nh – kb economy kowi – nov 10 1 europe’s response to the global challenges europe’s response...

NH – KB economy Kowi – Nov 101

Europe’s Response to the Europe’s Response to the Global ChallengesGlobal Challenges

Nicholas Hartley –Head of Unit, Policy and Strategy

European Commission, DG – Research « Industrial Technologies »

KoWi, Brussels, 10th November 2005


Challenges: an increasing role

for EU Research

Objective “Lisbon”: to become the most dynamic and most competitive knowledge-based economy within 10 years

Objective “Göteborg”: sustainable development (environment, health, economy, employment)

“Barcelona” targets: 1,9% 3,0% of GDP with 2/3 financed by private sector; towards 700.000 researchers

European Research Area (ERA): …Integrating, reinforcing, structuring RTD capacities, improving coordination of policies, overcoming fragmentation of efforts… and stimulating investment in RTD


EU-25 US Japan

R&D intensity (% of GDP) (3) 1.97 2.59 3.12

Share of R&D financed by industry (%) (2) 55.9 63.1 73.9

Researchers per thousand labour force (FTE) (3) 5.5 9.0 9.7

Share of world scientific publications (%) (3) 38.3 31.1 9.6

Scientific publications per million population (3) 639 809 569

Share of world patents (%) (1) 31.5 34.3 26.9

Patents per million population (1) 30.5 53.1 92.6

High-tech exports as a share of total manufacturing exports (%) (3) 19.7 28.5 26.5

Share of world high-tech exports (%) (2) 16.7 20.0 10.6

Note: (1) 2000 data (2) 2002 data (3) 2003 data

R&D – European weaknesses


1,8

2,0

2,2

2,4

2,6

2,8

3,0

3,2 Japan: 3.0

USA: 2.7

EU-15: 1.9

Research: filling the gap

Total expenditure on R&D, % of GDP


-2

-1,5

-1

-0,5

0

0,5

1

1,5

2

2,5

-2 -1,5 -1 -0,5 0 0,5 1 1,5

Economic performance

R&

D inve

stm

ent

● P● E

● EL

● I

● IRL● EU

● F● A

● B● UK● NL

● DE

● FI

● DK ● SE

Research and economic performance


Transition from a « traditional economy » based on traditional resources to a new economy based on

knowledge

The triplet « land – labour - capital » is replaced by knowledge – capital

…this implies moving from an economy of ‘quantity’ to an economy of ‘quality’, from an economy of ‘use and waste’ to a sustainable economy

Implications…


Cancellation of the ‘resource-based’ differences Cancellation of the ‘resource-based’ differences between competitors between competitors

Focus on Added ValueFocus on Added Value

Added Value products ≠ high-tech products

Role of knowledge: new factor of productionRole of knowledge: new factor of production

Towards new paradigms


Industrial Transformation

In the globalised economy, EU industry must focus upon creating products with more added-value – it’s a question of survival!

Such a transition is producing discontinuities in: products, industries, people and approaches

Six main changes include moving from: Linearity to complexity Individual to system competitiveness Resource-based to knowledge-based economies Macro → micro → nano “Top-down” → “bottom-up” production Mono-disciplinarity → interdisciplinarity → convergence


OLD INDUSTRIES

(resource-based)

Compact enterprise Production chain Mass production Quantity driven Resource-intensive Production driven Linear approach (Taylorism in

production)

NEW INDUSTRIES

(knowledge-based)

Extended enterprise

Network of suppliers

Focus to added value

Quality driven

Brain intensive

Demand driven

Simultaneous approach

The fundamental The fundamental changeschanges


Delocalisation Delocalisation of traditional industries towards areas where of traditional industries towards areas where labour and environmental costs are less constraininglabour and environmental costs are less constraining

‘‘Dematerialisation’ Dematerialisation’ of production and organisation of production and organisation

Novel activities and Novel activities and new generation of high-tech industriesnew generation of high-tech industries

Vanishing Vanishing of some industriesof some industries

The shift from labour-intensive to knowledge-intensive operations The shift from labour-intensive to knowledge-intensive operations modifies modifies jobs and skillsjobs and skills required required

Transition phase = crossing Death Valley

Phases

Conditions

Finance

Initial

Favorable

Start up

Spin off

Growth

Adaptation

Venture Cap.

Business angels

Developm.

Optimisat. resources

Cash flow

Loans

Critical

Knowledge

relevance

Loans

End of life

Loss

Debts

Tu

rnover

Tu

rnover

Enterprise life curve


MarketMarket National European Globalised oriented

Indust. Indust. approachapproach

Supplier Market Environment & oriented oriented customer driven

RTD RTD approachapproach

Technology Market System push pull oriented

yearsyears1983 1986

Single act1990 1993

Maastricht

FRAMEWORK PROGRAMMES

FP 2(1986-90)

FP 1(1983-86)

FP 3(1990-94)


MarketMarket e-commerce Knowledge-based & user driven society

Indust. Indust. approachapproach

Concentration High added-value & Networking & integration

RTD RTD approachapproach

Society Sustainability Radical Convergingoriented & problem innovation technologies &

solving Breakthrough

yearsyears1999Euro

2000Enlargement

1997Amsterdam

2007…..Lisbon

FP 4(1994-98)

FP 5(98-02)

FP 6(02-06)

FP 7(07-13)

FRAMEWORK PROGRAMMES (cont.)


