eurocharity yearbook 2012-13

EUROCHARITYYEARBOOK 2012/13

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ISBN 978-960-99967-2-3

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE

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Publication series: EuroCharity YearbookPublication title:EuroCharity Yearbook 2012/13 -Innovation for Excellence

Copyright notice: All rights reserved. The material in this publication is copyrighted. No part of this publication may be reproduced in any form or by any means (electronic, mechanical, photocopied, or otherwise), or stored in any retrieval system of any nature without prior written permission by the publisher. EuroCharity encourages the dissemination of the content for educational purposes. The content may be quoted and used provided proper attribution and credit to EuroCharity are given.

Disclaimer: This publication contains general information only and should not be used as a basis for any decision or action that may affect your finances or your business. No guarantee or warranty, either expressed or implied, is given with regard to the accuracy or completeness of the information and data in this publication. The information provided herein does not constitute investment advice. The inclusion of company names and/or examples does not constitute an endorsement of the profiled companies by EuroCharity. EuroCharity shall not assume responsibility for any consequences or damages resulting directly or indirectly from the use of this publication.

ISBN 978-960-99967-2-3ISSN 1792-9520

Published in June 2013 by EuroCharity.

8

P12PUBLISHER'S NOTEMichael SpanosManaging PartnerEuroCharity

P18

KEYNOTE ARTICLES

P20Janez PotocnikEuropean Commissioner for Environment Eco-innovation Action Plan and resource efficiency

P24Lars Lokke RasmussenChairGlobal Green Growth InstituteFormer Prime MinisterKingdom of DenmarkGreen Growth public-private partnerships: The need to innovate for a sustainable tomorrow

Table of contents

P26Magdalena ‹Alvarez ArzaVice PresidentEuropean Investment Bank (EIB)Rewarding excellence: Social projects for the common good

P30Paul DruckmanCEOInternational Integrated Reporting Council (IIRC)Encouraging corporate reporting innovation

P38

INSTITUTES & NETWORKS

P40Bettina von StammFRSA, Director and CatalystInnovation Leadership Forum (ILF)The greening of innovation - Rethinking business value and innovation

P42BP AgrawalFounder and PresidentSustainable Innovations

Rajiv GuptaProfessor in Civil EngineeringBirla Institute of Technology and Science (BITS)Innovations for systemic sustainability

P46Calvin HodockFounderEdison AwardsFormer Chairman of the BoardAmerican Marketing AssociationPerfect together: Edison Awards and Innovation Excellence

P50Erik De BaedtsPresidentMunicipal Waste EuropeResource efficiency innovation in the public sector

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ TABLE OF CONTENTS

P54Linda RottenbergCEOEndeavorWhy growth matters: How scaling translates to social impact

P56Litsa PanayotopoulosChair of the Innovation, Education, Entrepreneurship Committee, Treasurer of the Executive CommitteeAmerican-Hellenic Chamber of CommerceLarge scale innovation now: How we can stop the present recession and shape our future

P58Marc AmblardCEOEFQMInnovation: How it improves performanceand its role in sustainability

P64

EDUCATION & RESEARCH

P66Anne-Laure Mention, Head of Research UnitDimitrios G. Salampasis, Doctoral ResearcherPublic Research Centre Henri TudorFinancial innovation and sustainable development

P70Annie R. PearceAssociate Professor and Graduate Chair of Building ConstructionMyers-Lawson School of Construction at Virginia TechInnovations in sustainable capital projects

P72Cortney McDermotVice President EMEASustainability PartnersPaving the way to values-driven innovation

P76Fabrizio SestiniTeam Leader CAPSDG Communications Networks, Content & Technology, European CommissionCAPS: Collective Awareness Platforms for Sustainability

P80George IoannouChair of the Department of ManagementScience and TechnologyAthens University of Economics and BusinessDirectorMBA International ProgramE-nnovation in the MBA curricula: The case of AUEB's MBA International

P82Gregory EldersSenior ESG AnalystBloombergESG disclosure drives innovation in investment analysis

P84Matt RogersDirectorMcKinsey&Company's San Francisco OfficeEnergy = innovation: 10 disruptive technologies

P88Jos� Manuel Leceta DirectorEuropean Institute of Innovation and Technology (EIT)Empowering world-class innovation and entrepreneurship across Europe

P96

CORPORATE INNOVATION

P98AB VASSILOPOULOSInnovator in corporate social responsibility

P102AIR FRANCE KLMInnovating for the customers

P104ALPHA BANKŒOlive PickingŒ: A unique voluntary, environmental and social event

P106ATHENIAN BREWERY50 years of innovation

P110HALYPS BUILDING MATERIALS S.A.Innovation for a sustainable future

P112INTERAMERICAN GROUPInnovation at INTERAMERICAN:Sales applications in a digital environment

P114ICAP GROUPInnovation: Part of a company's core values

P116A survey conducted by EUROCHARITY in collaboration with ICAP GROUPResearching innovation in Greece

P120NATIONAL BANK OF GREECENew trends, forward-looking attitudes and innovative solutions to grow the economy and enable society to move ahead

P126OTE GROUPInnovative initiatives with social commitment

P132PHARMATHENIntegrated pharmaceutical solutions

P138

VISIONARIES

P140Bruce PiaseckiFounder and PresidentAHC Group, Inc.Excellence in innovation is Doing More With Less

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ TABLE OF CONTENTS

P142John Mourgis and Konstantinos KoulocherisInnovations in waste management

P144Joel MakowerChairman and Executive EditorGreenBiz GroupAuthor of the annual "State of Green Business" reportHow technology moves the needle

P148Naveen JainCEO, inome; FounderWorld Innovation InstituteAn entrepreneurial perspective on philanthropy

P150Rowan GibsonCo-Founder and Authorinnovationexcellence.comTurning waste into value

P152Nikos VogiatzisVassilios MakiosJorge-A. Sanchez-P.Executive DirectorsCoralliaRediscover Greece: Sustainable innovation and entrepreneurship

P154Wayne VisserFounder and DirectorKaleidoscope Futures Ltd.Will anyone join your revolution?

P160About EuroCharity

P161About EuroCharity Yearbooks

P162Acronyms and abbreviations

P164List of tables, graphs, figures, facts and stats

Michael SpanosManaging PartnerEuroCharity

12

Innovation for Excellence

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ PUBLISHER'S NOTE

After five years of publishing success, EuroCharity is once again paving the way for a constructive dialogue among key stakeholders regarding a highly important global issue. This year, the theme is "Innovation for Excellence", as more than ever today's local and global challenges call for innovative solutions in technological, social and sustainability issues.

But why is innovation a hot topic these days? In an era of profound geopolitical and economic transformation, leaders must engage in a new type of growth. Time has come to look at innovation as a new challenge in order to meet human needs on planet Earth and create a better future for our children. Sustainable industrialisation seems more than imperative as mankind needs a new pathway to growth.

Emerging cutting-edge technologies push the boundaries of human limitations, touching our lives in unexpected ways and changing the world we live in. Green economy, smart technologies, education and social entrepreneurship can employ innovation, boost financial, social and environmental capital, improve social welfare, lower the environmental impact and enhance corporate reputation. Corporations that embrace innovation can lower costs, become more competitive, generate better products and services, gaining at the same time a competitive advantage.

But, how can countries and organisations meet the needs of people today without compromising those of future generations? How can we protect natural ecosystems, provide social benefits and improve living conditions on the whole? Are there any best corporate practices?

To help answer these questions, we gathered the views of distinguished international experts in innovation and sustainability. In the 6th EuroCharity Yearbook we showcase pioneering corporations, organisations and CEOs who have embraced innovation and explore new, more effective and sustainable ways of growth that lead to excellence.

Innovation by itself has become a recurring theme of best-practice sustainability initiatives. Corporations gather stakeholders' feedback, internal and external, and using organisational innovation approaches they incorporate sustainability issues in production, R&D, supply chain management, risk assessment, and customer satisfaction. Some companies even set out sustainability criteria as part of their innovation process and challenge their stakeholders to provide input.

There is also a significant body of evidence validating the fact that innovation creates prosperity. Prosperity comes from a

new demand or emerges when we have to do more using the same resources of raw materials, people and/or money. And this is the reason why innovation nowadays includes research and development that target triple bottom line results (i.e. people, planet and profit).

In this yearbook, all the above has been enriched with graphs, facts and statistics, providing a more detailed view of this important theme. We also conducted a thematic survey with the participation of nearly 350 CEOs and executives from Greece to assess the state of innovation in a country that is now redefining its growth model in the midst of an unprecedented recession. Surprisingly enough, innovation turned out to be hard to measure as it stems from ideas and experiments that are turned into services and products; however, evidence exists to justify innovation as a primary driver of economic growth Ð and in the sixth year of a recession, growth is the number one priority.

Once again, we are grateful for all the fascinating insights and contributions that come from all our authors, contributors and participants. We would also like to thank our partners and our publishing team for their great work in putting this publication together. We hope that this yearbook will live up to your expectations and be a true source of inspiration.

14

Source: www.innovationexcellence.com/blog/2012/02/13/voice-of-the-innovator/, Voice of the Innovator, by Jacqueline Byrd and Rowan Gibson, February 2012.

Voice of the innovator

FACTS & FIGURES

125 INNOVATORSTOLD US WHAT ITMEANS TO BE AN

INNOVATOR!STAY

OUTSPOKEN

GO OUTSIDEEXISTING RESOURCES AND SEE THE WORLD

IN DIFFERENTWAYS

ALWAYS BELIEVETHERE IS A BETTER

WAY

REMAINSELF-CONFIDENT

BELIEVE INFREEDOM OF

THOUGHT

STAYDETERMINED

STAY CURIOUSAND LOOK FOR

INTERCONNECTIONS

Source: Creativity and Prosperity:The Global Creativity Index, Martin Prosperity Institute, January 2011.

THE GLOBAL INNOVATION MAP

1st 60st

I will either find a way, or make one.

HANNIBALPolitician, statesman and military commander of ancient Carthage (247 B.C. - 182 B.C.)

It always seems impossible until it's done.

NELSON MANDELAFormer President of the Republic of South Africa, anti-apartheid iconand one of the world's most revered statesmen (1918 - )

Without tradition, art is a flock of sheep without a shepherd.Without innovation, it is a corpse.

SIR WINSTON LEONARD SPENCER-CHURCHILLBritish politician, Nobel Prize laureate in Literature and one of the greatestwartime leaders of the 20th century (1874 - 1965)

If you do not expect the unexpected, you will not find it,for it is not to be reached by search or trail.

HERACLITUS OF EPHESUSPre-Socratic Greek philosopher (535 B.C. - 475 B.C.)

European Commissioner for Environment

20

Eco-innovation Action Plan and resource efficiency

Much of the economic expansion that characterised the past century was based on an increasing use of natural resources. For many decades, the prices of raw materials were declining. As a result, we currently extract and use some 60 billion tonnes of raw materials every year, approximately 50% more than we did 30 years ago. This is equivalent to the weight of 41,000 Empire State Buildings.

Industrialised countries currently use four to eight times more resources than traditional agricultural societies. As world population is expected to reach nine billion in 2050, the extraction of natural resources could rise to 100 billion tonnes by 2030.

These trends will not be sustainable if future global growth follows the same resource intensive growth path of the industrialised world. Even on present trends, the world will be 40% short of freshwater by 2030, its production of waste will grow inexorably, and land available for food production will continue to shrink.

In recent years, prices of resources have started to rise, and become more volatile. We are trying to improve resource productivity; however, overall extraction and use continue to rise, as global economic growth outpaces gains in resource efficiency.

To support a transition to a more sustainable economy, we need research and innovation to know how best to sustain

our natural capital, how to use it more efficiently and how to find alternatives for resources that are scarce or have an irreversible impact on the environment.

This is why the EC is placing eco-innovation at the centre of its reflection and action on resource efficiency.

Eco-innovation is the introduction of any new or significantly improved product, process, or organisational change that reduces the use of natural resources1. Traditionally, the term was understood as a solution to minimise or fix negative environmental impacts from production and consumption activities. However, it is becoming more and more evident that the key challenges of the 21st century will not only be about reducing pollution, but also about moving towards a truly circular economy, where products and services are designed to eliminate waste.

In times of economic uncertainty, growth and jobs grab centre stage. The eco-innovation agenda is not only an environmental agenda, but also a competitiveness agenda Ð it leads to reduced costs, improves our capacity to capture new growth opportunities, and it can strengthen a company's image to its customers.

1 COM(2011) 899: Innovation for a sustainable future. The Eco-innovation Action Plan (EcoAP).

Dr.

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ KEYNOTE ARTICLES

A recent assessment of market replication projects financed by the EU's Competitiveness and Innovation Programme shows that almost 30% of beneficiaries experienced benefits and better market uptake within five years of the project start. During the same time period, full-time jobs in these companies doubled and part-time quadrupled. Despite the opportunities that eco-innovation can offer, more is still required. The 2012 annual report by the Eco-innovation Observatory2 concludes that gaps still exist when it comes to implementing eco-innovation. There are large differences between countries, sectors, and too few companies are undertaking eco-innovation to the scale needed.

This is why policy has a key role to play, setting the right conditions that allow industry and consumers to work for the transition to a sustainable economy, fostering the development and uptake of eco-innovation and identifying barriers that prevent the implementation of new technologies. Since 2004, the EU has been active through a range of initiatives Ð notably the Environmental Technologies Action Plan Ð and by integrating eco-innovation into other policies and programmes. In 2010, the EC adopted the Europe 2020 strategy3 to transform the EU into a smarter, greener, more inclusive economy. This transformation must be enabled by greater innovation and by managing our resources more efficiently.

Seven flagship initiatives will help deliver the objectives of the strategy. The "Innovation Union" initiative4 called for the adoption of an Eco-innovation Action Plan focusing on the specific bottlenecks, challenges and opportunities for achieving environmental objectives through innovation. The "Resource-Efficient Europe" initiative5 recognises the role that eco-innovation can play in support of sustainability, and its main instrument, the Roadmap to a "Resource-Efficient Europe" 6, details the numerous instruments foreseen under the sectorial EU policies.

7 COM(2011) 899: Innovation for a sustainable future. The Eco-innovation Action Plan (EcoAP).

8 These are: (1) Environmental policy and regulation, (2) Demonstration projects, (3) Standards and performance targets, (4) Finance and support services for SMEs, (5) International cooperation, (6) Green skills and jobs, and (7) European Innovation Partnerships.

2 Eco-innovation Observatory. Europe in transition: Paving the way to a green economy through eco-innovation. December 2012.3 COM(2010) 2020: Europe 2020: A strategy for smart, sustainable and inclusive growth.4 COM(2010) 546: Europe 2020 Flagship Initiative: Innovation Union.5 COM(2011) 21: A resource-efficient Europe - Flagship Initiative under the Europe 2020 Strategy.6 COM(2011) 571: Roadmap to Resource Efficient Europe.

The "Eco-innovation Action Plan"7, adopted in December 2011, aims to foster the market uptake of eco-innovation through seven dedicated actions8. These include initiatives to mainstream eco-innovation in sectorial environmental policies and regulations, to develop financial support tailored at innovative SMEs and to create job opportunities within Europe and abroad. Under the Action Plan, the EC screens the environmental regulatory framework to identify any provisions that might hinder the diffusion of eco-innovations. The Commission also reviews the standards that create lock-ins to take better account of resource efficiency performances. Too often, highly promising solutions, products and processes fail to reach the market due to pre-commercial challenges and the residual risk linked to up-scaling. Supporting market replication projects, networks, business incubators and green public procurement will help gather the critical mass needed for eco-innovations to reach the market, consolidate their position and gain new international markets.

22

In this context, we have launched the European Innovation Partnership for Water, which brings together the private and public actors who can take ideas to the market. The Partnership was set up to identify, test, scale up, disseminate and deploy innovative solutions for ten major water related challenges by 2020. To support projects that contribute to the aims of the Water EIP, EUR 40 million of research funding will be made available in 2013.

To boost market confidence and act on demand, the Environmental Technologies Verification pilot programme will verify the environmental claims of the technology tested and, therefore, minimise the risk for businesses from the purchase of new devices. Targeted financial instruments will also be developed in the form of supply-driven risk finance instruments including guarantees, loans and equity.

Technology transfer projects that create new business opportunities for European SMEs and preserve their competitiveness will also get increased support from the Action Plan, in line with the outcome of the Rio+20 conference in 2012. With the "EU Skills Panorama", a web-based database, exchanges of information between the Member States on skills needs and gaps for eco-innovation will be provided.

One of the main objectives of this "job mapping" is to better match education and vocational training programmes for engineers, entrepreneurs, economists and bankers to the

needs of the future labour force. The Commission's recent proposal for a 7th EU Environmental Action Programme9 supports these initiatives.

We have made good progress in increasing awareness about the environment. But much more needs to be done if we are to achieve the safe and healthy environment that citizens want and deserve. The Roadmap to a Resource-Efficient Europe and the "Eco-innovation Action Plan" indicate the way forward towards a more sustainable economic model for present and future generations.

9 COM(2012) 710: Living well, within the limit of our planet.


ΒΙΟ

Dr. Janez Potocnik (1958) graduated from the Faculty of Economics at the University of Ljubljana, Slovenia (Ph.D., 1993). After a successful career starting

in 1989 in Slovenia as a researcher at the Institute of Economic Research, he became Director of the Institute of Macroeconomic Analysis and Development

(1994). He was appointed Head of the Negotiating Team for Accession of Slovenia to the EU (1998). He was also Director of the Government Office for

European Affairs (2000), Minister Counsellor at the Office of the Prime Minister (2001) and Minister responsible for European Affairs (2002). In 2004 he joined

the European Commission, first as "shadow" Commissioner for Enlargement and then as Commissioner responsible for Science and Research. In 2010, Dr.

Potocnik became Commissioner for Environment.

ENVIRONMENT DG-EUROPEAN COMMISSION

The Directorate-General for the Environment is one of the more than 40 Directorates-General and services that make up the European Commission.

Commonly referred to as DG Environment, the objective of the Directorate-General is to protect, preserve and improve the environment for present and

future generations. To achieve this it proposes policies that ensure a high level of environmental protection in the European Union and that preserve the

quality of life of EU citizens. The DG makes sure that Member States correctly apply EU environmental law. In doing so, it investigates complaints made

by citizens and non-governmental organisations and can take legal action if it is deems that EU law has been infringed. In certain cases, DG Environment

represents the European Union in environmental matters at international meetings such as the United Nations Convention on Biodiversity. The DG also

finances projects that contribute to environmental protection in the EU. Since 1992 approximately 2,600 projects have received financing from LIFE, the EU's

financial instrument for the environment.

http://ec.europa.eu/environment/index_en.htm

Lars Løkke RasmussenChairGlobal Green Growth InstituteFormer Prime MinisterKingdom of Denmark

24

Green Growth public-private partnerships:The need to innovate for a sustainable tomorrow

With an estimated nine billion people in the world by 2050, the threat of climate change and the increasing resource demand related to energy, land-use, fresh water and minerals, there is increasing recognition of the urgent need to promote economic growth and social progress while sustainably managing natural resources and services. To effectively meet this challenge, policymakers and private sector leaders must invent and adopt innovative approaches that make growth and sustainability compatible and mutually reinforcing. Therefore, a new paradigm is needed. This new paradigm is green growth.

Oftentimes, it is mistakenly believed that applying environmental sustainability strategies comes at the cost of sacrificing - or at least slowing - economic growth. Green growth policies, however, are designed to stimulate growth and at the same time reduce emissions that increase the risk of climate change, limit or reverse environmental degradation, enhance the protection of biodiversity, and increase resource productivity.

This is why organisations, such as the Global Green Growth Institute (GGGI), view green growth as an innovative, yet practical sustainable development model for the 21st century. Through partnering with governments and engaging the private sector, we work to assist developing and emerging countries in leaping over the resource-intensive and environmentally unsustainable stages of development pursued by developed countries in the 20th century. We believe that with sound policy and readily available capacity building, technologies and

finance, developing and emerging countries can grow their economies, lift people out of poverty, and provide employment while simultaneously protecting vital natural resources.

Ultimately, the design and implementation of green growth strategies cannot be completely effective without the engagement of the private sector. This is necessary in order to align investment and financing, develop deploy feasible technologies, and ensure sustainability in market economies, with appropriate levels of support from the public sector. To this end, one extraordinarily positive development we have witnessed in recent years is a substantial increase in the number of public-private partnerships in areas related to green growth.

In October 2012, Copenhagen hosted the second annual Global Green Growth Forum (3GF), an initiative from Denmark, Korea, and Mexico Ð now joined by China, Qatar and Kenya Ð in partnership with numerous private companies and organisations, including GGGI.

3GF's aim is to become the leading international venue for the demonstration of leadership and cooperation by top-level global decision-makers in the field of green growth. Under the theme of resource efficiency and growth, 3GF brought together over 250 business, public, and civil society leaders from around the world where they launched 11 concrete, innovative public private partnerships.


The unique initiatives arising from the event included the 21st Century Power Partnership, a project aimed at transforming the power sector by encouraging investing in smarter grids and facilitating cooperation among all stakeholders in a given power system, from the electricity providers to equipment manufacturers. Other initiatives that came about were a natural capital accounting project, and an effort centered on global Energy Efficiency Indicators, and another innovative project on Energy Efficiency Finance.

Public-private partnerships of this type are critical if we are going to truly shift the development paradigm from the traditional resource-intensive models of growth that marked the 20th century to greener, more sustainable growth that incorporates measures/policies, finance and technology to mitigate and adapt to climate change. Public-private partnerships are necessary to reduce information costs, promote best-practice policies, and overcome investment barriers. Governments, both local and national, are necessary for developing and instituting green growth policies, but engagement of the private sector is the key component for providing capital and technology to make green economic plans a reality. Organisations like GGGI must continue to bridge the gap and work to elevate the importance that political and business leaders attach to the role of public-private partnerships in strengthening the internalisation of environmental externalities in business strategies and economic planning.

To be sure, progress is being made, but not quickly enough. The development community needs to do more to convince the private sector that it is in their long-term interests to invest in green growth policies and to convince policy makers to provide incentives for such investments. If we can successfully secure commitments from both the public and private sectors, we can make green growth a global economic development model of the 21st century. If we can do that, we can go a long and sustainable way in combating the adverse effects of climate change while at the same time we can reduce global poverty and increase global prosperity.

ΒΙΟ

Lars Løkke Rasmussen is currently the Chairman of the Liberal Party in

the Parliament of the Kingdom of Denmark and serves the North Zealand

greater constituency. He was the Prime Minister of Denmark from 2009

to 2011. Prior to his position as Prime Minister, Mr. Rasmussen served

as Minister of Finance from 2007 to 2009 and Minister for the Interior

and Health from 2001 to 2007 under the Anders Fogh Rasmussen's

government. In all, Mr. Rasmussen has been a Member of Parliament

since 1994. Mr. Rasmussen earned a Master of Laws from the University

of Copenhagen in 1992 and matriculated in social studies and mathematics

from Helsinge Upper Secondary School in 1983. He was also County Mayor

of the Frederiksborg County from 1998 to 2001. A long time supporter of

environmental causes, Mr. Rasmussen was President of the Conference of

Parties to the United Nations Framework Convention on Climate Change in

Copenhagen in 2009 (COP 15). He is the author of "The Association Manual"

(1994) and "If I Get Old" (1997).

GLOBAL GREEN GROWTH INSTITUTE

Global Green Growth Institute (GGGI) is dedicated to pioneering and

diffusing a new model of economic growth, known as "green growth,"

that simultaneously targets key aspects of economic performance,

such as poverty reduction, job creation and social inclusion, and those

of environmental sustainability, such as mitigation of climate change and

biodiversity loss and security of access to clean energy and water.

www.gggi.org

Magdalena Alvarez ArzaVice PresidentEuropean Investment Bank (EIB)

26

Rewarding excellence:Social projects for the common good

Europe is going through one of the deepest crises we have ever witnessed. The overall macroeconomic indicators show clear evidence of a deterioration of the economic conditions in the EU member states: far from recovering, the economic activity remains subdued in a significant number of countries due to limited access to credit and a phase out of public support schemes, with the most dramatic consequences being reflected in all-time high unemployment rates. Over 25 million Europeans are out of work, a figure which does not include low-paid jobs. Lack of opportunities in the job market is too often magnified because of gender, age, race or disabilities. Moreover, one in six Europeans is at the threshold of poverty, a number that gets even higher in the case of children or elderly people.

Against this background, individual governments and European institutions must increase and join efforts, the private sector included, in order to put in place measures able to alleviate and mitigate the effects of the current economic crisis. Most important, we also need to pursue forward-looking actions and promote long-term solutions aimed at improving equality and social inclusiveness all across Europe.

The ΕΙΒ as the Bank of the EU, as its financial arm, is and should continue to be a powerful instrument to this end. By financing projects we support much needed investments in a wide range of economic sectors along the Union's policy guidelines. In the short term, EIB funding plays a counter-cyclical role and helps

stimulate economic activity and job creation. In addition, our support to strategic investments in a wide range of areas such as education, infrastructure, RDI or climate action, to name just a few, does also have a very positive effect in the medium and long run, as these investments are crucial to promote a more balanced, sound, sustainable and inclusive growth pattern. All in all, the investments financed by the EIB Group make a genuine difference in people's lives: they create secure jobs, improve living standards and promote economic and social cohesion as well as European integration. It is, therefore, vital that we continue to make a real impact by supporting European recovery.

However, there is no room for complacency. There is still much to be done and a large leeway for further improvement in this regard.

In 2012, the EIB created a new dedicated department, the EIB Institute aimed at complementing the Bank's financing activity by promoting "European Initiatives for the Common Good", in particular for the benefit of economic and social innovation in the EU member states. While the EIB mobilises financial resources for targeted investments, the Institute, through three different programmes (namely the Knowledge, the Social and the Arts and Culture programmes) tackles cohesion and integration from a different and complementary, perspective, reinforcing the Bank's action in very specific areas such as social innovation.


First prize for the Piano C organisational model.First prize for the Hand-in-Scan hygiene system.

28

This is precisely one of the key planks of the EIB Institute: encouraging social innovation and sponsoring entrepreneurs whose primary purpose is to generate a positive social, ethical or environmental impact.

Under the umbrella of its Social Programme, in 2012 the Institute first launched the Social Innovation Tournament, which has indeed become one of our flagship initiatives. The Tournament seeks to fight social exclusion through the promotion of small-scale innovative projects and initiatives in the social realm, able to deliver tangible and scalable results, in particular generating positive effects for the community.

Depending on their stage of maturity, the proposals were classified under two different headings: projects still at a conceptual stage and projects already under implementation.

The response and the acceptance of our initiative exceeded by far our expectations, showing the great potential of untapped innovation that is available in Europe. The proposals

were typically related to unemployment, marginalisation of disadvantaged groups and access to affordable and high quality health and education.

As Chair of the EIB Institute, I am most grateful for all the contributions received and I am now, more than ever, fully convinced that rewarding social innovation is the way ahead in our exit strategy of the economic crisis.

The Social Innovation Tournament has rewarded the unsung heroes of our society, those who make it possible to introduce new processes and technologies in our lives, thus helping to build more integrated and cohesioned societies. Let me just provide a few examples from the awarded projects:

– A hand-hygiene system based on digital imaging may allow us in the future improving the direct control on hand washing efficacy in the medical environment, as proposed by a Hungarian participant.


ΒΙΟ

Magdalena Alvarez Arza was appointed Vice President of the European Investment Bank (EIB) in 2010. Her previous posts include Member of the European

Parliament, Minister for Public Works of the Government of Spain (2004-2009), Regional Minister for Economic Affairs and Finance in the Government of

Andalusia (1994-2004) and since 1979 has been an Inspector of State Finances. Ms. Alvarez is Spanish, and holds a Doctorate in Economic and Business

Sciences from the University of M‹ alaga. Her academic career includes posts as Lecturer in Economics at the National University of Distance Learning (1976-

1979) and at the Law Faculty of the University of M‹ alaga (1981-1989).

EUROPEAN INVESTMENT BANK

The EIB is the European Union's Bank. It is the only bank owned by and representing the interests of the European Union member states, working closely

with other EU institutions to implement EU policies. As the largest multilateral borrower and lender by volume, it provides finance and expertise for

sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of its activity is focused on Europe. but it

also implements the financial aspects of the EU's external and development policies. It supports projects that make a significant contribution to growth,

employment, economic and social cohesion and environmental sustainability in Europe and beyond. Its 1,950 staff builds on more than 50 years' experience

and expertise in project financing. Headquartered in Luxembourg, the EIB has a network of local and regional offices in Europe and beyond.

www.eib.org

– In the coming years, we may well benefit from an Alzheimer support system designed by a Greek national, aimed at facilitating, understanding and incorporating the needs of the Alzheimer community, including patients, caregivers and doctors.

– Among the initiatives already under implementation, the prize was awarded to an Italian new organisational model targeting the inclusion of talents - mostly women - which are facing difficulties to integrate themselves in the regular labour markets.

All of them are the best example that initiatives like the Tournament and bodies such as the EIB Institute are sorely missing in today's Europe. As a European institution, we must continue to incentivise and recognise the talents and reap their full benefits of innovation for the common good. The Tournament is a very positive step forward and I am fully convinced that the second, and hopefully successive editions, will continue to contribute to this end.

Paul DruckmanCEOInternational Integrated Reporting Council (IIRC)

30

Encouraging corporate reporting innovation

Effective corporate reporting is essential for building trust and confidence in business which is so critical for investors so that they enable the efficient and productive allocation of capital. Today's corporate reporting landscape is complex and cluttered. The integrated reporting movement is working towards the publication of an international framework that will help the business to communicate how its business model and strategy contribute towards the creation of value in the short, medium and long-term. Such a framework is essential for demonstrating effective corporate stewardship and contributing towards financial stability and more sustainable markets. When we think back to the origins of the global financial crisis that engulfed the world's capital markets, and whose ramifications are still being felt, it is hard not to conclude that among its many causes there was an inexorable move, as regards the mindset and actions, towards short-term thinking and behaviour. Research conducted by Andrew Haldane, Executive Director for Financial Stability at the Bank of England, reveals that the mean duration of U.S. equity holders has fallen abruptly, from around seven years in the 1940s to just seven months in 2007. Meanwhile, Al Gore and David Blood recently suggested that a short-term perspective is "driving our economies and our planet into liquidation". While a fall in transaction costs and incentive structures that reward short-term performance are to some extent responsible for this trend, it is probable that the corporate reporting landscape has also contributed to the trend by not enabling an efficient flow of capital to enterprises that create longer term value. Efficient and productive markets depend on regular and accurate flows of information and there is a growing recognition that companies do not have the tools at their disposal to communicate most effectively the factors that contribute to the creation and preservation of value in the short, medium and long-term. Instead, reporting has in some cases become little more than a compliance exercise leading to ever more complex and lengthy reports that fail to reveal to the investor how the company's strategy and business plan create value. Corporate reporting has become more accurate and robust in some ways, however, particularly as financial reporting standards and practices have evolved, reports have also become more voluminous and less relevant to the users of information who are looking for a more complete picture, and an understanding of how the company is planning to create value in the future. Reporting is too focused on providing historic information and not focused enough on providing visibility about future strategy and performance that investors need for efficient capital allocation.


