/S Banke Accessory Drives * Dalsted Teknik A/S Danfoss Power Electronics * Dansk Styringsteknik A/S PAJ Systemteknik Pon Power A/S Pro-Automatic A/S Rose Technology* Safe-Light A/S Sauer-Danfoss ApS The 33 companies in the Power Electronics Cluster in the Region of Southern Denmark: Total no. of employees: about 10,770 The companies generate (estimated) total revenue of around EUR 2.57 billion (equivalent to DKK billion). PE is significant for about 35%*** of revenue, which corresponds to about EUR 1.51 billion (equivalent to DKK billion). Daugaard Elektronik ApS Eaton Electric ApS Fleks Tavler Fyns Tavleteknik Grundfos (Årslev, Fyn) Innotek ApS JE Electronic A/S * LeanEco * Linak A/S * Lodam Electronics A/S * Schneider Electric Danmark A/S Servodan A/S Siemens Flow Instruments A/S Strøh Automation A/S Titech Electric A/S Tricon Electric A/S Tricon Electronics A/S Unimation ApS Wilhelmsen Technical Solutions A/S *** This estimate is calculated excluding Danfoss Power Electronics * Company interviewed 8

9 Key figures for the Power Electronics Cluster in Schleswig-Holstein The nine companies interviewed in the Schleswig-Holstein: Total no. of employees: about 3, employees work with research and development of PE The companies generate total revenue of around EUR 2.4 billion (equivalent to DKK 18.2 billion). PE development has directly derived significance for about EUR 152 billion revenue (equivalent to DKK 1.13 billion). A total of 18 companies in the Power Electronics Cluster in northern Germany (as far as and including Hamburg) Total no. of employees: about 16,040 The companies generate total revenue of around EUR 5.15 billion (equivalent to DKK 38.4 billion). PE has directly derived significance for about 6%*** of revenue, which corresponds to about EUR 314 billion (equivalent to DKK 2.34 billion). Furthermore, there are 35 other companies in northern Germany that are nominated PE companies in studies of the field (PE:Center). Companies in the PE Cluster (northern Germany as far as and including Hamburg) A Media Bodo's Power Systems Aerodyn GmbH Evers & Co. Standard Aggregatebau KG FEAS Fabrikation Elektronischer Anlagen und Systeme Mitex Handels- und Produktions GmbH Nordisk Solar Aldra Solar GmbH FeCon GmbH* o.m.t. GmbH ALUTRONIC Bauelemente GmbH Ferroxcube Deutschland GmbH paratus electronic GmbH AWS Automation - Wölbern - Sauermann GmbH & Co KG fm-engineering Reese + Thies Industrielelektronik GmbH* Beba-Energie GmbH & Co. KG* FTCAP GmbH REpower Systems SE Bergquist Company GmbH Gemballa Electronics GmbH & Co. KG Sauer Danfoss GmbH & Co. OHG* CRE Rösler Electronic GmbH Danfoss Silicon Power GmbH* Dataschalt Senator Industrietechnik GmbH DETAKTA Isolier- und Meßtechnik GmbH & Co.KG Dispatch Energy Dräger Electronics GmbH ELAN Elektronik GmbH Getriebebau-Nord GmbH & Co.KG GreyLogix GmbH Hako Group hivolt.de GmbH & Co. KG Höhne GmbH Fabrik für Elektrochemische Isolierung imca-industrielle MicroController Applikationen GmbH Jungheinrich Norderstedt AG* Schnoor Industrieelektronik GmbH & Co. KG SEMATRON Deutschland GmbH Handel und Elektronik Silicon MEMS Itzehoe GmbH STILL GmbH SZE Spezial Elektronik Hagenuk GmbH TEWS Technologies GmbH TRINAMIC Motion Control GmbH & Co. KG ELB.TRONIX GmbH KOA EUROPE GMBH Vestas Deutschland GmbH* ELBATRON Kristonics GmbH* Vishay Siliconix Itzehoe GmbH Elektronische Bauelemente - Mewa Electronic Kuhnke AG WDI Elektronik GmbH ESW GmbH Wedel M + R Multitronik GmbH * Companies interviewed (One more company took part but asked to remain anonymous) 9

