Developing new industrial value chains through open innovation collaboration spaces
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1 Developing new industrial value chains through open innovation collaboration spaces Launch event of RIM Plus First Workshop: 29 th April 2015 Venue: Emilia- Romagna Regional Office, Brussels Context The newly planned activities within the Regional Innovation Monitor Plus (RIM Plus) create a unique opportunity to explore the possibilities of cross- border activities and unleash the potential of advanced manufacturing across European regions. The partners, through eight workshops over two years, will aim to facilitate the development of open innovation collaboration spaces in selected areas where regions are committed to leading the development of new industrial value chains, which is in line with the new vision of RIM Plus to become more thematically focused and drive change in close cooperation with regional stakeholders and other relevant initiatives. This event, was the first in a series of eight RIM Plus workshops to be organised during the period and aimed to explore the possibilities of further enhancing cooperation on concrete thematic areas (of advanced manufacturing) between stakeholders from different European regions. Recently, there have been important policy changes at the EC level in the area concerning the development of European industry and SMEs. Based on the work carried out by the Task Force on Advanced Manufacturing, the 2014 Communication on Industrial Renaissance confirmed that the Commission would pursue among others the priority of advanced manufacturing. 1 Advanced manufacturing is not just high- tech manufacturing but is defined as production activities able to improve production speed, productivity, energy and materials consumption, operating precision, waste, pollution management and enabling resource - efficient and low emission production. 2 It also belongs to a group of six technologies, known also as key enabling technologies, which not only have applications in multiple industries but also are considered important to help tackle societal challenges. As noted in one of the RIM Plus thematic reports, such a definition implies that advanced manufacturing is not linked to any particular industrial sector. In December 2014, the European Commission adopted its Work Programme for 2015 setting out the actions the Commission intends to take to make a real difference for jobs, growth and investment 3. At the EU level, a strong focus on large- scale demonstration and uptake of cleantech and advanced manufacturing technologies can be observed. According to a recent Special Task Force Report on Investment in the EU, investments especially in the six key enabling technologies, including advanced manufacturing, in addition to digital technologies and societal challenges are essential to increase industrial competitiveness and commercial innovation. 4 The objectives of the first workshop were to go beyond mere awareness- raising type of activities. Rather then carrying out another survey or trying to collect the new information from scratch by other means, the RIM Plus team wished to explore new business opportunities based on the analysis of available results of relevant projects, initiatives and databases. 1 See: lex.europa.eu/legal- content/en/txt/pdf/?uri=celex:52014dc0014&from=en 2 See: scope/index_en.htm 3 See: programme/index_en.htm 4 See: growth- investment/plan/docs/special- task- force- report- on- investment- in- the- eu_en.pdf 1
2 Workshop Report The workshop was opened by Lorenza Badiello, the Director of the Emilia Romagna EU Office in Brussels. Lorenza Badiello welcomed the eighty participants to the workshop and noted how important the topic was for her region. Bonifacio Garcia Porras from DG Grow welcomed participants and reminded the audience that the RIM had been launched in 2010 and had played an important role in facilitating exchanges on regional innovation policies. In , the RIM Plus had shifted its emphasis to promoting policy learning in industrial policy and advanced manufacturing which was now more known as Industry 4.0 or smart industry. Bonifacio Garcia Porras informed the audience of the internal changes to the structure of DG Grow which included a new directorate for innovation and advanced manufacturing with a strong regional dimension. This regional dimension would link closely to smart specialisation strategies and how they were delivering industrial modernisation. The newly established unit would be complemented by another unit which is currently responsible for cluster policies and also more attention to advanced manufacturing in the key- enabling technologies (KETs). Bonifacio Garcia Porras then announced that he was taking up another post within DG Grow and handed over to his replacement Mark Nicklas from DG Grow who informed the audience that RIM Plus would continue to be a platform to share knowledge. He also noted that the key priorities of the Elżbieta Bieńkowska, Commissioner for Internal Market, Industry, Entrepreneurship and SMEs were: the integration of the firms into value chains; the transformation to smart clean production; and the improvement of business environment. All three priorities had a regional dimension and it was necessary to help regions collaborate. One good example of this was the Vanguard Initiative. Mark Nicklas noted that collaboration which involved open innovation was important. There were big