Integrated Reporting (<IR>) provides an answer to these structural challenges by delivering a framework that enables a business to express clearly and concisely its value creation process over the short, medium and long-term. <IR> is designed primarily for investors, and is being driven forward by their demand for more value-relevant information.

The complexity of business in this age of globalisation, as well as increasing regulatory and societal demands for more information, has led to disclosure overload - a mass of information that users either misuse or do not use at all. <IR> does not seek to undo this movement towards greater transparency, but it does seek to reveal hidden value that cannot be explained by current financial reporting. This will allow investors to evaluate more robustly where to invest, as well as the reasons for increasing the duration of this investment should they see fit. The benefits to businesses of <IR> will be substantial, as they not only gain a more comprehensive relationship with investors, but also refocus the strategy of their business. We are currently building on the evidence base of examples and experiences from businesses that are evolving their own reporting practices. A database of emerging practices is available to view at www.theiirc.org and we will be adding to the 70+ examples that are already in the database shortly. Our initial Pilot Programme involves over 100 of the world's most prestigious businesses, such as Microsoft, Marks &

COUNCIL WORKINGGROUPBOARD

INVESTORNETWORK

TECHNICALTASKFORCE

L-TINSTITUTIONAL

ARRANGEMENTSSUB-COMMITTEE

PILOTPROGRAMME

– Planning– Coordination– Execution

– Mission, role and governance– Thought leadership,

intellectual contribution and strategic insights

– Weight and credibility

– <IR> Framework– Adoption of <IR>– Long-term institutional arrangements for the IIRC

IIRC STRUCTUREEXTERNAL STAKEHOLDERS/THIRD PARTIES

ConceptStrategy Direction

Positioning

ContentImplementation

Delivery Application

SECRETARIAT

Source: International Integrated Reporting Council, 2013.

32

Spencer, China Light & Power, and Unilever. Over the last year, these organisations have contributed their expertise towards the development of the world's first <IR> Framework. The concepts contained in the Prototype Framework, published in December 2012, are also being tested by our Investor Network of 30 institutional investors, and to reinforce the need for the Framework to meet investor expectations, we have created an Investor Testing Group for fund managers, the people directly responsible for capital allocation decisions on a day-to-day basis. Already, companies listed on the Johannesburg Stock Exchange are required to produce Integrated Reports under listing rules on a "comply or explain" basis. And, according to GRI figures, a further 450 businesses globally produce self-declared Integrated Reports. This number is set to rise substantially as stock exchanges and listing authorities seek to implement the recommendations that flowed from the Rio+20 Earth Summit in June 2012, one outcome of which was to encourage the integration of sustainability information into the reporting cycles of large listed companies.

The IIRC through a Consultation Draft of the <IR> Framework encourages investors, businesses, accounting organisations, academics and others to submit responses to the consultation. We will also continue to speak at events and meet with people all over the world to improve business, investor and regulators' understanding of the benefits of <IR>. What we have witnessed since the IIRC's creation just two years ago is a convergence of opinion around the idea that corporate reporting should, and can be, improved through more integrated thinking and behaviour that results in the telling of a more complete story about business strategy, performance and prospects. Notwithstanding the fact that <IR> is a market-led initiative, it is a concept that has gained the attention and support of Governments, regulators and standard setters across the world. Today, our request for policy makers is simple and straightforward: engage with us, and the needs of investors, prepare for <IR> and encourage reporting innovation to take place so that the Framework we develop is both of the highest quality and capable of adoption in all markets.

The fact is that the corporate reporting landscape is changing. It is an ever-evolving and dynamic practice, informed by business norms that change over time. Too much rigidity, and not enough innovation, have crept into the way we set the regulatory boundaries that underpin corporate reporting. The tracks have become too focused and the outcome too narrow. The IIRC is here to challenge current thinking and to lead a broad and powerful coalition towards a consensus that pushes those boundaries a little further and enables the full expression of business value creation. We believe <IR> will contribute to more resilient business practices and to an investor community that gains access to the information it needs to allocate capital more effectively and productively in the long-term interests of global economic stability and success. That is our goal and we invite you to participate in our work.


ΒΙΟ

Paul Druckman is the CEO of the IIRC. Paul is well-known and respected in the business and in the accounting world globally. Following an entrepreneurial

career in the software industry, Paul operated as non-executive chairman and director for companies in a variety of sectors until taking over this post.

Formerly, he was the Director of the U.K. Financial Reporting Council, a member of the City Takeover Panel, and President of the Institute of Chartered

Accountants in England and Wales (ICAEW). His high-profile work on sustainability matters has included chairing The Prince's Accounting for Sustainability

Project (A4S) Executive Board and the FEE Sustainability Group.

IIRC

The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession and

NGOs. Together, this coalition shares the view that communication about businesses' value creation should be the next step in the evolution of corporate

reporting. The mission of the IIRC is to create the globally accepted International <IR> Framework that elicits from organisations material information about

their strategy, governance, performance and prospects in a clear, concise and comparable format. The Framework will underpin and accelerate the evolution

of corporate reporting, reflecting developments in the financial, governance, management commentary and sustainability reporting.

www.theiirc.org

34

ΙDEA GENERATION AND CONVERSION

FACTS & STATS

Source: The Global Innovation 1000 - Making Ideas Work, Booz & Company, 2012.

18%

25%11%

46%

IDEA

CONV

ERSI

ON

IDEA GENERATION

HIGHLY EFFECTIVEMARGINALLY EFFECTIVE

MA

RG

INA

LLY

EFFE

CTIV

EH

IGH

LY E

FFEC

TIVE

INNOVATION SPENDERS

Source: The Global Innovation 1000 - Making Ideas Work, Booz & Company, 2012, Bloomberg data.

Computing and Electronics 28%

Healthcare 21%

Software and Internet 7%

Industrials 10%

Consumer 3%

Other 2%

Chemicals and Energy 7%

Auto 16%

Aerospace and Defense 4%

Telecom 2%

If you always do what you always did,you will always get what you always got.

ALBERT EINSTEINTheoretical physicist, Nobel Prize laureate in Physicsand the most famous scientist of the 20th century (1879 - 1955)

Small opportunities are often the beginning of great enterprises.

DEMOSTHENESGreek statesman and orator of ancient Athens(384 B.C. - 322 B.C.)

Innovation is the specific instrument of entrepreneurship.The act that endows resources with a new capacity to create wealth.

PETER F. DRUCKERManagement guru, influential writer, revolutionary thinker,management consultant and self-described "social ecologist" (1909 - 2005)

Do you know what my favorite renewable fuel is?An ecosystem for innovation.

THOMAS LAUREN FRIEDMANAmerican journalist, New York Times columnist, author and threetimes winner of the Pulitzer Prize (1953 - )

Dr. Bettina von StammFRSA, Director and CatalystInnovation Leadership Forum (ILF)

40

The greening of innovation -Rethinking business value and innovation

Innovation, innovation, innovation is what we hear everywhere. Given that my passion for the past two decades has been to understand and enable innovation you should think that I am delighted. I am and I am not. We clearly need much innovation, but not just any: innovation and sustainability are Ð have to be! Ð inseparably linked.

Innovation - but not as we know it.

In order to achieve sustainability through innovation, we need to reconsider the following:

The WhatMoving beyond innovation that centres around R&D, technology and patents we need to consider processes and particularly services and business models. Consider the example of a U.S. based chemical company, specialising in pesticides. Like in most other product-based companies, sales were incentivised to sell as much as possible. Increasing environmental awareness led to the question: what do our customers really want? By selling pest-free fields the pesticide became a cost to the company, creating a strong incentive to use as little as possible, creating winners all around.

The WhoInnovation needs everyone; movements such as "open innovation" and "crowd sourcing" reflect this, and companies such as P&G have had great success with soliciting 50% of ideas

for new products from the outside; GoldCorp found amazing precious metal reserves by making their geographical data - normally considered to be an organisation's crown jewels - available online.

The WhyThere is no alternative: sustainability considerations have to be at the root of innovation. Companies such as Philips and Marks & Spencer come to mind, and do you know what Alcatel Lucent, Herman Miller and Samsung share in common? They were Sector Leaders and Gold Class holders in the 2012 Corporate Sustainability Assessment conducted by SAM and KPMG.

Where do sustainability considerations come into play in your organisation? To prevent lawsuits or drive your innovation agenda? The future belongs to those who do the latter.

The WhereWhen casting your net for innovation opportunities, where do you seek for inspiration, experiment and developing new concepts and ideas? Two spots that may or may not be on your list: first, developing countries. Have you heard of the expression "innovation blow-back"? In January 2009, the online Times reported "Tata Nano - the world's cheapest new car is unveiled in India, selling for Rs 100,000 (the equivalent of GBP 1,300, which is the same price as the DVD player in a Lexus." Cataract surgery, costing around USD 5-10K in

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ INSTITUTES & NETWORKS

ΒΙΟ

Dr. Bettina von Stamm is an original and visionary thinker in the field of innovation, who has focused on enabling innovation in large organisations since

1992. She is the founder and director of the Innovation Leadership Forum (ILF), which brings together leaders and decision-makers in large organisations

to embrace the challenges of innovation in a non-competitive and non-selling environment. Through the ILF, she offers a variety of innovation Master

Classes and coaching for senior managers and innovation leaders to help address barriers to innovation and to help them create sustainably innovative

organisations. She is also Visiting Professor of Innovation at prestigious universities throughout the world.

INNOVATION LEADERSHIP FORUM

The Innovation Leadership Forum (ILF) is a Think & Do Tank dedicated to helping organisations understand and improve their innovation performance. It

does so through a number of different media, such as a Networking Group for innovation leaders, a wide range of Master Classes, customised workshops

and seminars, the Innovation Wave¨ (a facilitated assessment tool), research projects and teaching as well as public speaking.

www.innovationleadershipforum.org

the U.S. is offered for Rs 8,000 to Rs 35,000 in India USD 100-400. Don't assume that this will not have consequences for developed markets! Second, nature. Engineering firm Arup modelled the Eastgate Centre office complex on a termite mound as these maintain a constant temperature inside, despite high fluctuations in the temperatures outside. Energy costs for heating and cooling were reduced by 90% when compared to a building of its size.

The HowThe benefits of design - designers, design thinking - are no longer the secret of a successful few, such as Apple, BMW and P&G.

Open innovation, crowd-sourcing and user involvement have already been widely adopted. I believe those who succeed in the future will go a step further: they will tame the competitive spirit and bet on collaboration at the individual, team, organisational and national levels that have been not seen before.

So, when are you putting "innovation, but not as we know it" at the top of your agenda?

Sustainable Innovations matured a systemically sustainable model for social enterprise or for public-private-community partnership (PPCP) Ð namely Aakash Ganga (AG) (or River from Sky in Hindi), a rooftop rainwater harvesting system, and Triage@Home for door-to-door delivery of health care. When AG was launched in India, sustainability had just one dimension, one colour, and one meaning for us Ð economic sustainability. During the pilot programme, sustainability revealed its numerous colours, one color after another: For PPCP to be a sustainable system, it should be sustainable economically, culturally, socially, operationally, technologically, politically, institutionally, and ecologically. These dimensions necessitated enterprise, with social, institutional, and engineering innovations among others. Select innovations for systemic sustainability of AG are highlighted below.

42

Innovations for systemic sustainability

Dr. BP AgrawalFounder and PresidentSustainable Innovations

Dr. Rajiv GuptaProfessor in Civil EngineeringBirla Institute of Technologyand Science (BITS)

Enterprise Innovations Ñ Making Simple: The PPCP model was honed so that it can be articulated to the communities in less than ten words. The PPCP's core elements are:

– Rent rooftops from home owners. We acquire rights to harvest rainwater. The rooftop rental scheme is analogous to a utility company acquiring "right of way." An advisory body, paralleling the Public Utility Commission, acting as a consumer watchdog, formulates the social policy for equitable distribution of water.

– Roof rent is paid as an one-time subsidy to build a rainwater reservoir at the home owner's quadrangle. In exchange, the home owner contributes part of the rainwater to the shared reservoir for the community's use.

– Communities contribute 10,000 M2 land. Part of the rainwater in the community reservoir is used for horticulture, generating sufficient revenue to pay for AG's upkeep and return to social investors. AG maximises revenue per liter of irrigation water and per unit of land.

– Devised online Social Audit to afford people privileges at par with the U.S. corporate auditors. Social Audit may become de facto standard for transparency and accountability.


1 When a child is born, the mother performs a water worship at the local well.

Social Innovations Ñ Realising Economic Value: Villages are steeped in cultural traditions and social norms. Often, the traditions are viewed as anchors that tie a society to its past, sap its agility, and impede progress. AG realised the economic value of the traditions through innovations:

– Villages lack a sanitation system. Open defecation is common. Contamination of water bodies is a reality. Rather than turning to technology, AG used the local tradition of "Jalawa Puja1" to guard water bodies from contamination. Now, the mothers champion the protection of the reservoirs.

– Communities have strong familial bonds. AG monetises familial bonds by engraving his mason's family name on the reservoirs. The recognition lets the grandson exult: "My grandfather built it. I need to take care of the reservoir." The masons are expected to discount their wages.

– Communities respect age. The foundation laying ceremony is led by the eldest and the youngest citizens. This act sends a sublime message: water bodies are a heritage Ñ that are passed from one generation to the next. An emotional investment by the communities!

44

Engineering Innovations Ñ Ensuring Operational Sustainability: Select examples of engineering innovations are:

– AG's engineering automation tool enables a junior engineer to design the system in a few days and to minimise costs. The tool uses satellite images, Global Positioning System, Geographical Information System, and Genetic Algorithm.

– AG's conceptualised IT network to monitor water quality and utilisation of million reservoirs. People can track service requests online.

– Absence of street names and house numbers posed a huge challenge to identify the physical location of every reservoir, uniquely. AG's numbering plan, based on the longitude and latitude coordinates, assigns a unique identifier to every reservoir.

In summary, PPCP needs to be systemically sustainable to impact millions. And systemic sustainability requires social, engineering, institutional, enterprise, ecological, political, and a host of other innovations.


ΒΙΟ

Dr. BP Agrawal founded Sustainable Innovations to harvest innovations for people. He is the recipient of the USD 100,000 Lemelson Ð Massachusetts

Institute of Technology sustainability award; the USD 100,000 Purpose Prize award for social innovations; the Energy Globe World award for environmental

sustainability; and two World Bank Development Marketplace awards for social enterprises, rainwater harvesting and health care delivery. He was invited

by the 2011 World Economic Forum and the 2012 Indian Diaspora Day to share the social enterprise model with the delegates. Dr. Agrawal is an advisor to

the Smithsonian Institution's Lemelson Center for Innovations and is a frequent speaker on rapid commercialisation of technologies, Gandhian approach to

sustainability, and on People, Culture and Innovations. For 30+ years, he was an executive at Fortune 100 companies and entrepreneurial ventures. He is

an alumnus of University of South Florida (U.S.A.), BITS (India) and of the Executive Program of Sloan School, MIT (U.S.A.).

Dr. Rajiv Gupta is currently a Professor in Civil Engineering at BITS, Pilani, India. His teaching and research experience spans 25 years. He has authored

several books and published 100 papers in International, National Journals and conferences. He has guided several Ph.D. students. He is the recipient of a

number of awards including the Shrimati Saroma Sanyal Memorial Medal, the Best paper award, and the Gold medal for best paper. He has spearheaded

social projects including Aakash Ganga for technological, operational, and ecological sustainability. He has worked in different administrative posts as Dean,

Head of the department, warden and has been a member of many Institute's bodies like the Senate, the Research Board, etc. He completed his Ph. D. at

BITS Pilani in 1995.

SUSTAINABLE INNOVATIONS

Sustainable Innovations (SI) is a non-profit organisation based in Fairfax, Virginia, U.S.A. It harvests innovations to build self-sustainable social enterprises

or PPCPs. The two signature programs of SI are: Aakash Ganga in Hindi or River from Sky harvests rooftop rainwater in the arid regions of India. Arogya or

Triage@Home delivers health care for common ailments and preventable diseases to rural villages and urban slums. Arogya trains a cadre of high-school

educated women to be health workers and social entrepreneurs. They go door to door delivering health care services to those in need.

www.si-usa.org

Calvin HodockFounderEdison Awards Former Chairman of the BoardAmerican Marketing Association

46

Perfect together:Edison Awards and Innovation Excellence

A critical cornerstone in today's higher standards of living in America and abroad was ushered in when an obscure GE executive in the 50s, J. B. McKitterick, was credited with making one of the earliest statements about the marketing concept. Companies should abandon their internal orientation focused on production and selling and start making products based on their customers' needs and wants. It was so simple, yet so valid; it makes one wonder why it took so long to grasp its irrefutable logic.

For the next six decades, marketing flourished, slowly evolving to the point where it could, and should, use its muscle to solve societal problems. This Sustainability Opportunity provides us with an once-in-a-lifetime chance to alter the perception that marketing contributes to social problems (materialistic consumption, obesity, digital stalking, credit card debt, etc.) to a conviction that it can be an effective partner in helping global citizens live more sustainable lives, and that product innovation represents a bright and shiny pathway in this effort. Marketing has finally found its conscience.

The mission of Edison Awards, named after Thomas Alva Edison, a remarkable inventor globally revered who changed the way the world lives, is to recognise, honour and foster innovation and innovators creating a positive impact on the world. This mantra reflects our Edison heritage. Many of the recent products garnering an Edison Award demonstrate clearly that sustainability can be a competitive advantage,

making it the new frontier in innovation.

A few examples: Coca-Cola won an Edison Award for PlantBottle packaging, that is the first recyclable PET plastic beverage bottle made partially from plants that leaves a lighter footprint on the planet and its scarce resources. Coca-Cola evolved from using fossil fuels to using materials that are up to 30% plant-based without sacrificing performance or recyclability. Second generation plant-based packaging is now on the Coke drawing board. Stay tuned. Coke plans on introducing the packaging format worldwide. ConAgra snared an Edison Award working in partnership with Forgotten Harvest, a food rescue organisation with a network of mobile pantry's, providing food to feed hungry families that otherwise would have gone to waste in a land fill. The alliance became a triple win, as it feeds hungry people, reduces waste, and avoids disposal costs.

As the Edison Awards gain traction, we are seeing more and more Edison entries from abroad while at the same time witnessing reverse innovation where product innovations surface first in the developing world and then migrate to mature global markets. In India, GE Healthcare developed a portable, battery-operated electrocardiogram machine that cost USD 500 and was designed for rural markets that could not afford Star Wars-like cardiology equipment costing USD 30,000 or even more. When marketing the same product in the U.S., GE found through its first responders a viable target


ΒΙΟ

Calvin L Hodock is former Chairman of the Board of the American Marketing Association, the world's largest

professional marketing society and a nationally recognised authority on marketing and product innovation earning

his marketing credentials in senior management positions at the Gillette Company, Bayer, and Johnson & Johnson.

He also was a senior partner at Comart/KLP, one of the country's largest marketing service agencies at that time.

Hodock is a full-time faculty member, teaching marketing courses at the Berkeley College Larry L. Luing School of

Business. He has also taught at New York University and has been a guest lecturer at several colleges, including

the Wharton School.

In his stewardship of the American Marketing Association, he founded the Edison Awards presented annually

to companies for innovation excellence. During that period, he reviewed thousands of new product and service

submissions from an elite corps of America's corporations. Some of this material, not in the public domain, was

used in his recently published book "Why Smart Companies Do Dumb Things."

Hodock's articles, books and involvement with the Edison Awards have resulted in appearances on Fox business

News, CBS, CNN,CNBC, and Bloomberg, radio stations in local markets, and print media, including publications like

"Wall Street Journal", "New York Times", "Advertising Age", "Promo Magazine" and "Marketing News."

Numerous universities and professional organisations, like 3M and American Gas Association Financial Forum,

have heard his thought-provoking lectures on marketing and innovation strategies. He is now working on several

articles and another book "The Brain Washing of America."

EDISON AWARDS

Edison Awards Ð a leader in globally recognising, honouring and fostering innovation and innovators to make a positive

impact in the world. For 26 years, the annual awards programme has recognised innovation across 15 categories,

ranging from consumer-science to applied technology, energy, sustainability and consumer packaged goods. The

Meet the Innovators Forum, where experts from these fields collaborate with their peers through presentations, panel

discussions and networking sessions. The programme also includes educating students on the innovation process

through experiential learning programmes relating to the fields of science, engineering, design and marketing.

www.edisonawards.com

market. GE, under the stewardship of CEO Jeff Immelt, declared that the company would tackle sustainability issues not for its public relations benefits, but instead in order to focus on getting the right results in the right way. Companies in the vanguard of the sustainability surge identify business opportunities earlier than competitors as GE has demonstrated in several markets. Compliance has its rewards.

It is no longer fashionable to think that a slightly tweaked Anglo-centric product can achieve the sweet smell of success in the rest of the world. With a surging middle class in countries like China, Brazil and India, critical mass has been achieved with the opportunity to create customised local solutions. Minute Maid Pulpy, developed and originally launched in China, became Coca-Cola's 14th billion dollar brand in a mere five years. Today's global economy demands that companies rapidly scale innovation from any part of the world. And the Edison Awards will be there to recognise and honour their achievements.

Multinational companies are in the early phase of taking ideas developed in, and for emerging countries and deploying them in the West. Wal-Mart conceived "small mart stores" to compete in Brazil, Argentina and Mexico before importing the retail format to the U.S. When Kraft introduced the triple double Oreo in the U.S., the cookie had already been launched in Argentina three years earlier. GE believes that Vescan, developed in China, a portable ultrasound device that allows physicians to see "inside patients", will become as common as stethoscopes in worldwide medical practices.

The parameters of the innovation game are changing. Reverse innovation (sometimes called frugal innovation) benefits developing nations and multinational corporations. Just ask Coca-Cola or GE. The overarching trend in the innovation game is a transformational shift in the genesis of innovation energy. Sustainability is a driving force behind this new found energy. It prospers in faraway places like Manila, Jakarta, Singapore, Hong Kong, Mumbai and Seoul. The Edison Awards are excited to be part of this new paradigm.

48

Source: State of Green Business in 2013, GreenBiz Group in partnership withTrucost, 2013.

GREEN BUSINESS IN 2013

FACTS & FIGURES

NEW PLATFORMS TO ACCELERATE ENERGY EFFICIENCYInformation technology is redefining the ways commercial and industrial buildings operate. By offering the ability to monitor systems with real-time data, and to track and analyse energy use, a host of web-based platforms allow facilities managers and building engineers to maximise efficiency in buildings old and new. But with some 200 energy management tools and software available, facilities managers face a daunting task to navigate a crowded market.

CITIES PUSH DATA TRANSPARENCY FOR ENERGY USEA spate of cities are now mandating that owners of large commercial buildings measure and release records of their annual energy usage. These laws are designed to bring greater transparency to the commercial real estate market, incentivise landlords to develop energy-efficiency and retrofit strategies, and help potential tenants understand a building's energy consumption.

FLEETS AND CAR-SHARING DRIVE EV GROWTHWith the launch of mass-marketed EVs just two years ago, there's been a great detail of anticipation in the growth of EVs. While there certainly has been some uptake Ð a nearly 200% increase in sales of plug-in vehicles in the U.S. in 2012, with 14 models on the market today Ð the excitement has waned a bit. Still, we are likely to see modest growth as municipalities and businesses modernise and electrify their fleets. Another growth driver is the introduction of EV car-sharing services. By collaborating with cities on the buildout of charging infrastructures and

giving consumers a chance to "test drive" an EV, these services Ð and new ones sure to sprout in 2013 Ð will drive the growth of EVs.

GREEN BUTTON TURNS 1Green Button Ð a feature to let consumers and businesses download their own detailed energy usage Ð has been adopted by 33 utilities in the U.S. after launching in January 2012. But so far only seven utilities have implemented programmes to take advantage of the data, which is seen as a catalyst and platform for app developers to produce new services and products. One notable new commercial service utilising cloud-based, energy data from Green Button is Johnson Controls' Panoptix management platform, intended to help commercial building owners and operators save energy and money.

CITIES 2.0 AND ECONOMIC REVITALISATIONIn the 2012 report "Citystates," authored by SustainAbility, one message resonated: "Business should view cities as a crucial frame through which to understand and pursue sustainability." Cities are increasingly the place to leverage gains in energy efficiencies, scale sustainability goals and develop more informed, revitalised communities. We'll see open data and converging technologies as additional enablers for municipal governments to work with businesses and citizens to develop "cities 2.0."

Phase of Innovation Scale of Adoption

BUSINESS MODEL INNOVATION

Source: Green game-changers - Insights for mainstreaming business innovation,a report produced by WWF-U.K. and researched by Verdantix, 2012.

Core business

Business unit

Scalable solution

R&D/conceptdevelopment Pilot project Launch Growth/

profitability

Erik De BaedtsPresidentMunicipal Waste Europe

50

Resourse efficiency innovation in the public sector

In the four years of its young life, Municipal Waste Europe has grown from defending its members' rights to proactively proposing, discussing and developing innovative ways of communicating with municipalities, struggling with the practical aspects of implementing the European Union legislation on waste management. Notably, Southern and Eastern Europe are municipalities which have not yet been able to move away from land filling into resource recovery, as it has been achieved in other parts of Europe.

Globally, 90% of waste is still land filled. Lessons from the results achieved in recovering materials and energy from waste in some European countries need to be shared with those countries still seeking solutions. Such experience transformed into practicable solutions can be highly effective in achieving dramatic change within the 90%.

The European environmental policy on waste management to date has focused on treating waste in an environmentally sound way. In some sectors of the economy and with some materials, the resulting availability of secondary raw materials has met with demand and created the beginnings of a European recycling market. This is not the case with all materials however. The global economic crisis, has created an even greater opportunity to look at the waste we generate in Europe as a local source of raw materials and energy: in other words, as a resource. This provides an opportunity to innovate in several areas.

As a communicator and networker, Municipal Waste Europe supports innovation in the policy maker's approach to implementation. The European Union's policy instruments on waste management are well developed, but for a nation struggling with the practical aspects of implementation, whether these are financial, knowledge-based or both, the policy alone is insufficient a motivator to be effective.

Through innovation, Municipal Waste Europe is helping to develop an expression of the role of municipalities as a bridge between their citizens, the resources they hold and the industry's demand for raw materials. It is the creation of a bridge between municipalities which have solved the issue of recovery of resources from the waste stream and those which wish to solve it. Another form of Twinning. From the public perspective, with a view to resource efficiency, municipalities can assist in delivering the demand for sustainable raw materials and close the value chain, thereby playing a crucial role in the creation of a circular economy.

Producer=

demander of raw materials

MUNICIPAL WASTE EUROPE

Citizens/Consumers

=Holders of raw

materials

Municipalitieswith a Waste management

system


Municipalitiesin need ofa Waste

managementsystem


These innovative ideas are taking the form of practical measures to actively broker knowledge in a targeted fashion and with the aim of ensuring continuity. This can be achieved by providing mentors who will be present throughout the implementation phase, until a waste management system and pre-agreed recycling targets have been designed, communicated, implemented, and achieved.

In this way, we hope to create an inter-municipality support structure, which will result in the closing of the materials loops and in turn support the sustainable development of the European economy, returning stability to the region with the accompanying creation of jobs. To achieve this we need to create and grow the market for recyclables and improve their quality so that recycled materials are attractive to the European production facility, which has high standards and high costs.

In a global market in which the availability and cost of raw materials is becoming an increasing strain on production, European producers can benefit from a local source of raw materials. This has already been proven in several EU countries, such as Belgium, the Netherlands, the United Kingdom, and Germany, where companies have been able to expand their businesses and recruit more employees as a result of locally recovered material resources.

In addition to its own initiative, Municipal Waste Europe is working with the European Institutions, raw materials suppliers and other stakeholders within the European Innovation Partnership on Raw Materials and in the development of a Strategic Implementation Plan in this field. Many of the results of this Partnership will be fed into the revision of the European Waste Directives which is scheduled to take place in 2014.

Further innovation which is needed and with which our members are involved at the level of policy and debate, is

52

in eco-design, or design for prevention. The eco-design of new electrical and electronic equipment with a view to their material components and not only to their energy consumption during the use phase is essential. Currently, far fewer of these appliances are recycled than would be possible if it were easier to dismantle them as well as to extract the rare earth elements from these end-of-life products. These rare earth elements are crucial to the functioning of electrical and electronic products and are needed in very small quantities for each individual product. They are currently not mined in Europe so the most direct access to them is from end-of-life products. The key role of municipalities in this is the recovery of the end-of-life products from consumers and the follow-up of their treatment to ensure all parts of the discarded product are recovered or treated in an environmentally sound way.

Municipalities, with their public responsibility to provide the service of general interest that is the management of waste from their populations, are the bridge, or enabler, between the citizen and the market for raw materials. Through their material recovery systems, Municipalities provide positions of employment for skilled and unskilled labour via the creation of jobs to sort, dismantle, bundle; as well as challenging positions for sustainability professionals.

Municipalities must play a crucial as well as innovative role in the achievement of sustainable development, addressing all three pillars of sustainable development: environmental, social and economic.


ΒΙΟ

Erik De Baedts was elected President of Municipal Waste Europe in its foundation year, 2009, and is the Managing Director of the association's Dutch

member association NVRD (the Royal Dutch Association for waste management and cleaning), a position he has held since 2008. Erik began his career in

1995 with Ernst & Young, where as a young consultant he advised sectors on issues of association management, public affairs and sustainability in their

industries. From there, he joined the Ministry of Economic Affairs in 2002, where he was a project leader in the liberalisation of the Dutch energy market.