10 Key figures for the Power Electronics Cluster in the border region Companies and employees: The cluster contains about 86 companies in the Region of Southern Denmark and northern Germany as far as and including Hamburg. The companies employ a total of 26,810 people in the region. Total revenue: The companies in the border region generate total revenue of around DKK 57.6 billion (equivalent to EUR 7.7 billion). PE influence on revenue: PE development has a decisive importance for about DKK 13.6 billion revenue (equivalent to EUR 1.8 billion) for the companies in the Power Electronics Cluster Expected growth: All the companies interviewed expected to see growth in the PE field. However, predictions varied widely from one company to the next. It was, however, difficult to get the interviewees to give figures. A total estimate based on the expectations of the largest corporate players in the region is at least 20% a year for the next five years. 10

11 How the companies use power electronics Research and development areas The companies' development and application of power electronics are included in many different parts of the value chain and represent a wide range of varied development challenges, in terms of both their research and development areas and their complexity. The companies' areas of application for power electronics are within the following fields: renewable energy, industrial applications, automotive industry, computers, control, regulation and aids in the widest sense, consumer electronics and marine technology. The companies themselves engage in a broad range of areas of power electronics, for example: Optimisation with power electronics Materials science, construction and control of the new converters, semiconductor power electronics, construction and bonding/connection techniques Control and regulation of power electronics systems Triac solutions, filter solutions and microprocessors Actuators Solar inverters Optimisation within power electronics Propulsion technology, e.g. with reference to generators Net power supply (net side requirements) Fault analysis with reference to materials, reliability, mechatronics, hydrogen processing and conversion, power conversion, energy efficiency of e.g. Batteries EMC technology Power devices 11

12 Classification of the companies' needs There are several feasible ways of grouping the different areas within power electronics. Based on the companies' direct statements, we have listed a group of the companies' knowledge needs, which a Fraunhofer Institute could beneficially accommodate. This grouping is based on the existing literature and subsequently validated. 1. The companies' statements 2. Initial grouping of needs based on the existing literature 3. Expert validation of the classification Switch elements Applications Clean tech The companies needs Batteri technology Software Energy optimisation Reliable engineering Requests to Fraunhofer Inverter technology Power devices Energy storage Control and regulation EMCtechnology 12

13 The companies' specific needs for research in the future - expressed graphically Optimisation with power electronics Optimisation within power electronics 13

14 Universities and institutions

15 Universitites Southern Denmark and Northern Germany Universities and research institutions: Three Danish Institutions have (major) research programmes in the field of power electronics: University of Southern Denmark, DTU and Aalborg University. In Denmark Teknologisk Institut and DELTA also work with applied research in power electronics. Six Northern German institutions have major research programmes: UAS Kiel, UAS Westküste, Christian-Albrechts-Universität zu Kiel, UAS Hamburg, Helmut-Schmidt-Universität (Hamburg), UAS Lübeck, and UAS Flensburg Growth in research and education: The universities expect large growth in both research and education within power electronics this is due to increasing demand from the companies in the region. Laboratory facilities: All the universities in the region provide state-of-the-art laboratory facilities. Although the quality of the equipment available in the region is adequate there may be a need for more equipment to meet rising demand for research in power electronics. Blurred mismatch There seems to be a blurred mismatch between the research needs of the companies and the research supplied by the universities. 15

16 Research in northern Germany The universities focus on research into different parts of the power electronics value chain Optimisation in power electronics Research is focused on the components, modular and assembly fields Advanced semiconductor devices, power converters, high-frequency converters and electromagnetic sustainability simulation Construction and bonding/connection technology of power electronic components Thermic management of power electronic components Reliability & Cooling with reference to the complete system (E.g. Converter technology) Converters and devices for renewable energies and electrical mobility Power electronic components in combination with energy efficiency Optimisation with power electronics Research focusing on sub-systemic and systemic fields Power electronics applications in electrical powertrains System integration Grid integration of renewable energy Power electronics application in renewable energies 16

17 Education in northern Germany The German universities often offer several programmes with reference to power electronics Bachelor programmes often primarily teach the basics of electrical engineering while Masters programmes succeed in more specialised teaching. Bachelor programmes with reference to power electronics: Electrical Engineering, Mechatronics, Information and Electrical Engineering (2), Information Engineering, Electrical Systems and Automation Technology, Ecological Construction Engineering Masters programmes with reference to power electronics: Automation Technology, Micro-electronic Systems (2), Wind Engineering, Electrical Engineering majoring in Electrical Energy, Micro-electronics or Mechatronics, Electrical and Information Engineering Other Bachelor programmes with reference to power electronics: Management and Engineering (Business Engineering programme) 17