challenges ahead for modernisation and DG Grow wished to support the modernisation of industry and support regional strategies. Silvano Bertini, Head of the Economic Development Policies Unit from Emilia Romagna joined the workshop by video conference and noted that the key challenges were the knowledge economy and digital economy. There was a need to modernise traditional value chains and integrate KETs. It was also necessary to respond to societal challenges not just from a technological perspective. There were four ways of creating value: introducing KETs into products; responding to societal challenges; the hybridisation of products (linked to service delivery); and to stimulate creativity. Silvano Bertini argued that changes in manufacturing were linked to integrated, user- centred manufacturing, smart adaptive manufacturing and sustainable manufacturing. There was a need for more effort in technological information and R&D investment but also to change business models, education and more cooperation. However, these changes needed funding and support smaller companies to participate in Horizon Jacek Walendowski from Technopolis noted that RIM Plus would focus on advanced manufacturing and explore new business opportunities and develop partnerships to deliver results. This would involve linking up regional competences and sharing lessons learned at the regional level. The RIM Plus workshops would explore concrete thematic areas of advanced manufacturing. This first workshop would examine three areas: industry 4.0, advanced materials and the bio- based economy. As the two- years of RIM Plus would be focused on advanced manufacturing it was necessary to add more precision to the concept of advanced manufacturing. Advanced manufacturing was a family of activities that made use of cutting edge materials and emerging capabilities and depended on the use and coordination of information, automation, computation, software, sensing and networking. 2
3 Advanced manufacturing could be defined by processes and systems. Processes focused on the development of new methods of producing new products (e.g. 3D Printing) while systems focused on the coordination of production systems (e.g. Industry 4.0). In a wide and systematic study of FP7 projects, it was clear that processes were more important than systems in projects. The study of the FP7 projects indicated the key areas of interest which where: industry 4.0 and smart systems (robotics, automation, control systems, mechatronics and Internet of Things); lightweight design and polymer technology; bioeconomy with a focus on advanced manufacturing; de- manufacturing; advanced packaging; wood derived materials; printed electronics; smart fabrics/textiles; 3d printing; in addition to themes such as developing skills for advanced manufacturing and accompanying actions for companies in transition towards factories of the future. Richard Tuffs, Director of ERRIN gave a brief presentation on the state of play of advanced manufacturing in Europe from a regional perspective. Richard Tuffs noted that advanced manufacturing at the regional level from a European level was based on networks promoting advanced manufacturing such as EUREKA and Interreg Europe as well as EU funded projects. Interreg IVC had supported 37 projects on innovation and research. As well as networks and projects, clusters had a strong role to play. Cluster policy was strongly linked to smart specialisation where regions identified sector which could lead to competitive advantage. The role of the ERRIN network was to help regions share information on their smart specialisation strategies and thereby support contacts leading to contracts. Richard Tuffs noted that the Vanguard Initiative was a good example of regions working together to use their smart specialisation strategies to boost new growth by aligning strategies and funding where possible on a selected number of shared topics. SESSION 2 Advanced Manufacturing Systems and Processes Željko Pazin, Executive Director of EFFRA, chaired this session. He reminded the audience of the importance of the manufacturing sector for Europe: 20% of jobs, 67% of exports and 65% of business R&D. Manufacturing was facing many new challenges and opportunities such as flexible production lines, human- robot cooperation, advanced mechatronics, knowledge workers and cyber- physical systems. The Factories of the Future Strategic Research Agenda had been developed through the engagement of European industry and focuses on 2020 and beyond. Overall, it addresses the challenges of customization, flexible production lines, continuous skill development, energy and resource efficient factories and zero defects. One of the key areas of interest is the digital domain. Innovation is an important part of the EFFRA portal and EFFRA encourages research and innovation, technology transfer and access to networks and organisations at the regional and local level which can support market take up. Hans Praat, Manager of the Northern Netherlands Region of Smart Factories, outlined the Dutch Smart Industry Programme. He noted that no single technology governed the smart industry revolution. There is an alignment and convergence of rapid progress in multiple domains such as the Internet of Things, adaptive robots, SD printing, embedded systems, smart grids, advanced sensors, big data and cloud computing and zero- defect manufacturing. In brief, enabling technologies lead to customization, disruptive