ERICForumAnnualMeeting26January2021

Jean-DavidMALODirector

EICTaskforce

What’sholdingbackEuropeaninnovation

2

• Strongresearchperformance nottranslatedintoinnovation• Lackofbreakthrough/disruptiveinnovationsthatcreate

newmarkets

Financinggaps(“valleysofdeath”)in• knowledgetransferfromproofofconcepttobusinessplan• scalingupforhigh-riskinnovativestart-ups

Innovationperformance

Innovationfunding

Innovationecosystem• Manynational&localecosystems,butfragmentedat

Europeanlevel• Someregionswithweakecosystems

electricity

semi-conductors

antibiotics

airplanecar

smart phone

internet

barcode

sea container

digital platforms

social media

GPS3-D printing

CRISPR-cas

Hydrogen fuel cells

blockchain

the cloud

internet of things

autonomous vehicles

new batteries

artificial intelligence

quantum computing

graphene

liquid biopsies

gene therapy

PC

past future ?

Neurotechnologies

?

Whowillleadthenextwaveofbreakthroughanddisruptiveinnovation?

current

Synthetic chemicals

USlead(andAsia,EU)

EUandUSlead

telecomms

Wholeads?

ExamplestakenfromWIPO,MIT,WEF,OECD,etc.

Venturecapitalraised.Data:Invest Europe,NVCA/Pitchbook.(1)EUdoesnotincludeHR,CY,MT,SI,SK.

Financinggap:venturecapitalUSvsEU

25,624,6

8,6

15,116,5

18,7

15,8

26,4

31,5

38,0

6,74,6

2,6 3,3 3,5 3,2 3,54,8 4,9

6,0

0

5

10

15

20

25

30

35

40

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

billi

on e

uro

United States EU(1)

THEEUROPEANINNOVATIONCOUNCIL(EIC)SOFAR…

TheEuropeanInnovationCouncil

Onestopshopforbreakthrough,deep-tech,market-creatinginnovators

Agilefundingfromideatoinvestment

Opentoallinnovators,inanyfield*,atanytime

Complementedbytargetedfundingon strategictechnologiesandinnovations

Targetinghigh-risk/high-impactinnovators selectedthroughEuropewidecompetition

Pathfinderforadvancedresearchonemergingtechnologies

Transitionfromproofofconcept/labtobusinessplan/commercialsetting

Accelerator toscaleupinnovationsbystart-ups&SMEs(<€2.5milliongrant,<€15millionequity)

Accesstobusinessaccelerationservices(coaches,mentors);tocorporates&investors;toecosystem&knowledgepartners

EICProgrammeManagerstodevelopvisionsforbreakthroughs,manageportfolios,andconnecttoecosystems

Crowdinginotherinvestors (VC,corporateVC,etc)

Buildingecosystemsandcommunities

*Exceptinnovationsintendedprimarilyformilitarypurposes

TheEIC pilotphase(2018-20)underHorizon2020isnowclosetobecompleted

ü Pilotphasebudgetof€3.5billion(2018-20),€1.55billionin2020

ü Veryhighdemand: ~12000applicationsfromSMEs/startups in2020withrequestforover€38billionsupport

ü Highlycompetitive:2-3%successrateforfunding(butalso>3.900“SealsofExcellence”tofacilitateapplicantsaccesstootherfunding)

ü Introductionof“blendedfinance”(grant+equity)andestablishmentofEICFundtomanagedirectequityinvestments(pipelineof159companiesoverthepilotphase)

ü On6January2021,afirstbatchof42Europeanstartups andSMES hadcompletedtheduediligenceprocessandeachreceiveditsfirstequity“tranche”fromtheEIC Fund,foratotalof€178million;

ü SpecialsupportforCOVID relevantinnovations: 36Startups/SMEs awardedfundingofover€160m inMay;for‘GreenDeal’innovations:64startups/SMEs awardedfundingofover€300m inJuly;andforwomeninnovators:atleast25%ofstart-ups/SMEs invitedtointerviewtohavefemaleCEO

ü FirstEICprogrammemanagersinpost:IordanisArzimanoglou(health&biotech),EnricClaverol (medtech &devices), FrancescoMatteuci (materialsforenergy&environment);Antonio(Marco)Pantaleo(energysystems)

ü ExpandedBusinessAccelerationServices(multi-corporatedays,procurer’sdays,visitstoinnovationhubs,overseastradefairs,etc.)

