© fraunhofer moez mathias rauch, deputy director fraunhofer center for central and eastern europe...

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© Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes for Engaging with the Private Sector Competitiveness Through Innovation Strategies, Policies and Incentives Monday 21 June 2010, Sofia

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Page 1: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Mathias Rauch, Deputy DirectorFraunhofer Center for Central and Eastern Europe MOEZ

Lessons and Models Developed in Fraunhofer Institutes for Engaging with the Private Sector

Competitiveness Through Innovation

Strategies, Policies and Incentives

Monday 21 June 2010, Sofia

Page 2: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Structure of Presentation

Fraunhofer Lessons from Restructuring the German Research System

1

Lessons drawn from CommercializationThe Fraunhofer Business ModelFraunhofer Venture

Conclusion: Key Messages

2

3

Page 3: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Fraunhofer operates in a dynamic equilibrium between application-oriented fundamental research and innovative development projects

Fraunhofer within the German Research System

Research output must be market and customer oriented

Page 4: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Restructuring of the German Research System

Institutes of the GDR’s Academy of Science (59)

Evaluation of the German Council of Science and Humanities

LeibnizGemein-schaft

FraunhoferGesellschaft

ResearchInstitutes of

German Laender

HelmholzGemein-schaft

FederalInstitutes

Max PlanckGesellschaft

Page 5: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Restructuring of the German Research System

Excellent scientific basis

Highly qualified research staff, esp. in natural and engineering disciplines

Serious deficit concerning endowment and thus effectiveness of research

Distinct creativity concerning the development of alternative techno-logical solutions

Lack of access to high technologies compared to Western standards

Strenghts Weaknesses

Challenges for Fraunhofer

Estimation of integration capacity of AoS Institutes into the Fraunhofer portfolio Estimation of development perspective for significant industrial contract research

Page 6: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Financial Structure of New Fraunhofer Institutes

Contract Research

Institutional Funding

Total Expenditure

0 20 40 60 80 100 120 140

19921999

Financial Structure of new Fraunhofer Institutes (Mio. €)

Source: Fraunhofer Annual Report 1999

Page 7: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Integration of GDR’s Academy InstitutesSuccess Stories

Fraunhofer Institute for Material and Beam Technology (IWS),

Dresden

Worldwide renown for excellence in laser and surface technology

Staff: 180 (2001); 279 (2009)

IWS has followed from the Academy of Sciences in 1991

Public Funding (%)

Contract Research (%)

0 10 20 30 40 50 60 70 80

1992 (5 Mio. €) 2001 (10,6 Mio. €) 2009 (17,6 Mio. €)

Returns development IWS

Fraunhofer Institute for Applied Optics and Precision Engineering

(IOF), Jena

Leading Position in international research landscape

Jena always was a center for optical technologies (Zeiss, Jenoptik etc.)

Development of optical systems for future technology areas such as energy, environment, health, security, information and mobility

Staff: > 200 (2009)

Strong ties to regional, national and international industry partners

90 % contract research, 10 % public funding (2008)

Page 8: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Structure of Presentation

Lessons drawn from CommercializationThe Fraunhofer Business ModelFraunhofer Venture

Conclusion: Key Messages

2

3

Fraunhofer Lessons from Restructuring the German research system

1

Page 9: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

The Fraunhofer Business Model

Performance-related funding model of Fraunhofer Gesellschaft Due to “applicability” Fraunhofer gains high share of contract

funding Institute Funding: 1/3 institutional funding, 2/3 contract research

Business Model endures direct engagement with the private sector

Institutional FundingContract Research

Page 10: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Commercialization of Research FindingsFraunhofer Venture - Overview Fraunhofer actively encourages researchers to found their own

companies Fraunhofer Venture was founded in 1999 More than 120 Fraunhofer spin-offs, 37 successful technology

transfers, 70 Fraunhofer investments, know-how with more than 4.500 patent families

Provides professional backing for the spin-off activities by offering consulting services, such as:

Development and optimization of business plans Selection of the legal corporate form Drafting of contracts Search for financing, research and industrial partners

Fraunhofer might even offer part of the seed investment

Page 11: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Commercialization of Research FindingsFraunhofer Venture - Instruments Operates primarily before actual founding of company Target group: researchers of Fraunhofer institutes who developed

innovative and profitable products or services Starting point: innovations stemming from Fraunhofer research Financing: 2 support programs

FME: pre-founding funding to formulate business plan Up to 150.000 € per project (up to 3 employees for up to 1

year) FMM: pre-founding support through dedicated external

managers Chosen jointly by entrepreneurs and FV Duties: demand analysis, production planning, PR, … Possibility to become executive director after founding

Page 12: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Structure of Presentation

Lessons drawn from CommercializationThe Fraunhofer Business ModelFraunhofer Venture

Conclusion: Key Messages

2

3

Fraunhofer Lessons from Restructuring the German Research System

1

Page 13: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Key Messages

A PRO that conducts applied research needs close links to its customers, favorably close geographical proximity to its clients

Thus, a sound industrial basis with actual R&D needs is the most important prerequisite for the demand of R&D services

Set incentives that encourage researchers to apply their know-how to the benefit of companies and to focus on market needs

Strengthen close links between applied research and top Universities and other centers of excellence, also internationally

However, “every supply creates its demand”: economic, science, R&D and innovation policy makers must create favorable framework conditions for PROs and companies

Page 14: © Fraunhofer MOEZ Mathias Rauch, Deputy Director Fraunhofer Center for Central and Eastern Europe MOEZ Lessons and Models Developed in Fraunhofer Institutes

© Fraunhofer MOEZ

Thank you for your attention.

Contact: [email protected]