18 Laboratory facilities in Northern Germany The German universitites work closely with the companies when it comes to laboratory equipment. The facilities include a laboratory for simulation, an EMC laboratory, a laboratory for thermic, mechanical and circuit design One university has published a peer-reviewed article on laboratory equipment When the required equipment is not commercially available one of the universities builds it themselves. This ensures that the equipment matches the needs of the companies in the region. One of the universities expect to invest k in lab equipment and k in staff yearly. 18

19 Education in Denmark I SDU: Finds that there is a growing interest in power electronics. In 2011, student intake was 490, while in 2012, student intake was 665. Each semester the students work on an engineering sciences project, e.g. building a power electronic circuit During the sixth semester, all students have a compulsory industrial placement. This ensures that SDU maintains close contact with the companies which work with power electronics. Companies which work with energy development are especially interested in students who have a knowledge of power electronics. DTU: DTU produces about 25 PE graduates a year DTU points out that special weight of emphasis is given to a combination of theoretical and practical knowledge of power electronics. AAU: At AAU, the subjects are built up in accordance with a practical orientation and project work is key to the training. Here students gain a great deal of practical experience of working with power electronics. Many of the study projects the students work with are inspired by specific issues facing the industry. AAU makes contact with the companies and helps them to address specific issues. 19

20 Research in Denmark I SDU: Focus areas: Energy technology, mechatronics (especially mobility), solar cells, renewables and DC/DC converters SDU focuses on accommodating the companies' specific needs. There is a considerable time lag between the companies' expressing a specific need and the point at which it is phased into research. SDU strives to accommodate the needs that have appeared in recent years. Some companies feel, however, that there is too much focus on mechatronics at SDU and that this leaves too little room to specialise in power electronics. DTU: Focus areas: Power converters for fuel cells, digital control of DC/DC converters, and switch mode power supply. For DTU too, it is imperative that the university meets companies' needs by implementing commerciallyoriented research. AAU: AAU focuses on sustainable energy, including solar cells and wind power, although AAU also gives high priority to research into micro-grids and energy-efficient products. The university's representatives also indicate that motor control, reliability and energy-efficient products are key focus areas. Some of the larger companies in the Region of Southern Denmark feel that AAU has special focus on control engineering. This focus area is one of AAU's strong points but companies feel there is a need to foster competences within other areas of power electronics. The question is: can AAU meet these needs? 20

21 Research in Denmark II At all three universities in Denmark, power electronics is a strongly prioritised field of research. However, each of the three universities has its own point of departure, and SDU deviates from the paths followed by AAU and DTU. SDU: Power electronics as a field of research is under expansion. This is evident from several facts. e.g. the university has recently employed a professor and a lecturer in Sønderborg. Increased focus has been provoked by keen interest from companies. SDU focuses on e.g. mechatronics, modern micro-technology and solar cells. At SDU in Odense, one associate professor and 4-5 Ph.D students are engaged in power electronics research. At Sønderborg, the new professor, a lecturer and one Ph.D student are engaged in power electronics research. DTU: DTU has a long tradition of engaging in power electronics research. This field is prioritised. A total of 23 man-years is dedicated to power electronics research. DTU expects PE research to grow by about 50% within the next five years. AAU: AAU also has a long tradition of engaging in power electronics research and the field is one of the university's top priorities. A total of about man-years are dedicated to power electronics research. Of these, about 50 manyears are performed by Ph.D students. 21

22 Research in Denmark III SDU: Power electronics will be an important venture for SDU in the coming years. The university will be making significant investments in building laboratory facilities for use in research into power electronics. In Odense SDU has a state-of-the-art electronics laboratory at its disposal. In Sønderborg the facilities include a unique laboratory and component manufacturing equipment. In terms of quality, the laboratory facilities at SDU are just as good as at the other Danish universities. However, in terms of the quantity of equipment available, SDU's equipment fails to reach the level of the other Danish and international universities. At SDU, the university is working to make its equipment "flexible" so that more of it can be assigned specifically to power electronics projects. DTU: DTU also have a fully modernised power electronics laboratory, which meets the companies' needs for application-oriented knowledge of power electronics. The challenge here, however, is that the companies themselves increasingly have to approach DTU in order to make full use of the facilities. AAU: Will be investing more than DKK 400 million in power electronics in the next five years, of which laboratory equipment will account for DKK 100 million. In the last three years, extension of the laboratory facilities has cost the university DKK 80 million (excluding equipment). These investments mean that AAU can work with components, converters and drivers from kw to MW. Facilities include a reliability test lab, component testing lab and extended/long-term converter testing. 22

