Dr John Lincoln Harlin Ltd / South of England Photonics Network (SEPNET)
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1 Dr John Lincoln Harlin Ltd / South of England Photonics Network (SEPNET) 1
2 Outline Background Horizon 2020 developments European regional development fund developments Near term opportunities the end of FP7 Practicalities and Benefits Timescale 2013/14 on - Now 2
3 Why Bother with Europe 7 year funding cycle = stability Planning now for Eu funding becoming as important as national funding. Substantial source of funds Collaborative Research and Development Framework programme (e.g. FP7 ) 53billion ICT (includes electronics / photonics & software 1.5bn in 2013) to be incorporated in Horizon2020 from 2014 Structural & Cohesion funds 50bn/year Supporting regional competitiveness and employment European Regional Development Funding Associated with less developed regions & infrastructure EU funding long term view 3
4 Perfect storm of change Economic necessity EU exploitation, EU jobs EU manufacturing Budget renewal Bridge innovation gap Get products to market SME focus - Drivers of growth Industry driven = PPP (public private partnerships with EU commission Key Enabling Technologies Leadership Making most of strengths Focus on clusters Big change in European funding environment 4
5 One Commission many faces European Commission Research and Innovation (DG Connect) Structural Funds (DG Regio) Other (Agriculture etc) Framework programme Levelling Innovation Horizon2020 Less developed regions Developed region ERDF Multiple directorates- multiple funds 5
6 6
7 Horizon 2020 The EU Framework Programme for Research and Innovation: EC proposal: 80 B Horizon 2020 Societal challenges Health & Ageing, Energy, Transport, Resource Efficiency, Climate Challenge,... Industrial Leadership Leadership in Enabling Technologies (ICT, Nanotechnology materials, Biotechnology, Production Technologies, ) Excellent Science ERC, Marie Curie actions, FETs, Research infrastructures Policy Research and Innovation 7
8 H2020 breakdown ICT everywhere International cooperation Europe 2020 priorities European Research Area Shared objectives and principles ICT 4 B 32 B ICT ICT ICT ICT ICT EIT JRC Simplified access Tackling Societal Challenges Health, demographic change and wellbeing Food security, sustainable agriculture and the bio-based economy Secure, clean and efficient energy Smart, green and integrated transport Climate action, resource efficiency and raw materials Inclusive, innovative and secure societies Excellence in the Science Base Frontier research (ERC) Future and Emerging Technologies (FET) Skills and career development (Marie Curie) Research infrastructures Common rules, toolkit of funding schemes Creating Industrial Leadership and Competitive Frameworks Leadership in enabling and industrial technologies ICT Nanotech., Materials, Manuf. and Processing ICT Biotechnology Space Access to risk finance Innovation in SMEs ICT ICT 25 B ICT 4 B ICT biggest in Industrial Leadership 18 B ICT 8 B Dissemination & knowledge transfer 8
9 Where will with money go? Key Enabling Technologies Essential to Eu competitiveness Bridging Innovation Gap Getting technology to market Higher technology readiness level projects Full supply chain SME s Pilot lines Demos in operating / relevant environment Funding closer to market in KETs 9
10 Key enabling technologies High level group identified 6 key enabling technologies - KETS Nanotechnology Micro- & Nano-electronics Photonics Advanced Materials Industrial Biotechnology Advanced manufacturing systems Seen as underpinning future EU industrial development / leadership Emphasis on Combining KETs Eg photonics and nano All future EU funding must link to a KET Includes regional development funding KETs driving focus of H
11 Leadership in enabling & Industrial Technologies Creating Industrial Leadership & Competitive Frameworks Leadership in enabling and industrial technologies 13.8 B ICT 8 B A new generation of components and systems Next generation computing Future Internet Content technologies and information management Advanced interfaces and robots Micro- and nano-electronics and photonics Nanotechnologies Advanced Materials Advanced Manufacturing and Processing Biotechnology 1.6 B 3.8 B 0.5 B KETS 5.9 B 11
12 Bridge innovation gap- EU identified need to bridge valley of death taking innovation to market 1. Product development 2. Pilot lines 3. Globally Competitive Manufacturing in EU Positive EU economic impact important Link to EU job creation essential Less on innovative more on practicality in EU 12
13 Fund closer to market Much higher TRL level support (D more than R) Demonstration in operating environment - application data Pilot line manufacture / facilities Packaging development Production development and automation Focus on key enabling technologies - ideally multiple KETs Focus on application demonstration 13
