fraunhofer-gesellschaft i nstitutional approach to promote innovation
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© Fraunhofer
FRAUNHOFER-GESELLSCHAFT Institutional approach to promote innovation
Harald Egner
23rd April 2010
© Fraunhofer
Fraunhofer Introduction
Alignment of funding models (FhG/UK)
Human resources
Cooperation activities UK
© Fraunhofer
The Fraunhofer-Gesellschaft
The Fraunhofer-Gesellschaft undertakes applied research of direct utility to private and public enterprise and of wide benefit to society.
Our Customers:
Industry
Service sector
Public administration
© Fraunhofer
Guiding Principles of the Fraunhofer-GesellschaftMission
The Fraunhofer-Gesellschaft promotes and undertakes applied research in an international context, of direct utility to private and public enterprise and of wide benefit to society as a whole.
As an employer, the Fraunhofer-Gesellschaft offers a platform that enables its staff to develop the necessary professional and personal skills that will enable them to assume positions of responsibility within their Institute, in industry and in other scientific domains.
By developing technological innovations and novel systems solutions for their customers, the Fraunhofer Institutes help to reinforce the competitive strength of the economy in their region, throughout Germany and in Europe. Their research activities are aimed at promoting the economic development of our industrial society, with particular regard for social welfare and environmental compatibility.
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The Fraunhofer-Gesellschaft in Germany
59 Institutes 17 000 employees
München
Holzkirchen
Freiburg
Efringen-Kirchen
FreisingStuttgart
PfinztalKarlsruheSaarbrücken
St. Ingbert Kaiserslautern
DarmstadtWürzburg
Erlangen
Nürnberg
Ilmenau
Schkopau
Teltow
Oberhausen
Duisburg
EuskirchenAachenSt. Augustin
Schmallenberg
Dortmund
PotsdamBerlin
Rostock
LübeckItzehoe
Braunschweig
Hannover
Bremen
Bremerhaven
Jena
Leipzig
Chemnitz
Dresden
CottbusMagdeburg
Halle
Fürth
Wachtberg
Ettlingen
Kandern
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Demands on a Fraunhofer Institute
Scientific competence proved by the recognition of the scientific community
Market success and entrepreneurial competence proved by contracts with industry and government
Professional networking with other Fraunhofer Institutes and externals
Well-balanced financial mix of different independent sources
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7 Groups:
Information and Communication Technology
Life Sciences
Microelectronics
Light & Surfaces
Production
Materials and Components - MATERIALS
Defense and Security
The Profile of the Fraunhofer-Gesellschaft
59 Institutes
17 000 employees
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Fraunhofer Alliances
Adaptronics
Advancer
Ambient Assisted Living
Building Innovation
Digital Cinema
eGovernment
Energy
Food Chain Management
Grid Computing
Nanotechnology
Optic Surfaces
Photokatalysis
Polymer Surfaces
Additive Manufacturing
Cleaning Technology
Simulation
Water Systems (SysWasser)
Traffic and Transportation
Vision
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0
10
20
30
40
50
60
49 55 60 65 70 75 80 85 90 95 00 08
Development of the Fraunhofer Institutes since 1949
Zentrale/P2/Stand: 02-2008
Institutes of the eastern German Länder
8 GMD Institutes
without own Institutes
Contract Research with own Institutes
Establishment of the “Fraunhofer Model“
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Key Activity Contract Research (million euros)
2005 2006 2007 2008 2009
1 339
1 068 1 032
1 164
1 291
420 million € Institutional Funding
407 million € Revenues Contract Financing (Industry)
320 million € Revenues Public Projects (Federal, German Länder)
63 million € Revenues EU-Projects
129 million € Other Revenues
(preliminary)
© Fraunhofer
Key Activity Contract Research (million euros)
2005 2006 2007 2008 2009
1 339
1 068 1 032
1 164
1 291
420 million € Institutional Funding
407 million € Revenues Contract Financing (Industry)
320 million € Revenues Public Projects (Federal, German Länder)
63 million € Revenues EU-Projects
129 million € Other Revenues
(preliminary)
Public Project Funding
Contract Research (Industry revenue)
Performance related Institutional Funding
© Fraunhofer
Allocation of Institutional Funding
Target Figures in 2009: 244.9 million €
G1: Fixed amount
G2: Budget of Institute
G3: Percentage of industry revenues
G4: Percentage of EU revenues
Revenue Industry
G3 = 10% respectively 40% of industry revenues
G4 = 15% of EU revenues
