UniversityBusiness Cooperation Innovation EIT CoLocation Centre model Wojciech

University-Business Co-operation: Innovation: EIT Co-Location Centre model Wojciech GREGA KIC Inno. Energy, CC Poland Plus Tomasz Barszcz, EC Systems Sp. z o. o. Krakow Meeting of the Directors General of Higher Education, Dublin 22 nd– 23 rd April 2013

Agenda: • • EIT overview and objectives KIC model KIC Inno. Energy in operation KIC Inno. Energy: propositions for industry KIC Inno. Energy: propositions for HEI Example of KIC operation: CC Poland Plus Case study: SME experience with KIC Inno. Energy

EIT is as an integral part of Horizon 2020 3

The European Institute of Innovation and Technology (EIT) Mission: To contribute to sustainable European economic growth by reinforcing the innovation capacity of the Member States and the EU Concept: … by higher education business/ innovation research integrating higher education, research and innovation, and buissnes development of the highest standards (the knowledge triangle) 4

EIT – objectives § new business creation through innovation § the transfer of higher education, research and innovation activities in a business context § support of innovation-driven research in strategic areas § development of talented, skilled and entrepreneurial people through education and training activities 5

EIT operations – KICs’ The EIT designated its three first KICs in December 2009: § sustainable energy (KIC Inno. Energy) § climate change adaptation and mitigation (Climate. KIC) § future information and communication society (EIT ICT Labs) 6

Main characteristics of KICs: • • • high degree of integration (each KIC is a legal entity) long-term strategic approach (each KIC is set up for a minimum of 7 years) high degree of commitment of partners (EIT funding to KICs is 25% over time, the rest must be co-funding - from other sources) the collocation model (each KIC consists of cluster-like nodes with a clear geographic location) clear deliverables (each KIC sets up a business plan with measurable deliverables) 25% EIT 75% 7 Financial model

KIC Inno. Energy structure and basic facts Sm ar Partners are regionally mapped in six collocation centres t. G s tie i rid t C across Europe, and are either Formal, Associated or r s (CC) a m S Network, depending on their contribution to the industrial plan, and resulting in different participation in the equity in the sdifferent legal structures. Cl le ab w ne Re ea n Co al KIC Inno. Energy is a commercial company, with 29 founding ce w n e shareholders, incorporated as SE, with head quarters in The ge en Ch r e R em nv ar ica Netherlands. o l. F C le c Nu ue ls

KIC Inno. Energy in operation Innovation Education Practice Generic master PHD MSc School thematic Learning Modules masters Skills Entrepreneurship Market Knowledge Technical relevance Consortium Business creation Idea exploration Needs Technology transfer Services 9 Copyright © 2013 KIC Inno. Energy

Industry involvements Industry presence in partnership: (from 14 in 2010 to 55 in 2011 to 95 in 2012)

KIC Inno. Energy proposition for industry What does industry get from Education? • The talents adapted to their needs • Manpower for industry based project • Life-Long Learning What does industry get from Innovation projects? • New product and services for their own Business Processes • A bit of financial complementarity • A trusted network, with the best university partners What does industry get from Business Creation? • Early adopters of new technology • Support for internal spin-offs • Investment possibilities What does industry get from such a governance? • Long term commitment => If no 7 years, then no industry • Stability in the network • Governance rules close to theirs own Copyright © 2013 KIC Inno. Energy

KIC Inno. Energy proposition for HEI Public Private Partnership (PPP): Industry becomes a founding member of the collaborative environment. The only way to compete against other “world” powers. What does HEI get from Education? • New type of education in the energy field, mobilising the innovative and entrepreneurial spirit of the students. • The novel approach proposed and high level of industry involvement are attracting the talents (MSc: 3 -4 candidates/ 1 place) • Industry involvement in education as a a chain: programs designs, promotion, thesis proposed by industry, internships, transition to the labour market • Financial complementarities p rshiand • A trusted network, with the best European universities u e ren ed: bell Entrep n) a l industrial partners EIT obility (inter • n m ds o s case on n a • h usines rientati • b arket o • m obility • m Copyright © 2013 KIC Inno. Energy