14 The process in ICT. High Level Working Group Industry Key Enabling Technologies PPP Bridge Innovation Gap Recommend Finalising Sector Strategy for H2020 Photonics, robotics, embed systems, smart cities etc EU commission Current Roadmaps for sub-sectors e.g. Photonics21 working groups Access to Finance Facility access Collab projects Manufacture platforms Demo actions Commission Instruments Funding calls Industry buy-in sort at all stages Commission + PPP (Photonics 21) 14
15 Many parts of ICT Eu splits ICT into many sectors Strategy developed for each sectors Not all sectors are well organised Openness to new industry input varies Your business will overlap multiple sectors Funding from multiple areas can be relevant E.g. lasers demo call in manufacturing not in photonics Your business will fit into many ICT areas 15
16 Top Level Strategy example: Photonics Roadmap based R&D Plus support for disruptive complimentary bottom up research Creation of manufacturing platforms to grow EU manufacturing improving the infrastructure for photonics manufacturing Establish pilot production facilities for new processes Establish pilot production lines with a readiness level close to the market for integration of KETs Large scale demonstration actions to show impact In smart cities, health &/or security Access to finance for SMEs Actions for innovative Photonics SMEs To access Eu world class research institutions for expertise / capability Collaboration among Photonics innovation clusters More inter-cluster collaboration Strengthening Photonics Foundations Standardisation, international cooperation, education, training, skills. Inducement prizes mobilisation of capital above the value of the prize C.f. X-prize model Be involved in defining roadmap if you want them to be relevant to you
17 Photonics Strategy paper for Horizon 2020 SWOT Analysis
18 Public Private Partnerships everywhere Formularise industrial engagement/commitment to innovation and engagement with EU Most sectors of ICT will get PPPs Industry to sit alongside commission determining what to fund equal partnership E.g Photonics PPP Industry put in 7 Billion photonics R&D - Eu put in 1.5Bn >Doubling of EU contribution cf. ~ 700m in FP7 Photonics21 will be representative industry body in determining what EU funds P21 working groups are key (comms, manufacturing, life science, lighting, security/sensors, components) Have a say - participate in working groups Time to join Photonics21 Working Groups 18
19 Photonics in Horizon 2020 A Public Private Partnership? Implement Photonics in Horizon 2020 through a Public Private Partnership (PPP)? PPP A contractual agreement which specifies: The objectives of the partnership The respective commitments of the partners Key performance indicators Outputs to be delivered including the identification of research and innovation activities that require support from Horizon 2020 Long-term commitment from all partners based on a shared vision and clearly defined objectives 19
20 H2020 summary Europe R&D funding is changing Was futuristic far from market and impossible for SME Future will be:- Near to market SME targeted Full supply chain Industrially focused Impact orientated Can t wait till 2014 No problem change is starting now see end 20
21 21
22 One Commission many faces European Commission Research and Innovation (DG Connect) Structural Funds (DG Regio) Other (Agriculture etc) Framework programme Levelling Innovation Horizon2020 Less developed regions Developed region ERDF Multiple directorates- multiple funds 22
23 Why should we care? Structure fund budget huge - 50 billion a year Most support less developed regions But 7.6bn / year to most developed regions ~ 3bn/ year to ERDF eu wide ~ 350million / year to UK to support innovation, SMEs, renewables / energy Annual budget comparable to whole ICT budget for 7 years. They fund big 180m for Extreme Light in Romania and the rules are changing with 2 key conditions ERDF funding will become relevant to KETs 23
24 2.9bn/ year, 350m/year to UK Condition one the good bit ERDF investment must be linked to KET 24
25 Condition 2 the tough bit A Regional Smart Specialisation Strategy is a condition for ERDF support RIS 3 = Self declaration of technical and geographic strengths, endorsed by industry Priorities / strengths, competitive advantage, critical mass, leadership, stakeholder involvement The UK dilemma Without RDAs who defines the RIS 3? BIS solution = define a national RIS 3 Where will matched funding come from? Unlikely to be any new money Creative assignment of regional growth fund? Smart specialisation and matched funding are essential 25
26 Impact of a good RIS 3 Structural funds will fund highest TRL level projects Indication are anything above TRL6 More flexibility on state aid limits (esp for KETs) Capex friendly Can be mixed with H