Erik was also a Board Member of the International Solid Waste Association (ISWA), from 2009 to 2012, during which time he was actively involved in global

environmental summits and was instrumental in achieving recognition from the United Nations for the role of waste in climate change. Recognition that,

not only does waste have a significant impact on climate change, but when addressed as a resource and managed, waste can be a remarkable 20% of the

solution through avoided process emissions associated to raw material recovery.


Municipal Waste Europe is a non-profit association which represents European municipalities and their waste management companies, in their

responsibility to manage municipal waste. The members of Municipal Waste Europe represent 13 Member States of the European Union, through national

public waste associations, which serve over 60% and up to 100% of their national population.

One of the key issues for the European municipalities is the promotion of the responsibility of local and regional authorities for waste management as a

service of general interest. Throughout Europe, municipalities are responsible for the recovery of material resources from European households. The

members of Municipal Waste Europe therefore play a pivotal role in driving Europe to becoming more resource-efficient. In effect, the members of

Municipal Waste Europe are the bridge between the actors in resource efficiency and the citizen.

www.municipalwasteeurope.eu

Linda RottenbergCEO Endeavor

54

Why growth matters:How scaling translates to social impact

When people hear the word "innovation," they often think of revolutionary companies like Facebook or Skype, which have changed the way we interact with each other. Or electric car manufacturer, Tesla Motors, which may one day sharply reduce our reliance on gas. But most companies Ð even those that are hailed as great innovators Ð make innovations incrementally. I call these "minnovations."

Fifteen years ago, I founded Endeavor, a non-profit that mentors entrepreneurs throughout the world. Since then, we have had over 30,000 entrepreneurs worldwide apply to become part of the Endeavor community, but we have accepted only 784. These entrepreneurs receive highly personalised attention as well as access to mentors and to a network of business leaders who can help accelerate their growth.

When our judges select entrepreneurs, they do not look for the entrepreneur with the most innovative idea. Instead, they examine more closely how well they think the founding team works together. Do they have complimentary skills, or are they both business people who struggle to find engineers?

How successful has the team been so far? Endeavor looks for companies that have already gained traction, but are at an inflection point where their next steps may determine whether or not they scale.

How committed are the founders to their business? Sometimes

I say: "Will the founder fire his mother-in-law?" Or his sibling. Or her spouse. And we also look to see if the founding team is flexible enough to accept advice from mentors who we believe can be extremely helpful to them.

So, in order to be a successful entrepreneur, you do not have to be the most innovative. Perhaps you have to be the most "minnovative"! By that, I mean the most effective at producing or providing your product or service.

For example, among our most successful Endeavor entrepreneurs are four Argentineans who created an IT outsourcing company called Globant. There isn't much that is glaringly innovative about Globant, except that they are based in Argentina, rather than India where a lot of IT outsourcing has traditionally gone. But they are excellent at what they do. Their customers Ð which include Google, Coca-Cola and American Express Ð are happy, and their net revenue for 2012 was USD 129 million. The company's revenue in 2005 was USD 6.5 million Ð talk about growth! They also employ 3,100 people.

Globant might not sound like an innovative, "big idea" company to many people, but a company that employs 3,100 people with above-average salaries Ð that's a big idea to me!

I also believe that there is a big misconception about innovators /entrepreneurs and their relationship with risk. A common notion about entrepreneurs is that they are big risk-takers Ð


ΒΙΟ

Named one of "America's Best Leaders" by U.S. News & World Report, one

of 100 "Innovators for the 21st century" by TIME, and listed on the "Impact 30"

by Forbes, Linda Rottenberg is considered among the world's most dynamic

experts on entrepreneurship, "intrapreneurship", business opportunities in

emerging markets, and innovative leadership for the new economy.

As CEO and Co-founder of Endeavor, Linda Rottenberg pioneered the field of

High-Impact Entrepreneurship, the global phenomenon of using high-growth

business to transform economies. In 2012, Rottenberg launched Endeavor

Catalyst to co-invest in Endeavor Entrepreneurs raising equity capital. A

graduate of Harvard College and Yale Law School, Rottenberg is the subject

of a Stanford and two Harvard Business School case studies. Dubbed the

world's "Mentor Capitalist" by Tom Friedman and "Ms. Davos" by Business

Insider, Rottenberg is sought out for her ability to understand the world's

hottest growth markets, entrepreneurship, and new trends in leadership.

ENDEAVOR

Established in 1997, Endeavor is the global nonprofit that pioneered the

concept of High-Impact Entrepreneurship in emerging and growth markets.

Headquartered in New York and Silicon Valley with 15 affiliate offices

throughout Latin America, Africa, Middle East, Europe, and Southeast

Asia, Endeavor has supported over 700 entrepreneurs to generate more

than 200,000 jobs and USD 5 billion in annual revenue. Practicing a tested

"mentor capitalist"model, Endeavor affiliates help entrepreneurs overcome

barriers to growth by providing the key ingredients to success: mentorship;

networks; strategic advice; talent; skills; access to smart capital; and

inspiration. Guided by Endeavor, these entrepreneurs generate sustainable

economic growth and jobs, become role models, and help nurture a culture

of entrepreneurship which spurs investment and encourages people to

innovate and think big.

www.endeavor.org

the kind of people who parachute out of planes and snowboard straight down black diamonds. But I don't believe this idea is accurate. While a small number of entrepreneurs may act recklessly, the majority do not.

An entrepreneur friend of mine once told me: "Entrepreneurs do not like to take risks. I hate risks and I am always trying to avoid and minimise them. An entrepreneur should never be a daredevil who puts it all on the line."

Endeavor's research arm, Endeavor Insight, conducted research that validates this. 95% of all Endeavor entrepreneurs did not risk their ability to provide food and shelter for themselves or their families when starting their business. And 80% had enough savings or others resources set aside to cover their basic expenses for at least one year.

This does not mean that our entrepreneurs are rich. Most of them live on very tight budgets while they pursue their dreams. But this does speak to the fact that the majority of them do not risk it all. They are responsible.

On a separate note, as the CEO of a non-profit, I often get asked questions about social entrepreneurship. For instance, "Do you look to support companies that focus on social impact?" While making a positive social impact is important to me Ð and many Endeavor entrepreneurs have a very strong social mission Ð our Endeavor judges select companies based on

which ones they think will have the greatest potential to grow.

I believe that job growth, by itself, creates a positive social impact. Furthermore, Endeavor Insight researchers conducted a study where they compared companies that put a greater emphasis on its social mission versus those that put a greater emphasis on making money. Ironically, in almost all cases, the companies that made financial gain their priority, had a greater social impact. Those companies that put social issues first in their decision-making actually had a smaller social impact on the communities they serve.

If this has not come across already, we at Endeavor are big believers in the importance of growth. We also believe that if a company does grow, it is important (and socially responsible!) for those successful entrepreneurs to become mentors to other entrepreneurs.

When entrepreneurs mentor one another, and ideally invest in each other's companies as well, the result is the creation of a vibrant entrepreneurial ecosystem. And I believe that developing entrepreneurial ecosystems and networks is the best way to build economies, or to revive ailing ones.

Litsa PanayotopoulosChair of the Innovation, Education, EntrepreneurshipCommittee, Treasurer of the Executive CommitteeAmerican-Hellenic Chamber of Commerce

56

Large scale innovation now: How we can stop the present recession and shape our future

Today masses of people, numerous organisations and countries are struggling because of the financial crisis and the deep recession. Our Leadership is coping with the situation taking painful cost cutting decisions that have increased the unemployment rate and have pushed many organisations to death spirals.

The usual explanation is that this happens by greed and leaders' inability and errors.

The real explanation is that our operation systems at all levels have failed, because they could not cope and adapt to a world that constantly changes.

Our systems are made to work in static environments and, therefore, they do not have changing or adaptive abilities to evolve in this dynamic world.

The worst is that we have developed a whole non-dynamic infrastructure that includes non-evolving education systems, inactive leaders and experts, non-evolving financial systems and so on, all highly specialised with very limited vision. In this way, our non-evolving mindset cannot ÒseeÓ that present problems can be solved, far more easily and faster, if they are viewed from other perspectives (the diversity principle).

A whole new infrastructure can be developed to solve all these problems better, faster and easier, thanks to already

existing innovation products and technology that can handle dynamic situations and uncertainty. However, this is very difficult to be used with the present non-evolving infrastructure and mindset.

The development of such a new infrastructure is not difficult or painful, since this will create far better opportunities for individuals and organisations to enhance performance in every situation by inducing sustainability and confidence.

Present leadership and expertise will not risk such a top-down approach. It will take tenths of years for this existing innovation to be used massively with existing structures usually because innovation becomes commodity.

So, today, in order to develop a massive used new solution to our present problems we need to approach it with a compelling paradigm shift, built fast as a small low-cost, no-risk project, but with the ability to spread and scale fast massively to larger areas and people. This bottom-up approach can be implemented and bring about changes quickly.

We can build the paradigm, i.e. the new infrastructure easily, using Òfluid intelligenceÓ that is free to use by anybody, anywhere.

Fluid intelligence is based on three concepts:1. The concept of learning,2. The concept of structure, and


ΒΙΟ

Today Litsa Panayotopoulos serves as:

– Chair of the Innovation, Education, Entrepreneurship Committee of the American-Hellenic Chamber of Commerce, and Treasurer of the Executive Committee

– Co-founder of E.VI.A. High Performance Systems for targeted controlled organisational performance

– General Secretary of SEN/JA (Young Entrepreneurship Association/Junior Achievement)

– Partner, Boston Hamilton HR Executive Services, Greece, S.E. Europe, M.E., Africa

– Member of the Advisory Board of PJ Tech Fund (Piraeus Bank)

She has built her career and reputation in large and complex international projects in the U.S.A., Europe, the Middle East and Africa. In Greece, she

developed and ran Geranos S.A., a subsidiary of the Commercial Bank of Greece; she established, ran and developed Oracle Greece S.A. where she worked

as President and Managing Director. She expanded Oracle in S.E. Europe and Cyprus by establishing and running 13 subsidiaries. Her next assignment was

the establishment and running of the OTE Academy which shapes the educational activities of OTE into an advanced educational center for building world-

class skills. This also had as a result the cooperation of the World Bank in Educational Projects in multiple areas for all the Sub-Saharan African Countries

in English and French, and its future expansion in the former Soviet Union countries.

This article is inspired and based on concepts developed in E.VI.A (Evolution, Viability, and Adaptability) using evolution design.

INNOVATION EDUCATION AND ENTREPRENEURSHIP COMMITTEE

AMERICAN-HELLENIC CHAMBER OF COMMERCE

The mission of the Innovation Education and Entrepreneurship Committee is to convince business executives and policy makers that firms, and the country

as a whole, cannot stay competitive without well-trained, properly informed, and adequately motivated employees, tasks that can be only achieved through

effective lifelong learning. The mission of the Committee is also to convince companies to embrace high value added products and services that require

continuous innovation, cultivating creativity and shifting the outlook of employees.

www.amcham.gr

3. The concept of speed.

In this way, we can use knowledge and innovation from many areas very fast, directly everywhere, bypassing present experience, academia, and educational systems.

The use of a new infrastructure can continuously easily produce the needed skills to ensure and control performance in any emerging situation.

Knowledge and innovation can be immediately absorbed and transferred from areas as the Military, IT, Telecoms and Manufacturing. This can provide state of the art technology and cutting edge methods that can be transferred for use easily and fast to anybody, anywhere.

A new type of Òhigh performanceÓ individual and organisational will emerge out of this:

– An individual that can continuously evolve horizontally, in many multi-skilled roles, in fast performing sistuations, ensuring lifelong employment and income, in any emerging situation.

– An organisation that can ensure sustainable performance and viability in an emergent dynamic world.

Marc AmblardCEOEFQM

58

Innovation:How it improves performanceand its role in sustainability

The world does not stand still. The pace of change is accelerating. If organisations are to remain competitive, they need to keep pace with these changes. If they want to excel, they need to be the ones who are driving this change. They need to innovate, not just in terms of their products, but also in the way they do business.

Regardless of size or sector, all organisations recognise the need to be innovative; to evolve. However, if you ask them what they mean by "innovation", you get many different answers. Different people have radically different ideas of what innovation is. This difference of opinions can sometimes be explained by looking at the sector they work in, or their role within their organisation. Discussions on what you need to do to "be innovative" tend to generate an even greater debate. So, gaining a common view on what we mean by innovation is difficult. However, there is a general consensus that we all should be doing it.

There are similar debates regarding the definition of sustainability. Over the last decade, the focus has shifted from solely environmental issues to a broader view, often encapsulated in the phrase "People, Planet, Profit." If we consider sustainability to relate to securing the ongoing success of an organisation, then the ability to evolve and innovate is clearly a key enabler.

Clarity and FocusThe actual definitions an organisation chooses to adopt for either innovation or sustainability could be viewed as an academic discussion. On a practical level, how these issues are incorporated into their strategy and how effectively these strategies are implemented are more important to delivering results for their stakeholders. Leaders need to be clear about what these terms mean to them and what they expect their organisation to do. This needs to be clearly communicated and the process and resources required to turn these plans into reality need to be in place.

During the latest review of the EFQM Excellence Model, completed in 2012, the need for organisations to focus their creative energies on generating increased value for their stakeholders was encapsulated in the fundamental concept of "Harnessing Creativity and Innovation". Hundreds of experts from different disciplines and sectors contributed their insights, observations and learning to this review.


ΒΙΟ

Marc Amblard started his career with French carmaker Peugeot, holding

positions in engineering in France and in the U.S. He joined the French

automotive supplier Valeo in 1994 to lead sales and do programme

management for the BMW and Mercedes activities in the U.S. He later took

the lead in the Climate Control Branch's global business development.

He joined Renault in 2006, where he led the global product strategy and

planning activities for the light commercial vehicles business. Marc joined

Alstom Transport in 2007, where he was Vice President for Business

Strategy. Marc became the CEO of EFQM in September 2012. Marc holds

a Master's in Mechanical Engineering from ƒcole Nationale Sup�rieure

d'Arts et M�tiers (France), as well as an MBA from the University of

Michigan Ross Business School U.S.A.).

EFQM

EFQM is committed to helping organisations drive improvement through

the use of the EFQM Excellence Model, a comprehensive management

framework used by over 30,000 organisations in Europe. For the last 20

years, we have managed the development of this Model, incorporating the

experiences and learning from these organisations to ensure it reflects the

world we live and work in. EFQM, a not-for-profit membership Foundation,

nurtures a network of world-class organisations and their leaders who

share our passion for business excellence. Sharing our member's

enthusiasm, their motivation and the results they achieve; that is what we

work for.

www.efqm.org

Harnessing Creativity and InnovationBased on the learning we have gathered from this group and the thousands of organisations that have been assessed, we find that excellent organisations:

– Establish and manage learning and collaborative networks to identify opportunities for creativity, innovation and improvement.

– Recognise that innovation can apply to products, processes, marketing, organisational structures and business models.

– Set clear goals and objectives for innovation, based on an understanding of the market and opportunities, supported by appropriate policies and resources.

– Use a structured approach for generating and prioritising creative ideas.

– Test and refine the most promising ideas, allocating resources to realise them within appropriate timescales.

– Transform ideas into reality within timescales that maximise the advantages that can be gained.

60

Source: Innovation Policy in 2012 - Challenges, trends and responses, produced under the Specific Contract for the Integration of the INNO Policy TrendChart with ERAWATCH, December 2012.

ACTION FOR INNOVATION

FACTS & STATS

3%Αpplied industrial research

Development/prototype creation

Diffusion of technologies in enterprises

Pre-competitive research

Commercialisation of innovation (incl IPR)

Co-operation promotion and clustering

Promotion of entrepreneurship/start up (incl incubators)

1.5%

12%

10.5%

11.5%

9%

7.5%

7.4%

6.5%

0.8%

1%

0.7%

MEASURES IN FORCE

NEW MEASURES 2011-2012

INNOVATION LEADERS

Source: Innovation Union Scoreboard 2013, the report was prepared by: Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT), with inputs from DG JRC G3 - Econometrics and applied statistics, European Commission, coordinated and guided by Bonifacio Garcia Porras, Head of Unit, and Tomasz Jerzyniak, Unit B3 Ð Innovation Policy for Growth, Directorate B Ð Sustainable Growth and EU 2020, Directorate-General for Enterprise and Industry, European Commission, 2013.

Note: Average performance is measured using a composite indicator building on data for 24 indicators going from a lowest possible performance of 0 to a maximum possible performance of 1. Average performance reflects performance in 2010/2011 due to a lag in data availability. The performance of Innovation leaders is 20% or more above that of the EU27; of Innovation followers it is less than 20% above but more than 10% below that of the EU27; of Moderate innovators it is less than 10% below but more than 50% below that of the EU27; and for Modest innovators it is below 50% that of the EU27.

MODEST INNOVATORS

MODERATE INNOVATORS

INNOVATION FOLLOWERS

INNOVATION LEADERS

0.700

0.800

0.600

0.500

0.400

0.300

0.200

0.100

0.000BG RO LV PL LT MT HU SK EL CZ PT ES IT EE CY SI EU FR IE AT UK BE LU NL FI DK DE SE

The best way to predict the future is to invent it.

ΑLAN CURTIS KAYAmerican computer scientist, known for his early pioneeringwork on object-oriented programming and windowinggraphical user interface design (1940 - )

Innovation is the central issue in economic prosperity.

MICHAEL EUGENE PORTERBishop William Lawrence University Professor at Harvard Business Schooland a leading authority on company strategy and the competitivenessof nations and regions (1947 - )

An important scientific innovation rarely makes its way by gradually winning over and converting its opponents: What does happen is that the opponents gradually die out.

MAX KARL ERNST LUDWIG PLANCKGerman theoretical physicist, originator of the quantum theoryand Nobel Prize laureate in Physics (1858 - 1947)

Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may make you feel like you're flying high at first, but it won't take long before you feel the impact.

BARACK HUSSEIN OBAMA II44th and current President of the United States of America,the first African American to hold the office (1961 - )

66

Financial innovation andsustainable development

The financial crisis has created a new realisation of our financial world, leading to the destruction of institutionalised practices and depicting an emerging motivation for change. These institutionalised practices have a direct impact on the society, the environment and the economic development, the three pillars of sustainable development (Kates et al., 2005). This impact is interpreted in the following question: "how can we create a financial system that sustains the economy, the people and the planet itself?" The link between the financial sector and sustainable development is financial innovation. As a concept, financial innovation "embraces changes in the offerings of banks, insurance companies, investment funds and other financial service firms, as well as modifications to internal structures and processes, managerial practices, new ways of interacting with customers and distribution channels" (Mention and Torkkeli, 2012). In other words, it encompasses the making and promotion of financial products and services, the development of new processes, as well as the interaction with customers and the development of new structures for the financial institutions (Mention, 2011). Financial innovation is perceived in the context of strategic approach and behaviour leading to value innovation or "conventional logic" (Costanzo et al., 2003). Studies on the service context by Gadrey et al. (1995), by Frame and White (2004) and by Avlonitis et al. (2001), identify types of financial service innovations which "are associated with different development processes in terms of activities, formality and cross-functional involvement as well as performance

outcomes" (Avlonitis et al., 2001). Moreover, the emergence of the role of the user who is willing to contribute both to the development of a service, but also to the technology per se behind the implementation of collaborative services since "users often develop and self-provide important financial services before banks or other types of financial service producers begin to offer them" (Oliveira and von Hippel, 2011). Financial innovation is about understanding the customer, appreciating the information from the partner and differentiating from the competition. Financial innovation is strongly focused on the how, on the process of perceiving the specific needs of every customer, so as to make personalised offerings, so far as the regulation and other constraints permit. A stronger process innovation development leads to understandable tools, content and information.Financial innovation shows the ability to evolve in order to be ready for the future. Evolving under an organisational and competences-oriented perspective based on customer and partner needs easies the process of creating a competitive advantage by differentiation. This requires a clear strategy and the ability to make choices. Innovation means being able to decide, to admit to being wrong, to be able to realise quickly that if something is not working, it is the time to stop. Innovation means to be able to make hard and difficult choices and the ability to say no. In short, innovation is, first and foremost, a matter of prioritisation and choices. Financial innovation can contribute to sustainable development in many interlinked ways depicted on the following figure.

Dr. Anne-Laure MentionHead of Research UnitPublic Research CentreHenri Tudor

Dimitrios G. SalampasisDoctoral ResearcherPublic Research CentreHenri Tudor

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ EDUCATION & RESEARCH

S U S T A I N A B L E D E V E L O P M E N T

F I N A N C I A L I N N O V A T I O N

S O C I E T Y H U M A N I T YE N V I R O N M E N T E CO N O M Y

GREEN BUSINESS MODELS

1. Green processes2. Green management principles

SOCIALLY RESPONSIBLE INVESTMENTS

AND JOBS CREATION

ENTREPRENEURIAL AND INTRAPRENEURIAL

ATTITUDE

GREEN FINANCIAL MODELS

1. Green financial market2. Green financial products

EMPATHY

FINANCIAL EDUCATION

SOLID REGULATORY FRAMEWORK, PRACTICALITY,

SIMPLICITY, TRANSPARENCY AND TRUST

68

We strongly believe that financial innovation needs to become more social and to further focus on people, economy and environment. Financial innovation needs to make the best of limited resources and contribute to the world and social progress. It is simply a matter of incentives. The current debt and subprime crises, which have been developed into a serious societal crisis leading to the deterioration of human values, have shown an imperative need for collaboration among leaders of the public and private sectors so as to develop together a new global financial system based upon commonly interrelated regulatory policies, efficient technologies, trust, ethics, transparency and collaboration for value co-creation and competitiveness. The pillars under which financial innovation should be developed are related to the real and not virtual demands of the economy and finance, in line to the development of global, national and local economy, in accordance to the consumer/user's financial maturity and needs and under effective and efficient regulatory framework and supervision. Financial education, environmental awareness and societal changes are the key for a more sustainably developed future and the financial sector by embracing financial innovation should be the pioneer to this social change.

List of references

Avlonitis, G. J., Papastathopoulou, P. G., and Gounaris, S. P., 2001. An empirically-based typology of product innovativeness for new financial services: Success and failure scenarios. Journal of Product Innovation Management, 18(5), 324-342. Blackwell Publishing. Costanzo, L. A., Keasey, K., and Short, H., 2003. A strategic approach to the study of innovation in the financial services industry: The case of telephone banking. Journal of Marketing Management, 19(3/4), 259-281. Routledge. Frame, W. S., and White, L. J., 2004, Empirical studies of financial innovation: Lots of talk, little action? Journal of Economic Literature, 42(1), 116-144. American Economic Association. Gadrey, Faïz Gallouj, O. W., 1995. New modes of innovation: How services benefit industry. International Journal of Service Industry Management, 6(3), 4-16. Kates, R. W., Parris, T. M., & Leiserowitz, A. A., (2005). What is sustainable development? (cover story). Environment, 47(3), 8Ð21.Mention, A.-L. 2011. Intellectual capital reporting: an exploratory study on the practices in the banking industry, Journal of Management Control, Vol. 22, No.3, pp. 279-309.Mention, A.-L., 2011. Innovation for financial services. Innovation Management. Retrieved June 10, 2012 from www.innovationmanagement.se/2011/09/13/innovation-for-financial-services.Mention, A.-L., Torkkeli, M., 2012. Drivers, processes and consequences of financial innovation: a research agenda, International Journal of Entrepreneurship and Innovation Management, 16 (1/2), 2012.Oliveira, P., and von Hippel, E., 2011. Users as service innovators: The case of banking services. Research Policy, 40(6), 806-818.


ΒΙΟ

Dr. Anne-Laure Mention is leading a research unit focusing on innovation economics and management within the Public Research Centre Henri Tudor,

Luxembourg. She is actively involved in research projects, mainly focusing on innovation and performance measurement and management in the

financial and business-to-business services industries. Her research interests mainly concentrate on open and collaborative innovation, intellectual capital

measurement and management, innovation and technology management. She has been a Visiting Researcher at McGill University, Canada, and Ferrara

University, Italy. She received an IBM Faculty Award for the project entitled "Towards accrued transparency of operations in the fund industry" in 2011

focusing on organisational innovation. She is also a founding member of WICI, the Deputy Head of the ISPIM Advisory Board, and a member of several

scientific committees and editorial boards.

Dimitrios Salampasis holds a BA on Public and Business Administration and two Masters in European Studies and Educational Psychology. He is a

recent graduate of the Master in Entrepreneurship and Innovation by the University of Luxembourg with First Class Honors. Dimitrios is working as a

Ph.D. student at the Public Research Centre Henri Tudor, conducting research in the area of business innovation management and more specifically

working on publications and studies in the field of open innovation. His research interests are mainly focused on innovation management and strategy,

open innovation and organisational behavior. Dimitrios has extensive professional experience in the public and private sector in Greece and as a trainee

in the European Parliament in Strasbourg. He is an enthusiastic young worker with extensive international NGO experience in the field of education and

training, having participated in numerous programmes around the world as a facilitator, trainer and rapporteur. Dimitrios received the ISPIM Best Paper

Award in September 2012 in Luxembourg.

THE PUBLIC RESEARCH CENTRE HENRI TUDOR

The Public Research Centre Henri Tudor is based in Luxembourg and it serves the purpose of establishing a link between research and society

as a whole and ensuring that transfers take place between these two spheres. The centre's single mission is to sustainably reinforce the economic

competitiveness of companies and the fabric of society. Being an autonomous enterprise, it serves as a pool of knowledge and skills utilised for the benefit

of the market and society in Luxembourg itself, but also in the Greater Region of Luxembourg and in Europe. Innovation is the centre's principle ambition.

www.tudor.lu

Dr. Annie R. PearceAssociate Professor and Graduate Chairof Building ConstructionMyers-Lawson School of Constructionat Virginia Tech

70

Innovations in sustainablecapital projects

As impacts of humans on the environment at both local and global scales become increasingly apparent, sustainability has emerged as a goal toward which all human actions should aspire. Sustainability implies the ability of a system to maintain itself or be maintained over time without threatening the stability of other systems upon which it depends. In response to growing demand for scarce resources, capital projects are evolving toward sustainability to function more efficiently and effectively to meet stakeholder needs and aspirations. Some are even becoming net resource generators, all while reducing negative impacts that could affect the ability of others, present and future, to meet their own needs. The sustainable buildings of the future will renew and restore resource bases and the ecosystems on which they depend, all while meeting the needs of their stakeholders over their life cycle.

To be truly sustainable, capital projects require innovation in the way we plan, design, construct, operate, and maintain them as complex systems. An innovation is something either new or perceived as new by its adopter. Capital projects aspiring toward sustainability are characterised by multiple unique qualities that make them innovative: tightly coupled designs, multifunction materials and systems, unusual products with limited sources, incentives and resources not available to other projects, requirements for additional analysis and documentation, and greater involvement of later stakeholders in earlier project phases. However, while

these innovations contribute to the improved performance of a capital project, they can also make it more difficult to implement for constructors. Often, the benefits of sustainable construction accrue to other stakeholders or even non-stakeholders, particularly the owners and occupants of the facility and future generations who may benefit from reduced environmental impacts and resource efficiencies. These benefits may also be difficult for constructors to see since they are typically spatially and temporally distant from decisions made during construction.

Innovation is not automatic; it requires a conscious decision to try something new and take risks in hopes of future rewards. Thoughtful, coordinated actions are necessary to overcome barriers to innovation and encourage progress toward the goal of sustainability. A whole systems perspective means not just considering all the components of a building in concert with one another, but also all the stakeholders involved in delivering the project and the context in which the building and its supply chain will exist. Decisions about building systems must also be made in concert with one another rather than independently, and interrelationships between systems must be exploited to optimise system performance and maximise cost savings. For instance, integrated design means that larger areas of high performance windows might be included as part of the building envelope design to provide for day lighting (raising total project cost), but the benefits of better envelope performance and reduced heat load from


ΒΙΟ

Dr. Annie Pearce is an Associate Professor and Graduate Chair of Building Construction in the Myers-Lawson School of Construction at Virginia

Tech, specialising in sustainable facilities and infrastructure systems. Throughout her career, Annie has worked with practitioners in both public and

private sectors to implement sustainability as part of building planning, design, construction, and operations. As a LEED Accredited Professional,

Annie brings the latest in green building methods, technologies, and best practices to the classroom. Her specific areas of interest include metrics

of sustainability for built facilities, sustainability as a construction innovation, green building materials and systems, cost modeling to support

sustainability implementation, and in situ performance of sustainable facility technologies. Along with others at Virginia Tech, Annie is pioneering a

new paradigm of construction research, education, and outreach that combines and synergises inputs from stakeholders in the construction industry

with new technologies and research efforts to promote sustainable innovations.

VIRGINIA TECH

The Myers-Lawson School of Construction at Virginia Tech is a joint venture between the College of Engineering and the College of Architecture

and Urban Studies that serves as a constant beacon of innovation and excellence in construction education, research, and outreach. The School

embraces all the elements of the built environment that must come together in a unified and integrated way to provide the best value for owners and

society. Faculty and students strive to lead the change toward facilities that do not result in a net consumption, but instead offer a net contribution to

our environment and society.

www.mlsoc.vt.edu

light fixtures are recouped by reducing the capacity of the building cooling system (lowering total project cost).

A smaller heating, ventilation, and cooling system might mean smaller pumps, fans, and motors, reduced duct sizes, smaller plenums, reduced floor-to-floor height, and reduced foundation sizes, also reducing the cost of the facility.

The net increase in the total first cost of a green project may be negligible if the benefits afforded by one system are captured in the design of complementary systems. More importantly, life cycle cost savings can be considerable with these more efficiently designed systems that are "right-sized" for the facility, allowing them to operate at maximum efficiency over their life cycle. Ultimately, achieving sustainability in capital projects will require thinking about buildings in new ways, with greater involvement of stakeholders and innovation in project design and delivery processes, materials, and systems. The benefits both to society and to a project's stakeholders make these efforts worthwhile. While sustainability objectives may sometimes seem to require a large initial investment, ultimately we cannot afford not to invest in the sustainability of our capital projects.

INNOVATION

Cortney McDermotVice President EMEASustainability Partners

72

Paving the way to values-driven innovation

Values-driven innovation represents a multi-billion dollar revenue opportunity. Your organisation can be among those applying this approach to capture market share and increase efficiency in your business. This article offers three easy action steps to set you on your way: Clarify, Carry Out, Collaborate.