PerformanceofEICpilotPathfinderPortfolio(includingFETOpen&Proactive)

Applications

Health DigitalEnergy&

EnvironmentFood&

AgricultureManufacturing/Infrastructure Sum

Techno

logies

Biotech& bioengineering 95 3 3 5 4 110

Engineering 0 6 3 0 11 20Data 7 23 2 0 1 33

Materials 23 69 41 2 38 173Sum 125 101 49 7 54 336

Ø 2662 Peer-Reviewed Scientific Publications, 72% in high profile journalsØ 590 innovations, 451 addressing new and emerging markets

PerformanceofEICpilotAcceleratorPortfolioOver5700startups &SMEssupportedsince2014(includingpreviousSMEinstrument)

37 acquisitions17 IPOs

(95% on European

stock exchanges)

€5,3 billionFollow up

investment

43 companiesvalued over

€100m(“centaurs”)

Main thematics of innovations funded:30% in Green Deal30% in Digital30% in Health

WHATWILLTHEEICLOOKLIKEINHORIZONEUROPE?

“FullEIC”underHorizonEurope(2021-27)KeyelementsfromHorizonEuropelegalbase(commonunderstanding)

ü EIClegallyestablished

ü Dedicatedbudgetand separateWorkProgramme.Mainlybottom-up,butalsotargetedfunding forstrategictechnologies/challenges

ü IndependentgovernancewithEICBoard&Presidenttosetstrategy,adviseonworkprogramme,overseeimplementation

ü Creationof“onestopshop”forimplementation(agency+EICFund)

ü Improvedfundinginstruments(Pathfinder,Transition,Accelerator)&BusinessAccelerationServices,learningfrompilot

ü Moreflexiblerulesforselectionandfunding(selectionbyportfolio,abilitytostoporreorient,linkstoInvestEU)

ü IncreasedroleforEICProgrammeManagerstodevelopvisionsforbreakthroughsandmanageportfoliosofprojects

ü FasttrackaccessforHorizongrantholders(incl.EuropeanResearchCouncil)andcertifiednationalschemes(“PlugIn”)

ü EICForumwithinnovationecosystemactors

CHAIRMark Ferguson

Entrepreneur, Science Foundation Ireland

VICE-CHAIRHermann Hauser

Co-founder of Amadeus Capital Partners

Kerstin BockCEO of

Openers

Jo BuryManaging Director of Flanders Institute of

Biotechnology

Dermot DiamondPrincipal Investigator:

INSIGHT Centre for Data Analytics, Dublin City

University

Laura Gonzalez-Estefani

Founder and CEO at TheVentureCity

Jim HagemannSnabe

Chair Siemens AG, Chair AP

Moller Maersk A/S

Ingmar HoerrFounder and Chairman of

the Supervisory

Board of CureVac AG

Fredrik Hörstedt

Vice president of utilisation

Chalmers University of Technology

Heidi KakkoPartner of

BaltCapGrowth Fund

Bindi KariaEuropean

Innovation Expert + Advisor, Connector

of People and Businesses

Anita KrohnTraaseth

Former CEO Innovation

Norway

Jerzy LangerPhysicist, Emeritus

Professor at the Institute of Physics

of the Polish Academy of Sciences

Ana MaiquesChief

Executive Officer,

Neuroelectrics

Marja MakarowBiochemistry/

molecular biology, director

of BiocenterFinland

Carlos OliveiraSerial Entrepreneur,

Innovator, Executive President

of José NevesFoundation

Valeria NicolosiChair of

Nanomaterials and

Advanced Microscopy

Bruno SportisseChair and

CEO at INRIA

Kinga Stanislawska

Managing Partner and Founder of Experior

Venture Fund

Roberto Verganti

Innovation academic,

former RISE group

Martin VilligCo-founder of Bolt (formerly

Taxify)

Yousef YousefCEO of LG Sonic

EICAdvisoryBoard

1. EIC to pioneer a European approach to global innovation challenges:ü Unique in combining advanced technological research (DARPA like) with innovation acceleratorü Hallmark of excellence for innovators (like ERC for researchers)ü Overcome system biases, e.g. in terms of high risk, gender, regions