23 Partnerships Universities and institutions 23

24 University/institutional partnerships Only national partnerships At the national level, there is a formal/informal partnership with the following universities/institutions : Denmark: SDU DTU AAU Germany Christian-Albrechts-Universität zu Kiel Fachhochschule Kiel Helmut-Schmidt-Universität, Hamburg Technische Universität Hamburg-Harburg Fachhochschule Westküste, Heide HAW Hamburg ISIT, Itzehoe Technische Universität Chemnitz Universität Rostock Universität Bremen Leibniz-Universität Hannover RTWH Aachen 24

25 Partnerships between Danish and German universities Partnerships in the border region There are widespread cross-border partnerships between the universities. DTU works intensively with Technische Universität München. AAU's internationally strong position makes the university an attractive international partner. SDU has formal partnerships with universities in Flensburg, Hamburg, Kiel and Berlin (BAM), and also with other universities further south. SDU does not have as well developed an international network as DTU and AAU, and the lack of such a network makes it difficult to establish international partnerships. SDU wants to build a partnership with Technische Universität München 25

26 The Danish and German universities' global partnerships Partnerships with the rest of the world At the international level there are informal/formal partnerships with the following universities: Lunds Universitet Stockholms Universitet Other universities in Scandinavia AU Herning Universidad de Sevilla German Universities' Partnerships Summary Research partnerships are relatively more common than educational partnerships Partnership is either - formal, e.g. in the form of joint research projects or via the Kompetenzzentrum Leistungselektronik Schleswig-Holstein or - informal, e.g. providing guidance to students in connection with dissertations, Ph.D students from other universities, academic exchange 26

27 Partnerships Universities, companies and institutions 27

28 Partnerships in Denmark Partnerships with companies are very important for all the Danish universities. The universities work primarily with the companies' R&D departments. For the universities it is imperative that the partnership has a research perspective, i.e. that the companies' issues have a certain degree of scientific relevance. The companies are working "in counter-phase" relative to the universities. The companies are looking for specific competences but it takes several years before the universities can meet the demand. (This applies equally to candidates and research and development competences) Major formal partnerships involve a lot of paperwork. SDU: Has more than 100 industrial partners in Denmark, primarily within production, e.g. Danfoss, PAJ Systemteknik, Duus og Lodam. Of these partners, are engaged in comprehensive development activities. TEK-Momentum: A knowledge bank which is intended to form the link between companies and university. Offers company visits, financial aid and help in applying for commercial Ph.D projects. DTU: Has just less than 100 industrial partners, most of whom are power electronics developers. Examples include: Danfoss, Grundfos, Vestas, IRD, Siemens, Ludwig-Bölkow, Texas Instruments and Maersk. AAU: Also engages in a comprehensive number of partnerships with companies. A single (medium-sized) company is investing, for example, DKK 5 million in research at the university. 28

29 Formal partnership agreements Center Of Reliable Power Electronics (CORPE) Will investigate how the reliability of power electronics is affected by e.g. temperature or overload There is also focus on reducing the cost of power electronics. Participants: Danfoss, Grundfos, Aarhus University, kk-electronic, Vestas, University of Maryland, ETH Zürich and RWTH Aachen Budget: over EUR 10 million Intelligent and Efficient Power Electronics (IEPE) The project is partly funded by The Danish National Advanced Technology Foundation The project includes partnership with several of the larger power electronics companies. A network of companies, which will not necessarily become engaged in research partnerships, will be set up Participants: AAU, kk-electronic, Grundfos, Danfoss Power Electronics, Vestas, DTU, SDU, CEES, The Danish National Advanced Technology Foundation Budget: EUR 14.4 million The Power Electronics Research Network (ECPE) A European partnership focused on research, education and technological exchange Participants include Europe's most important players Selected participants: Danfoss, AAU, DTU, Siemens, etc. 29