KIC Inno. Energy proposition for HEI Public Private Partnership (PPP): Industry becomes a founding member of the collaborative environment. What does HEI get from Innovation projects? • Complementing projects supported by other instruments (ETP, Regional, National Funds , DG R&D, DG ENER)- including financial complementarity • Shorter time to market • A trusted network, with the best industrial partners What does HEI get from Business Creation? • Improvement of business side of the proposals • KIC Inno. Energy joins idea owners with industrial and capital partners • Early adopters of new technology • Support for internal spin-offs Copyright © 2013 KIC Inno. Energy

KIC value proposition for industry KIC Inno. Energy can be seen as USP (Unique Selling Proposition) The only existing “one stop shop” where you can find such an ambitious portfolio of activities requiring collaborative innovation, delivered by the best actors of the knowledge triangle, in a commercial joint vehicle that is run as a business. : Copyright © 2013 KIC Inno. Energy

KIC Inno. Energy: achievements after 30 months 370 students in our 120 ECTS Masters 84 engineers in our Ph. D School 49 professionals in our Exec. programs 20 patents filled (1/1 M€; 1/67 M€ in FP 7) 26 new technology products & services 51 ventures bring up in our Highway www. kic-innoenergy. com/achievements Copyright © 2013 KIC Inno. Energy

KIC Inno. Energy business model in Education A PREMIUM PRODUCT OUTPUT Msc School (7 programs) Ph. D School Executive Programs LLL/LM MOOC “Cx. O” of energy companies CUSTOMERS Bachelors USP 1. Quality of HE institutions 2. Program contents 3. Mobility 4. Double degree Top researchers € SUSTAINABILITY Off-setting tuition costs Engineers MOOC/LM Mid Career professionals MOOC Customers Reinvesting all revenues MEANS Top Universities Industry in all the value chain Top Business Schools Copyright © 2013 KIC Inno. Energy 16

Example of KIC operation model: CC Poland Plus Current implementation process of KIC strategy (CC Poland Plus) Partner (from 1. Ideas generally come from partners network. Partners organize themselves in consortia Partner Idea (inno/bcs) 2. On BCS capture, ideas are identified by KIC/ Partner CCPP Partner 3. KIC by selection criteria or by education improves business side of the proposals other CC) Only BCS Partner 4. The consortia are implementing a project with business oriented goals Copyright © 2013 KIC Inno. Energy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka External entities (mostly techno parks)

Example of KIC operation model: CC Poland Plus New approach to of KIC strategy implementation (CC Poland Plus) All external actors Partner (from Partner 1. KIC Inno. Energy actively searches for new external (and internal) ideas/opportunities 2. KIC by selection criteria or by education improves business side of the proposals Partner Universities& Research Inst. Partner Public and regional agenties KIC/ 3. KIC Inno. Energy joins idea owners Partner with industrial and capital partners (based on resource need for implementation) 4. Partners will provide resources and implement a project. Natural persons other CC) CCPP Business& Capital partners Industry SMEs Idea Partner (inno/bcs) Partner Copyright © 2013 KIC Inno. Energy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka Techno parks, CTT

Case study: EC Systems experience with KIC Inno. Energy | Supervisory Board 24 Nov 2010| Speaker: DP 19

Who we are? • Engineering company from Kraków, Poland • Systems for industrial customers • Embedded systems • Software (from firmware to advanced analysis) • 70% sales to foreign markets (DE, CH, DK, FR) • Key industries: power generation (conventional, gas, wind), automotive, railway, oil & gas, printing, food, … • Staff: 50 people, mostly HW, SW specialists • We bridge the gap …

Why bridging the „Valley of death”? Despite a large number of Research & Development projects, only a fraction turns into successful products. The especially important gap spans between a laboratory test as a result of a university project and heavy duty proven product launch Happy developers in a lab is only a start… … it needs a lot of time and money to make their system work in a demanding environment

Valley of Death • Valley of Death is the time when the government funding has finished, but there is no reliable product which can be offered to customers • In most cases it is a period between TRL 4 and TRL 7 • Required investment is so high, that skeletons of many projects are left here TRL: Technology Readiness Level (1… 9)