2. EIC to crowd in private investors:ü Filling market gaps for financing high risk/ high impact ideasü 3-5 euro for every euro allocated by EICü Generating impacts from other EU and national programmes

3. EIC as funder & investor of choice for visionary ideasü Targeting deep-tech, interdisciplinarity, high risk to achieve high impactü Simple, fast applications focusing on the innovatorü High classmentoring and advice, as well as funding

EICAdvisoryBoardvisionstatement(27April2020)

With the European Research Council• Joint working group between ERC Scientific Council and EIC Board• EIC as innovation equivalent of ERC• EIC as follow up support for ERC proof of concepts

With the European Institute of Innovation and Technology (EIT)• Memorandum of Understanding signed between EIT Governing Board and EIC Board• Letter of Intent signed between EIC and first wave of EIT KICs• Pilot actions for EIT KICs to test out collaboration mechanisms (supporting startups to access EIC

funding, Shared access to networks and services, Co-investments in startups)

With the Structural Funds• Improved “Seal of Excellence”: exempt from State Aid, direct award of Structural Fund support,

sharing of information on applicants (with consent)

BuildingKeyPartnershipsfortheEIC

RELEVANCEFOREUROPEANRESEARCHINFRASTRUCTURE

CONSORTIA(ERICs)?

ü ResearchInfrastructuresandTechnologyInfrastructuresareacrucialcomponentofinnovationeco-systems,providinguniqueservicesandscientificinstruments

ü ThebasicsciencediscoveriesmadebyRIcommunitieshaveledtomajorindustrialbreakthroughsandsocialtransformation

ü Theimmediateapplicationsofstate-of-the-artRIresearchinareaslikesensors,superconductivityorsupercomputermodelingwillberequiredtoacceleratethepaceofchangeandadapttonewrealities

ü Thepotentialofmorefundamentalresearchinareaslikephysics,astronomyandenergy(ITER)cannotbeignored

ü “Deeptech”natureofResearchInfrastructuresandTechnologyInfrastructuresparticularlyrelevantfortheEIC

Somebasicprinciples

ü ATTRACT,aconsortiumofsixEIROforum infrastructures,ledbyCERN,setuptoexploretheinnovationpotentialofRIs bylaunchingtheirowncallforproposalsfordisruptiveinnovationindetectionandimagingtechnologies

ü Aneffectivemechanismtodetectandscaleupdeeptech?

ü €20millionbudgetprovidedbytheHorizon2020researchinfrastructures(RIs)programme

ü 170ideaswereselected,eachonebeinggranted€100,000.Projectsareongoing.

ü Afollow-upcalllaunchedin2020toscaleupthemostpromising5-7ideas

ü ProvidecontinuingsupporttoATTRACTorextendthemodeltootherdeeptechecosystemsunderEuropeanInnovationEcosystems?

TheATTRACTexperience

Why?

ü InvolvementofRIs andTIs alreadyinEICPilot(especiallyinFET/pilotPathfinder)

ü EICwillbemajorpartofHorizonEurope(InnovationequivalentofERC,alongsideinnovationecosytems andEIT)

ü EIC focuson“deeptech”especiallyrelevantformanyERICs

ü TogetherwithEIC inthefieldofdisruptiveinnovation,ERICs tohelpcoverthecontinuumofneedsfromfundamentalknowledgecreationtotechnologydeployment

ü TogetherwithEIC,ERICs tosupporttheimplementationofEuropeantechnologyleadership

How?

ü FindwayssothatEICsupportedcompanies/projectscanaccessinnovationinfrastructures(testingfacilities,etc.)

ü ERICsaspartnersinEICPathfindertogeneratenewresults

ü ERICsteamstouseEICTransitiontoturnresultsintospin-outs/commercialopportunities

ü ERICsspin-outsasapplicantstoEICAcceleratorfordevelopmentandscaleup

ü RoleofEICProgrammeManagerstointeractwithRIswithintheirthematicportfolios

AnimportantroletoplayforResearchInfrastructures,inparticularERICs,insynergywiththeEIC (fordiscussion)

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