30 Partnerships in Germany Partnerships between universities and companies Partnerships between universities and companies University partnerships with different companies (the number of companies taking part in these partnerships varies) Companies Are active at regional, national and/or international levels Are both active developers and end-users of power electronics products Type of partnership in most cases formalised via cooperative or service agreements at the regional level partnership on Kompetenzzentrum Leistungselektronik Schleswig-Holstein, although not exclusively 30

31 Partnerships in Germany Centre of Power Electronics in Schleswig-Holstein Brief description Network of industrial players, research establishments and universities with reference to power electronics (3 of the universities interviewed and 3 of the companies interviewed are partners in this network) The players cover all parts of the power electronics value chain ISIT is responsible for the organisation Goals: Initiation of publicly demanded projects, strengthening cooperation between the players, provision of innovation, competitiveness and competences required of partners in connection with power electronics A project was launched in 2008 to develop components for a converter and to test it in a system. Significance of Kompetenzzentrum Leistungselektronik Schleswig-Holstein (KLSH) from the universities' point of view Crucially important: It is the only link between the different PE competences in Schleswig-Holstein. "The PE community is linked via KLSH", "KLSH has become a great place to meet" Bundling of local (shared) competences and key people in order to produce an industrial end product. Makes valuable contributions to research KLSH as a platform for cooperative projects 31

32 Partnerships in Germany Power Electronic Center In the ideas phase: To set up of a PE cluster comprising companies and research establishments in the German- Danish border region. Goal: To strengthen education/training, research infrastructure, innovation, exchange of information and technology transfer within PE in the region To represent the interests of the PE industry vis-à-vis the general public and in the political arena To increase international awareness of power electronics' status Development status Analysis to determine potential partners within industry and research Final draft proposal completed (September 2011) 32

33 Needs More application-oriented research intensity Qualified personnel Retention and attracting qualified personnel 33

34 Need for more research intensity The companies' need for partnerships with universities/research From the universities point of view, the companies have a great need to work with the universities ("over-proportional need for electronic solutions") From the universities point of view, the current number of cooperation agreements does not cover the companies' needs ("could be twice as many") Companies wish to see new training programs which make the connection between (Electrical) Engineering and Management/Controlling All the companies expect to see growth in the area for many years to come. "To activate and maintain growth potential, there must be more research and development in power electronics." Together, the universities work to possess the complete palette of qualified know-how which is required for continuing development. "But there's not happened enough!" From the universities point of view, there is space and volume for more cooperation, in particular in Denmark. 34

35 Need for qualified personnel Lack of qualified personnel "Two out of three companies cannot get the personnel they need, i.e. people with developmentoriented know-how." "Basically good employees available": academic priorities are partly in-depth knowledge but with too little reference to the practical applications of PE. There is a need for qualified personnel at the companies Need for training in PE generally and specifically with reference to knowledge of PE applications Availability of education The companies wish to see more educational output in the field of PE. The universities agree and therefore they are enrolling more students in the field now. Stronger training specialisation is desired: In-depth knowledge and practical experience of PE applications is required 35

36 Need to retain and attract qualified personnel It is often the case that students do not remain in the region but move abroad or to other regions early steps to bind students to the region The majority of the companies interviewed mentioned the lack of qualified personnel For several reasons the region is not attractive enough to retain the strongest candidates. We need better branding of the research and development environment in the region Despite the fact that some of Denmark's leading PE development companies are located in the region we cannot attract sufficient personnel. 36

37 Fraunhofer? Arguments Goals Comments 37

38 Why a Fraunhofer Center? According to the leading corporate players, together the universities with whom they already work can supply high-quality research to international standards (in some cases, even world-class). However, Fraunhofer can provide services and branding which the universities are unable to supply. Core competences: "Fraunhofer has much to offer and is able to compete. In specific areas, Fraunhofer is one of the world's leading institutes" (leading corporate player) Consultancy role: In the case of the smaller companies in particular, there is a need for the research scientist to adopt the role of consultant in connection with what are sometimes basic ground rules. The universities are simply not good enough at acting as consultants and indeed they are not intended to act in this role. For the universities the issue in question has to be interesting from a research perspective. For Fraunhofer to become involved, a research perspective is not a requirement. This means that Fraunhofer's approach is basically different from the universities' and this makes a decisive difference to the service they provide to the companies. The networks are different: The universities' network typically comprises other universities. Fraunhofer has a different (more commercial) network. If they do not have the necessary expertise in-house, they use their network. "If we have both our university network and Fraunhofer in the region, our network will expand considerably. Laboratory equipment: The universities have very high-class equipment but the Green-Lab exercise revealed that the de facto requirements are other than those provided by the existing laboratory facilities. The universities are unable to provide sufficient access to lab equipment. Branding: Fraunhofer is a well-known brand, especially in Europe. If the companies can label their products as having been tested by Fraunhofer, the products have much higher market value than if one of the universities were to do the same. Attracting personnel: "By establishing a "hot spot" in the region with a different approach from the universities', Fraunhofer can help to create synergies and attract the best people." (key corporate player) 38