27 Structure Fund Summary ERDF support will be relevant to your business if you are working in a Key Enabling Technology In future think Hi-tech manufacturing Need to apply pressure to UK Gov & BIS to develop strong smart specialisation policy Otherwise rest of EU will share the pot of gold 27
28 28
29 Framework 7 the end game End of FP7 is piloting changes planned for Horizon2020 Calls 10 and 11 open now 10 closes January 2013, 11 closes April
30 Objective Improving the competitiveness of European.so that the demands of its society and economy are met stimulate product, service and process innovation. in Europe ensure that ICT innovations are rapidly transformed into jobs and growth for the benefits of Europe.. Benefit to Europe critical 30
31
32 Photonics highlights Core photonics call 11 ICT Application specific new devices, Cross cutting tech, Tech take up and support 50m in STREPS for photonics areas There is plenty of photonics and other ICT opportunities elsewhere. Opportunities highlighted in comms, solid state lighting lasers biophotonics 32
33 ICT Photonics Details comms and data Devices for multiple bitrates & modulation formats on the same infrastructure Integrated photonics- Solutions for low cost manufacture of Improved photonic integrated circuits inc. new materials, nanotech & heterogeneous integration i.e hybrid III-V silicon Packaging & assembly solutions (to include fabrication tool suppliers) Next generation data-centre servers Including optical interconnect (in call 10 ICT adv computing) Energy efficient systems (in ICT Data Centres ) Eu-Japan collaboration on optical comms ~ 1m ( ) 100Gbit Ethernet, system level + standards contribution PIC Packaging has it own line 33
34 Photonics ICT Details solid state lighting Solid state lighting OLED for general lighting Intelligent low cost Luminaires for smarter lighting include end-of-life recycling Support actions (~ 3.5m) Bring supply chain together with end users+ promote and analyse health benefit + materials/ recycling issues. 34
35 Lasers Laser for industrial processing in photonics Sub 10ps >200W average power high rep rate lasers for micromachining inc beam shaping/delivery Equipment manufacturers and end users in consortia. Assessment experiments in ICT for Enterprise & Manufacturing factories of the future ( 33m) Innovative laser applications in manufacturing assessment of quality, speed, flexibility etc i.e. applications testing Support new manufacturing skills (inc laser processing) Part of factories of future - closes December Funded applications testing in manufacturing 35
36 ICT Integration and take-up of Key Enabling.. Details biophotonics Integrated systems Miniaturised smart systems combining multiple key enabling tech. Cross field, cross function esp. biophotonics / micro/nano bio systems Validation in real settings of bio photonics / micro nano systems addressing society challenges Health diagnostics & therapy Food quality and safety Above in call close January ERANET+ in Biophotonics Raising TRL level of biophotonics 36
37 SMEs support Access services ( 8million IP ring fenced in photonics) Read ACTMOST + Pay for SMEs to access state of art fabrication facilities and expertise. Facility partners paid direct by Brussels No SME contract with Brussels minimum admin overhead Need UK facility partners Additional similar action in micro/nano smart systems. Support actions (~ 3m each) For photonics clusters to help SMEs and outreach. For support smart systems integration Eu support will be relevant to SMEs 37
38 Summary FP7 call 10/11 Always consult full ICT work programme Detail on any line item is small 4-5 lines Check the preamble for info and background Deadlines December factories of future laser processing January Biophotonics & data centre/ interconnects April Most photonics 38
39 More information The Changing Face of European Funding 23 October 2012, Institute of Physics, London W1B 1NT SEPNET, Nano KTN and ESP KTN Ronan Burgess, Deputy Head of EU Photonics Unit Include direct feedback to commission on Photonics PPP Smart Specialisation Strategy Kevin Richardson, to BIS Biophotonics ERANET+ & TSB calls Myrddin Jones, TSB Caterina Netti, Renishaw Diagnostics Peter Walters, FP7 - ICT National Contact Point Mike Wale, Oclaro Tim Holt, Fraunhofer UK Research Prof. Graham Reed, Southampton University Have your say on Photonics PPP
40 Summary If you have never consider Europe as a source of support for your business - think again The Changing Face of European Funding 23 October 2012, 76 Portland Place, London Register at EU Commission seeking UK support for photonics PPP With Thanks to all in Eu commission for slides and contributions John.lincoln@sepnet.net 40
41 Why get involved in Eu Projects? 41
42 Motivations Collaborating is not easy money Fame Partner interests rarely the same Funding Industrial Collaboration Fortune It is a rewarding relationship Fun Future Respect is key Need long term view 42