WHAT IS VALUES-DRIVEN INNOVATION?

Values-Driven: When considering values in a business context, Porter & Kramer's shared value concept of "expanding the total pool of economic and social value"1 can be applied. This approach focuses on profits that create societal benefits.

1 Porter M. & Kramer M. 2011, 'Creating Shared Value', Harvard Business Review, January-February Edition, pp. 5 & 17.

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economic, environmental,& social PROBLEMS

economic, environmental,& social SOLUTIONS

DRIVE

Innovation is creating solutions that enhance your product offering or increase efficiency.

When considering innovation, the critical questions are:

Who are you serving?Why and how are you serving them? What economic and social imperatives does your organisation share with its key stakeholders?

Answer this and act upon it, and you will find profitable and innovative solutions.

Take Zipcar, for example, whose ingenious "Wheels When You Want Them" value proposition allows users to save money on what is traditionally a household's second largest personal expense, while reducing overcrowding and pollution in urban centers. Generating profit by meeting societal needs, Zipcar grew four-fold in its first five years, reaching USD 242 million in revenues in 20112.

Values-driven innovation is not limited to startups; it is also emerging in established business. Companies are finding that protecting and promoting shared environmental and social issues enhance profits across the board 3.


Company Initiative Bottom Line (in USD)

IBM Telecommuting 700 million

Marks & Spencer Plan A 296 million

Walmart Packaging reductions 200 million (initially)

Intel Energy savings 23 million (annually)

Johnson & Johnson Employee wellness programmes 250 million

General Electric Ecomagination Portfolio 105 billion

2 Zipcar Annual Report, 2011.3 Table citations, respectively: [IBM] Nidumolu, R., Prahalad, C.K. & Rangaswami, M.R. 2009, 'Why

sustainability is now the key driver of innovation', Harvard Business Review, September 2009, pp. 61 & 63.

[M&S] MIT Sloan Management Review and The Boston Consulting Group 2013, 'The Innovation Bottom Line', MIT Sloan Management Review Research Report, Winter 2013, p. 10.

[Wal-Mart] Porter M. & Kramer M. 2011, 'Creating Shared Value', Harvard Business Review, January-February Edition, p.9.

[Intel] MIT Sloan Management Review and The Boston Consulting Group 2013, 'The Innovation Bottom Line', MIT Sloan Management Review Research Report, Winter 2013, p.10.

[J&J] Porter M. & Kramer M. 2011, 'Creating Shared Value', Harvard Business Review, January-February Edition, p11.

[GE] GE Reports, 2012.

74

Start there. Decide where to act. And, more importantly, where not to. Stay relevant.

Action: Answer the questions above and ask colleagues to answer the same. Compare notes. The overlap is the sweet spot for innovation and a vision for your team.

2. Carry Out

Now, how to make that vision real? How do you move from the company you are today to the value innovator of the future?

This is the single greatest differentiating factor between a successful and an unsuccessful initiative.

Now that you have decided on the innovation sweet spot for your organisation, backcast from that vision into action. Imagine your organisation is already innovating from your values and you have reached your sustainable future state. You have arrived here in your sustainable future from there, the unsustainable past. How did you do it?

Action: Create a 12-month M.A.P. to chart your course from past to future. Download this template and place one goal in each month to make it digestible and realistic. At the end of the year you'll have taken twelve important steps on your journey.

UNSUSTAINABLEPAST

PAVING THE WAY: HOW TO CREATE VALUES-DRIVEN INNOVATION

1. Clarify

The first step is to identify shared values. From enhancing human health and well-being to protecting our natural environments, societal imperatives that lead to economic benefit abound.

To narrow in on where you can leverage shared values, ask:

1. What are my biggest impacts as a company?2. What are the unique skills we have as a company?3. What can my company affect?

Source: sustainABILITY simplicated.

WHAT did we do?HOW did we do?

VALUES - DRIVENFUTURE?


ΒΙΟ

Cortney McDermott, M.Sc., combines expertise and leadership in corporate

multi-brand communications, brand strategy, and sustainability. Cortney

McDermott, is co-founder and owner of sustainABILITY simplicated.

Cortney has served as an executive at VFC, Vice President at SP, chair

of multiple global sustainability organisations, and professor of graduate

studies in Sustainable Business.

Cortney has also founded sAs, to make sustainability accessible to all

through playful, practical, and profitable business and life advice. She

divides her time between advising, teaching, and writing. Cortney is a

graduate of the LSE, lives near Venice, Italy, and speaks three languages,

including French and Italian.

SUSTAINABILITY PARTNERS

Sustainability Partners are innovative strategic advisors to some of the

world's leading private and public enterprises, ranging from Nike and

Starbucks in the commercial sphere to the U.S. Military and NASA in

the public sector. As co-founders of The Natural Step in North America,

best-selling sustainability authors and co-creators of the first MBA in

Sustainable Business, Sustainability Partners is dedicated to Transforming

Business for a Sustainable Future.“

www.sustainabilitypartners.com

3. Collaborate Even with your vision and M.A.P. in hand, you'll need some help along the way. Viewing competitors as collaborators is one of the most effective ways to grow that innovation sweet spot.

Collaboration expands the talent pool and the scope of what you can affect.

Leading organisations are hip to this powerful tool, both inside and beyond their industry. From Wal-Mart with Patagonia 4

to Ford with Whirlpool 5 , collaboration is the new black; it's timeless and looks great on everyone.

Action: Open the door and extend an invitation - identify three potential collaborators in your industry and three outside your industry. Initiate contact with these collaborators by the end of this month (Yeap, whatever month this is when you read it and however soon the end of it is: get started!). Send them this article and invite them to exchange reactions to it over a coffee or call.

4 Choinard, Y & Stanley, The Responsible Company, Patagonia Books, Ventura, CA., V 2012, p. 11.

5 Ward, J. 2013, Ford, Whirlpool join growing list of cross-sector collaborations. Available at: www.greenbiz.com

Fabrizio SestiniTeam Leader CAPSDG Communications Networks, Content &Technology, European Commission

76

CAPS: Collective AwarenessPlatforms for Sustainability

The Internet is radically and relentlessly changing the way our society is organised. It is increasingly affecting every aspect of modern life: lifestyles and work styles, economic models, hierarchical and political structures, advertising, behaviours, and even psychological and affective patterns, especially for the younger generations, the "digital natives". Most of these changes were neither planned nor anticipated: only ten years ago, the biggest players on the digital arena, such as Facebook, Google or Amazon, were just small companies or had not been founded yet.

Even today, when we think about future plausible scenarios for the evolution of our digital society, the possible models oscillate, widely and wildly, between radically opposite directions. On the one hand, there is a very visible tendency to centralisation around a few "big brothers", interested in exploiting the Internet for commercial purposes, creating ever larger and global marketplaces, leveraging on a consumer-media broadband Internet and on controlled Internet spaces, where personal data is more and more exploited by big companies with little consideration for privacy, anonymity, or network neutrality. On the other hand, there are glimpses of new ways in which the Internet can empower people, allowing them to interconnect directly at unprecedented scale, sharing knowledge beyond boundaries and economic restrictions, self-organising in new forms of democratic and political control, which can ultimately drive new economic and sustainability models based on distributed approaches.

In order to explore this latter scenario we have recently launched a research initiative called "Collective Awareness Platforms for Sustainability and Social Innovation", as part of the 7th Research programme in Information and Communication Technologies funded by the European Commission. The underlying concept is that sustainability, at all levels (economic, environmental, social) requires better and more effective collaboration between people, rather than increased competition (which is the objective of traditional "growth policies").

Indeed, the Internet offers unprecedented opportunities for people to connect and cooperate at planetary scale, beyond boundaries and barriers of any nature, be it race, language,

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COLLECTIVE AWARENESS:

user-gen, knowledgeP2P, wikileaks,

social nets, blogs e-democracy

BIG BROTHER:commercial services

entertainment e.g. IPTVDRM-heavy

SCENARIOS FOR INTERNET EVOLUTION


ΒΙΟ

Fabrizio Sestini is an engineer-turned-manager of social innovation activities

funded by DG CONNECT of the European Commission. His very mixed

background includes a Ph.D. in communications engineering, marketing of

data broadcasting services, research on mobile communication systems,

and a long experience as a scientific officer for the European Commission,

launching several research initiatives aimed at steering the development of

communication technologies for a more sustainable society.

DG COMMUNICATION NETWORKS, CONTENT & TECHNOLOGY1,

EUROPEAN COMMISSION

Fabrizio Sestini works for the European Commission Directorate General

for Communications Networks, Content & Technology (in short, DG

Connect), which is in charge of managing the Digital Agenda of the EU.

The main areas of activity of DG Connect are:

– Supporting the kind of high-quality research and innovation which

delivers imaginative, practical and value-enhancing results;

– Fostering creativity through a European data value-chain in which

anyone can share knowledge;

– Promoting greater use of, and public access to, digital goods and

digital services, including cloud computing, in order to boost the

European single market;

– Ensuring that those goods and services are more secure, that people

can trust the rapidly evolving technologies which surround them, and

that people have the right skills and confidence to use them as part

of everyday life; and

– Working with partners globally to support an open Internet.

http://ec.europa.eu/digital-agenda/en/collectiveawareness

culture or nations. The challenge is how to make sense of the wealth of data which is available to us (through newsfeeds, social networks, or even networks of sensors embedded in the environment) in order to create an extended awareness of the social world, both at individual and collective levels. Such a collective awareness has a tremendous potential to drive more sustainable spontaneous behaviours, more respectful of the environment and of other people's needs, more aware of the planetary limits to the exploitation of natural resources, more in line with a low-carbon economy, avoiding (or alleviating) the need for heavy regulations and impositions.

What is needed to implement this vision is not more advanced or sophisticated technology, but rather a better and more open integration of existing systems for exchanging knowledge and collaborating online. These solutions may rely, in the simplest cases, on existing open platforms for mobile devices applications, or be based on more sophisticated open source and open hardware developments, easily replicable and low-cost.

However, there are still many unresolved questions, such as:

– How to establish credible reputation mechanisms, to ensure that the knowledge generated though online systems is trusted and not biased by commercial or political interests?

– Which mechanisms, based on extended awareness and peer pressure, are most effective in driving more sustainable behaviors?

– How can information be best exchanged in unrestricted manners, though always available channels and easy-to-use interfaces?

– How to ensure inclusion of different categories of people, irrespective of wealth, technical literacy, culture and language?

– Which incentives can motivate people to effectively

contribute knowledge to collective intelligence systems?– How to manage in smart manners online communities,

in order to extract a "wisdom of the crowds", which appropriately takes into account the individual expertise and knowledgeability in specific fields?

– Which new collective models for value creation can emerge beyond monetisation?

– How to ensure the fundamental rights of the citizens in a hyper-connected society, for instance in terms of quality guarantees from collective systems?

– How to redesign the regulatory toolbox in order to enable the full potential of collaborative and collective innovation?

These questions are all of multidisciplinary nature, and addressing them effectively requires the concerted efforts of team of scientists, researchers and practitioners from different disciplines: technology as well as sociology, economics, policy, environmental sciences, art and culture. In order to produce results which are well grounded on actual sustainability challenges, the projects we are seeking must also include a motivated community of users, able to drive the development of these pilots exploring novel participatory approaches for coping with sustainability challenges. In general, we encourage participation from the largest part of society: not only academia and industries, which are the traditional "customers" of ICT research programmes, but also SMEs, NGOs, local administrations, hackers, students, and any other source of genuine, innovative and bottom-up approaches.

A few pilots addressing these questions in different areas have just been selected within the first call for proposals in this area, which had a budget of EUR 15 million. Their details are available on the Digital Agenda website, where the next calls in this area will be posted.

1 The opinions expressed in this paper are solely the author's and do not necessarily reflect the views of the European Union.

GLOBAL INNOVATION INDEX RANKINGS

FACTS & STATS

Country/Economy Score (0-100) Rank Income Rank Region Rank

Switzerland 68.2 1 HI 1 EUR 1

Sweden 64.8 2 HI 2 EUR 2

Singapore 63.5 3 HI 3 SEAO 1

Finland 61.8 4 HI 4 EUR 3

United Kingdom 61.2 5 HI 5 EUR 4

Netherlands 60.5 6 HI 6 EUR 5

Denmark 59.9 7 HI 7 EUR 6

Hong Kong (China) 58.7 8 HI 8 SEAO 2

Ireland 58.7 9 HI 9 EUR 7

U.S.A. 57.7 10 HI 10 NAC 1

Luxembourg 57.7 11 HI 11 EUR 8

Canada 56.9 12 HI 12 NAC 2

New Zealand 56.6 13 HI 13 SEAO 3

Norway 56.4 14 HI 14 EUR 9

Germany 56.2 15 HI 15 EUR 10

Malta 56.1 16 HI 16 EUR 11

Israel 56.0 17 HI 17 NAWA 1

Iceland 55.7 18 HI 18 EUR 12

Estonia 55.3 19 HI 19 EUR 13

Belgium 54.3 20 HI 20 EUR 14

Korea, Rep. 53.9 21 HI 21 SEAO 4

Austria 53.1 22 HI 22 EUR 15

Australia 51.9 23 HI 23 SEAO 5

France 51.8 24 HI 24 EUR 16

Japan 51.7 25 HI 25 SEAO 6

Slovenia 49.9 26 HI 26 EUR 17

Czech Republic 49.7 27 HI 27 EUR 18

Cyprus 47.9 28 HI 28 NAWA 2

Spain 47.2 29 HI 29 EUR 19

Latvia 47.0 30 UM 1 EUR 20

Hungary 46.5 31 HI 30 EUR 21

Malaysia 45.9 32 UM 2 SEAO 7

Qatar 45.5 33 HI 31 NAWA 3

China 45.4 34 UM 3 SEAO 8

Portugal 45.3 35 HI 32 EUR 22

Italy 44.5 36 HI 33 EUR 23


United Arab Emirates 44.4 37 HI 34 NAWA 4

Lithuania 44.0 38 UM 4 EUR 24

Chile 42.7 39 UM 5 LCN 1

Slovakia 41.4 40 HI 35 EUR 25

Bahrain 41.1 41 HI 36 NAWA 5

Croatia 40.7 42 HI 37 EUR 26

Bulgaria 40.7 43 UM 6 EUR 27

Poland 40.4 44 HI 38 EUR 28

Montenegro 40.1 45 UM 7 EUR 29

Serbia 40.0 46 UM 8 EUR 30

Oman 39.5 47 HI 39 NAWA 6

Saudi Arabia 39.3 48 HI 40 NAWA 7

Mauritius 39.2 49 UM 9 SSF 1

Moldova, Rep. 39.2 50 LM 1 EUR 31

Russian Federation 37.9 51 UM 10 EUR 32

Romania 37.8 52 UM 11 EUR 33

Brunei Darussalam 37.7 53 HI 41 SEAO 9

South Africa 37.4 54 UM 12 SSF 2

Kuwait 37.2 55 HI 42 NAWA 8

Jordan 37.1 56 UM 13 NAWA 9

Thailand 36.9 57 UM 14 SEAO 10

Brazil 36.6 58 UM 15 LCN 2

Tunisia 36.5 59 UM 16 NAWA 10

Costa Rica 36.3 60 UM 17 LCN 3

Lebanon 36.2 61 UM 18 NAWA 11

Macedonia, FYR 36.2 62 UM 19 EUR 34

Ukraine 36.1 63 LM 2 EUR 35

India 35.7 64 LM 3 CSA 1

Colombia 35.5 65 UM 20 LCN 4

Greece 35.3 66 HI 43 EUR 36

Uruguay 35.1 67 UM 21 LCN 5

Mongolia 35.0 68 LM 4 SEAO 11

Armenia 34.5 69 LM 5 NAWA 12

Argentina 34.4 70 UM 22 LCN 6

Georgia 34.3 71 LM 6 NAWA 13

Bosnia and Herzegovina 34.2 72 UM 23 EUR 37

Source: The Global Innovation Index 2012 - Stronger Innovation Linkages for Global Growth,

INSEAD and the World Intellectual Property Organisation (WIPO), 2012.


Namibia 34.1 73 UM 24 SSF 3

Turkey 34.1 74 UM 25 NAWA 14

Peru 34.1 75 UM 26 LCN 7

Viet Nam 33.9 76 LM 7 SEAO 12

Guyana 33.7 77 LM 8 LCN 8

Belarus 32.9 78 UM 27 EUR 38

Mexico 32.9 79 UM 28 LCN 9

Belize 32.5 80 LM 9 LCN 10

Trinidad and Tobago 32.5 81 HI 44 LCN 11

Swaziland 32.0 82 LM 10 SSF 4

Kazakhstan 31.9 83 UM 29 CSA 2

Paraguay 31.6 84 LM 11 LCN 12

Botswana 31.4 85 UM 30 SSF 5

Dominican Republic 30.9 86 UM 31 LCN 13

Panama 30.9 86 UM 32 LCN 14

Morocco 30.7 88 LM 12 NAWA 15

Azerbaijan 30.4 89 UM 33 NAWA 16

Albania 30.4 90 UM 34 EUR 39

Jamaica 30.2 91 UM 35 LCN 15

Ghana 29.6 92 LM 13 SSF 6

El Salvador 29.5 93 LM 14 LCN 16

Sri Lanka 29.1 94 LM 15 CSA 3

Philippines 29.0 95 LM 16 SEAO 13

Kenya 28.9 96 LI 1 SSF 7

Senegal 28.8 97 LM 17 SSF 8

Ecuador 28.5 98 UM 36 LCN 17

Guatemala 28.4 99 LM 18 LCN 18

Indonesia 28.1 100 LM 19 SEAO 14

Fiji 27.9 101 LM 20 SEAO 15

Rwanda 27.9 102 LI 2 SSF 9

Egypt 27.9 103 LM 21 NAWA 17

Iran, Islamic Rep. 27.3 104 UM 37 CSA 4

Nicaragua 26.7 105 LM 22 LCN 19

Gabon 26.5 106 UM 38 SSF 10

Zambia 26.4 107 LM 23 SSF 11

Tajikistan 26.4 108 LI 3 CSA 5


Kyrgyzstan 26.4 109 LI 4 CSA 6

Mozambique 26.3 110 LI 5 SSF 12

Honduras 26.3 111 LM 24 LCN 20

Bangladesh 26.1 112 LI 6 CSA 7

Nepal 26.0 113 LI 7 CSA 8

Bolivia, Plurinational 25.8 114 LM 25 LCN 21

Zimbabwe 25.7 115 LI 8 SSF 13

Lesotho 25.7 116 LM 26 SSF 14

Uganda 25.6 117 LI 9 SSF 15

Venezuela, Bolivarian Rep. 25.4 118 UM 39 LCN 22

Mali 25.4 119 LI 10 SSF 16

Malawi 25.4 120 LI 11 SSF 17

Cameroon 25.0 121 LM 27 SSF 18

Burkina Faso 24.6 122 LI 12 SSF 19

Nigeria 24.6 123 LM 28 SSF 20

Algeria 24.4 124 UM 40 NAWA 18

Benin 24.4 125 LI 13 SSF 21

Madagascar 24.2 126 LI 14 SSF 22

Uzbekistan 23.9 127 LM 29 CSA 9

Tanzania, United Rep. 23.9 128 LI 15 SSF 23

Cambodia 23.4 129 LI 16 SEAO 16

Gambia 23.3 130 LI 17 SSF 24

Ethiopia 23.3 131 LI 18 SSF 25

Syrian Arab Rep. 23.1 132 LM 30 NAWA 19

Pakistan 23.1 133 LM 31 CSA 10

C™te d'Ivoire 22.6 134 LM 32 SSF 26

Angola 22.2 135 LM 33 SSF 27

Togo 20.5 136 LI 19 SSF 28

Burundi 20.5 137 LI 20 SSF 29

Lao PDR 20.2 138 LM 34 SEAO 17

Yemen 19.2 139 LM 35 NAWA 20

Niger 18.6 140 LI 21 SSF 30

Sudan 16.8 141 LM 36 SSF 31

Note: World Bank Income Group Classification (April 2012): LI = low income; LM = lower-middle income; UM = upper-middle income; and HI = high income.Regions are based on the United Nations Classification (20 September 2011): EUR = Europe; NAC = Northern America; LCN = Latin America and the Caribbean;CSA = Central and Southern Asia; SEAO = South East Asia and Oceania; NAWA = Northern Africa and Western Asia; and SSF = Sub-Saharan Africa.

Dr. George IoannouChair of the Department of Management Science and TechnologyAthens University of Economics and BusinessDirectorMBA International Program

80

E-nnovation in the MBA curricula:The case of AUEB's MBA International

In May 2012, Deans and Directors from leading business schools in 43 countries gathered in Barcelona for the Association of MBAs' annual conference. The main theme of the conference was Innovation in MBA and Business. Speakers and panelists both from the academic and business sectors commented on the latest ideas, new skills and innovations that should be incorporated into the MBA curricula, to ensure that graduates follow the current trends and developments in the corporate environment.

As Sharon Bamford, Chief Executive of the Association of MBAs, stated, "Innovation is here and now and schools have no choice but to innovate". This was one of the key conclusions of the conference along with the fact that schools have to change fast and be flexible if they want to develop further. However, it is evident that business schools have significant steps to take in order to achieve this goal. In a survey which was undertaken during the event, the majority of respondents stated that it is essential for business schools to innovate, but only 2.5% replied that their school was the best it could be at this.

Moreover, more than half of the participants in the survey believed that the mode of delivery of MBA courses that will grow the most over the next years is blended learning. This mode of delivery provides an integrated instructional approach by combining face to face classroom methods with computer mediated activities, e.g. e-learning, to to help customise education for each student. More and more universities respond to the need for flexibility and convenience and increase the number of courses offered, at least partially, on-line. Another recent survey conducted by AMBA (July 2012) shows a significant increase of 12% in the average number of enrolments in blended learning programmes.

Even though e-learning programmes have been criticised as lacking in classroom interaction, more and more candidates choose them because they are more flexible, respond better to different learning styles, improve the quality of students' participation in the course and enrich the learning experience.

Following these trends in business education, as well as the current needs of the market, the MBA International Program of the Athens University of Economics and Business launched last year an innovative collaboration with Market Motive and Be eBusiness to offer cutting edge curriculum and training on e-skills as part of the traditional, classroom-based MBA. Students of the programme are the first in Europe to be fully trained in eBusiness Marketing fundamentals, SEO, Web Analytics, Pay-per-Click, Social Media, eCommerce Conversion Optimisation and On-line Public Relations, through e-learning, self-paced courses with video teaching by top industry gurus.


ΒΙΟ

Dr. George Ioannou is the Chair of the Department of Management Science and Technology at the Athens

University of Economics and Business. He is a Professor of Operations Management, Director of the MBA

International Program, and directs the Operations & ERP Systems Center (Management Science Laboratory).

He holds a Ph.D. in Mechanical Engineering from the University of Maryland at College Park, U.S.A., and he has

previously served as Assistant Professor at the Department of Industrial and Systems Engineering of Virginia

Tech, directing the Manufacturing Systems Integration Laboratory. He has been sponsored by several research

organisations and private companies from the U.S., Europe and Greece, while his publications have appeared

in various archival journals. He has consulting experience both in the U.S. and Greece and has received many

awards, including the Microsoft Excellence in Education Award.

MBA INTERNATIONAL

The MBA International Program, fully accredited by AMBA, is offered by the Athens University of Economics

and Business (AUEB), the leading University in Greece in the areas of economics and business administration.

Founded in 1920, the University has created a great tradition with thousands of graduates who hold senior

positions in the public and private sectors, Greek and foreign universities, as well as in international organisations.

In the wake of this proud tradition, the MBA International Program, now in its 14th year of operation, is building

on universal values such as excellence, accuracy, relevance and depth of knowledge, sustained by international

faculty that combines excellence in teaching with breakthrough research and exceptional professional experience.

With students from more than 20 countries, and faculty members and invited speakers from four continents, the

programme embraces diversity and creates a unique multicultural environment that helps students build a global

outlook and network, while a number of services provided by the Career Office and the Alumni Association of the

programme strongly support graduates in achieving career goals.

www.imba.aueb.gr

www.beebusiness.gr

Market Motive is considered to be the top training organisation in the U.S. for eBusiness and on-line marketing courses and its founders and faculty include top established industry professionals and bestselling authors, such as Avinash Kaushnik, Digital Marketing evangelist of Google and author of "Web Analytics 2.0", Bryan Eisenberg, author of "Always Be Testing" and "Call to Action", Brad Gedes, author of "Advanced Google Adwords", and others. This collaboration takes place through the Be eBusiness blog, Market Motive's partner in Europe.

On top of the above cutting-edge curriculum, students have access to a forum for interaction with faculty and other students, while weekly workshops are offered with the latest industry developments and more than 1,000 hours of extra videos are available in the video library.

This innovative component of the MBA curriculum was featured by the INFO Press Team of the EC in Brussels as a route to growth and offers students the opportunity to prepare themselves for more than 20 new job roles, such as eCommerce manager, Social Media Manager, Conversion Manager, SEO expert, etc. This is essential, especially if we take into consideration the fact that Europe is suffering from a growing professional ICT skills shortage which could amount to up to 700,000 relevant jobs by 2015, as Neelie Kroes, Vice President of the EC responsible for the Digital Agenda for Europe, has recently stated.

In a period when the issue of employability is critical, this initiative, combining innovation in the course content with a flexible mode of delivery, and focusing on demand-driven topics, is an excellent example of how education can evolve in line with what is happening across the industry, and address the demand for better skilled individuals who can meet the evolving workplace realities and requirements.

Gregory EldersSenior ESG AnalystBloomberg

82

ESG disclosure drives innovationin investment analysis

Not only are more investors applying ESG performance criteria to their investment approach, but they are using more data fields and more sophisticated analysis to uncover the leaders and laggards in ESG risk management. Bloomberg saw a 35% increase in 2012 in the number of investors using Environmental, Social and Governance (ESG) data in their investment analysis: regular Bloomberg ESG data users increased from 4,722 in 2011 to 7,779 in 2012. It is worth noting that while investors are increasingly applying ESG data, we have not seen a significant rise in the number of corporations reporting their ESG metrics Ð the number of companies and amount of data has remained relatively flat.

Bloomberg collects annual ESG quantitative and qualitative data on over 5,000 companies globally for 350 different metrics, plus an additional 5,000 companies for corporate governance data only. This information includes issues, such as resource use and emissions, employee diversity and safety, and board of directors structure and composition. We are seeing only a small increase in the number of companies reporting ESG data, yet our clients are increasingly using ESG data and demanding that we provide even more. Approximately 5,400 companies reported any quantitative environmental or social data in 2010 and 2011, with the numbers reporting Scope 1 and Scope 2 GHG emissions similarly flat around 1,800 for the latest years.

We find that as more investors integrate ESG data into their analysis and ESG data moves away from the exclusive purvey

of SRI to a broad, general investor base, our clients want to see quantitative performance metrics. While it is important to understand if a company has a policy regarding an issue, it is much more telling to see the numbers. If a company is showing deteriorating performance, an investor wants to know that, likewise for improving performance. And investors increasingly do not accept the omission of critical data. As the ESG data Bloomberg offers integrate across the Bloomberg Professional Service, we see investors applying the data in a variety of ways, including a number of new and innovative applications. We see traditional approaches like screening in for best-in-class and screening out for worst-in-class performance, as well as investors analysing ESG exposure in their portfolio relative to a benchmark. Bloomberg has developed tools to allow clients to put a price on the ESG risk and model how that impacts share valuation, which has generated interest from those previously unversed in ESG.

To encourage more companies to report ESG data, we see a number of important investor-led initiatives that we think will help propel reporting beyond its current plateau. The SASB, an organisation that Bloomberg directly supports, is seeking to create reporting standards that will be included in U.S. securities regulatory filings. The U.S. has been lagging behind and we think this will propel ESG reporting forward not only in the U.S., but provide renewed impetus globally. Similarly, the Sustainable Stock Exchanges Initiative is working to encourage reporting through securities listing requirements.

ESG GEOGRAPHIC COVERAGEwith 20.0% global coverage based on 10,315 companies


ΒΙΟ

Gregory Elders, Senior ESG Analyst at Bloomberg, has over ten years' experience working with investors

and companies to identify and assess sustainability risks and opportunities. His expertise is on valuing the

financial impact of environmental, social and corporate governance performance on company returns, as well

as identifying financially material ESG issues. He has held the roles of Head of Research at Trucost in London,

the SME and Supply Chain Programme Manager at the GRI in Amsterdam, and Fixed Income Research Analyst

at Merrill Lynch in New York.

BLOOMBERG

The Bloomberg Professional¨ service is essential for the world's financial, business, and ESG professionals.

We deliver a vast array of global data Ð in milliseconds Ð integrated with analytics, news, communications,

charts, execution platforms and customer support that let you turn knowledge into action. Bloomberg provides

ESG data on more than 350 key performance indicators for more than 5,000 publically-listed companies globally,

and is increasing coverage every day. Bloomberg provides sustainability news, research, indices, funds, energy

and emissions data, legal and regulatory as well as robust screening, scoring, peer analysis, portfolio analytics,

and other optimisation tools. The world's finest business information and insight for every asset class is in one

place and delivered in real timeÐto your desktop or mobile device. As a Bloomberg Professional¨ service user,

you are connected to the world's most influential financial network, spanning central and commercial banks,

investment institutions, government offices and agencies, law firms, corporations and news organisations.

www.bloomberg.com/professional

We saw a significant jump in the number of companies reporting ESG data in South Africa with the Johannesburg Stock Exchange's integrated reporting requirement. Given the interest and momentum, Bloomberg expects the trend to continue with more investors increasingly considering ESG an important aspect of their investment analysis.

*of total number of listed companies in country Data as of 03/27/2013

ESG Geographic Coverage.Source: Bloomberg, 2013.

Matt RogersDirectorMcKinsey&Company's San Francisco Office

84

Energy = innovation: 10 disruptive technologies

Innovation in energy technology is happening more quickly than expectedÐand it could accelerate economic growth and improve sustainability as early as 2015.

The world is approaching a tipping point in the development of energy technologies that could generate increases in energy productivity on a scale not seen since the Industrial Revolution.Most of the technologies that could prove disruptive are familiar Ð including unconventional gas, electric vehicles, solar, and lighting from light-emitting diodes (LEDs) Ð yet many managers will be surprised when they arrive. That is because most organisations have been watching them develop for so many years that they find it difficult to believe that these technologies could reach scale any time soon. This view rests on a misunderstanding of the nature of technological change. The accelerating pace of energy innovation means that some technologies will achieve commercial viability much faster than most observers expect Ð in some cases, the shift could begin as early as 2015.