How to bridge the gap? • The problem is researched by European and US agencies • Solution requires balanced partnership between government, academia and industry • Key element are motivated people, oriented on the market success • Most people say, that we simply need more money, but it is only partially true • Insufficient funding in critical TRL levels will kill the project • Too much money too early will cause waste of money • Proper decisions are based on the risk/ reward profile for a given case

Understand each other Academia Industry • Are „mad scientists” type • Are boring and no sense of humor • Prototype driven • Requirements driven • Learn by doing • „Do it right the first time” • Say „What if”? • Say „Prove it” • Nurture infant technology • Kill the weak and move on • Ask: „Can it be done”? • Decide: „Should we do it”? • Fill the funnel: create new options • Narrow the funnel: increase focus • Objective: UNDERSTANDING • Objective: DELIVERY

Focus on common part End user company Business as usual Spin off company New technology development Consulting Waste of money Academia

Wind turbines condition monitoring • Wind turbines are istalled over the world • Key element to profitability is proper maintenance • The biggest problem is failure of the gearbox • It can cost >500 k€ and several months to replace • The exact knowledge about the current technical condition is necessary, but it is very hard due to varying operating conditions

Disruptive innovations vs. competitors • Advanced signal processing • Automatic data validation of non-stationary signals • Automatic peak detection and classification • Polyphase current analysis • No predefined thresholds • Failure detection by integrating the system kinematic • Spectrum structure: no bandwidth selection • Reliability: monitoring of the machine wear based • Independent of a database on statistical model • Vibration & polyphase current • Reliability models • Automatic comprehensive report • « One click » approach • Offline surveillance for more advanced and complete diagnosis and to accelerate the learning curve using wind turbine expert knowhow

Main milestones to achieve M 1 9 months Embedded prototype (HW&SW) V 1 M 2 18 months Evaluation on the KAStrion test bench Local GUI and data transfer software completed M 3 24 months Evaluation on 2 onshore wind turbines M 4 25 months Go. To Market M 5 30 months Evaluation over 6 -month onshore tests M 6 36 months Evaluation over 6 -month offshore tests Final Version of KAStrion: 36 months Year 1 • • • Students from French Universities (G-INP, UTT) and Polish University (AGH Krakow) 3 Ph. D Grants requested to KIC 1 PHD Grant requested to G-INP 4 student masters requested to KIC 1 post-doctoral researcher requested to CNRS EIT requested Own resources TOTAL EIT funding rate KIC requested Master Students Phd students Year 1&2 545 698 € 1 566 310 € 2 112 008 € 25, 8% WP 1 0 0 WP 2 1 0 1 337 139 € 3 717 724 € 5 054 863 € 26, 5% Total 1 882 837 € 5 284 034 € 7 166 871 € 26, 3% WP 3 WP 4 WP 5 WP 6 WP 7 Total 2 0 0 1 0 4 1. 5 0 1 0 3

Partners setup VALEMO user MARKET MECAL user dissemination, promotion Cash flow Products, services GRAVIT EC Systems CETIM innovation support development, sales testing Cash flow Products, services CNRS Grenoble - INPT development

Experience with KIC Inno. Energy • Pros: ₋ Very much bussiness oriented, better than FP 7 ₋ Simple application process ₋ Quick feedback from KIC staff ₋ Pro-active approach, helping attitude ₋ Professional reviews from KIC experts • Cons: ₋ Still in start-up phase, thus rules were changing in the beginning ₋ Reporting not as easy as initially assumed ₋ Participate in future profits

Conclusions KIC Inno. Energy • A new Innovation engine, impact oriented • Fully aligned with the SET plan (The European Strategic Energy Technology Plan) • Integrating Education, Research and Business • Demonstrating high efficiency of investment • Generally, positively assessed by the industrial partners A company run as a company

Thank you for your attention! KIC Inno. Energy is funded by: More to know http: //www. kic-innoenergy. com wojciech. grega@kic-innoenergy KIC Inno. Energy | Boosting Innovation for Sustainable Energy | Speaker: Rafał Mrówka