43 Why bother the SME perspective 1. Access to potential customers in consortium Full supply chain involved customers and solutions for all 2. Establishes technical credibility Publications and presentations are form of marketing 3. Access to people (increasingly important) Need right to work in UK 4. Source of funding for product, or process development 50% to 75% for SMEs 5. Access to additional technical skills Technical gain rarely most valued output at end 43
44 Why not? - especially for SMES Competitor overlap Don t want competitors in consortium Cashflow - post vs pre project payment Eu pays part in advance (great for SMEs) TSB quarterly in arrears Distraction If business if growing fast with paying customers they come first Optimum growth rate for collaboration. Shortage of people If you can t hire for core business.. Opportunity costs Success rate is low, If time spent on proposal was spent on developing customers increase business more. Big issues for smaller organisations Future is very distant, if the present is not in control 44
45 Collaboration models Lots of collaboration schemes 1 to many partners, local to international,6 months to 3 years. Pick the one that fits project. If full supply chain is in Eu not in UK go European If specific skill transfer required think KTP Knowledge moves best with people Calls and competitions mostly thematic Best fit maybe in the less obvious areas = less competition Place of submission is your choice Strong submission in wrong place will not be funded No free lunch - matched funding is necessity 45
46 Partner Roles -1 Partner Responsible for multiple work packages 50% funded mostly Steer technical direction Explore new and innovative solutions Own generated IP with option access IP generated elsewhere in project Coordinator Responsible for key work packages plus project management Can be significant management and reporting overhead In Eu management is 100% funded but max proportion capped Key to project success Balance clear direction vs. excessive control Use of external project coordinator possible, but not welcome Beware the overhead 46
47 Project roles -2 Subcontractor 100% funded, but<10% project value (if that) Well defined requirement But little room for innovation Limited / no influence on technical direction or right to use outputs Most common for established processes / commercially available components No overhead but no upside 47
48 Beware dilution of the pot In UK TSB total project funding is University funding is 100% and FEC often claimed Every spent with University reduces % available to companies. E.g 200k project with 1 University and 2 industrial partners. University work package 40k. Projected funded at 50% = 100k Two industrial partners receive 30k each and must contribute additional 50k. i.e funded at 37% Is it worth it? Only if successful outcome is very important to company In TSB project University normally only minor contributor In Eu rules are different % contribution calculated individually for each partner Don t be greedy, funds will be tight 48
49 Keys for Success proposals Success rates can be very low ~10% Majority fail on the simplest criteria Not answering questions, especially 2 part Questions Not addressing objectives of call i.e. square peg in round hole Don t expect SME to font of knowledge on the process Build a good consortium Get complete supply chain involved if multi-partner Waiting until call or competition is published is too late Start early, prempt the process Consider partnership potential of contacts as you meet them Network & ask trade shows events etc. Make the reviewers life easy early impression count If address basics success rate can be >50% Answer the question 49
50 Keys for Success - Projects Starting will take longer than you think Consortium agreements can months, harder with big companies Hiring is getting harder at companies and Universities Think of critical path to get started No one like to hang around waiting partners will find something else to do. Financial report and tracking can be onerous Do your accountants and auditors have right experience. Be sympathetic to the problem Excessive reporting can kill project beware of what you promise Management buy-in is a must for all partners 50
51 What are the benefits Business Sales to partners and friends of partners Credibility Employees Future insights On-going access to specialists Relationships Academic Problem knowledge Impact statements Prototype access accelerating parallel research Credibility Career path for students and postdocs Relationships 51
52 Summary Don t do it for the money do it for the relationship And remember Eu funding is changing With Thanks to all SEPNET organisations for contributions John.lincoln@sepnet.net 52
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