Technology may advance incrementally on the margins for long periods of time without substantially affecting established players. Indeed, developing technologies may remain uneconomical on average, even as leading innovators approach breakthroughs. However, once a technology delivers cost and performance that is materially superior to the status quo, it may well be adopted en masse. Such technologies can render existing ways of doing business untenable in less than a decade Ð in the blink of an eye, in economic terms.

History shows that innovations in technology can cause dramatic increases in productivity, transforming industries and setting whole societies on new paths to growth. For example, the rise of wireless technology fundamentally altered telecommunications. PCs and smart phones, enabled by ever-smaller and faster chips, have revolutionised the consumer-electronics industry. And portable audio devices Ð starting with the Sony Walkman and continuing with the iPod Ð have radically transformed the way music is packaged and consumed.

Energy markets are on the verge of a similarly dramatic transformation. With prices for oil, steel, copper, aluminum, and other commodities soaring to historic highs, energy-technology innovators are taking advantage of developments in areas such as software and consumer electronics, semiconductors, and pharmaceuticals to greatly improve how the world produces and consumes energy.

The pace of change could be unprecedented. To succeed, companies must understand the major performance thresholds for each technology and the market shifts that breakthroughs will trigger. Those that are content merely to keep an eye on technological developments, betting on averages rather than positioning themselves to benefit from the cutting edge, may fail to survive in the new world these innovations create.

In the U.S., five technologies have the potential to begin to affect energy productivity by 2015: unconventional natural-


gas production, EVs, advanced internal-combustion engines (ICE), solar, and LED lighting. Another five could do so in the period shortly after 2020: grid-scale storage, digital power conversion, compressor-less air-conditioning and electrochromic windows, clean coal, and biofuels and electrofuels. These technologies have broad applications, and they are mature enough to disrupt markets when their implementation costs drop below those of the technologies that currently dominate their industries.

The widespread adoption of any of these technologies could save customers hundreds of billions of dollars annually and help countries achieve economic growth without degrading the environment. Even if only a few of the technologies achieve breakthroughs, the world economy and the environment will benefit tremendously. These advances may also provide national-security benefits by reducing countries' reliance on fuel and other commodity imports.

While it is impossible to predict which of these technologies will thrive and to what degree, it is clear that some will. For many companies, survival will depend on the ability to navigate this "uncertain inevitability." A breakthrough in any of these technologies could mark the point of no return for an incumbent that is not prepared for it. As such, every company should take steps to ensure it is positioned to benefit if the following breakthrough scenarios come to pass.

MARKET IMPACT COULD BEGIN AS EARLY AS 2015

Technologies that have rapidly declining cost curves and that save consumers money are developing much faster than technologies that rely on regulation to be economically viable. Each of the five technologies in this section benefits

from software and consumer electronics to accelerate the rate of change, and each has six to eight competing pathways that could deliver breakthrough performance. Competition among countries introduces multiple forms of innovation to the market in parallel; Chinese low-cost engineering, Korean manufacturing scale and quality, German systems integration, and U.S. product innovation are all important factors, and the intense competition benefits consumers. Competition among technologies (for example, solar versus wind versus natural gas and electric vehicles versus advanced ICE versus fuel cells) raises the bar and often accelerates innovation.

Unconventional gas. In the 1980s, massive unconventional natural gas resources were identified in the U.S., spurring advances in horizontal drilling, four-dimensional seismic imaging and software modeling, and hydraulic fracturing ("fracking") that enabled gas to be extracted from shale formations. The technology was implemented at scale for the first time in the early 2000s in response to significant tightening of supply in the U.S. natural-gas market. Estimates of U.S. natural-gas reserves were increased by 50% within five years, and prices fell rapidly, from more than USD 10 per thousand cubic feet in 2008 to about USD 4 per thousand cubic feet in 2011 and just over USD 2 per thousand cubic feet in 2012, as the market realised that the new technologies could deliver low-cost gas reliably for decades. These new natural-gas supplies are already saving U.S. consumers billions and enabling the country to reduce its emissions of greenhouse gases.

The North American case is clear, and the technology has the potential to reshape global resource economics and politics as Europe, China, and India begin to evaluate and tap their unconventional natural gas resources. While those harnessing

the technology must address significant water and land-use challenges, it could still be the most important energy-technology innovation of the last 100 years.

Electric vehicles. The cost of advanced batteries is dropping precipitously. In 2009, advanced batteries cost about USD 1,000 per kilowatt hour. New battery-manufacturing facilities were able to deliver batteries at just over USD 500 per kilowatt hour in 2010, and the price could drop to USD 350 per kilowatt hour when these facilities reach full-scale production over the next few years. The cost of batteries could reach total-cost-of-ownership parity with ICE when the price drops to USD 250 per kilowatt hour, at which point the global market could increase to 15 million to 20 million sold per year, from 1 million to 2 million sold per year today. Of course, it could take three to five years from the time batteries become cheap until automakers can integrate these new designs into standard automotive platforms, pushing back consumer-benefit timelines. Nevertheless, once these vehicles are available on the market, the resulting improved fuel economy could save consumers more than USD 500 billion annually in the near term, replacing high-cost, mostly imported oil with lower-cost domestic electricity. Moreover, customers are discovering that electric vehicles often deliver better acceleration, safety, and comfort and may be able to support new vehicle-design innovations better than traditional technologies.

Advanced ICE. U.S. corporate average fuel economy (CAFE) standards remained flat for nearly three decades, at 27.5 miles per gallon, while vehicle technology continued to improve. New CAFE standards will require automakers to achieve 35.5 miles per gallon in 2016 and 54.5 miles per gallon in 2025. Even then, U.S. standards will remain below the European and Chinese standards that define automotive requirements in the

rest of the world. Consumers are demanding vehicles that are more fuel efficient, and the material science and software controls are now in place to deliver them. Consumers stand to save almost as much from improvements made to the internal-combustion engine as they do from breakthroughs in electric vehicles Ð the competition among technologies is likely to create more attractive high-efficiency, low-cost alternatives for consumers.

Solar photovoltaics (PV). The installed cost of solar power has fallen to about USD 2.50 per watt in 2012, down from USD 4 per watt in 2011, and from about USD 7 to USD 8 per watt as recently as 2009. The U.S. solar market grew by about 40% due to the U.S. stimulus programme in 2009 and 2010, mirroring the global rate of growth driven by similar incentives provided in Germany, Italy, Spain, and China. Subsidies are likely to dry up, but the momentum could continue, supported by significant innovations in manufacturing scale, quality yield, and "balance of system" costs, potentially driving solar prices down to USD 1.50 per watt by 2015 and to less than USD 1 per watt by 2020. At these prices, solar PV will be preferable to retail electric prices for most new homes and big-box commercial businesses in sunny markets, providing an alternative to traditional power sources.

LED lighting. Lighting accounts for almost 15% of U.S. electricity demand. LEDs, which rely on semiconductors, benefit from rates of improvement dictated by Moore's Law. Software increases the value in LEDs by adjusting their energy use based on needed lighting levels. A 100-lumen LED bulb cost USD 20 in 2011, down from USD 50 in 2009. The price should drop to between USD 8 and USD 10 for a 170-lumen bulb by 2015, which would render incandescent and compact-fluorescent bulbs obsolete. LED lighting currently accounts

for approximately 2% of the global lighting market, but it could represent 30% by 2015 and 80% by 2020. If LED lighting reaches these levels, global consumers could save more than USD 50 billion annually by 2015 and more than USD 100 billion annually by 2020, which could enable a 1.5% decline in U.S. electricity demand per year, the equivalent of more than 30 base-load power plants.

MARKET IMPACT AFTER 2020

Scientific and engineering innovations will be required for a subsequent wave of energy technologies to reach commercial scale at viable costs. These technologies will also likely depend on regulations to expand available markets. Not all of these technologies will succeed in the market Ð they will only earn a place if they can outdo top performers from the earlier wave. If successful, however, these technologies could render some of the earlier innovations obsolete.

Grid-scale storage. A variety of technologies, including batteries, flywheels, and ultracapacitors, are being developed to enable large-scale storage of electricity within electric power grids, many of which are following an innovation pattern similar to auto batteries. Today, grid storage costs about USD 600 to USD 1,000 per kilowatt hour and can be used only when local geology supports pumped hydro or compressed-air storage systems. Innovations that make use of flow batteries, liquid metal batteries, and other technologies could reduce costs to between USD 150 and USD 200 per kilowatt hour by 2020 and make it possible to provide grid storage in every major metropolitan market. At these prices, the U.S. alone would want to build more than 100 gigawatts of storage over a decade (the capacity equivalent of the current U.S. nuclear generation fleet), significantly improving reliability and making

solar, wind, nuclear, and coal much cheaper to deliver. Power companies can also use storage to smooth variability in power supply, which is more extreme for renewable technologies than for traditional generation technologies; doing so would significantly reduce distribution capital requirements.

Digital power conversion. Edison and Westinghouse invented large-scale, high-voltage transformers in 1885, setting the stage for widespread development of the electrical grid. The technology in use today remains virtually unchanged. A typical transformer costs USD 20,000, weighs 10,000 pounds, and takes up 250 cubic feet. High-speed, very reliable digital switches made of silicon carbide and gallium nitride have been developed for high-frequency power management in military contexts. They use 90% less energy, take up only about 1% as much space, and are more reliable and flexible than existing transformers. These digital transformers could begin to replace conventional technology at less than one-tenth the cost by 2020. China is particularly well positioned to benefit from adopting digital power electronics due to the scale of grid expansion it has planned.

Compressor-less air-conditioning and electrochromic windows. Today, it costs about USD 3,000 to USD 4,000 per year to run a high-efficiency air conditioner in a hot region, and the efficient windows now in common use allow 50% of this cooling energy to escape. New compressor-less air conditioners and electrochromic window technologies offer the potential to cut home heating and cooling bills in half. Today, these technologies are expensive, but by 2020, they could begin to cost only about half as much to install as current state-of-the-art cooling and window technologies.

Clean coal. Carbon capture and sequestration currently costs


ΒΙΟ

Matt Rogers is a Director in McKinsey&Company's San Francisco Office. He focuses on the role technology and innovation play in restructuring markets,

especially in oil, gas, power, aerospace, and other energy and industrial companies. Matt has spent 25 years serving these clients globally. Over time, he

has led the Americas Petroleum and Electric Power and Natural Gas practices and helped establish the Firm's Resource Productivity and Clean Technology

practices. He has written extensively on oil, gas, power, and resource markets. He holds a U.S. Department of Defense Q clearance to address national

security issues. During 2009-10, Matt served as the Senior Advisor to the U.S. Secretary of Energy, leading the Recovery Act Implementation. In this role, he

had responsibility for managing the Department of Energy's USD 35.2 billion in Recovery Act appropriations. The Department of Energy reviewed more than

30,000 applications and funded more than 5,000 projects through the Recovery Act, accelerating U.S. innovation in energy efficiency, advanced transportation,

renewable energy, transmission and distribution infrastructure, carbon capture and sequestration, environmental clean-up, and basic and applied science.

Matt graduated magna cum laude from Princeton University. After graduation, he joined Credit Suisse First Boston as an energy investment banking analyst.

He earned an MBA from Yale University's School of Management. Matt is married to the Honorable Yvonne Gonzalez Rogers, who serves as Federal District

Court Judge in the Northern District of California. They have three children aged 17, 14, and 11.

MCKINSEY & COMPANY

McKinsey & Company is a management consulting firm that helps leading corporations and organisations make distinctive, lasting and substantial

improvements in their performance. Over the past eight decades, the firm's primary objective has remained constant: to serve as an organisation's most

trusted external adviser on critical issues facing senior management. With consultants deployed from more than 90 offices in more than 50 countries,

McKinsey advises companies on strategic, operational, organisational and technological issues. The firm has extensive experience in all major industry

sectors and primary functional areas as well as in-depth expertise in high priority areas for today's business.

www.mckinsey.com/client_service/sustainability

USD 8,000 to USD 10,000 per kilowatt. Innovative processes now under development could help coal-fired generators in the U.S. capture more than 90% of their carbon dioxide, enabling them to meet stringent new Environmental Protection Agency pollution-control requirements. Generators should be able to retrofit their existing plants with new clean-coal technology for less than USD 2,000 per kilowatt. About 200 U.S. coal plants are currently slated for closure by 2020 due to their high cost relative to natural gas and their pollution output. New clean-coal technologies could enable many of these plants and similar plants in Europe and China to remain open for decades. However, clean-coal technologies are unlikely to be deployed at scale unless supportive carbon regulations are put in place.

Biofuels and electrofuels. With crude-oil prices reaching USD 100 per barrel, biofuels such as cane and corn ethanol have already rapidly increased their market share. Nevertheless, the supply of biofuels is limited by demand for food and by the declining quality of available land, which drives costs up and minimises the potential for growth. Genetic innovations that enable the use of cellulosic and algae-based biofuels can free producers from these constraints. The most innovative start-ups in this area are creating high-margin specialty chemicals and blend stocks, generating cash now and providing a pathway to begin to deliver biofuels at USD 2 per gallon or less by 2020. At the same time, biopharmaceutical researchers are developing electrofuels pathways that feed carbon dioxide, water, and energy to enzymes to create long-chain carbon molecules that function like fossil fuels at one-tenth the cost of current biofuels. The key question is whether these new technologies can scale.

Not every technology we have discussed will come to fruition, but some will Ð and those that do will change energy markets

dramatically and for good. Companies must understand cutting-edge technology if they want to succeed in the energy markets of the future. In particular, they must develop the ability to understand the technology road maps coming out of the software and consumer-electronics sectors and track innovators in key markets. They must know what particular countries are doing in their areas of competitive advantage, including understanding balance-of-system costs in China, consumer electronics in Japan and Korea, and the impact of software on product economics in Germany and the U.S. Finally, companies must be aware of the price and performance thresholds that will trigger massive shifts in demand for each relevant technology. Those that neglect what is happening on the margins today put themselves at risk of being pushed to the margins themselves in the not-too-distant future.

Jos� Manuel LecetaDirectorEuropean Institute of Innovation and Technology (EIT)

88

Empowering world-class innovation andentrepreneurship across Europe

In these challenging times we are facing, innovation is widely perceived as the key to growth, competitiveness and social well-being in the 21st century. The capacity of a society to innovate is crucial in an ever more knowledge-intensive economy. Set up in 2008, the EIT aims to enhance Europe's ability to innovate, which translates into adapting quickly to the fast pace of development, being one step ahead in providing solutions to rapidly emerging societal problems and turning them into entrepreneurial opportunities in terms of products and services that meet the demands and desires of consumers.

As we all know, Europe faces a significant innovation challenge, where despite an excellence research base, dynamic companies and creative talent, good ideas are too rarely turned into new products or services. We need a real change of mind-set towards the promotion of a more innovative and entrepreneurial culture. Only people bring about the change we very much need.

The EIT is an independent EU body whose mission is to:

– increase European sustainable growth and competitiveness;– reinforce the innovation capacity of the EU and its Member

States; and– create the entrepreneurs of tomorrow and prepare for the

next innovative breakthroughs.

The EIT creates an unprecedented level of strategically structured collaboration among excellent higher education, business and centres with the aim of boosting the innovation process:

– from lab to market;– from idea to product; and– from student to entrepreneur.

The EIT aims to achieve its mission by fully integrating all three sides of the so-called "knowledge triangle", i.e. higher education, research and business, in KICs. By bringing together major innovation players on a long-term basis from all these dimensions to co-operate within the KICs, the EIT is able to promote pan-European innovation ecosystems in Europe.

The first three KICs were selected end 2009 and established themselves in late 2010:

– Climate-KIC: addressing the field of climate change mitigation and adaptation,

– EIT ICT Labs: addressing the field of Information and Communication Technologies, and

– KIC InnoEnergy: addressing the field of sustainable energy.

The EIT is dedicated to fostering favourable environments and frameworks for entrepreneurship-driven innovation

adding value to the existing EU innovation landscape. Creating and enabling such ecosystems to flourish is at the heart of our KICs' mission. This is crucial for European growth, as the current European landscape remains fragmented and offers tremendous scope to accelerate innovation based on related variety of Member States and partners. Indeed, many excellent higher education institutions, research centres and businesses can be found in Europe, but what is often missing is a more creative, open and novel approach to innovation policy. The EIT is the expression of a political will to approach innovation differently.

Working in such "silos" leads to dispersed innovation efforts and in order to make the most of its innovation potential, Europe must go beyond its traditional approaches to innovation. And this is exactly why the EIT was set up. It is, thus, crucial that we build a "critical, open and creative mass" of human and physical resources, attracting, seeding and retaining private sector investment into the KICs.

While the EIT Headquarters are situated in Budapest, Hungary, the EIT and its activities are not concentrated in one campus as a traditional institute, instead operating through the KICs. Each of the KICs operates across a limited number of innovation hotspots called "co-location centres". There are currently 17 co-location centres spread across Europe. Climate-KIC additionally operates through six regions, working closely


90

with regional or local governments in their RICs facilitating regulation conducive to innovations with lead public adopters in local and regional governments. KICs carry out a whole range of activities, covering the entire innovation chain Ð including training and education programmes, reinforcing the journey from research to the market, innovation projects and business incubators. The KICs' governance model has been conceived so that they are able to react in an effective and flexible way to changing environments through their "living"

partnerships with the EIT. Each KIC has been set up as a legal entity and has appointed a CEO to run its operations Ð a first for an EU initiative. The EIT has also provided the KICs with a great degree of autonomy to define their legal status, internal organisation and working methods.

Europe needs to embrace a true entrepreneurial culture, which is essential for capturing the value of research and innovation, for setting-up new ventures and actual market deployment of

innovations in potential high-growth sectors. The EIT is doing just this by integrating education and entrepreneurship with research and innovation and operating according to business logic and a results-oriented approach. Indeed, the EIT and its KICs are driven by a pursuit of excellence in all of their activities and are established with the aim of reaching the necessary critical mass to achieve systemic impact, including the creation of new businesses and new jobs, and the promotion of new skills and entrepreneurial talent in the economy.


ΒΙΟ

Jos� Manuel Leceta joined the EIT in Budapest as its Director on 1 July 2011 and is responsible for the management and implementation of the Institute's

overall portfolio of activities. An Electrical Engineer, with degrees in Business Administration, Strategic Management, International Relations and Economics

of Innovation; his professional career started in the space industry in Finland in 1987, he then moved to France and Japan, before joining Spain's Innovation

Agency, CDTI in 1992 as a member of the Delegation to the ESA. Fostering Spain's leadership in space applications, he became Head of Department at CDTI

in 1996 and Chairman of ESA's Ariane Launchers Board in 2000-2002, playing a pivotal role in ESA's water mission SMOS, AMERHIS (one of the ESA's most

important telecommunication projects, first on-board digital multiplexers) and EGNOS-Galileo, the European Geostationary Navigation Overlay Service. As

CDTI's International Director since 2006, member of CREST-ERAC (formerly CREST), and TAFTIE, the European Network of Innovation Agencies, Spain's

contribution to the EU R&D Framework Programmes expanded by 50%. Furthermore, the geographical portfolio of technology partnerships initiatives

widened with Bilateral Programmes with Canada, China, India, South Korea, Japan and South Africa and a CDTI delegation in the U.S.

THE EUROPEAN INSTITUTE OF INNOVATION AND TECHNOLOGY

The European Institute of Innovation and Technology (EIT) is an Institute of the EU based in Budapest, Hungary. It was established by the Regulation (EC)

No 294/2008 of the European Parliament and of the Council of March 11, 2008.

The EIT's mission is to contribute to sustainable European economic growth and competitiveness by reinforcing the innovation capacity of the Member

States and the EU. It shall do this by promoting and integrating higher education, research and innovation of the highest standards.

The Institute became operational in 2010 in its premises of the EIT HQs. The EIT currently employs approximately 50 members of staff.

http://eit.europa.eu

92

HIGH TECHNOLOGY EXPORTS

FACTS & STATS

EU27 BE IT SI MKFR RO HRMEBG CY SK TRCZ LV FI RUDK LT SE CADE LU UK USEE HU IS BRIE MT LI JPEL NL NO KRES PTPLAT CH IN

17.5

15

30

% OF EXPORTS

12.5

27.5

10

25

7.5

22.5

5

20

2.5

0

GEO

Note: This indicator is calculated as share of exports of all high technology products of total exports. High Technology products are defined as the sum of the following products:Aerospace, Computers - office machines, Electronics - Telecommunications,Pharmacy, Scientific instruments, Electrical machinery, Chemistry, Non-electricalmachinery, Armament. The total exports for the EU do not include the intra-EU trade.

Source: Eurostat, April 2013.

UNAVAILABLE DATA IS IGNORED

CROA

TIA

TURNOVER FROM INNOVATION

EU (2

7 cou

ntrie

s)

BELG

IUM

BULG

ARIA

CZEC

H RE

PUBL

IC

DENM

ARK

GERM

ANY

ESTO

NIA

IREL

AND

GREE

CE

SPAI

N

CYPR

US

HUNG

ARY

POLA

ND

SLOV

AKIA

NORW

AY

UNITE

D KI

NGDO

M

FRAN

CE

LATV

IA

MALT

A

PORT

UGAL

FINL

AND

SWITZ

ERLA

ND

ICEL

AND

ITALY

LUXE

MBOU

RG

AUST

RIA

SLOV

ENIA

SWED

EN

TURK

EY

LITH

UANI

A

NETH

ERLA

NDS

ROMA

NIA

20% OF TOTAL TURNOVER

10

10

0

20

30

GEO

Note: This indicator is defined as the ratio of turnover from products new to the enterprise and new to the market as a % of total turnover. It is based on the Community innovation survey and covers at least all enterprises with ten or more employees. An innovation is a new or significantly improved product (good or service) introduced to the market or the introduction within an enterprise of a new or significantly improved process.Source: Eurostat, April 2013.

2006 2008 - UNAVAILABLE DATA IS IGNORED

The value of an idea lies in the using of it.

THOMAS ALVA EDISONAmerican inventor and businessman, inventor of the phonograph,the motion picture camera, and a long-lasting, practical electric light bulb,credited with the creation of the first industrial research laboratory (1847 - 1931)

I think frugality drives innovation, just like other constraints do.One of the only ways to get out of a tight box is to invent your way out.

JEFFREY PRESTON "JEFF" BEZOS American entrepreneur, e-commerce pioneer, Founder, Chairman and CEOof Amazon.com, Inc., the largest retailer on the World Wide Web (1964 - )

Innovation distinguishes between a leader and a follower.

STEVEN PAUL "STEVE" JOBSBusiness magnate, designer, inventor, computer engineer, programmerand Co-Founder of Apple Computer, now Apple Inc. (1955 - 2011)

The five essential entrepreneurial skills for success are concentration, discrimination, organisation, innovation and communication.

MICHAEL FARADAYBritish scientist, electrical pioneer and inventor of electromagnetic induction,diamagnetism and electrolysis (1791 - 1867)

John Kyritsis Chief Operating OfiicerAB Vassilopoulos

98

Innovator in corporatesocial responsibility

AB Vassilopoulos was founded 74 years ago, by three visionary brothers of the Vassilopoulos family, who bought in 1939 a small food store in the center of Athens.

Throughout the years, the successful and sustainable course of the company in the food retail sector was driven by a strong focus on innovation and sustainability.

Starting in 1969, when the flagship store in Psichiko was introduced to the public, to the introduction of the paper press machines in the 70's and the creation of the first ever in the country, can recycling system in 1992, we have developed our business, making sustainability a core element of our strategy.

With core vision to offer assortments, services and products that are nutritious, healthy, safe, affordable and sustainable, we strive to deliver together, the best of AB for life.

We believe that operating as a sustainable company is not only an obligation we have towards our customers and the communities, but it is also good for business and a differentiating element that's good for our shareholders. Aligned with our vision, our sustainability strategy is centered across three pillars: People, Products, Planet.

PEOPLEThe way we organise our daily work and our working environment as well as the efficiency of our activities, are all key

factors for maintaining the well being and work-life balance of our associates. In this context, we adopt policies and implement initiatives to improve their daily lives, such as providing medical services at work, running seminars and programs on health and safety issues, and offering benefits like shopping vouchers, school stationary and summer camps for all associates' children.

In regard to society, AB throughout the decades has undertaken several initiatives to support local communities. Our company has built a culture based on team spirit and volunteering for its people and partners. Some initiatives we implement include supporting the ÒGreek Food BankÓ which runs for 17 consecutive years. We also listen and respond to the needs of our communities, making contributions that help in times of need. For example, ahead of the Christmas period, we gave EUR 0.01 for every private label product purchased. We thus managed to create Christmas baskets with food and beverages for a full Christmas dinner, which were offered to more than 3,000 families in need all over Greece.

PRODUCTSAt AB, we proudly promote healthy nutrition as a key factor for quality of life. Through multiple processes, we ensure that the highest standards of quality and safety are met for all of our products. We aim at educating and informing consumers about food safety while working closely with our producers to ensure that safety and hygiene standards are met throughout the production process.

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ CORPORATE INNOVATION

100

For our Quality Control Standards, we have set specific and strict requirements and through an ongoing monitoring process we ensure that our associates, partners and suppliers adhere to these. Our passion for quality is outlined in what we call Òthe AB Quality CycleÓ. The safety and hygiene of our products is at the very core of our ÒAB Quality CycleÓ, which covers all the phases of product distribution and production: from the preliminary evaluation and selection of our suppliers, the delivery, storage, transfer and sale of our products, to after sales services.

Additionally, we have adopted the HACCP quality system and we ensure that we fully adhere to the requirements set by ISO 9001, which cover the entire supply chain process: from the delivery at our Central Warehouses to our points of sale. These standards outline: a) what is expected in terms of associate training related to hygiene, b) the recommended hygiene inspections for our workplace, products and stores, and c) the design and installation of HACCP systems.


Furthermore, we were the first to design and adopt an ÒAGRO - ASSURANCEÓ system. This is a new process based on three key areas: a) qualitative evaluation of suppliers, b) laboratory testing of pesticide residues, and c) inspection of suppliers' parcels and packaging (for fruits and vegetables).

Having as a core element of our philosophy the well-being of our people, we have included in all our private brand products details regarding the daily GDA intake. This way, we ensure that our consumers are properly informed about the nutritional value of our products. In regard to our private brands, it should also be noted that all our 1,500 suppliers comply with our sustainable development standards. These standards relate to quality, consistency, support of local production, environmental protection and affordable pricing.

Moreover, we are working together with NGOs in order to develop more sustainable products. For example, in 2011, we signed a two-phase agreement with WWF Greece, for the promotion of sustainable seafood. Through this cooperation, we aim to assess and categorise our seafood import sources leveraging WWF expertise in terms of setting sustainability standards for fishing.

Finally, with innovative services such as our Mobile coupons and our Self check out and Self scanning systems we sustainably support our customers' every day needs.

ENVIRONMENTIn regard to the environment, we undertake innovative initiatives that aim not only at reducing the carbon footprint of our daily operations, but also at encouraging and helping our customers to contribute to the protection of our planet's natural resources.

The sustainable use of energy is one of the most significant ways to tackle climate change. Towards this direction, we aim at reducing our CO2 emissions by 20% until 2020. Additionally, our recycling policy focuses on adopting new technologies regarding the conversion of waste, as well as the reuse of several obsolete materials.

In order to save energy, we have adopted innovative measures and new technologies, such as:

– Low consumption LED light bulbs and lighting management systems,

– Solar panels,– Glass cover-doors for our refrigerator systems, and– Sophisticated cooling management systems.

We have also implemented a centralised routing system that has helped us reduce the number of our deliveries, reducing gas emissions to a great extent.

Furthermore, we aim at reducing and recycling most waste produced, by using a series of innovative actions, such as:

– At 37 stores, consumers have the opportunity to recycle plastic and glass bottles, metal cans, plastic bags as well as plastic jars,

– At the company's Headquarters and at 27 stores, we have installed smaller scale recycling systems,

– At 64 stores, we have placed tanks for recycling cooking oil, and– At 76 stores, we have installed bins for the collection of used

light bulbs.

We are also very proud of the fact that we opened our Green Store in the area of Stamata, using new technologies, such as photovoltaic panels, natural ventilation, solar tubes, rain water tanks and many more, that can help produce and reduce energy consumption up to 40% in comparison to regular stores. It is important to note that our Green Store was the first store in Greece that received the BREEAM¨ Europe Commercial 2009 certification.

For all our activities and our sustainability strategy and performance described above, AB Vassilopoulos has received several awards from institutions, bodies and organisations, recognising our work to date and validating that we are heading to the right direction.

www.ab.gr

Yann GilbertCountry ManagerAir France KLM, Greece

102

Innovating for the customers

AIR FRANCE KLM, the result of a merger between AIR FRANCE and KLM in 2004, is one of the leading European air transport groups. Its main activities are the air transport of passengers and cargo as well as aircraft maintenance. In 2011, AIR FRANCE KLM carried 75.8 million passengers and 1.4 million tons of cargo. The group's fleet comprises more than 586 aircrafts, including 173 regional aircrafts operated by its partners Brit Air, City Jet, Regional and KLM Cityhopper. Its network covers 230 destinations in 113 countries from its hubs at the Paris-Charles de Gaulle and Amsterdam-Schiphol airports. The Flying Blue frequent flyer program is a leader in Europe and has over 21 million members.

With their partners Delta and Alitalia, AIR FRANCE and KLM operate the biggest transatlantic joint venture with more than 250 daily flights.

AIR FRANCE and KLM are members of the SkyTeam alliance, which has 19 member airlines, offering customers access to a global network of over 15.000 daily flights to 1,000 destinations in 187 countries.

Taking into account the current financial crisis and the various austerity plans put in place across Europe with an impact on consumption, AIR FRANCE KLM had to be innovating in order to keep its customers and to attract new ones. Their plan was called Transform 2015 aiming at regaining competitiveness and ensuring that its products and customer services are in

a leading position worldwide.