CONVERGING DISCIPLINES

TECHNOLOGIES

FROMFROM TO

MONO MULTI INTER TRANS

INFOBIO

NANOCOGNITIVE

INFO/BIONANO/BIO

NANO/INFO

NANO/INFO/BIO NANO/INFO/BIO/COGN


FP7 ‘Cooperation’ Theme 4:FP7 ‘Cooperation’ Theme 4:Nanosciences, nanotechnologies, Nanosciences, nanotechnologies,

materials materials and new production technologiesand new production technologies

Overall objective : improve the competitiveness of EU industry (including SMEs) and ensure its transformation through:

the effective transition from a resource-based to knowledge-based industry

generation of new breakthrough, applicable, knowledge

strengthening EU leadership in nano, materials and production technologies

emphasis on integrating different technologies and disciplines across many sectors

Importance of Technology Platforms to help establish common research priorities and targets


Four activities:

1. Nanosciences and nanotechnologies

2. Materials

3. New production

4. Integration of technologies for industrial applications

…good continuity with « NMP » activities in FP 6




1. Nanosciences and nanotechnologies

Objective: increase and support the take up of knowledge generated in this revolutionary field for all industrial sectors

Topics include: interface and size dependent phenomena; materials properties at nano-scale; self assembly; metrology; new concepts and approaches; impacts on health and safety; convergence of emerging technologies




2. Materials

Objective: generate new knowledge to enable new industrial products and processes to be achieved, exploiting the potential of interdisciplinary approaches in materials research.

Topics include: high performance, sustainable and knowledge-based materials; design and simulation; nano-, bio- and hybrid materials and their processing; chemical technologies and materials processing industries




3. New production

Objective: create continuously innovating production capabilities to achieve leadership in industrial products & processes in the global marketplace.

Topics include: Knowledge-intensive production; new paradigms for emerging industrial needs; adaptive, networked and knowledge-based production; convergence of technologies for next generation of high value-added products (nano, bio, info, cognitive..)




4. Integration of technologies for industrial applications

Objective: accelerate the rate of industrial transformation by exploiting the application potential of new generic technologies.

Topics include: Integration of nano, materials and production technologies in sectoral and cross-sectoral applications (e.g. health, construction, transport, energy, chemistry, environment, textiles & clothing, pulp & paper, mechanical engineering,…)




Nano-sciences and technologies offer:

• Great challenges to the scientific community in terms of scientific, educational, and organisational multi-disciplinarity, i.e. « CONVERGING » of technologies

• Potential for innovation and applications in many areas

• Economic opportunities in many sectors

The strategic importance of “nano”


Some Perspectives

“Nanotechnology”, as a new market, does not exist but there is a value chain e.g. from nanomaterials, to intermediate components and finished products

In 2004, $13 billion worth of products incorporates emerging nanotechnology, equivalent to <0.1% of manufacturing output (Lux Research)

In 2014, it is expected that this figure will rise to $2.6 trillion as nanotechnologies spreads across many sectors, ~15% of manufacturing output (ibid)

Europe needs to be at the forefront and ensure that it has the knowledge and capacity to benefit from this revolution


Which role/implications for EU academic community?

EducationEducation - Multidisciplinarity

ResearchResearch - Knowledge creation (increase basic research and focus on

‘driver’/converging technologies)

InnovationInnovation - Development of new relationships with finance

Spreading of knowledge/popularisation - Increase credibility; dialogue

Science&Society

Governance - Contribute to the transition

Local development - Increase in knowledge use/application locally


… and for industry?

FOCUS - Core business- Added Value- Miniaturization/security

REDEFINITION - Globalof ROLE - Niche

- Supplier- Assembling

ORGANISATION - New production paradigms- Global organisation- Flexible logistics

- Assembling relevance

- Knowledge integration

- New professional skills

NEW - AcademiaRELATIONSHIPS - Finance


InformationInformation EU research: http://europa.eu.int/comm/research

Seventh Framework Programme and SPs: http://europa.eu.int/comm/research/future/index_en.cfm

Information on research programmes and projects:http://www.cordis.lu

RTD info magazine:http://europa.eu.int/comm/research/rtdinfo/

NMP Industrial Research Magazine http://europa.eu.int/comm/research/industrial_technologies/lists/magazine_en.html

nh – kb economy kowi – nov 10 1 europe’s response to the global challenges europe’s response...

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