business models, breakthroughs in development and manufacturing and smart products. These enabling technologies contribute to zero- defective manufacturing linked to right product at right time which leads to a smart factory. The North Netherlands Smart Factory Region comprised 38 partners with an investment of 25m invested in three themes and 12 pilot projects. Hans Praat then illustrated the Smart Factory Region with case studies based on Philips and Fokker. Manuel Brunner from the Mechatronik- Cluster in Upper Austria then described how Upper Austria was developing the framework conditions for implementing advanced manufacturing. One of the key conditions was the development of the AVM Platform. This platform supported the triple helix model and made AVM more visible and tangible by the use of show cases in companies, research labs and education facilities. The platform also encouraged transnational and trans- regional collaboration. 3
4 The Mechatronics Cluster in Upper Austria has set up a cooperation network including leading companies in the region and universities working on real use cases. Hans Brunner gave some examples of European projects that had helped develop the platform. However, there was a clear need to give the AVM Platform a shape, draw a vision and develop a roadmap for implementation. Oskar Salas, Innovation Coordinator, GAIKER- IK4, from the Basque Country outlined the advanced materials and advanced manufacturing in the Basque Country. Manufacturing accounts for 19.7% of the regional GDP and 96.8% of the export value from the Basque Country. The ETORTEK programme Strategic Research Project (ACTIMAT) is one of the instruments of sectoral diversification and informs scientific, technological research and innovation as well as developing strategic research areas identified in the Basque technology policy. ACTIMAT examines what are the expected materials in the market and what Basque companies need and focuses on smart materials. The third version of ACTIMAT ( ) focuses on smart material development, functional material development and materials for advanced processes with specific attention to energy and transport needs. However, just identifying materials is not enough. The challenge is to develop linkages between materials, processes, tools and systems. It is not just linkages within the region but also outside and the Basque Country has strong links with Aquitaine (Aquitaine- Euskadi EGCT) as well being part of the Vanguard Initiative. Dr. Manfred Kircher, Chairman Advisory Board, CLIB2021) introduced advanced manufacturing systems and processes from a bioeconomy perspective. He pointed out that today s economy is based on fossil feedstock (oil, gas and coal) whereas the future bioeconomy will be based on renewable feedstocks and will contribute to the circular economy. This shift to a modern bioeconomy must first prioritise carbon- dependent sectors. At the moment we could talk about the first generation of biochemicals with investments in pilot plants. The second generation of biochemical is characterised by non- food biomass markets and the first plant for the production of second generation biofuels has been opened in Northern Italy with a second generation ethanol plant being built in Slovakia expected to come on stream in The third generation of biochemical will come from recycling feedstock. Examples include jet fuel from waste gases from industrial steel production and speciality plastics. The bioeconomy industry would measure its success by shortening time to market and accessing consumer markets. PARALLEL SESSIONS In the afternoon, the participants chose one of three 90 minute sessions dedicated to the following topics. The sessions were guided by key discussion points such as challenges, investments and projects, key actors and skills. 1. Industry 4.0 and Smart Production (chair: Alun Foster, Head of Plans and Dissemination, ECSEL) 2. Advanced Materials (chair: Oskar Salas, Innovation Coordinator, GAIKER- IK4) 3. Bioeconomy (chair: Prof. Ludo Diels, Research Leader, VITO) Industry 4.0 and Smart Production As noted one of the problems encountered during the implementation of Industry 4.0 initiatives at the national level was a general lack of understanding among the SMEs community about the potential benefits and available support. Another trend to emerge in the factories of the future is that the distinction between blue colour white collar will blur and thus will require a profound change in the job profiles of the manufacturing workforce. There is much happening on the research side such as activities carried out to improve resource efficiency and new sets of technologies in the production and the development of mechatronics clusters. There is also evidence of successful local mirror groups being formed to address specific challenges and this confirms that the bottom- up level can work well in practice. However, there are a number of challenges which were identified during the discussion. First of all, there is a need for developing large- scale technologies and bringing them together. Although it is not possible to integrate all technologies, there are successful examples such as one shot one part manufacturing, which allows the 4