The Group puts innovation at the heart of its concerns:

– Innovation often goes along with corporate social responsibility for the AIR FRANCE KLM group. For instance, KLM invests in Biofuel. KLM Royal Dutch Airlines was the first airline in the world to make a demonstration flight on bio-kerosene with a select group of passengers in 2009. One of the aircraft engines was running on a fuel mixture made up of 50% sustainable bio-fuel and 50% traditional kerosene. Following the first commercial biofuel flight, operated by KLM in June 2011, KLM operated the longest biofuel flight in June 2012. Flight KL705 departed from Amsterdam with a Boeing 777-200 and flew to the Rio+20 sustainable development conference in Rio de Janeiro, Brazil. The aircraft was partly flying on sustainable fuel made from used cooking oil. AIR FRANCE and bilum have presented a collection of travel cases made from recycled life jackets. As these jackets have a limited lifespan, AIR FRANCE has chosen to ask bilum to give them a new life, rather than destroying them. The first collection of 400 cases has been exclusively launched on 7 December 2012 at shopping.airfrance.com and at bilumstore.fr. These cases are manufactured in France by people with disabilities as part of a work insertion scheme.

– Mobile innovations constitute one of them. Digital age


has completely changed the relationship between customers and the airline. Today, 99% of our frequent passengers use a mobile, which they have close to them 24/7. As a major player in air transport in France, Europe and worldwide, AIR FRANCE has launched two new free services using the latest mobile technologies: "Air France Connect", an exclusive new service, available to all passengers worldwide, without registration or subscription, informing them of changes or disruption during their trip. More specifically, thanks to the mobile number and e-mail address that the customer provides when booking a trip, AIR FRANCE can inform its customers as early as 14 days before departure either by telephone, text message or e-mail, of a possible flight cancellation or a delay, a change of gate or, after takeoff, the deferred delivery of their baggage.

– A mobile website and applications enable customers to purchase tickets and manage their reservations directly on their mobile phone.

http://mobile.airfrance.com is available on all mobile phones equipped with Internet access and enables customers to:Ð purchase a ticket,Ð check in and receive their electronic boarding card directly on their mobile phoneÐ manage their reservations,Ð consult AIR FRANCE's flight schedules and receive information, in real time, on the latest updated flight schedules,Ð check their Flying Blue account, their miles statement and details on the latest transactions, and Ð ask questions on AIR FRANCE products and services.

– Social media On social media, KLM is always a step ahead. In February 2012, KLM launched Meet & Seat. This made KLM the first airline

to integrate social networking in its regular flight process. Passengers with a reservation can link their Facebook or LinkedIn profiles to the flight they will be on in order to see who else is on. Meet & Seat facilitates contact with fellow travelers who have the same background or interests, making air travel even more stimulating for KLM passengers. They can find out whether someone they know will be travelling on the same flight, or discover who else will be attending the same conference in the U.S.A. for example. Through Meet & Seat, they might arrange to have a coffee before their flight, select adjoining seats or decide to share a taxi afterwards.

www.klm.gr

104

"Olive Picking":A unique voluntary, environmental and social event

As part of its corporate social responsibility activities, Alpha Bank established an innovative event called "Olive Picking" in 2010, aiming at raising awareness among its personnel with regard to environmental and social issues. The event pertains to olive picking in a traditional way by volunteer bank employees, associates, and their family members, at the organic olive grove of the Kaisariani Monastery, in the area of the Aesthetic Forest of Hymettus, and it is organised by the NGO "Philodassiki Enossi Athinon".

Olive picking is a traditional Greek activity that requires the active participation of employees, their families and bank associates, without the use of sophisticated technological means. The reinforcement of corporate social responsibility actions concerning the environment, culture and volunteering, through this experiential approach of a traditional activity in an area of great historic significance, like the grove of the Kaisariani Monastery, was considered as a great opportunity and constituted the reason for staging this event that brings together customs and traditions and an innovative corporate approach.

More specifically, before the event commences, the olive trees are selected and the olive rags are prepared and placed at the base of the trees. Then, "Philodassiki" briefs the volunteers on the harvesting process. The volunteers use special farming combs to collect the olives; they separate them from the leaves and, consequently, bag them up. The collected olives are loaded on animals that will transport them and are then stored

temporarily in an appropriate venue selected by "Philodassiki". The olive pressing is carried out in a centrifugal mill, and the olive oil is stored in special containers and is finally bottled in one-litre bottles and in three-litre cans.

It is worth mentioning that in the first year that the event took place, "Philodassiki Enossi Athinon" offered all participants an olive sapling as a souvenir for their environmental contribution, while, every year, at the closing of the event, a commemorative award is given to all volunteers for their active participation.

In the three years (2010-2012) during which the "Olive Picking" action has been taking place, 345 people have participated and 600 kilos of olive oil have been produced. Every year, the oil is donated to charity foundations. Specifically, the foundations supported include the "Hatzikyriakio Childcare Institution", the "SOS Children's Villages-Vari", the "Ark of the World" and "Sillogiki Poreia Agapis" (Collective Love Course). Thus, last year's "Olive Picking" was attended by children from the "SOS Children's Villages-Vari", who had the opportunity to experience and enjoy this special environmental experience.

The innovation and the uniqueness of this activity lie on the involvement of the volunteers from the bank personnel in an environmental action whose ultimate purpose is to benefit society. In the course of the event, synergies are created among volunteers from the bank personnel, associates, "Philodassiki Enossi Athinon", the charity foundations and the local community.


The building up of an environmental consciousness and of a spirit of volunteerism, enhanced through similar actions, prompts volunteers from the bank personnel and members of their families to participate in similar activities which aim at benefitting the environment, society as well as our fellow human beings who require support.

Together, we make the world a better place!

www.alpha.gr

106

50 years of innovation

Athenian Brewery's fifty year-old history has always been linked with innovation. Founded by a group of young Greek entrepreneurs back in the 1960s, the company has transformed the modern history of beer in Greece, by achieving a great number of remarkable milestones: the establishment of Amstel as the most popular beer in Greece for more than thirty years now; the record of three million hectoliters in 1989; the launch of Heineken in the early 80s; its active presence and involvement in the Greek economy and society for half a century; its excellence in the workplace and corporate responsibility; its commitment to sustainable development.

However, Athenian Brewery does not belong to the companies that rest on the accomplishments of the past. On the contrary, it looks to the future and adds new milestones to its long-lasting route, through a sustainable value chain "from barley to bar".

Since 2008 and prior to a lesser extent, the company has initiated a local barley sourcing programme, supporting the income of Greek farmers and delivering new potential from Greek barley. Previously, barley was used mainly for feeding livestock. In just five years, the company has created a network of 2,100 farmers, who produced 20,000 tons in 2012 and cumulatively, since the beginning of the programme, 70,000 tons, equivalent to more than EUR 14 million. Moreover, Athenian Brewery is a partner of the Agricultural University of Athens in a new variety testing programme (experimental fields) that aims at creating more productive varieties with superior malting and brewing

characteristics. The ambition of covering 100% of its needs from Greek barley is the target that it will realise in the near future. The target for 2013 is 40,000 tons, climbing to 60,000 tons in 2014. Apart from the obvious benefits for the farmers, as there is a minimum guaranteed price and purchased quantity every year, the programme has positively contributed to job creation in agriculture and has generated additional value across the entire supply chain in excess of EUR 9 million.

Further to its precision of using top quality raw materials, Athenian Brewery, despite the recession, keeps investing in innovative products: in 2010, it launched BIOS 5, a global innovation made in Greece as it is the first beer in the world that combines the revolutionary blending of five meticulously selected cereals (rye, barley, corn, rice, wheat) in order to produce the ideally balanced beer, that already received an award at the Sial D'Or International contest. Three years later, it introduced a new category in Greece, by introducing Amstel Radler, a proposition that offers double refreshment as it combines the incomparable taste of Amstel beer with lemon juice and 2% alcohol, always to be enjoyed cold.

However, the story of innovation is about packaging as well, with a number of ongoing innovation and renovation projects. For instance, in 2012, the new Heineken tactile can was developed, containing 26.1% less aluminum than its predecessor. The same goes for Amstel's new bottle which, apart from revitalising the brand, contains 24.4% less glass.

Zooullis MinaCEOAthenian Brewery


When it comes to beer, cooling is essential. At the same time, cooling affects a significant part of the total energy footprint. As of 2010, the company is committed to bringing the energy consumption of its fridges to the lowest possible level by purchasing "Green" fridges that comply with the highest standards, i.e. LED illumination for significant reduction of electricity consumption, an EMS thermostat and the use of Hydrocarbon as refrigerant, which is not harmful to the ozone layer.

Today, all fridges purchased comply with the standard definition of Green Fridge, whilst the same applies for David Green systems. More specifically, in 2010 Athenian Brewery was the first in the Greek market to introduce fridges equipped with EMS, while in 2011 all fridges were equipped with energy-efficient LED lighting. Also since 2011, the company has started purchasing fridges that use HC as coolant. Compared to conventional coolers, "green fridges" result in energy savings of up to 35%.

Athenian Brewery is also committed to gradually reducing its energy and water consumption, along with CO2 emissions (carbon footprint) of its production plants in Athens, Patras, Thessaloniki and Lamia. So far, steady progress is made and closely monitored on a quarterly basis.

The company has also started to measure the CO2 footprint of its trucks, starting from the moment they leave its warehouses until they deliver the products to its clients, as well as all transportation taking place between Athenian Brewery plants.

Through this monitoring and measuring process, the company aims to gradually reduce the carbon footprint generated by the transportation of its products. This exercise entails both the optimisation of the distribution route, as well as the technical specifications of its trucks.

Finally, with regards to the selection of its fleet of cars, it takes into consideration the constructor's fuel consumption and CO2 emissions data, in an effort to reduce its carbon footprint, in line with the Heineken NV Group guidelines.

The above priorities and achievements are part of Athenian Brewery's strategic framework for sustainable development that matches with HEINEKEN's ambition for "Brewing a Better Future" by 2020. The programme consists of a series of imperatives and key initiatives that are linked with specific KPIs, regularly monitored and evaluated. More information about Athenian Brewery's strategy for sustainable development can be found on www.responsibeerity.gr.

CROA

TIA

108

PROPORTION OF INNOVATIVE ENTERPRISES BY TYPE OF INNOVATION, 2008-2010

FACTS & STATSEU

-27 (

1)

GERM

ANY

LUXE

MBOU

RG

BELG

IUM

PORT

UGAL

SWED

EN

IREL

AND

ESTO

NIA

NETH

ERLA

NDS

AUST

RIA

DENM

ARK

CYPR

US

SLOV

AKIA

LATV

IA

TURK

EY

ICEL

AND

ITALY

FRAN

CE

UNITE

D KI

NGDO

M

LITH

UANI

A

POLA

ND

NORW

AY

SERB

IA

FINL

AND

SLOV

ENIA

SPAI

N

ROMA

NIA

BULG

ARIA

CZEC

H RE

PUBL

IC

MALT

A

HUNG

ARY

100

25

75

50

0

PRODUCT / PROCESS INNOVATION AND ORGANISATIONAL / MARKETING INNOVATION

ORGANISATIONAL / MARKETING INNOVATION

PRODUCT / PROCESS INNOVATIONSource: Eurostat.Note: (% of all innovative enterprises)

CORE NON-FINANCIAL DRIVERSHuman capital Customer relations Society Environment Innovation Corporate governance

PRIMARY OBJECTIVE

Market value

VALUE CREATION FRAMEWORK

Source: ABIS, September 2009.

KEY METRICS– Employee engagement – Customer satisfaction – Public perception

– Supply chain management– Carbon emissions– Waste management– Lifecycle assessment

– Product / service development

– Ethical integrity– Board composition

ESG FACTORS– Absence rate – Staff turnover– Health & safety – Fair restructuring– Training – Performance management– Equality & diversity – Reputation– Commitment to customer– Talent recruitment & retention

– Customer loyalty – Retention– Reputation – Trust– Price, product, service quality

– Opinion former perception – Media coverage– Community investment – Stakeholder dialogue– Social impact– Legal / regulatory breaches– Inclusion

– Energy efficiency – Deployment of renewables– Waste reduction – Recycling– Environmental impacts– Environmental breaches

– New products and services– Value of patents– Customer perception – Talent recruitment & retention– Training– R&D expenditure

– Nos of non-exec/ independent directors– Equality & diversity– Training & development – Audit processes– Reporting & transparency– Reputation– Shareholder interests– Anticorruption policy/practice– Competitiveness

FINANCIAL DRIVERSIncreased sales Reduced costs Increased cashflow Brand value Risk management

Serge SchmidtManaging DirectorHalyps Building Materials S.A.

110

Innovation for a sustainable future

"Take a leap faster than decay"Odysseas ElytisGreek poet (1911-1996)Nobel Prize laureate in Literature (1979)

The above motto fully reflects the Halyps Building Materials S.A. and Italcementi Group strategic vision of cement business inspiration by operating with a focus on innovation. The cement history has deep roots in the past. In 1985, the oldest type of concrete was discovered in south Galilee: it was a building that dates back to 7,000 B.C., where cement had been used. Many other monuments discovered in Egypt, Roman Empire and Ancient Greece have used a type of concrete. All these years of research and innovation have led from the first type of cement used in the ancient times to the cement we use today.

The Italcementi Group is the fifth largest cement producer in the world. The Group companies combine the expertise, know-how and cultures of 21 countries on four continents, with an industrial network of 51 cement plants, ten grinding centers, seven terminals, 449 concrete batching units and with an overall staff of about 19,000 people. As an Italcementi Group subsidiary, Halyps Building Materials S.A., has been operating in the cement sector in Greece for more than twenty years, under the brand name "Halyps Cement".

The Italcementi Group is internationally recognised for its dedication to integrating innovation and sustainable development in its long-term strategic growth plans and objectives, ensuring innovative sustainable architectural, functional and technological performance. It is known that cement as a material is a mature one. Despite that fact, the Italcementi Group follows a sustainability development process, which respects the environment, global environmental issues, stakeholders and customer needs, adopting the principles of the UN Global Compact, while being aligned at the same time with ethical managerial objectives.

In 2012 the Italcementi Group inaugurated i.lab, Italcementi's new Research and Innovation Centre, designed by the American architect Richard Meier. i.lab, which is intended to be a benchmark for sustainable design in Europe, reflects Italcementi's commitment to eco-sustainable architecture and innovation. The new Research and Innovation Centre has been built using Italcementi innovative products, such as the photocatalytic cement TX Active¨ with selfÐcleaning and de-polluting properties, i.light¨ the "transparent cement", i.idro Drain¨ an innovative concrete formulation capable of draining water, and Effix Design¨, a mortar with impressive mechanical and aesthetic properties developed for creating non-structural cement elements.

As Mr. Carlo Pesenti Ð the Italcementi Group CEO - stated, "Innovation is Italcementi's strategic lever to create its own


competitive advantage. i.lab conveys two fundamental messages to its community. First, that innovation can respect the environment and an industry can be the driving force behind a change that is advantageous for everyone; for the economy, the environment and society. The second message is that the future of business belongs to those who have been able to cleverly combine industrial and economic development with a careful use of natural resources and a deep respect for human rights, work and life".

The Italcementi's Research and Innovation Center has been designed and built to conform to LEED standards. i.lab has been rated PLATINUM, the highest LEED rating for energy-efficient and environmentally sustainable buildings. The building complies with very strict energy efficiency requirements, which allow it to save up to 60% more than a traditional building of the same size and end-use destination. This has been achieved thanks to the special construction methods adopted, the materials used and the recourse to renewable energies, i.e. the installation of photovoltaic/solar thermal panels and the geothermal energy system.

Along with the LEED certification, i.lab has also been awarded with the Green Good Design Award from the Chicago Athenaeum and the European Centre for Architecture and the European Green Building Award from the European Commission as the best new building in Italy for energy efficiency in the "Best New Building" category Art Design and Urban Studies.

Despite the global economic turmoil, the Italcementi Group continues the path it has already mapped out and keeps investing in innovation and sustainability.

www.halyps.grwww.italcementigroup.com

Photos of i.lab: Mario Carrieri.

George KotsalosCEOINTERAMERICAN Group

112

Innovation at INTERAMERICAN:Sales applications in a digital environment

Against a turbulent economic background of long-term recession in Greece, which has considerably shaken the insurance market, INTERAMERICAN maintains a steady course with a decisive, creative strategy, resulting in new opportunities.

The company's enhanced organisational and administrative structures, its operational improvements based on e-service applications and a dynamic sales approach Ð harmoniously merging into a series of complementary multi-channel promotional products and services Ð are being reflected in improved technical results as well as policyholder service and satisfaction.

DIRECT SALES DRIVEN BY TECHNOLOGYA combination of positive thinking and action is the stand-out feature that has enabled INTERAMERICAN to pursue its policy of innovation. Indeed, innovation has been our leading driver and is presently articulated in the sales sector through the "anytimeonline" initiative. The Company has broken new ground in direct online sales which numerous competitors try to emulate, but, as with any innovation that keeps evolving, as is the case of "anytime", we have the distinction of being a step ahead of our imitators. It is not easy to copy a system backed by substantial investments, an integrated technological infrastructure underpinned by rigorous staff training in tune with a demanding public looking for online guidance and purchasing options. Surveys and public polling have awarded a comprehensive vote of confidence to "anytime" with a 90% satisfaction rating rising to 95% when asked whether the same public would be willing to recommend "anytime" to their friends.

Performance of "anytime" sales when combined with our other sales networks has significantly increased our fleet of insured vehicles that are currently exceeding 500,000.

What makes "anytime" unique in the marketplace is that it is truly comprehensive. "Anytime" is a fully integrated online insurance tool, enabling clients to issue their own policy, receive their proof of insurance and associated documentation via e-mail provided payments are made online using a credit card. The cooperation of our Sales & Marketing, IT, Auto Insurance and Legal & Financial Services Teams in this endeavour is exemplary. The result is unique in the Greek market and is considered a model among ACHMEA Group subsidiaries, such as INTERAMERICAN. "Anytime" is an outstanding example of departmental achievement when a common vision and goals are shared.


DIGITAL SALES MANAGEMENT - COMMUNICATION WITH CLIENTSINTERAMERICAN has recently introduced "askme", its pioneering e-mobile application for sales management, an illustration of outstanding alignment between our business and ICT usage. The application, based on the "back to front" rationale adopted by INTERAMERICAN, is a concept that regards back-end, resource-hungry operations and processes - such as issuing an insurance contract - as something to be completed or undertaken by the insurer or the client thus enabling the Company to maintain its focus on operational excellence.

Anytime, innovation in direct sales.

Yiannis Kanellopoulos, representative of the SIG Company,Xenophon Liapakis, CIO of INTERAMERICAN, and Fred Welmers,

senior project manager of INTERAMERICAN.

Whereas most mobile application contents are static with pages located to a given portal, the "askme" e-mobile application is dynamic with over 80 real-time transactions available. This enables a range of interactions, for example, noting and alerting payments to insurers or immediate recording of policies issued and updating of Company files.

By enabling insurers to use mobile technology, smartphone or tablet, by issuing and providing policy documentation in four minutes, the "askme" application empowers a strategic simplification and standardisation of the insurance process with benefits to clients and associates alike.

www.interamerican.gr

Nikitas KonstantellosCEOICAP Group

114

Innovation: Part of a company's core values

ICAP GROUP IS COMMITTED TO INNOVATIONICAP Group is truly committed to being innovative in two respects: on one hand, we strive for innovation in the way we conduct business and, on the other, we make systematic efforts to provide innovative solutions. Innovation is a key part of the Group's vision and corresponds to one of our five corporate values. Our vision is to be the most successful Business Services Group and our clients' first choice through innovative solutions and diversification; towards this goal, we have incorporated the encouragement of new ideas and the undertaking of initiatives to prompt calculated risks, and welcome whatever is new.

For the last six years and within the framework of our annual Business Plans preparation, each Business Unit is requested to present at least two new products, services or initiatives and this practice has yielded exceptional results so far.

INNOVATION: CHALLENGING TO DEFINE IN A B2B SERVICES GROUP In our opinion, innovation is the development and application of ideas that improve the way we do things and what we achieve; Innovation is anything out of the ordinary "business as usual" that has the potential to produce changes in areas such as the company itself, environment, society, technology, education and community welfare. In a more strict business sense, innovation focuses on creating positive outcomes from new products, services, operational and managerial processes, markets and organisations. It is as fundamental in growing and improving business as it is in making changes that will improve its efficiency, profitability and, ultimately, its viability. Innovation does not have to be totally new or revolutionary; it may be a small, but incremental improvement that results in a positive outcome. We try to instill in our employees that business competitiveness and survival is directly linked to our ability to innovate.

RECENT INNOVATIVE PROJECTS, SERVICES AND INITIATIVES ICAP Group, incorporates innovation both in the way it conducts business and in designing and launching new services and partnerships to the Greek market. Indicatively and referring solely to the last year and a half, I am proud to mention one internal project, one re-launch, one new cooperation and one unique initiative.

To start with, allow me to refer to the completion of a major migration to new, more open and scalable platforms of all systems and applications supporting Business Information Services that produce ICAP's trademark Business Reports, Credit Ratings as well as a number of other tools that increase transparency and reduce transaction risks. ICAP Group has been at the forefront of


technology in business information and the migration project was the final stage of a complex reengineering project which delivered more effective handling for 2.1 million companies data and 1.3 million customer requests annually. By implementing the new platforms, systems performance has improved, customer service time has been reduced by 80% and, this, in turn, permits implementing further strategic improvements in updating and enhancing information.

As far as services' enrichment is concerned, I would like to mention the Findbiz Online Directory which is currently preparing to be relaunched with data for more than 400,000 companies in Greece, Romania, Bulgaria and Serbia and innovative functionalities which make search over the Internet a quick and safe process. The Findbiz database is a perfect example of transformation in core business as ICAP has been traditionally known for its printed Business Directories. Furthermore, our recent strategic partnership with the U.S.-based COUPA is also an innovation as it allows us to offer e-procurement services through cloud technologies for the optimisation of costs and processes. Last but not least, in an era of quick changes and default rise, ICAP Group's unique TRADE Programme (with consolidated transaction data for more than 85,000 companies) enhances the knowledge about a company's transactional behavior and credit exposure and is emerging as one of the most helpful tools towards the direction of improving cash flow.

These are only some indicative examples showing that ICAP is committed to innovation as part of its core values and this commitment is interwoven with every aspect of our day to day business operation.

www.icap.gr

116

Researching innovation in Greece

Odysseus was one of the Greek kings who went to Troy and came back a hero. He was renowned for his brilliance, guile, and versatility; hence, he was named Odysseus the Cunning. The Trojan horse was the proof of the unique temperament and quick thinking of a Greek leader. He was not the only one. Innovative spirit and prototypical achievements were quite common during the Greek ancient times, as the Greeks laid the foundations for many modern accomplishments apart from their war tactics.

Centuries later, the Greeks, who are now facing financial and social difficulties, seem to share the same spirit of innovation, a spirit that is now more than ever needed. In enterprises, regardless of the size and despite the difficulties, innovative thinking prevails and companies follow the development path that guides them through the crisis and offers new global perspectives.

For the first time in Greece, EuroCharity in collaboration with ICAP Group showcases the modern innovative entrepreneurial spirit through the findings of a survey conducted for this cause. The definition of innovation as used for this survey is: innovation is something that can be developed and applied for the first time in its sector and can be reproduced for the common benefit, while offering financial, social and environmental benefits. Companies that took part in the survey come from different sectors of the economy such as: real estate, mutual funds, insurance, industry, public and private education, trade, energy-water, restaurants-entertainment, medical services, movie and music production, information technology, holdings, construction, telecommunications, tourism, banking, transport services, business services and overland transport.

A survey conducted byEuroCharity in collaborationwith ICAP Group

NO62%

YES34%

EXPECTED4%


Almost one out of three companies have produced innovative patents, while there is a 62% of companies that still have not patented their innovative products or services.

Technology is the sector that attracts most of the innovative endevours (42.9%), while the agricultural sector lies at the lowest level.

Based on the definition of innovation given, 16% of the participants seem to have developed innovative strategies in their respective companies.

We note that the difficult financial circumstances do not permit funding from public programmes. For this reason, companies depend on private initiatives (66%) that are willing to fund innovation endeavours.

Notwithstanding the importance of innovation, 17.2% of the participant companies report that despite their achievements they have not received any award or recognition. However, 20.8% of them have received more than five distinctions, 42% of these awards being at the local level, 25% at the European and 22% at the international level.

ACCORDING TO THE GIVEN DEFINITION, HAS YOUR COMPANY DEVELOPED ANY INNOVATE PRODUCTS/STRATEGIES

HOW HAVE YOUR INNOVATIVE PRODUCTS/SERVICES BEEN FUNDED?

HAVE YOUR INNOVATIVE PRODUCTS/SERVICESRECEIVED ANY AWARDS/RECOGNITIONS?

AT WHICH LEVEL HAVE YOU RECEIVED AN AWARD/SOME RECOGNITION?

INNOVATIVE ACTIONS IN ONE OR MORE OFTHE FOLLOWING SECTORS

HAVE YOU PATENTED YOUR INNOVATEPRODUCTS/SERVICES?

NO84%

PRIVATEINITIATIVE

66%

PUBLICPROGRAMME/INITIATIVE

17%

EUROPEANPROGRAMME

17%

YES16%

17.9%

ENER

GY

TECH

NOLO

GY

HEAL

TH

TRAI

NING

AGRI

CULT

URE

COMM

UNIC

ATIO

NS

OTHE

R

42.9%

12.5%17.9%

10.7%

23.2%30.4%

17.2%

15.1%

17.0%

20.8%

0.0%MORE THAN 10

MORE THAN 5

TWO

ONE

NONE

INTERNATIONAL 22%

EUROPEAN 25%

ALL OF THE ABOVE 11%

GREEK 42%

With regard to financial performance, innovation has a positive effect on the company's revenues, since 40% of the participants report a rise up to +10% and 20% more than +20%. As far as profitability is concerned, 31.5% of the participants report a rise up to +10%, while 38.9% none.

From the innovative products or services that were mentioned, the majority has an impact on society (77.8%). These innovative products or services also have a positive impact on the economy (70.4%) and a lesser one on the environment (55.6%).

Most of the companies do not have a designated innovation department (54.7%), while 13.2% of companies have an innovation department, an innovation manager and an R&D department.

The R&D department seems to be the first source of innovation in a company (31%). According to 24% of the participants, innovation was a top management idea and only 5% affirms that innovation was generated by the innovation department.

As far as promotional activities are concerned, companies prefer to communicate their innovation endeavours via events and conferences (60%) and 56.4% as they would do for all other products, services or actions. Social media is also an innovative way to promote and communicate innovation according to 40% of the survey respondents.

YOUR INNOVATIVE PRODUCTS/SERVICESMOSTLY HAVE AN IMPACT ON:

WHERE DID THE INNOVATIVE PRODUCTS/SERVICES COME FROM? HOW DO YOU PROMOTE YOUR INNOVATIVEPRODUCTS/SERVICES?

WHAT WAS THE EFFECT OF THE INNOVATIVE PRODUCTS/SERVICES TO YOUR REVENUES?

WHAT WAS THE EFFECT OF YOUR INNOVATE PRODUCTS/SERVICES TO PROFITS?

38.9%

NONE UP TO +10% FROM +10%TO 20%

MORE THAN+20%

31.5%

16.7% 13.0%

23.6%

NONE UP TO +10% FROM +10%TO 20%

MORE THAN+20%

40.0%

16.4%20.0%

SOCIETY ENVIRONMENT ECONOMY

55.6%

77.8% 70.4%

DO YOU HAVE AN INNOVATION DEPARTMENT?

13.2%

3.89%

15.1%

13.2%

54.7%WE HAVE NO DEDICATED DEPARTMENT

WE ONLY HAVE AN INNOVATION MANAGER

WE HAVE AN INNOVATION DEPARTMENT

WE HAVE ALL THREE

WE ONLY HAVE A R&D DEPARTMENT

THROUGHSOCIALMEDIA

40.0%

VIA EVENTS/CONFERENCES

SPEECHES

60.0%

OTHER

18.2%

THROUGHAWARDS &

RECOGNITIONS

23.6%

AS ALL THE OTHER PRODUCTS/

SERVICES/ACTIONS

56.4%

GENERATEDFROM THE R&D

31%

WAS A TOPMANAGEMENT

IDEA 24%

GENERATED FROM THE INNOVATION

DEPARTMENT5%

GENERATEDFROM AN

EMPLOYEE 13%

OTHER 27%


"Innovation constitutes a key driver for Greek entrepreneurship and it is highly linked

with sustainability. We need to innovate to get back on the growth path inaugurating

an era of sustainable industrialisation. Through this survey, we have recorded current

and future innovative endeavours in traditional as well as new industries that will

generate new jobs and help the economy recover faster. On the other hand, we have

witnessed obstacles in receiving funding for developing innovative products and

services and inexperience in patenting, communicating and disseminating innovation

to the appropriate stakeholders. Surprisingly enough, innovation turns out to be hard

to measure, however, evidence from sustainability performance makes innovation

the primary driver of economic growth. Therefore, public policy and actions that

foster and promote innovation and sustainable investments are imperative. While

responsible leaders restore financial, social and environmental stability, companies

and organisations can become holistically sustainable through innovative thinking

across the triple bottom line."

"The findings of the Survey are quite encouraging and show the commitment of

Greek enterprises to innovation. The Greeks are known for their inspiration and

originality of thinking. Unfortunately, the negative environment of the last four years

has prevented development and entrepreneurial action in Greece. Nevertheless,

justified optimism begins to be evident in many places thanks to the stabilisation of the

Greek economy. The findings of this survey are quite compatible with those of another

Study on Investments, conducted recently by ICAP Group on behalf of the Ministry of

Development and with the support of the Hellenic Federation of Enterprises (SEV) and

the Association of Chief Executive Officers (ACEO). This Survey shows an increase of

25% in companies that are planning investments for 2013 Ð compared to 2011 and

2012. It should be noted though that these plans are contingent upon securing the

required financing from banks and from EU subsidised programmes. In my opinion,

it is safe to predict that innovative practices will be strengthened if the State takes on

initiatives to support enterprises. Time for development has arrived and growth will,

to a large extent, be triggered by innovation."

Michael Spanos, Managing Partner of EuroCharity Nikitas Konstantellos, CEO of ICAP Group

120

New trends, forward-looking attitudes andinnovative solutions to grow the economyand enable society to move ahead

In today's banking world, the use of new technologies, including IT and cutting-edge delivery channels, is a crucial differentiating factor and field of competition among banks, with immediate economic, social and environmental impact.