G1 = fixed amount 0,6 Mio €
G2 = 12% of budget
40%
25 55
10%
10%Institutional funding for a Fraunhofer Institute
%
Performance relatedallocation criteria for institutional funding
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Fraunhofer Institute - Dual Institute Model
Contract Research (Industry)
Public funded Projects
InstitutionalFunding
Rulesincentives
Fraunhofer Institute University
Institute
Academia,university
(more) basic research
Human Resources
Academic career- PhD- Lecturing
© Fraunhofer
The German Research Landscape
Applied Research
Fundamental Research
predominent institutional predominant private
Characteristics of Research
Funding
Federal/German Länder Institutes0,9
HGF*2,42
WGL*1,122
Univer-sities9,2
Industry (internal and
external expenditures)
55,41AiF~ 0,25
Fraunhofer* 1,43
MPG*1,442
*overall budget in billion euros
HGF Hermann von Helmholtz-GemeinschaftWGL Wissenschaftsgemeinschaft Gottfried Wilhelm LeibnizAiF Arbeitsgemeinschaft industrieller ForschungsvereinigungenMPG Max-Planck-Gesellschaft Source:
Stifterverband für die Deutsche Wissenschaft, Destatis
1 estimation Wissenschaftsstatistik 2008, Stifterverband2 20073 2008
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Fraunhofer Introduction
Alignment of funding models (FhG/UK)
Human resources
Cooperation activities UK
© Fraunhofer
1
2
3
4
5
6
7
8
9
TRL
Te
ch
no
log
yA
ss
es
sm
en
t&
Pro
vin
gP
re-
Pro
du
cti
on
Pro
du
cti
on
Imp
lem
en
tati
on
Production Implementation Fully production capable process
qualified on full range of parts over extended period
Pre-production Process optimised for capability
and rate using production standard equipment
Technology Assessment and proving
Process Validated in Lab using development equipment
Technology Readiness Level
© Fraunhofer
Alignment of Funding Models
1 2 3 4 5 6 7 8 9
Institutional Funding
(3 – 5 years to market)
Project Funding
(2 - 3 years to market)
Industrial Contracts
(industry buying
knowledge, applications0.5 – 1 year)
TRL / UK
EPSRC TSB
Fraunhofer Funding Mechanism
UK Funding Bodies
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Fraunhofer Funding Model translated into TRL
1 2 3 4 5 6 7 8 9
Institutional Funding
(3 – 5 years to market)
Project Funding
(2 - 3 years to market)
Industrial Contracts
(industry buying
knowledge, applications0.5 – 1 year)
money to make
knowledge
knowledge to make money
Fraunhofer Funding Mechanism
© Fraunhofer
Creating competitive advantage for companies
1 2 3 4 5 6 7 8 9
Institutional Funding
(3 – 5 years to market)
Project Funding
(2 - 3 years to market)
Industrial Contracts
(industry buying
knowledge, applications0.5 – 1 year)
TRL / UK
Delivery
Valuefor
Money
Fraunhofer Funding Mechanism
Creating Competitive
Advantage for Companies
Shortterm
solutions
© Fraunhofer
Integrated Fraunhofer Model
1 2 3 4 5 6 7 8 9
TRL / UK
Department inside institute
Working group inside department
Fraunhofer Institute
Fraunhofer Funding Mechanism
Uni
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Development of technology area over time
1 2 3 4 5 6 7 8 9
TRL / UK
time
Uni
Uni
Uni
-2 years
+2 years
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Market driven use of institutional funding
1 2 3 4 5 6 7 8 9
TRL / UK
time
Uni
Creating performance related institutional funding
annual effect
Investing institutional funding
in industrial needs / marketstypically 3-5 year effect
-2 years
+2 years
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Product Life Cycle of technology area
time
revenue
Turning SoA;becoming available through commercial providers (companies, consultants)
IndustrialRelevance
for institute
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Need for Innovation/Business Continuity
time
revenue
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Summary of Fraunhofer principals
High autonomy of institutes
Integrated approach / responsibility TRL 2/3 to 8/9
Performance related institutional funding inside Fraunhoferand inside institutes
Market driven investment of institutional funding on business unit level risk mitigation
Companies buying knowledge to achieve competitive advantage
Fraunhofer brand
„Spring board“ to high level career in industry
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Fraunhofer Introduction
Alignment of funding models (FhG/UK)
Human resources
Cooperation activities UK
© Fraunhofer
Joseph von Fraunhofer
Head of Royal Glass Factory
Discovery of “Fraunhofer Lines“ in the sun spectrum
New methods of lens processing
e.g.: ~ €450 million revenues from industry (about 4000 contracts) p. a.
