Co-creating cross-border innovation ecosystems: Lessons from the EIT Jose Manuel Leceta Ingenio, 2014
INTRODUCTION WHY A DIFFERENT APPROACH TO INNOVATION IN EUROPE IS NEEDED. WHY THE EIT?
AGE DISTRIBUTION OF WORLD LEADING INNOVATORS IN THE XX CENTURY New firms set-up in the last 25 years US: approx. 21% EU: approx. 2% Bruegel policy brief 2009 Reinhilde Veugelers
KNOWLEDGE TRIANGLE INTEGRATION: CO-CREATE NEW INNOVATION MODELS Business Higher Education ENTREPRENEURIALLY DRIVEN INNOVATION Research & Technology Actors within the knowledge triangle are at the core of the innovation beyond traditional collaborative R&D consortia: learning by doing and policy experimentation are also needed
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 brings together the three sides of the knowledge triangle in Knowledge and Innovation Communities (KICs) KICs are entrepreneurial, living partnerships linking strategicall together higher education, business and research partners. Higher Education Research & technology Industry & SMEs
ENTREPRENEURIAL INNOVATION REQUIRES PEOPLE AND ECOSYSTEMS 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
HOW ARE KICs? WHAT LOGIC DO THEY FOLLOW? WHICH DYNAMICS GENERATE?
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 8
THE FIRST 3 KICs Designated in December 2009 by the EIT Governing Board with their governance and management set up in 2010
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.
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.
QUESTION # 1 WHAT DO KICS DO IN PRACTICE?
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.
Aggregated EIT Level Achievements * Core KPIs for KICs 2010-2013 (foreseen) 14,155 Attractiveness of education programmes ** 318 Number of new graduates 404 Number of business ideas incubated 108 146 89 Number of start-ups created Knowledge transfer and adoption New or improved products, services, and processes launched ** 13 applicants per offered seat
KPIs CLIMATE-KIC 2010-2012 Approved, 2013 Reported, 2014 Budgeted
KPIs EIT ICT Labs 2010-2012 Approved, 2013 Reported, 2014 Budgeted
KPIs KIC InnoEnergy 2010-2012 Approved, 2013 Reported, 2014 Budgeted
QUESTION # 2 WHAT MAKES THE EIT UNIQUE IN POLICY TERMS?
THEORETICAL RESEARCH PART : FINDINGS EIT/KIC unique features for EU innovation policy 1. EIT-KICs as forerunners of communities-driven innovation schemes for grand societal challenges 2. KIC Co-location Centers as inter-connected innovation hubs melting knowledge and skills 3. Overall EIT-KIC innovative governance as an entrepreneurial impact investment institute 4. 19
FINDING 1: EIT-KICs as forerunners of communitiesdriven innovation schemes for grand societal challenges (*) Former FP 7 array of instruments : Granieri and Renda (2012), Innovation Law and Policy in the EU. Towards Horizon 2020, 20
FINDING 2: KIC Co-location Centers as inter-connected innovation hubs melting knowledge and skills Climate-KIC: Co-location Centre RIC (Regional Implementation and Innovation Centre) EIT ICT Labs: Co-location Centre Associate Partner KIC InnoEnergy Co-location Centre (**) Composite map of CLCs for the three first KICs 21
FINDING 3: Overall EIT-KIC innovative governance as an entrepreneurial impact investment institute Entrepreneurship panel WG 1 KIC 1 EIT Governing Board WG 2 Executive Committee Chairman EIT HQ Budapest Director EIT-KIC Forum KIC 2 KIC Partners WG 3 KIC 3 Education panel (***) Overview of the EIT s governance and structured dialogue with KIC through the Forum 22
CONCLUDING REMARKS WHY DO WE THINK THE KIC MODEL DOES WORK?
KIC PARTNERS EVOLUTION: 2010-2013 Message 1: KICs are gaining business trust In 2013, the three KIC brought together over 350 partners 80 70 68 60 60 50 40 30 20 32 30 30 25 35 17 24 19 10 9 3 0 Climate-KIC EIT ICT Labs KIC InnoEnergy Business Higher Education Research Cities & Regions 24
EIT FUNDING EVOLUTION: 2010-2013 Message 2: KICs are also gaining public trust 450 400 350 300 250 200 150 100 50 0 2010 2011 2012 2013 EIT Grant Awarded National/Regional/Private Other sources 25 KIC partners EU / non EIT
FIRST DISSEMINATION PRACTICES 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
ON GOING RESEARCH
eit s END TO END SUPPORT WEBS : ITS KICS EDUCATION Promoting excellent education for creativity, innovation and entrepreneurship ENTREPRENEURSHIP More favourable environments for entrepreneurship driven innovation to flourish. INNOVATION Networked ecosystems across Europea, to accelerate globally successful leading innovators. PEOPLE! ECOSYSTEMS!
EMPIRICAL PART: OVERCOMING BARRIERS TO (POTENTIAL) HIGH GROWTH FIRMS The case of EIT ICT Labs KIC A not to miss sector Business Development Accelerator Survey and results Benchmark OECD paper on Strategic P/PPs 31
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WHAT EIT IS NOT
WHAT EIT IS NOT (1 / 2) : REGARDING PEOPLE AND ECOSYSTEMS I.E. PRACTICE NOT Educate employees - BUT Nurture employers NOT Institutional talking - BUT Individuals walking NOT just R&D Collaboration - BUT Knowledge integration OVERALL: It s about believing in PEOPLE talent and courage NOT just Explicit knowledge - BUT also Tacit knowledge NOT Closed systems - BUT Managed ecosystems NOT Input/capacity - BUT Output/impact KIC BUILD INTER-CONNECTED CROSS-BORDER HUBS AND DYNAMICS are end-to-end VALUE generators
WHAT EIT IS NOT (2 / 2) : REGARDING GOVERNANCE AND MANAGEMENT I.E. POLICY NOT Prescribing - BUT Learning by doing NOT Linear pipeline - BUT Holistic seamless web NOT Top down regulation - BUT Bottom up alignment EIT GOVERNANCE is about agenda SHAPING, game chancing NOT Project Co- funding - BUT Partnership Catalysis NOT Research grants - BUT Seed investment NOT Annual Workplan - BUT Business Plan EIT-KICs MANAGEMENT are living partnerships, managing complexity for CO-CREATION