Guided by its vision and strategy and fully aware of its role and responsibilities, NBG continues to face the challenges of the times and undertake initiatives that underscore its contribution to the effort to grow the economy and enable society to move ahead.

ONGOING LONG-TERM INVESTMENT IN TECHNOLOGY FOR THE BENEFIT OF THE CUSTOMER

NBG has shown, over time, its commitment to offering innovative solutions and services, by investing in new technologies and technical facilities, so as to ensure that its customers only get the best. Indeed, in the past, the adoption of computer technology by NBG served as the springboard for the wider introduction of IT in the country.

In 1954, NBG launched its first IBM-manufactured computing unit, while in 1969 the first large-scale IBM mainframe to be installed in Greece was set up in the Bank's facilities. A few years later, in 1973, NBG was in the technological vanguard yet again, when it launched its on-line real-time transactions system that was rapidly deployed across the organisation's units and branches.

Today, National Bank of Greece continues to undertake initiatives that demonstrate its cutting-edge profile, as it invests in the design and deployment of pioneering solutions, the use of the latest technologies, the dissemination of digital knowledge, and support for creative ideas.

In this context, NBG has launched its i-bank services, the umbrella for all its electronic/alternative delivery channels for its customers.

NBG's i-bank services enable customers to carry out their daily banking tasks securely, conveniently and quickly via internet, phone and mobile banking, ATMs and APS terminals.

i-BANK STORE:A UNIQUE EXAMPLE OF TECHNOLOGICAL, ARCHITECTURAL AND ECOLOGICAL INNOVATION

In early 2011, NBG set up the first i-bank store in Greece, at The Mall Athens. This is a pioneering concept store, never seen before in Greece, combining in a thoroughly new way state-of-the-art architectural design with new technologies and banking services flanked by elegant learning and entertainment facilities.

The i-bank store gives online banking services physical form via a uniquely innovative platform, which breaks the mould of banking on both the Greek and global fronts.


The i-bank store combines a number of features, such as a sleek architectural design, digital applications (including touch screens and interactive displays), and the opportunity to attend events held in the specially designed auditorium. This range of features packed into such a small space is unique, and has even received international recognition as an exciting case study by organisations, leading industry journals and electronic press, covering innovation in banking services.

The i-bank store merges within a single venue all the benefits of i-bank services, such as speed, comfort, security and environmental awareness, along with first-class service, know-how and entertainment facilities. It is aimed at anyone interested in treating themselves to a new banking experience.

In 2012, the i-bank store received awards and recognition for its design and innovative approach to the provision of banking services. For example, it received the first prize in the "Interior Space and Exhibition Design"category of the "A‹ Design Award & Competition 2011-2012", as well as the "Combining Digital and Physical Channels" award as part of the "e-volution awards 2013".

With the assistance of our expert staff, visitors to the i-bank stores can: – access i-bank services (internet, phone, mobile banking,

ATMs, APS), – have fun in the interactive room using the augmented

reality applications, – play mind games, – attend various presentations, workshops on technology

and talks in the specially designed auditorium, – surf on the internet via Wi-Fi, whether from a laptop or

mobile phone, and – join the i-bank store club and thereby enjoy a range of

benefits and take part in lucky draws with exciting prizes.

The i-bank corner is an extension of the i-bank store experience and offers visitors an equally unique state-of-the-art banking experience.

Today, two i-bank stores and two i-bank corners are in operation in Athens and Thessaloniki.

In the short time since the first two i-bank stores and the first one i-bank corner in Athens and Thessaloniki opened:– the Bank had more than 880,000 visitors, who

carried out over 550,000 transactions at ATMs.– 15,000 people became members of the

i-bank store club (55% aged 18-34)– the promotion campaign succeeded

in attracting over 110,000 visits in YouTube, while there have been thousands of visitors on the i-bank store webpage (www.nbg.gr/ibankstore)

– dozens of events and learning seminars have been held in the specially designed spaces of the i-bank stores.

"i-BANK INNOVATION & TECHNOLOGY"COMPETITION: IN SEARCH OF IDEAS AND SOLUTIONS FOR THE BENEFIT OF SOCIETY

Through its i-bank services, NBG has undertaken a number of initiatives aimed at enhancing the technology and growth model of the country, encouraging the participation of everyone and, above all, of young people, in search of innovative, realistic and implementable ideas that can benefit society as a whole.

Accordingly, over the past three years NBG has been running its "i-bank Innovation & Technology competition", which is held each year and aimed primarily at young people with a view to highlighting and rewarding creativity, imagination, vision and fresh ideas, while also fostering a culture of innovation for the entire country.

By running this competition, NBG contributes to young entrepreneurship and enables those wishing to carry out business in the high-tech and innovation sectors to showcase and promote their skills, express their creativity, their need to pursue new ways of thinking and implementing complex business plans.

The proposals submitted have to belong in one of the following three categories:– E-business– Environment & technology– Culture & technology

Evaluation of the proposals is carried out by expert staff of the Bank in collaboration with seven universities.

During the first two years this competition has been held, it attracted 1,100 participants who submitted 700 proposals. The best ideas received awards and some of them have already been launched in the market, with notable success.


Indeed, following the successful conclusion of the second competition, NBG took a further step by deciding to choose and support, each year, the implementation of the best and most innovative ideas, regardless of whether they received a prize or not, the basic criterion being the entrepreneurial interest that the specific idea might present. Accordingly, the Bank participates actively in the realisation of the innovation proposal by providing private equity, as well as know-how and advisory support.

The submission of proposals to the third "i-bank Innovation & Technology competition" was also completed successfully in 2012 and they are currently being evaluated by the competition judges so that the winners are selected.

A good example of an innovative idea that has already been successfully launched into the market is the pioneering 4ECO2 energy saving device invented by Thanassis Kostas and Georgia Filippaiou, which secures fuel savings of around 9-10% in home and industrial burners.This proposal has already been adopted by a number of large Greek industries, as well as in NBG's building at Stadiou street, in central Athens, where heating oil consumption has

been reduced by 1,200 litres per year.

By taking initiatives and actions such as these, but above all, with its business vision focused on the continuous enhancement of its services and a strategy designed to meet the needs and demands of the times, while also responding as effectively as possible to the concerns of its stakeholders, NBG stands in the vanguard of developments. Itself an innovative organisation, NBG affirms its commitment to remain, within the current challenging environment, the catalyst for developments both as regards redrawing the banking map in Greece and regarding the endeavour to regenerate the country's economy and enable Greek society to move forward.

www.nbg.gr

A total of 554 individuals have taken part in the third "i-bank Innovation & Technology competition", with the submission of 354 individual or team proposals.Altogether, 213 proposals were submitted in the E-business category, 92 in the Environment & Technology category and 49 in the Culture & Technology category. 15% of those who had participated in the previous competitions submitted new proposals in the third competition.

LIEC

HTEN

STEI

N

NORW

AY

SWITZ

ERLA

ND

124

VENTURE CAPITAL INVESTMENTS

EU (2

7 cou

ntrie

s)

EU (1

5 cou

ntrie

s)

BELG

IUM

BULG

ARIA

CZEC

H RE

PUBL

IC

DENM

ARK

GERM

ANY

ESTO

NIA

IREL

AND

GREE

CE

ITALY

LITH

UANI

A

NETH

ERLA

NDS

ROMA

NIA

UNITE

D KI

NGDO

M

FORM

ER Y

UGOS

L

FINL

AND

MONT

ENEG

RO

SPAI

N

LUXE

MBOU

RG

AUST

RIA

SLOV

ENIA

ICEL

AND

TURK

EY

SWED

EN

CROA

TIA

FRAN

CE

LATV

IA

MALT

A

PORT

UGAL

SLOV

AKIA

CYPR

US

HUNG

ARY

POLA

ND

0.2

0.175

0.225

0.05

0.025

0.075

0.15

0.1

0.125

0

2011Source: Eurostat, April 2013.

Note: Venture capital investment (VCI) is a subset of a private equity raised forinvestment in companies not quoted on stock market and developing new products and technologies. It is used to fund an early-stage (seed and start-up) or expansion of venture (later stage venture). NB : GDP = Gross domestic product at market prices.124

FACTS & STATS

GEO

TOTAL R&D EXPENDITURE

LEGEND

N / A2.75 - 3.78

1.33 - 1.84

1.84 - 2.75

0.73 - 1.330.48 - 0.73

Minimum value: 0.48 - Maximum value: 3.78Note: % of GDP, 2011

Source: Eurostat.

Michael TsamazChairman of the Board and CEOOTE Group

126

Innovative initiatives withsocial commitment

"These are very challenging and defining times for Greece, requiring from all of us great resilience, a shared purpose and commitment to a sustainable future. As one of the largest organisations in Greece and South-East Europe, OTE Group, showing endurance and vision, is setting and meeting high standards for all its operations aiming to return to society a share of its success, along with covering tangible needs. 2012 has been a year of significant achievement and shows that the OTE Group seriously regards business success and social responsibilities as inseparable. In 2013 and in the years ahead, we will be challenged and tested yet again. Equal is our certainty that we will not falter in our path towards sustainable growth."


INNOVATION AND COMMITMENT IN CORPORATE RESPONSIBILITY

ΟΤΕ and COSMOTE have always considered themselves, to be responsible corporate citizens and as such they have a long tradition in supporting the communities in which they operate. ΟΤΕ and COSMOTE believe that the development of companies should be in step with the prosperity and the quality of life of residents of the local communities, and the countries where the companies have a presence.

To this end, OTE and COSMOTE's support to society is not limited to simply providing financial support, but extends to implementing innovative projects that are designed to enhance the value of resources by generating indirect social benefits over a wider time span. The innovative programmes OTE and COSMOTE have implemented and are committed to continuing supporting are focused on:

a) Children (through supporting Non-Governmental Organisations for children),b) Students (through the OTE Ð COSMOTE Scholarship programme), andc) The scientific community (through the OTE and COSMOTE joint research programmes and the operation of accredited

laboratories).

SUPPORTING CHILDREN AND NGOS

For the last 14 years, ΟΤΕ and COSMOTE have supported more than 35 NGOs that work to improve the living conditions of children in all regions in Greece by providing funds totalling over EUR 5 million. These funds have been collected by allocating a percentage of revenues gained from OTE clients' telephone-calls, and COSMOTE clients' New Year's Day SMS and MMS messages.

The total sum collected in 2013 amounted to EUR 550,000, and was awarded to 22 NGOs during a special ceremony called "Day of Love - Day of Inspiration", which was held on March 27, 2013. With our help, 2,000 volunteers from these NGOs have worked hard and effectively to improve the living conditions of more than 10,000 children.

OTE offered its support to the following NGOs this year:– "Together for Children" (an association made up of ten

charitable organisations)– "MDA Hellas" (an association for the care of people with

Muscular Dystrophy diseases) and– "The Smile of the Child" Association

COSMOTE supported:– "Anoixti Agalia" NGO Friends of Social Pediatrics– "Cerebral Palsy Greece"– "EL.E.P.A.P" (The Hellenic Society for the Protection and

Rehabilitation of Disabled Children)– "FLOGA" (The Association of Parents of Children with Cancer)– "SKEP" (The Association of Social Responsibility for Children

and Youngsters)– "Lamia" (An Orphanage for Girls)– "ELPIDA" (The Dodecanese Association of Parents and

Guardians of People with Disabilities)– "Child's Heart" (The Hellenic Association for the Protection of

Information and Assistance of Children with Heart Disease).

In addition, this year instead of distributing Christmas corporate gifts and printed cards, OTE donated the equivalent amount to the "EPSYPE" Association for the Psychosocial Health of Children and Adolescents and to "SOS Childrens' Villages Greece", and COSMOTE to the "Pigi Zois" (Source of Life) Association of Parents, Children & Patients with Thalassemia, in Thessaloniki.


THE OTE-COSMOTE SCHOLARSHIP PROGRAMME

The OTE-COSMOTE's Scholarship programme offers scholarships to first-year university students who come from low income and/or special needs families, and study at universities away from their hometown. Its aim is to provide financial assistance to students who might face severe difficulties in covering the cost of relocating to a different city because of their studies, difficulties that might affect the commencement of their studies. Since 2002, when the Scholarship programme was established, 126 Scholarships, and 257 Honorary Distinctions have been awarded, that amount to more than EUR 2 million in total.

For the academic year 2012-2013, 46 first-year university students from numerous regions of Greece received EUR 345,328 in financial aid that cover a substantial part of the cost of their studies. Among them, 20 students received scholarships, worth EUR 15,280 each, and come from from the prefectures of Argolida, Arkadia, Arta, Attica, Cyclades, Euboea, Evritania, Fthiotida, Imathia, Kavala, Magnesia, Rethymno, Samos, Serres, Thesprotia, Thessaloniki and Zakynthos (Zante). In addition, 26 students received Honorary Distinctions, worth EUR 1,528 each. These students come from the same regions and have extraordinary curricular and extracurricular performance.

130

and socially useful way by using high quality video-to-video over the Internet. Video-to-video can be used to save patients' lives, improve city administration, reduce fuel costs, reduce carbon footprint, enhance education and improve city experiences for tourists and cultural consumers. A wire line and 4G wireless network of cities is established so that each user in any of the cities can experience live interactive high definition video-to-video. LiveCity will pilot these live high quality video-to-video applications in order to evaluate social utility and demonstrate value to city dwellers.

COSMOTE PARTICIPATES IN THE ECOGEMRESEARCH PROJECTThe aim of the ECOGEM research project is to design and develop an advanced driver assistance system for FEV, providing more energy efficient and environmentally friendly routes as well as information on autonomy and recharging points/stations. In the framework of the ECOGEM project, COSMOTE is responsible for defining the technical specifications for the secure and efficient communication of vehicles with the central system platform, and also for making this information available among them. The company also significantly contributes to the dissemination and commercialisation actions of the project results. The highly-innovative ADAS system on which the project focuses, offers real-time monitoring and information management capabilities while on the move in order to recommend to the driver the most energy efficient and environmentally friendly route possible, as well as to inform the driver about the FEV's autonomy and the nearest recharging points/stations.

OPERATION OF ACCREDITED STANDARDS LABORATORIES

ACCREDITATION OF COSMOTE'S ENVIRONMENTAL ELECTROMAGNETIC FIELDSMEASUREMENTS LABORATORY IN ACCORDANCE WITH ISO 17025 COSMOTE's Environmental Electromagnetic Fields Measurements Laboratory is staffed by scientists with specialised graduate degrees and provides services in measuring electromagnetic radiation in the 75MHz-3GHz frequency range, and in different environments: mobile telephony,

The awards were given at a special ceremony at the OTE headquarters in Marousi, Greece, by the Chairman and CEO of OTE Group, Mr. Michael Tsamaz, and Professor Athanassios Kyriazis, Secretary General of the Ministry of Education & Religious Affairs, Culture and Sports.

In addition to the monetary awards, the Scholarship and Distinction Recipients for the 2012-2013 academic year were also given a free Conn-x connection, mobile COSMOTE phones without monthly fees for the duration of their studies, and free OTE TV services for a year. Moreover, the Scholarship recipients were given tablets.

For the 11th consecutive year, OTE and COSMOTE continue to actively support young people's career goals, allowing them to access the future they have dreamt of!

OTE'S AND COSMOTE'S PARTICIPATION IN RESEARCH PROGRAMMES

OTE PARTICIPATES IN THE LIVECITYEC RESEARCH PROGRAMLiveCity is a technology integration trial, co-financed by the European Commission, which offers advanced IT services to approximately 2,750 users in five European cities. The participating cities are Dublin, Athens, Luxembourg, Greifswald and Valladolid. The aim of LiveCity is to empower the citizens of a city to interact with each other in a more productive, efficient


radio, television, other wireless telecommunications (e.g. VHF, TETRA), Wi-Fi and radar. Measurements are carried out in accordance with ELOT ΕΝ 61566:1999, ELOT 1422-3:2007 and CEPT ECC/REC/(02) 04 standards. Recently, the Laboratory has been awarded full accreditation in accordance with ELOT ISO EN/IEC 17025:2005 by the Hellenic Accreditation System S.A. (ESYD). The accreditation certifies that the measurements conducted by the Laboratory are performed in accordance with the proper procedures and ensures the objectivity of the measurement results.

ACCREDITATION OF OTE'S ELECTROMAGNETIC FIELDS MEASUREMENTS LABORATORY IN ACCORDANCE WITH ISO 17025 OTE's Laboratory for the Measurement of Electromagnetic Radiation provides services for the measurement of electromagnetic fields radiated by wireless communications in accordance with national and international standards to assure correct operation and compliance with the maximum levels of permissible public exposure to electromagnetic fields. The Laboratory is accredited in accordance with ELOT EN ISO/IEC 17025:2005 by the Hellenic Accreditation System S.A. (ESYD) as well as in accordance with ELOT EN ISO 9001:2008 for the quality of the services it provides.

www.ote.grwww.cosmote.gr

Vassilios KatsosPresident and CEOPharmathen

132

Integrated pharmaceutical solutions

Pharmathen, is located in Athens, Greece, and it was founded in 1969 as a private pharmaceutical company. The company focuses on developing and marketing health care products, with a strong focus on generics. Today, the company is one of the fastest growing pharmaceutical companies in Europe with a global reach, as 75% of its turnover is generated from exports. Its 850 employees are involved in R&D, manufacturing, quality assurance, regulatory affairs, sales and marketing of pharmaceuticals. With a long history of development and manufacturing of generic products, Pharmathen, has emerged as one of the largest generic development companies in Europe with an attractive portfolio of pharmaceutical products. Pharmathen, currently has a development pipeline of more than ten generic molecules every year, supported by three advanced laboratories and with more than 160 research and development personnel. Pharmathen, is investing more than EUR 20 million annually in R&D having more than 60 patents in its portfolio, whereas another seven patent applications will be granted or submitted within the year. As a result, Pharmathen, has become one of the most important European developers; while according to the EC "EU R&D Industrial Scoreboard 2012" report, Pharmathen, is ranked in the 42th position among 4,500 pharmaceutical companies based in the EU.

Today, the in-house development products of Pharmathen, are registered in all major EU markets and licensed out to the largest pharmaceutical companies in Europe, Canada, Australia, South Africa and the U.S. Our competitive edge is

characterised by cost efficient development and production, creative marketing and added value customer service. Pharmathen, through strategic partnerships, has expanded its international activities and exports to over 85 countries with more than 5,500 Marketing Authorisations worldwide, creating strong partnerships with all major companies. In addition, Pharmathen, is able to provide a complete backwardly integrated service to its clients, from the synthesis of the active pharmaceutical ingredient API, to the formulation and finally to the production and marketing of the finished product. The company has also made its dynamic entrance into the field of innovative products during the last couple of years.

Recently, Pharmathen, also officially opened its second manufacturing facility at Sapes, in Northern Greece. Pharmathen's new manufacturing unit, an investment totaling EUR 41 million, is one of the most technologically advanced drug producing units in Europe, and it has already become the manufacturing backbone of the company, thus increasing Pharmathen's overall capabilities. The need for this investment became necessary due to the international expansion of Pharmathen, as about 90% of its production is destined for the international markets. The new unit was designed and constructed to comply with the strictest drug production standards internationally. It has been already approved by the European Authorities and it is expected soon to be also approved by the FDA and the ANVISA. Furthermore, in keeping with our strategy for continued


growth we are already implementing our EUR 120 million investment plan for the period 2010-2015 which focuses on reinforcing our R&D operations, but also our forward integration through participations/acquisitions of commercial companies in Greece and abroad.

Finally, during the last few years, due to its impressive growth rates and its overall operational success, Pharmathen, has become the recipient of important distinctions and awards. During the last two years alone, Pharmathen, has received the following awards: Best Workplaces 2011, 2012 and 2013 by the Great Place to Work Institute; Research and Innovation

2011 by the Athens Chamber of Commerce & Industry; True Leaders 2011 and 2012 by ICAP; Ruban d'Honneur 2011 of the European Business Awards for the HSBC Import/Export Award; 1st Exporting Industry Award/Export Awards by Ethos Media and Ruban d'Honneur 2012/13 for "The international growth strategy of the year Award" by the EBA. Furthermore, the company is also consistently ranked among the 50 largest and most profitable companies in Greece (according to ICAP and Stat Bank), among the largest exporting companies in Greece (according to Stat Bank, and Hellenic Statistical Authority) and among the top 500 largest EU based, R&D companies (according to the EU Commission).

This success would not have been possible without the support and contribution of our employees, shareholders, business partners and suppliers, and all those who have always believed Ðand still do so todayÐ that a Greek business Group has all the qualities that enable it to distinguish itself in the domestic and international markets. In particular, the dedication and passion of our employees and the creation of a working environment based on the values of mutual respect, justice and comradeship, have played a key role in our overall successful course so far.

www.pharmathen.gr

WORLD LEADERS IN INNOVATION

FACTS & STATS

Sour

ce: 2

012

Thom

son

Reu

ters

Top

100

Glo

bal I

nnov

ator

s -

Hon

orin

g th

e w

orld

lead

ers

in in

nova

tion,

201

2.

COMPANY COUNTRY INDUSTRY

3M Company USA Chemical

Advanced Micro Devices USA Semiconductor & Electronic Components

Alcatel-Lucent France Telecommunication & Equipment

Altera* USA Semiconductor & Electronic Components

Analog Devices USA Semiconductor & Electronic Components

Apple USA Telecommunication & Equipment

Arkema France Chemical

AT&T* USA Telecommunication & Equipment

Avaya USA Telecommunication & Equipment

Boeing USA Aerospace

Brother Industries Japan Computer Hardware

Canon Japan Computer Hardware

Chevron USA Chemical

CNRS, The French National Centerfor Scientific Research

France Scientific Research

Commissariat ˆ l'Energie Atomique France Scientific Research

Corning USA Semiconductor & Electronic Components

Delphi* USA Automotive

Denso Corporation Japan Transportation Equipment

Dow Chemical Company USA Chemical

DuPont USA Chemical

Eaton Corporation USA Electrical Products

EMC Corporation* USA Computer Hardware

Emerson USA Machinery

Ericsson Sweden Telecommunication & Equipment

European Aeronautic Defenceand Space Company

France Aerospace

Exxon Mobil USA Petroleum

FANUC Japan Electrical Products

Ford* USA Automotive

FUJIFILM* Japan Machinery

Fujitsu Japan Computer Hardware

General Electric USA Consumer Products

Goodyear Tire & Rubber USA Industrial

Google* USA Media/ Internet Search & Navigation Systems


3M Procter & Gamble USA Consumer Products

Qualcomm USA Semiconductor & Electronic Components

Raytheon USA Transportation Equipment

Renault* France Automotive

Ricoh* Japan Computer Hardware

Roche Switzerland Pharmaceuticals

Rockwell Automation USA Electrical Products

Saint-Gobain France Industrial

Samsung Electronics S. Korea Semiconductor & Electronic Components

SanDisk USA Semiconductor & Electronic Components

Sandvik Sweden Machinery

Scania Sweden Transportation Equipment

Seagate* USA Computer Hardware

Seiko Epson Japan Computer Hardware

Sharp Japan Semiconductor & Electronic Components

Shin-Etsu Chemical Japan Chemical

Siemens Germany Electrical Products

Snecma France Transportation Equipment

Solvay Belgium Chemical

Sony Japan Consumer Products

STMicroelectronics* Switzerland Semiconductor & Electronic Components

Symantec USA Computer Software

TDK* Japan Semiconductor & Electronic Components

TE Connectivity Switzerland Semiconductor & Electronic Components

Texas Instruments* USA Semiconductor & Electronic Components

Thales* France Transportation Equipment

Toshiba Japan Computer Hardware

Toyota Motor Corporation Japan Automotive

U.S. Department of the Army* USA U.S. Federal Government Agencies

U.S. Department of the Navy* USA U.S. Federal Government Agencies

United Technologies USA Transportation Equipment

Valeo* France Automotive

Xerox USA Computer Hardware

Xilinx* USA Semiconductor & Electronic Components


Hewlett-Packard USA Computer Hardware

Hitachi Japan Computer Hardware

Honda Motor Company Japan Automotive

Honeywell International USA Electrical Products

IBM USA Computer Hardware

IFP Energies Nouvelles France Scientific Research

Intel USA Semiconductor & Electronic Components

Jatco* Japan Automotive

John Deere* USA Machinery

Korea Advanced Institute of Sci-ence and Technology*

S. Korea Colleges & Universities

Korea Electronics Technology Institute* S. Korea Scientific Research

Korea Research Institute of Chemical Technology*

S. Korea Scientific Research

LG Electronics S. Korea Consumer Products

Lockheed Martin* USA Transportation Equipment

L'Oréal France Consumer Products

LSI Corporation USA Semiconductor & Electronic Components

LSIS S. Korea Semiconductor & Electronic Components

Marvell* USA Semiconductor & Electronic Components

Michelin France Industrial

Micron USA Semiconductor & Electronic Components

Microsoft USA Computer Software

Mitsubishi Electric Japan Machinery

Mitsubishi Heavy Industries* Japan Machinery

Monsanto* USA Agriculture & Forestry

Motorola USA Telecommunication & Equipment

NEC Japan Computer Hardware

Nike* USA Consumer Products

Nippon Steel & Sumitomo Metal* Japan Primary Metals

Nitto Denko Japan Chemical

NTT Japan Telecommunication & Equipment

Olympus Japan Healthcare Products

Panasonic Japan Consumer Products

Pohang University of Science & Technology* S. Korea Colleges & Universities

GEOGRAPHIC DISTRIBUTION OF 2012 TOP 100 GLOBAL INNOVATORS

Source: 2012 Thomson Reuters Top 100 Global Innovators - Honoring the world leaders in innovation, 2012.

JAPAN

SWITZERLAND

SOUTH KOREA

GERMANY

U.S.

SWEDEN

FRANCE

BELGIUM

Never before in history has innovation offered promise ofso much to so many in so short a time.

WILLIAM HENRY "BILL" GATES IIIAmerican business magnate, investor, programmer, inventor, philanthropist,former CEO and current Chairman of Microsoft, the world's largestpersonal-computer software company (1955 - )

If you can dream it, you can do it.

WALTER ELIAS "WALT" DISNEYFilm producer, director, screenwriter, voice actor, animator, entrepreneur, entertainer, international icon,philanthropist, Co-Founder of Walt Disney Productions (now the Walt Disney Company),one of the best-known motion picture producers in the world (1901 - 1966)

If you do not know where you are going, every road will get you nowhere.

HENRY ALFRED KISSINGERGerman-born American writer, political scientist, diplomat, businessmanand recipient of the Nobel Peace Prize (1923 - )

The reasonable man adapts himself to the world; the unreasonableone persists in trying to adapt the world to himself.Therefore, all progress depends on the unreasonable man.

GEORGE BERNARD SHAWIrish playwright, co-founder of the London School of Economicsand the only person to have been awarded both a Nobel Prize in Literature and an Oscar (1856 - 1950)

Bruce PiaseckiFounder and PresidentAHC Group, Inc.

140

Excellence in innovationis Doing More With Less

Here is the situation: We can either accept it and thrive, or resist it with a bigger and bigger hole in the bottom of the boat we all share.

We live in a world with more than seven billion human souls in it.

In addition, as our resource base gets taxed in new carbon and capital constrained ways, our dominant economic system is swift and severe, far outpacing the regulatory and moral controls of governments.

This requires a smart and equally swift realignment of money, people, and rules through the arts of competitive frugality. It is up to leading individuals more than government mandates or anything close to former revolutions, since it depends on our buying patterns and our shared value moves.

Explanation of the situation and its innovation response routesModern globalised competition and resource insufficiency create a necessity to realign money, people, and rules. In other words, the success of the industrial revolution and the rampant race to the unstoppable globalisation of goods, information systems, and banking, requires innovation along these routes of frugality. We must learn to do more with less for our families, our friends, and our firms.

The formula as it relates to our shared near futureIt is already 2013. Success in modern times is accomplished by rediscovering the vital link between frugality and competition and enjoying the benefits of teamwork. Team diversity, frugality within the organisation, and the spirit of innovation are the tripod of our standing in the world in this century. It mathematically cannot be otherwise. Seven billion souls means diversity, innovation and frugality. Period.

This is not the same as the traditional recommendation to "work hard" for success. Working smart and successfully competing in the modern world is not about working against colleagues, but instead it is about teamwork, and doing more with less.

The art of competitive frugality creates balance and inventive strategy, while finding the right team brings lasting achievement. Frugality allows us to get ahead of competition in today's world, and teamwork expands our wings to make us larger than individual achievements.

Claims based on lived experience and my firm's 30 years of serviceIn my own experience of running the AHC Group since 1981, I have reconfirmed the faith in the power of teams and competitive frugality throughout the years.

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ VISIONARIES

ΒΙΟ

Since 1981, Bruce Piasecki has been the founder and President of AHC

Group, a management consulting firm working with many companies of

the Fortune 1000. His firm also runs for the last 26 years the Corporate

Affiliates workshops, a global leader to leader exchange. He is the author

of www.doingmorewithlessbook.com, and enjoys his visits to Europe with

family and friends.

THE AHC GROUP

Since 1981, the AHC Group, a general management consulting firm,

headquartered outside Saratoga Springs, New York, has specialised

in the critical areas of corporate governance consulting, energy and

environmental strategy, product innovation, and sustainability strategy.

Through their consulting contracts, business leadership seminars, and

strategy and growth publications, they have helped hundreds of companies

to realise their business potential in environmental and public issues,

enhance stakeholder and investor relations, and position themselves better

in the marketplace.

www.ahcgroup.com

Our contribution to innovation in excellence has to do with executive training workshops and events.

The AHC Group teaches leaders how to embrace the lessons of competitive frugality to get ahead of their competition and become leaders in their field. Furthermore, within the AHC Group, most of the performers come from settings where they accomplished greatness and have since thrived in my teams to accomplish more. The strength of a team is more successful in competition than the sum of its parts.

Coda Today's swift and severe globalised world requires that we compete like Ben Franklin all over again.

We must rely on teams to be frugal, diplomatic and inventive. We need to realign our money, people, teams and rules with competitive urgency in mind.

The hours of a day are short and our lives slip by.

Our shared problems involve teams for their solutions, from climate change to capital loss, to the weakening of the state in a world of rapid capital markets. These solutions must be captained with grace, force, and creativity.