39 What are Fraunhofer's goals in northern Europe? Strong new presence in northern Europe and Scandinavia. Fraunhofer's aim is to establish an equivalent presence in the north as it has further south, where Fraunhofer has strong and established links, for example, with the automotive industry. The goal is to create a strong and attractive environment and the companies in the Region of Southern Denmark and Schleswig- Holstein are interesting. The renewable energy industries are of particular interest. Partnership with universities. Fraunhofer is already working with universities in the region (especially Kiel and UAS Westküste) and is hoping to make close ties with all the interested universities. With the universities and companies, in the medium term, Fraunhofer wants to establish a network and a "PE center". Growth and employment. In the longer term the goal is to strengthen the industry and thus with the universities create education and training, employment and growth in the region. Fraunhofer has established successful cooperation with universities in other European countries, eg in Gøteborg in Sweden. Fraunhofer is convinced that the establishment of an institute will have a positive effect on the human resource development in the region, especially if it happens in collaboration with the universities. To make a profit! And thus to create the foundation for our research investment, and our student and research scientist funding. 39

40 The Fraunhofer effect? To stimulate product development at the region's companies. and thus to create positive yield on the investment when the companies capture market share. Attractive research and study center. Fraunhofer aims to stimulate the research and study environment. For example, at the Itzehoe center, there are always 20 students (working, student assistants, interns, Ph.D. students). To stimulate interest for the natural sciences. It is difficult to promote the educational advantages of Engineering Sciences. Students prefer to take business studies etc. rather than Engineering Sciences. This is a fundamental problem which we are keen to resolve. The next generation. We want to create the next generation ourselves. One important aspect is of course the students, but it is also important to encourage young people generally to show an interest in technical education programmes. For example, Fraunhofer runs events at senior high schools to draw attention to the technical education programmes. 40

41 The players' comments about a Fraunhofer Center Assessment of a research institute from the companies' point of view The companies interviewed in both DK and SH were generally positive about the idea of a Fraunhofer Institute in the border region. The companies believe that they would engage the research institute to perform tasks for them Due to the lack of detailed information, respondents were less specific about the potential benefits the research institute might bring The companies want application-oriented research and less basic research Practice-oriented research to deliver results within the next 1-5 years is very important Assessment of a research institute from the universities' point of view The universities gave both positive and reluctant assessments of the research institute On the information available, the universities find it difficult to assess the benefits and disadvantages There is a risk of creating inappropriate competition for research funding In the current situation, a Fraunhofer Center would risk finding it difficult to attract sufficient funding "There are already many smaller university institutes working in this area, so it is difficult to see the usefulness of yet another small institute" "If the institute becomes a reality, we will welcome it but also in this connection we lack an organisation which has a mandate to negotiate and reach decisions" 41

42 The players' comments about a Fraunhofer Center Assessment of a research institute from the companies' and universities' points of view Geographical proximity is important when you need advice fast. Qualified personnel Potential opening-up of the Danish and German markets to each other Via partnership with a research institute, it is possible to attract research scientists and students Significance of the research institute at the general level Good supplement to the existing power electronics offer in the region The "German-Danish" cultural aspect was assessed positively Improve the attractiveness and perception of the conditions for potential companies and overall improvement in the region profile. Technological construction Further potential functions of the research institute Provider of further education Partner within the framework of research projects with companies 42