e.g.: Innovation Award 2004 of the German Federal President for Electric Biochip Technology
e.g.: 2 patent applications each working day
Researcher
Inventor
Entrepreneur
The Fraunhofer-Gesellschaft
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Fraunhofer-Gesellschaft Human Resources
As at December 31 of that year, including part-time jobs
2005 2006 2007 2008 2009
Regular Staff 8 200 8 390 8 950 9 850 11 280
of which are limited contracts
2 780 2 990 3 480 4 230 5 220
Support Staff 4 200 4 380 4 680 5 190 5 600
Total 12 400 12 770 13 630 15 040 16 880
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The top employers chosen by German students
Universum Student Survey 2009
Quelle: Universum Communications, Stand Mai 2009
Natural Scientists IT Specialists Engineers1. Max-Planck-Gesellschaft
1. Google 1. Audi
2. Fraunhofer-Gesellschaft
2. IBM 2. Porsche
3. Bayer 3. SAP 3. BMW
4. BASF4. Fraunhofer-Gesellschaft
4. Siemens
5. Roche 5. Microsoft 5. Daimler6. DLR 6. Apple 6. EADS
7. Novartis 7. Porsche7. Fraunhofer-Gesellschaft
8. Merck 8. Siemens 8. Robert Bosch9. Bayer Schering Pharma 9. Audi 9. Lufthansa Technik
10. BMW10. Max-Planck-Gesellschaft
10. Volkswagen
11. Siemens 11. BMW 11. DLR12. Boehringer Ingelheim 12. Intel 12. ThyssenKrupp
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In the employer ranking Fraunhofer comes in second Universum Student Survey 2009
Quelle: Universum Communications, Stand Mai 2009
14 points
17 points
19 points
23 points
20 points
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„Spring board“ to high level career
Integrated approach along TRL levels
High throughput – opportunities for promotion
Academic and professional career in parallel
Market driven investment into new ideas
Understanding needs of companies to achieve / maintain competitive advantage
Multidisciplinary and cross-sector approaches
Building high quality networks
Brand
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Fraunhofer Introduction
Alignment of funding models (FhG/UK)
Human resources
Cooperation activities UK
© Fraunhofer
Levels of Cooperation - Fraunhofer institute / UK
Cooperation level
Joint research projects (FP7, EUREKA, bi-national)
Joint research agenda (institute level)
Joint research programme (DE / UK)
Institutionalised Cooperation (Centre)
Starting as joint Research Group (3 – 5 years)
Setting up formalised institution
Further steps depending on success over 3-5 years
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Institutionalised Fraunhofer Cooperation
Contract Researc
h (Industr
y)
Public funded Projects
Institutional
Funding
Rule
s, in
centiv
es
Institution UKUniversity Institute
Academia,university
(more) basic research
Human Resources
Academic career- PhD- Lecturing
Contract Researc
h (Industr
y)
Public funded Projects
Institutional
Funding
FhI / DEUK Formal Agreement
Fraunhofer DE
© Fraunhofer
Thank you very much for your patience
harald.egner@ipa.fraunhofer.de
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