French bazaar-like innovation ecosystem how ADEME is taking profit from it to crop up climate action oriented start ups and innovations Anne Varet / Hervé Pernin Research and forward planning department February 22 nd 2018
a brief presentation of ADEME A public Agency under the joint authority of the French Ministries for Ecology, Sustainable Development, Energy / Higher Education and Research ADEME s Objective : Be the reference and privileged partner for central and local authorities, professionals and the general public 4 ways of action: Acquiring knowledge and Develop solutions for the future (R&D and demonstration programs, roadmaps) Providing expertise (Advise public authorities, Provide studies, tools & guides, Help for decision making) Convincing and mobilizing (communication campaigns, advice to citizens, notably through Energy information centers, Information and training of professionals) Financial support for project development (notably : renewable heat fund, waste fund, Polluted sites) 2
ADEME Budget 2018 (total 540 M ) 2018 2012 2011 2010 2009 Chaleur renouvelable 215 M 303 M 354 M 413 M 272 M Déchets et économie circulaire Polluted Sites 163 M 193 M 221 M 258 M 145 M Bâtiment économe en énergie 29 M Others 34 M R&D Communication nationale / formation 6410 M 30 M Recherche 27 M 31 M Sols pollués Communication & friches / 22 M 32 Renewable M 35 Heat M Autres programmes Training 69 M 43 M 221 M 48 M 75 M 77 M 23 M 540 M 602 M 304 M 333 M 222 M Efficient Building 42 M Waste & Circular Répartition des engagements Economy 2007 par domaines 181 M Autres programmes 48 M + Investments for the future : total for 2010-2017 3 300 M 3
cathedral-like vs./ bazaar-like innovation processes Cathedral Bazaar Things are programmed, TRL, techno-push model Things happen, lean start up, infringement, explore, margins, vortex model, quick prototyping, Darwin 4
3.3 billions, PIA Fund, for cathedral-like innovation in energy and environmental transition (2011 2016) Budget managed by ADEME for innovation Mode of support Comments Grants 3,3 billions 970M 1 590M Reimbursable subsidies State aids : combination of grants and reimbursable subsidies dedicated to companies (SBC, MSC, Large companies) 570M 150M Venture capital SPV Venture capital SBCs Capital intervention directly managed by ADEME toward large companies Capital intervention toward SBCs in the framework of Eco-technologies fund 5
Investing for the future program (PIA) supports a large diversity of cathedral-like innovation projects Projects funding variety Cost of project (in M ) Large diversity of projects funded In terms of projects cost Median value cost 10M average cost 25M 80% of projects represent 35% of credits In terms of maturity 20 10 Selected projects : Technological Innovations Research demonstrators Industrial research, experimental development Pre-industrial experimentation/ first industrial Innovations in term of market, organization Long term Medium term Short term Time to market 6
Private and Public funding of cathedral-like projects Public/Private Funding Laboratory Field Test Private/Market Funding Full Size Project R&D Prototype Pre-industrialisation 0 Pilot Project Development Industrialisation Infrastructure Public/State Funding I I I I 1 10 100 1000 I M 10 000 ADEME research program R&D Demonstrator Fund 167 M ADEME IF Program 3 130M Investment size 7
French system of incubation / acceleration for bazaar-like innovation processes Approx. 130 FabLabs, 21 public incubators 600 (?) third places Paris area A few unicorns Main public sponsors Ministry Research and Innovation Ministry of industry bpifrance, public investment bank Unemployment insurance first public contribution to entreprenueurship Numerous private sponsors (2-3 b /y??) business angels,hedge funds, big companies (Engie, EDF, Orange ) National label Frenchtech for 14 local ecosystems 8
diagnosis of incubation /acceleration ecosystem regarding climate action Rate / number of start ups in early stage that are climate action oriented? hard to determine but for example : annual public contest I-lab (70 awarded/year, 200 k ) approx. 5%-10% of awarded projects could be linked directly or indirectly to climate change mitigation / adaptation including renewables and circular economy How is ADEME promoting climate action within innovation ecosystem(s) at national or regional levels? (diagnosis 2016) ADEME funding is mainly dedicated to companies, small medium or large size, with standard business models and projects typically > 500 k until 2016, no funding of start ups by ADEME ADEME is scarcely associated with start up contests, hackathons either public or private a few a scattered thematic initiatives like Fabrique des mobilités (est. 2016) : a network of knowledge sharing, a community, an accelerator 9
how ADEME is getting accustomed to bazaar-like innovation processes «GreenTech verte» contest (10 M ) launched april 2016 by Ministry of the environment and Ministry of the economy and industry two sessions spring / autumn 2016 (3 months each from call to award) ~ 250 applicants / ~ 80 start ups funded with a 150 k subsidy (seed money) 3 hackathons as side events organized by Ministry of the environment three incubators/coworking places to host awarded start ups ADEME corporate contest À nous les projets! ( Let us venture! ) launched march 2017 with a call for irritants regarding climate action toward the whole ADEME staff (1 000 people, by SMS) April - March : 5 workshops (50 volunteer attendants) to deepen the irritants June - September : call for ideas (20 ideas submitted) to solve them October December : 7 ideas in pre-incubation process (from idea to project) January September 2018 : 3 POC (located in incubators Nantes, Paris and Dijon) From September 2018 : 3 start ups created 10
À nous les projets! three POCs underway hosted by three very different incubators a private company also present in Morocco, India, Mexico a public incubator contracting with big companies for thematic contests a cluster mixed public / private model 11
what s next? To be continued innovation contests GreenTech verte, À nous les projets! etc. with new topics covered e.g. civic tech, social innovation recently : contest on access to energy in off-grid (electricity) areas (9 awarded / 90 applicants) To be reinforced share knowledge with innovation ecosystems e.g. energy transition scenarios 2030/2050, roadmaps.. To be thought about create third place(s) dedicated to climate and the environment?? in cooperation with e.g. AFD?? 12
thank you for your interest Contacts CTCN : Laurent Caillierez Bazaar-like innovation : Hervé Pernin surname.name@ademe.fr Titre et/ou intitulé Date 13