43 Homogeneous and heterogeneous conditions among the players Homogeneous: Growing importance of power electronics energy transition, "everything's going to be electric" Important to create a better organised and connected R&D partnership between companies and universities in the region. Crucial importance of Kompetenzzentrum Leistungselektronik SH for companies and universities From some of the universities' point of view, the universities are unable to meet the companies' need for partnerships with the universities Cooperative agreements are insufficient Respondents feel they lack an organised center, which can create synergy and better branding of the opportunities in the region. Lack of qualified personnel Assessment of a research institute from the companies' point of view generally positive Stronger attractiveness of the region as a result of the presence of a research institute Current awareness of the importance of sharing PE competences in order to succeed Heterogeneous Appropriateness of establishing a competing institute From the companies' point of view, the need for PE knowledge and skills varies greatly Great variation in potential thematic focus of the research institute Assessment of a research institute from the universities' point of view "with reservations" or "positive" 43

44 Risks and recommendations 44

45 Risk involved in establishment Funding the research institute Fundamental lack of public funding available to the universities Some respondents expressed strong reservations about large sums of public funding flowing into funding the research institute, as opposed to flowing into their research and teaching Lack of integration of key people Partial ignorance and prejudice on the part of important key people Organisation of the players involved Can the players be organised with sufficient mandate and strength to create appropriate distribution of roles and constructive agreements? The advantages of a research institute are not evident to everyone Some respondents have no specific idea of how they could benefit from a research institute. Its distinction from existing research institutes is not clear The roles of the individual partners are not clear. 45

46 Establishment schedule Milestones 1. Initial communication of the companies' detailed company PE needs (Month 1) 2. Initial formulation of business model and development plan (Month 1) 3. Communication of the companies' detailed PE needs to provide the thematic focus for the "Institute" (or "Department" or "Application Centre") (Month 2) 4. Business model and development plan formulated (Month 2) 5. Decision to go ahead with construction (Month 4) 6. Construction phase begins (Month 7) 7. Construction phase ended / Operations begin (Month 12) 46

47 Recommendations Involvement and integration of players Especially the universities Eliminate prejudice and ignorance Use of very committed players, who have an interest in sharing Use of the current infrastructure and skilled capacity, and especially securing knowledgesharing of the PE comeptences Funding Clarify funding model for a Fraunhofer Center (Basic funding + contract research) Develop a detailed development plan and business model (organisation, backing, costs, funding, etc.) Transparency Create transparency above all with regard to the ongoing process, funding and potential benefits of a research institute for the individual participants Clarification of terms: "Institute", "Department" or "Application Center". 47

48 Recommendations Clear distribution of roles Clear distribution of the future roles of the individual partners and stakeholders Use of key persons' (networkers') potential Use of key persons' (networkers') potential in order to encourage as many players as possible within the PE area to take part and to approve the institute Criteria for success here is transparency Clear presentation of the benefits to the individual participant and to the region (image, growth, employment via hi-tech/future technologies/technologies key to the success of energy transition, more research funding for everyone in the region,...) Cluster development Discuss implementation of supplementary competitive opportunities in the region for the PE players ("we need structures/organisations which can develop themes and projects on a neutral basis") 48

49 Literature Green Power Electronics Test Lab Green PET Lab Lean Energy Cluster and Delta (2012) Analysis of the Lean Energy Cluster in the Region of Southern Denmark preliminary results Glenda Napier (RegX) Danish-German Fraunhofer Institute Power Electronics: Southern Danish perspectives, potentials and stakeholders The Region of Southern Denmark (Memorandum) (2012) Danish-German Fraunhofer Institute results of meetings (10.8), further process, communication The Region of Southern Denmark (Memorandum) (2012) Perspective interview Fraunhofer Southern Denmark (2012) (Minutes) Knowledge-intensive green production within the energy sector in the Region of Southern Denmark Søren Houmøller (1st Mile) and Jon Wulff Petersen (TTO) (2010) PE:Center Final Draft Proposal: Establishment of a Power Electronics Center Michael Schack (2011) 49

50 EPINION COPENHAGEN EPINION AARHUS EPINION OSLO EPINION MALMÖ EPINION SAIGON RYESGADE 3F 2200 COPENHAGEN N DENMARK T: E: W: NORDHAVNSGADE AARHUS C DENMARK T: E: W: TOLLBUGATA OSLO NORWAY T: E: W: ADELGATAN MALMÖ SWEDEN T: E: W: 11TH FL, DINH LE BUILDING, 1 DINH LE, DIST. 4, HCMC VIETNAM T: E: W: in cooperation with Kiel Germany

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