5 production of lighter and more resistant products by reducing the use of resources and thus contributing to the reduction of carbon dioxide (CO 2 ) emissions. Most importantly, it was noted that complex technologies would require a different set of expertise and skills which are not available in one region. To be successful, it was pointed to the need of having a better vision on activities which are carried out in other regions but also mobilise resources to make the necessary connections. Secondly, SMEs are facing the risk of getting involved in larger consortia and pan- European initiatives. Thirdly, it also proves challenging for SMEs to match the time scale involved in establishing cooperation with actors from other regions with the timeframe of product development. Fourthly, there is still an issue for SMEs of the timeframes for Horizon 2020 projects and the fragmented nature of public funding can contribute to ineffectual funding and the key challenge is how to get the right funding to the right SME. Some of the major projects discussed were how to reduce waste in carbon fibre product production (e.g. Federal Cluster of Excellence Lightweight Structures and Polymer Technology), the big data for the use of multiple sectors to analyse the system at different levels (e.g. the Northern Netherlands Region of Smart Factories) and more traditional diagnostics of SMEs technological and innovation position in the Upper Austria. There was also a discussion on how to get more student involvement in SMEs. Advanced Materials One of the challenges discussed during this parallel session concerned a difficulty of separating advanced materials from advanced manufacturing processes. It was also noted that while collaboration seems to be easier at the level of R&D activities, it proves to be more difficult at the company level. Particularly, it is hard for SMEs to be the major innovators of advanced manufacturing technologies, even though some sectoral and regional differences exist. The key actors in advanced materials tend to be clusters and one of the challenges is precisely to reach out to companies from outside clusters. The experience shows that it is often difficult to animate clusters and enhance the potential of small companies who often do not have long- term strategies and thus it is important to find clear short- term benefits for companies from advanced manufacturing. Another key issues identified was the skills gaps and there was a clear need for university training to be driven by industry needs and this opened up a wide discussion on tailoring university training, how this was financed and the problem of students and university staff not being business- minded. Some of the major investment projects mentioned include advanced materials for off- shore (e.g. Vanguard Initiative), technical textiles (e.g. Nord- Pas- Calais) and new bio- based materials. Bioeconomy One of the key challenges for the bioeconomy sector is logistics. Further challenges concern prices and costs of products. From a broader viewpoint, general framework conditions for innovation in the bioeconomy were mentioned such as the transport infrastructure, the awareness of bioeconomy options as well as entrepreneurship. Creative entrepreneurs were the ones who often used new products and processes. So political support for entrepreneurial companies is important. The bioeconomy also faces challenges regarding skills and education and administrative and legislative issues. The latter is particularly important for cooperation activities across regional and national boundaries which need to consider value chain thinking if necessary. The working group identified various cooperation potentials across Europe especially between advanced manufacturing and the bioeconomy. Mapping of activities is seen as crucial to gather knowledge on whole regional ecosystem and to link regional actors. Several major projects were identified such as CO 2 capture, generating chemicals from municipal waste and the Bio- based mega cluster in Flanders, North Rhine- Westphalia and South Netherlands. The main drivers for projects should be the producers of end products such as in the textile or food sector. The key actors in the field are the European Biobased Industries Initiative BBI and the clusters such as BIG- C or the Biobased Industries Consortium (BIC). There are also several regional companies that are leaders in the global markets such as Novamont in Italy. Tetrapak and its fibre- based packaging system was also an interesting example. 5
6 The parallel session expressed their concerns regarding the current level of skills and training in the bioeconomy field. There is also a need to connect research and industry more closely not just for the research but also to enhance mobility of labour between research and industry. SESSION 3 - Wrapping up and conclusions This session involved reporting back from the parallel sessions, followed by questions and answers. Jacek Walendowski from Technopolis thanked all participants and speakers for their active participation and noted that the mapping exercise around advanced manufacturing in terms of systems and processes and regional activities would continue over the next two years. He also stressed that advanced manufacturing would bring new business opportunities and the future RIM Plus workshops would provide a meting place to exchange information and develop partnerships in specific aspects of advanced manufacturing. The next workshop was planned for early July and while no agenda had been set, topics to be explored include bio- based industries, ICT and advanced manufacturing and lightweight materials. Photos 6
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