142

Innovations in waste management

Waste management policy has been a major issue of public concern across European countries for the past decades. Beside various initiatives that have been launched, the problem has grown and is becoming a dangerous one nowadays. For the south-east part of the continent, the situation has been out of control and certain goals set and regulated by the EC, such as the progressive recovery of 50% of the solid waste by European Municipalities until 2020, have been an unreal target. The lack of a common solution for the local governments of European cities as related to waste treatment has complicated even more the problem. It is a fact that in certain countries, such as Greece, Bulgaria and others, the national and local governments are in despair when it comes to the treatment of their own waste. In most cases, the development of illegal landfills and dumps appear to host increasing amounts of mixed rubbish. Hence, both the environment and public health are under hazardous risks while the fines from the European Commission are devastating for the local authorities. That led to a situation where citizens are unhappy while they are forced to co-exist with a massive source of pollution.

This is what we want to change. We want to challenge the system by increasing the value of rubbish. The aim of our plan is a clean environment where citizens can actively be part of a process that will reduce the non-recoverable amount of waste from the beginning.

Before we go any further, we need to mention that the solid waste by factories, companies, enterprises and households is divided to four major categories. These are the recyclable or re-usable, organic, aggregate and mixed waste, which includes the first three categories. Only the case of mixed waste can be considered as non-recoverable due to the fact that it includes rotten meat, medical and hospital waste as well as microbiological waste and more. While seeking for a hint, we faced an incredible figure: only 20% of solid waste cannot be recovered, while the rest of it can be either recycled or composted and re-used in various ways. The methods of recycling have been developed to a satisfactory level during the past years; hence the solution for this kind of waste is already widely known. As for organic waste, there are composting methods that can be applied for the production of a high quality fertilizer - a product with crucial significance for agriculture. Fertilizers as a product is a necessary tool for farmers who grow any kind of vegetables and its value in the market is quite high. According to that data, we came up with the idea of a co-operation where citizens play the role of producers and farmers are the consumers. The first can produce fertilizers by separating their own waste and through composting can offer a product that farmers are seeking - fertilizers.

The best way to achieve such a plan is to create a link between the waste producers and waste consumers where both can

John Mourgis Konstantinos Koulocheris


ΒΙΟ

John Mourgis, born in 1988, has studied Business Administration and

holds a postgraduate degree in education economics from the Athens

University of Economics and Business (AUEB). He also holds a diploma

and a licence to work as an instructor for young offenders. He was the

founder of Cyclists of Kalamata in Greece, co-founder of the Independent

AUEB student party and the creator of an art cooperative for the reuse

of materials. His innovative ideas and research have been awarded by

the Greek journal Economic Review¨ and the AUEB's innovation unit. He

currently works in Kalamata as a business consultant and as instructor at

a professional institute. He also supports a number of local organisations,

on a voluntary basis.

In April 2013, John won the first prize in "Call to Innovation" contest

organised by TEDx Academy. His innovative idea "Organery" is about

organic waste management. The award was a scholarship of USD 30,000

for the winner to study at the Singularity University.

Konstantinos Koulocheris was born in 1988 and is a second year student in

Journalism and Communication Studies (BA) at the University of Middlesex,

London, U.K. From 2007 until 2010, he worked as a political reporter in his

home town, Kalamata, Greece, for the regional press as well as for a local

television station. Due to his interest in environmental and social issues,

Konstantinos participated in various campaigns on standards of living. He

also participated in two European Voluntary Service projects in Bordeaux,

France (2009) and in Santiago de Compostela, Spain (2010), where he took

part in training seminars on ethics and social issues in Europe.

cooperate. The absence of bureaucracy and any other implications convinced us that the problem of the waste treatment can be resolved through a social profitable solution. Our plan will include an online platform and the establishment of a point system where waste producers - including households, local enterprises such as restaurants and more - and waste consumers can access their own link and rewards through the progress of a simple and low-cost project.

The cost of the project is estimated at EUR 5,487, as a start-up for the first year with predictions of a break-even point in the second year of its application in the region of the Peloponnese in Greece. Fixed and variable costs include the formation expenses, public workshops, neighborhood and home-based composters, online platform maintenance and more. Our confidence that we can achieve this is not based on our training in environmental issues - we might lack in this. We are convinced that we can succeed because of a certain vision of ours since we have experienced the problem in depth. Our vision is related to three concepts: social game, intelligent recovery and rewarding composting. The motivation towards the citizens to be part of the vision is the crucial part of the project.

Joel MakowerChairman and Executive EditorGreenBiz GroupAuthor of the annual "State of GreenBusiness" report

144

How technology moves the needle

In a world of increasing volatility, where everything from natural resources to supply chains to political realities to the global economy can be turned topsy-turvy in relatively short order, "sustainability" takes on a new, poignant meaning. It has to do with aligning economic, environmental and social interests, of course. But increasingly, it is taking on even more strategic importance, linked to reducing supply-chain risk and ensuring business continuity during disruptions, the right to operate in resource-stressed areas, reliable and cost-efficient energy supplies, and brand value and reputation.

In other words, the things upon which companies sink or swim.

This is the new world of sustainable business. It goes well beyond the nice-to-do issues of "corporate responsibility" and "eco-efficiency." It views incrementalism as insufficient, ignorance as unacceptable, and unpredictability as the new norm.

Technology is playing a critical role, with the growth and expansion of the interconnected, networked world. What has been dubbed the "Internet of things" is enabling companies, cities, and others to monitor, track, analyse, and control just about anything from just about anywhere, and do so increasingly cheaply and efficiently. Sensor networks and associated software and controls mean even highly rated "platinum" green buildings still can enjoy dramatic improvements in energy efficiency. Vehicles of all kinds, from

bikes to buses, can operate more efficiently by maximising their overall use and minimising downtime, optimising their innards to decrease fuel use, plotting routes to minimise time and energy, and employing other technological tricks.

Take machine-to-machine technology, one part of this convergence that's growing rapidly, largely behind the scenes. There is a vast and exploding network of objects embedded with sensors and able to communicate with one another, take measurements and make decisions Ð everything from light switches to refrigerators, utility meters to parking spaces.

Already, there are an estimated ten billion connected devices worldwide, compared to "only" about 2.5 billion Web-connected PCs and phones. According to ABI Research, more than five billion wireless connectivity chips will ship in 2013 alone.

What does all this have to do with sustainability? Lots.

For example, the management of buildings and facilities is being revolutionised by M2M-based systems in a range of applications, including security, energy efficiency, predictive maintenance and asset management. Transportation is another area rich with M2M possibilities. Telematics and in-vehicle entertainment is one area of focus. For example, apps now allow EV owners to monitor and control vehicle charge settings, plan single- or multiple-stop journeys, locate charging stations, pre-heat or cool the car. Last year GM's


ΒΙΟ

Joel Makower, Chairman and executive editor of GreenBiz Group, is an award-winning author and a leading voice on the intersection of sustainable

business, clean technology and innovation. He is the founder of GreenBiz.com and hosts its annual GreenBiz Forums as well as the VERGE conferences

produced around the world by his company. Joel speaks widely to companies around the world. He is author of more than a dozen books, including his

latest, "Strategies for the Green Economy" (2008), along with GreenBiz's annual "State of Green Business" report. The Associated Press has called him

"the guru of green business practices."

GREENBIZ GROUP

GreenBiz Group's mission is to define and accelerate the business of sustainability. It does this through a wide range of products and services, including

its acclaimed website GreenBiz.com and daily e-newsletter GreenBuzz; webcasts on topics of importance to sustainability and energy executives; research

reports, such as the annual State of Green Business; the GreenBiz Executive Network, a membership-based, peer-to-peer learning forum for sustainability

executives from Fortune 1000 companies; and conferences such as the GreenBiz Forum and VERGE.

VERGE is a series of events focused on the convergence of energy, data, buildings, and transportation. VERGE events are creating a new dialogue focused on

harnessing radical efficiencies within companies, campuses and cities across their operations and supply chains. VERGE brings together a new ecosystem

incorporating executives from such diverse domains as utilities, facilities, fleets, and the public sector. VERGE events in 2013 include conferences in San

Francisco, Boston, Paris and Sao Paulo, along with virtual events and webcasts.

www.greenbiz.com

OnStar division partnered with Spain's TelefÞnica to provide M2M connectivity to GM's vehicles outside North America.

Wireless-enabled fleet management and telemetrics help trucking and logistics companies cut the number of empty or underutilised trucks on the road. For instance, better fleet management through wireless technology could cut the amount of time that trucks idle, reducing fuel costs per truck by USD 3,600 annually, according to a 2011 report by BSR and CTIA-The Wireless Association.

In our technologically converging world, everything that can be connected will be. Buildings, vehicles, electricity grids increasingly will make predictive "decisions" that anticipate energy needs without human intervention.

It's not just energy. It's about improving the efficiency of everything, improving lives, thinking in systems, and moving the needle. In other words, everything that "sustainability" should be about.

True, it's a brave new world. But, increasingly, a more efficient and sustainable one, too.

146

FINANCING INSTRUMENTS FOR PROMOTING INNOVATION

146

FACTS & FIGURES

MAJOR FINANCING INSTRUMENTS FOR PROMOTING INNOVATION

Financing instrument Key features in financing Remarks

Bank loanUsed as one of the most common tools for access to finance.It needs collateral or guarantees in exchange for loans.

Obligation to repay as debt

Grant, subsidyUsed as seed funding for innovative start-ups and SMEs at the seed and early stage: small business innovation research in the U.S., the United Kingdom and the Netherlands; feed-in-tariffs in Denmark and Germany: OSEO funding in France; Innovation Investment Fund in the United Kingdom.

Complements market failures, financingat seed and initial stage

Business angelFinancing source at early riskier stage and provides financing, advice and mentoring on business management. Tends to invest in the form of groups and networks, e.g. Tech Coast Angels and Common ANGELS in the U.S., Seraphim Fund in the United Kingdom.

Financing at start-up and early stage

Venture capital

Tends increasingly to invest at later, less risky growth stage. Referred to as patient capital owing to the lengthy time span (10-12 years) for investing, maturing and finally exiting, e.g. Pre-seed Fund and Innovation Investment Fund in Australia, Yozma Fund in Israel, Seed Fund Vera in Finland, Scottish Co-investment Fund in the United Kingdom.

Financing at later expansion stage

Corporate venturingUsed by large firms to invest in innovative start-ups with a view to improving corporate competitiveness with either strategic or financial objectives.

Strategic motive

Crowd fundingA collective funding tool via the Internet which makes it easier for small businesses to raise capital at the seed and early stages.

Potential for fraud

Tax incentiveA broad range of tax incentives for R&D and entrepreneurial investments in most countries, e.g. The Enterprise Investment Scheme in the United Kingdom, tax relief on the wealth tax (ISF) in France, The Business Expansion Scheme in Ireland.

Indirect, non-discriminatory

Source: OECD Science, Technology and Industry Scoreboard; OECD (2011), Financing High-Growth Firms; NIST (2008), Corporate Venture Capital, and other sources.

FUNDING R&D

CANA

DA

SLOV

AK R

EPUB

LIC

AUST

RALI

A (2

009)

RUSS

IAN

FEDE

RATIO

N

UNITE

D ST

ATES

(200

9)

SLOV

ENIA

AUST

RIA

(200

9)

KORE

A (2

009)

ISRA

EL (2

008)

SWED

EN (2

009)

FRAN

CE

CHEC

H RE

PUBL

IC (2

009)

SPAI

N (2

007)

BELG

IUM

(200

9)

GERM

ANY

DENM

ARK

NEW

ZEAL

AND

(200

9)

NETH

ERLA

NDS

(200

9)

GREE

CE (2

007)

LUXE

MBOU

RG

POLA

ND (2

009)

SOUT

H AF

RICA

(200

8)

ICEL

AND

(200

8)

TURK

EY (2

009)

ITALY

(200

9)

JAPA

N (2

009)

CHIL

E (20

08)

SWITZ

ERLA

ND (2

008)

MEXI

CO (2

007)

ESTO

NIA

UNITE

D KI

NGDO

M

CHIN

A

HUNG

ARY

(200

8)

PORT

UGAL

(200

9)

NORW

AY

FINL

AND

IREL

AND

(200

8)

0.40 %

0.35 %

0.45 %

0.50 %Direct government funding of business

R&D and tax incentives for R&D, 2010

0.10 %

0.05 %

0.15 %

0.30 %

0.20 %

0.25 %

0.00

Source: Main Science and Technology Indicators (MSTI) Database, June 2012; OECD R&D tax incentives questionnaires, January 2010 and July 2011; and national sources, based

on OECD Science, Technology and Industry Scoreboard 2011, OECD, Paris.Indirect support through R&D tax incentives

Direct funding of BERD No cost estimate of R&D tax incentives

Direct and indirect government support to business R&D, 2005 or nearest year available

Naveen JainCEO, inome; FounderWorld Innovation Institute

148

An entrepreneurial perspectiveon philanthropy

Philanthropy is not about giving money, but about solving problems. While well-meaning, the idea of writing a check and calling it "philanthropy" is extremely short-sighted and, unfortunately, extremely pervasive.

Instead, philanthropists should think like entrepreneurs, thinking of social challenges as opportunities to create large enterprises. It's actually relatively easy to create a USD 1 billion company Ð you just have to solve a USD 10 billion problem. And indeed, most of these large USD 10 to USD 100 billion problems happen to be social problems, which is why I think that the entrepreneurs possess the largest opportunity to solve humanity's grand challenges.

As a lifelong entrepreneur, I see philanthropic organisations the same as any other business venture. Much like today's start-ups that accept VC money but never turn a profit, a philanthropic venture that does not create a self-monetising, sustainable financial model will ultimately fail.

True philanthropy requires a disruptive mindset, innovative thinking and a philosophy driven by entrepreneurial insights and creative opportunities. To disrupt the status quo, drive philanthropy at tremendous scale, and develop long-term economic vitality through giving, we must apply the same models for success in our philanthropic endeavors as we do in business.

In short, philanthropy requires disruption. This disruptive mindset hinges on a practice I call Entrepreneurial Philanthropy, which is designed to support innovation that creates sustainable, thriving economies in communities with tremendous need.

There are many philanthropists and volunteers who act locally, giving tirelessly, donating their time and money to help the sick, poor and other individuals most in need. But why stop there? Philanthropic work on the local level is wonderful, but time and again it has proven incapable of reaching the scale we need to foster economic development and leading to the monumental changes we all seek.

Doesn't philanthropy deserve, indeed require, the same level of audacious hope and limitless opportunity as do our business ventures? Our power to impart positive change goes well beyond our communities. We can surely think about both - our communities and the world beyond - and act on the same.

There is nothing wrong with testing a product locally in small markets, but we have to be sure that the solution is scalable once proven successful. If we go into a philanthropic endeavor, afraid of success on the largest of scales, we do that cause no justice. This requires rethinking the solution and the problem, which generally requires us to convert infrastructure


ΒΙΟ

Naveen Jain founded the World Innovation Institute with the simple belief that entrepreneurship and creativity can solve the world's most pressing and

complex challenges. A philanthropist and technology pioneer, Jain is the CEO and founder of Intelius, the founder of InfoSpace, and a former senior executive

at Microsoft Corporation. Together, his experiences tell the story of a man who, with hard work, creativity, and "a little luck and good timing," became a multi-

award-winning top entrepreneur whose passion lies in creating successful business ventures for the good of all.

Jain is Co-Chairman of Education and Global Development at the X PRIZE Foundation, a trustee of the board of Singularity University, and serves as a Director

on the board of Coastal Aviation Software and Flow Mobile, where he helps bring innovative mobile broadband service to underserved and unserved rural

towns across the U.S. His awards and honors range from the "Albert Einstein Technology Medal" to being named one of the "Six People Who Will Change

the Internet" to leading a business that earned a place on the Puget Sound Business Journal's "Top Three Best Workplaces" list.

WORLD INNOVATION INSTITUTE

The World Innovation Institute operates with the simple belief that innovation and entrepreneurship have the potential to solve our world's most complex

challenges. By funding entrepreneurs who create solutions for better education, far-reaching exploration, and accessible health care, we will not only

reframe successful business ventures to carry with them an empowering and relevant cause, but completely reinvent the world into something more just,

more peaceful, more inspiring, for people in all corners of the world.

www.thewii.org

problems into information-gap problems. Our job, indeed our collective goal, is to bridge that gap.

Education, for example, should not be about building more schools and maintaining a system that dates back to the industrial revolution. We can achieve so much more, at unmatched scale with software and interactive learning. Similarly, think about the healthcare diagnostics we can address through connected sensors and artificial intelligence without the need for expensive, out-of-date physical infrastructure like hospitals.

Entrepreneurial Philanthropy is not just a philosophy or a dream. It is a promise that philanthropy is at its best when it is founded on entrepreneurial zest and agility. Investors are right to demand a clear path to self-sustainability from every business they invest in, and I believe we should ask for the same from philanthropy.

Indeed, there is a direct correlation between fulfilling peoples' needs as a successful entrepreneur and as a philanthropist. This is why the work of entrepreneurial philanthropists has a compounding impact that reverberates far beyond the reaches of charity, aid and relief efforts. Money can certainly solve some of the world's problems, but without an entrepreneurial bent it will only merit short-lived solutions to long-term problems.

Rowan GibsonCo-Founder and Authorinnovationexcellence.com

150

Turning waste into value

Stephen Johnson's excellent book "Where Good Ideas Come From" devotes a lot of ink (or pixels if you prefer the digital version) to the correlations between business innovation and the patterns of innovation we find in biology. "Nature's innovations", he writes, "rely on spare parts" Ð they are based on "taking available resources and cobbling them together to create new uses". Johnson's book Ð and the biological metaphor Ð got me thinking about another form of innovation that is becoming increasingly important today: and that is the challenge of finding novel solutions for reducing and recycling a company's waste. What if nature's "spare parts" approach to innovation could teach us some powerful lessons in this regard?

The fundamental lesson, of course, is that in nature there is no such thing as waste. Nothing gets thrown away. The waste from one organism becomes the raw material for another. Therefore, if we apply the same ecological model to industrial recycling, we can start thinking about very creative ways to eliminate problems like pollution, because the waste that is created by one process can be seen as raw material for another process.

In Denmark, for example, they have experimented with a kind of "industrial ecosystem" based on a networked community of different industries Ð a cement factory, a gypsum board manufacturer, some greenhouses producing flowers, a waste-treatment plant and a steam-generating plant that provided the heat for a village. What they have created is essentially a

closed circuit Ð a network of different materials and energy flowing through this one little community. So, the waste from the cement factory goes to the gypsum board manufacturer, and the excess heat from the manufacturing process is used to heat the greenhouses, and the waste from the village is treated and used for fertilising the greenhouses. And there is no waste coming out that has to be dumped or buried.

In Massachusetts, there is a metal-plating plant where they have added intelligence to their processes by cleaning and re-using their own water instead of letting it flow into the rivers with heavy metals in it. They have designed a smart way to remove the impurities from the water after the industrial process, making it clean enough to use again Ð in fact, purer than it was in the first place. So, they are not only saving water and money, but actually making a higher-quality product as well. They have also found a way not just to extract the heavy metals from the water, but also to reclaim these metals for use in the production process. And there is no pollution. No waste.

This notion of recapturing all your materials and energy Ð called closed-loop manufacturing Ð is now becoming more commonplace in a variety of industries, from steel, to chemicals, to all kinds of things. 3M, for example, has been very successful with this model in its own manufacturing facilities. And there are a myriad of examples today of companies that are taking "spare parts" or waste and "cobbling it together to create new uses". Go online and you will read about used


ΒΙΟ

Rowan Gibson is recognised as one of the world's foremost thought

leaders on business innovation. The media have labeled him "Mr.

Innovation", "the innovation grandmaster", and "the W. Edwards Deming

of innovation". He is the bestselling author of two major books, which are

published today in over 20 languages. His latest book "Innovation to the

Core" is published by Harvard Business School Press. He is the President

of a global innovation consultancy and co-founder of innovationexcellence.

com Ð the most popular innovation website on the Internet. Rowan Gibson

is also one of the world's most in-demand public speakers. Over the last

five years alone, he has delivered keynote speeches, open seminars, and

in-company masterclasses in 60 countries around the globe.

ROWAN GIBSON

Rowan Gibson's global consultancy provides organisations with the

integrated strategies, systems, services and tools they require to build

a deep, enterprise capability for innovation. His unique and market-

proven methodology has been used by a whole spectrum of Fortune

500 companies as well as government institutions around the world

to dramatically improve their innovation performance. Clients include

Accenture, Apple, Bayer, Coca Cola, Dow, Heinz, IBM, Mars, Microsoft,

Nokia, Philips, Steelcase, Volkswagen, and many others. He teaches

organisations how to seize new growth opportunities, create new markets

and even transform entire industries by using the power of innovation.

www.rowangibson.com

www.innovationexcellence.com

sweaters being turned into filler for dog beds, or worn-out work gloves being recycled into fire-resistant automotive trunk liners, or old automobile tires taking on a whole new life as rubber sandals. The U.S. Army recently completed a project to recycle old containers stored at their arsenal into more than 6.5 million pounds of steel Ð enough to build 26 Statues of Liberty or 2,500 cars.

Perhaps, it will be the new economic realities that will increasingly force us to innovate in these ways. Or it will be our desire to find more sustainable and ethical solutions for recycling what we used to throw out. Either way, I believe we can learn a lot from Nature about how to manage and innovate with our "spare parts", and how to turn waste into value.

Dr. Nikos Vogiatzis, Prof. Vassilios Makios, Dr. Jorge-A. Sanchez-P. Executive DirectorsCorallia

152

Rediscover Greece:Sustainable innovation and entrepreneurship

Driven by the vision "to sustain a Greek environment with the right framework conditions to allow sciences, innovation and entrepreneurship to flourish again" and by the ultimate goal "to establish the brand Innovation Designed in Greece", Corallia was founded in 2005, and over the years grew into becoming a multi-faceted innovation catalyst designing and implementing interventions in selected sectors and regions with strategic importance for Greece.

Today, Corallia focuses on the development of integrated industry-driven innovation ecosystems (clusters), in which all actors operate cooperatively and in a coordinated manner; the operation of regional monothematic innovation centers hosting young and mature entrepreneurs offering state-of-the-art facilities and business acceleration services; the implementation of a full-scale young entrepreneurship acceleration programme addressing a wide-ranged target audience from high-school to university students and young entrepreneurs; and acts as a think-tank in several networks and collaborations with peers in Greece and across Europe for the design of efficient policies on innovation, smart specialisation and entrepreneurship.

Dr. Jorge-A. Sanchez-P., Chief Strategy and

Financial Officer, points out that "Corallia

acts as a catalyst aiming to spur regional

competiveness, create job opportunities

and boost innovation and economic growth"

and Dr. Nikos Vogiatzis, Chief Business and

Technology Officer, adds that "we aim at

limiting the "brain-drain" phenomenon of

local talent by offering talented young people

employment and entrepreneurial prospectsÐ

our motto is "Innovation Designed in Greece".

Numerous examples of Greek high-tech companies which excel abroad and operate in Greece do actually unveil Corallia's "raison d' �tre". Current evidence shows that Greek companies compete on an equal footing in the international arena, and with considerable success in microelectronics, telecommunication systems and applications, space technologies and applications, gaming technologies and the creative industry. The largest hospitals in Europe use medical devices which are designed in Greece; Greek earth observation and remote sensing techniques are sold internationally; and millions of gamers globally enjoy the online gaming platforms designed and developed in Greece.

But, what is the fuel for the remarkable recent growth that takes place in a non-traditional industry and how can the attainment of this positive performance be ensured as an integral part of the nation brand "Greece", highly accentuating the country-of-origin effect of products and services "made in Greece"?


ΒΙΟ

Vassilios Makios is Professor Emeritus at the Department of Electrical and Computer Engineering of the University

of Patras, Greece, and at the Department of Electronics of the Carleton University in Ottawa, Canada. He has

been involved in numerous scientific projects, has a lengthy publication record and has been influential in the

establishment of prototype development companies in the telecommunication industry in Greece and abroad.

Jorge-A. Sanchez-P holds Dipl.-Ing. and Dr.-Ing. degrees in Electrical and Computer Engineering and a Master's

degree in Programme and Project Management, has participated in numerous research and development projects

in the academia, in research labs and in the industry in Greece and abroad.

Nikos Vogiatzis holds a Ph.D. in Communication Electronics and Information Systems, a Master's degree in

Professional Project Management, and a Diploma in Electrical and Computer Engineering. He has vast international

experience in managing high-risk R&D projects and has been instrumental in forming alliances among industrial

and research partners.

CORALLIA CLUSTERS INITIATIVE

Corallia Clusters Initiative -or in short Corallia- is the first organisation established in Greece for the management

and development of innovation clusters, in specific sectors and regions of the country, within which actors operate

in a coordinated manner. In those clusters, Corallia acts as a Cluster Facilitator, implementing specific support

actions, which involve all innovation ecosystem actors, including industry, universities, research centres, financial

institutions, regional and national authorities, infrastructure providers, suppliers and buyers, media, etc. Corallia

operates two Innovation Centres for the microelectronics sector, the Athens InnoCenter (Marousi, Athens, Attica)

where its HQs are also located, and the Patras InnoHub (Kastritsi, Patra, Western Greece). In addition, Corallia,

implements an extensive YEAP since 2006. Corallia's activities are financed by the private sector, the ERDF and the

NRSF, the Operational Programme Competitiveness and Entrepreneurship, the Regional Operational Programmes,

the Hellenic Public Investments Programme, the 7th Framework Programme for Research and Technological

Development, the EU Interregional Cooperation Programme INTERREG, the Competitiveness and Innovation

Framework Programme of the EU and donations from the private sector, foundations and other benefactors.

www.corallia.org

Prof. Vassilios Makios, General Director of Corallia, highlights that the

greatest competitive advantage of Greeks is "their minds. We have highly

flexible, creative, talented and significantly qualified human capital, which,

with the right guidance, direction and above all vision, as inspired by

Corallia over the last years, can work wonders. Continuous development

in the long run can be achieved by targeted, long-term strategy and

appropriate use and guidance of talented human resources looking

into the future with optimism and with a need to feel the joy of creation.

The joy of creation is what eventually should become an incentive for

every young Greek. I am not excluding financial performance and the

satisfaction it provides, after all this is the target; however, this satisfaction

is followed by the pride and joy that the creator feels about his creation".

Hitherto, our challenge is immense. Greece is being steadily transformed into a global competitive player thanks to the successful implementation of a clear vision; a vision that couldn't be any closer to reality if it was not for the talent, the commitment and the constant striving for excellence that the young generation is blessed with. Corallia has long ago set up a business platform towards this direction. In an attempt to successfully catch the wave of innovation and orchestrate key stakeholders' efforts alike, in a systematic and strategic way, our vision for a strongly competitive high-tech innovation ecosystem has materialised. Corallia encouraged, facilitated and coordinated the emergence of strategic interventions, the results of which are exceptional examples of collaboration of innovation actors towards meeting future common challenges, capitalising on innovation "Designed in Greece".

Dr. Wayne VisserFounder and DirectorKaleidoscope Futures Ltd.

154

Will anyone join your revolution?

So change is never easy, especially when it comes to the big issues of sustainability. In thinking about this, I have found Richard Beckhard and David Gleicher's Formula for Change rather useful: D x V x F > R. This means that three factors must be present for meaningful organisational change to take place. These factors are:

D = Dissatisfaction with how things are now; V = Vision of what is possible; and F = First, concrete steps that can be taken towards the vision.

If the product of these three factors is greater than R (Resistance), then change is possible. I have seen sustainability change efforts fail for all four reasons. Deep-seated resistance often exists because the benefits of the status quo to those in power are considerable. Sustainability initiatives, especially if they are integrated into the core business, are often seen as extra burden. For instance, an operations manager of a plant does not want the extra hassle of collecting emissions data for a sustainability report, or subjecting his staff and facilities to an audit.

Most often, I think, the dissatisfaction that we may feel with the state of the world or the company's actions really is not widely shared enough.

Margaret Mead once said, "The only person who likes change is a wet baby", to which Hunter Lovins added "and the baby squalls all the way through the process."


Jonathon Porritt, author of "Capitalism as if the World Matters", after many years in the sustainability game (he started the U.K.'s Green Party and chaired the government's Sustainable Development Commission among other things), told me: "Looking at people all over the world today, rich and poor world, they are not remotely close to a state of mind that would call for anything revolutionary. There's no vast upheaval of people across the world saying, 'This system is completely and utterly flawed and must be overturned and we must move towards a different system.' There isn't even that, let alone an identification of what the other system would look like."

Likewise, on creating a compelling vision, Porritt concludes that "we have not collectively articulated what this better world looks like Ð the areas in which it would offer such fantastic improvements in terms of people's quality of life, the opportunities they would have, a chance to live in totally different ways to the way we live now. We haven't done that. Collectively we've not created the alternative to this paradigm, this paradigm is in progress, emotionally and physically, in terms of economic excitement. We've just not done it." Taking first steps is something companies are generally much better at, especially picking the so-called "low hanging fruit". But the reason these steps so often do not get beyond the pilot or peripheral stage is because the other two factors Ð dissatisfaction and vision Ð are not strong enough.

Another way to think of change in a structured way is Peter Senge's concept of the learning organisation, popularised in his book, "The Fifth Discipline." He described the five interrelated disciplines as follows: "Systems thinking [the fifth discipline] needs the disciplines of building shared vision, mental models, and personal mastery to realise its potential. Building shared vision fosters a commitment to the long-term.

Mental models focus on the openness needed to unearth shortcomings in our present ways of seeing the world. Team learning develops the skills of groups of people to look for the larger picture that lies beyond individual perspectives. And personal mastery fosters the personal motivation to continually learn how our actions affect our world."

In a follow-up book, "Learning for Sustainability". Senge, together with co-authors from the Society for Organisational Learning, apply the fifth discipline model to sustainability. In particular, they emphasise connecting the inner and outer work that needs to be done: "Connecting the inner changes in how we manage and lead with the outer effects our organisations have on larger systems; connecting the inner changes in mental models and personal visions with the outer changes in management culture; and connecting the inner changes in who we are as human beings with how we act and interact."

156

In seeking to create change for sustainability, Senge and his colleagues once again emphasise the interconnected nature of all change processes, and the critical role of business: "There has never before been a time when the social, ecological and economic conditions that challenge political leaders in any part of the world have been so interwoven with what is occurring in so many other places. This phenomenon has arisen through the ever-growing web of interconnectedness spun by institutions, especially multinational corporations. Collectively, these organisations determine what technologies are created and how they are applied around the world: which markets develop and which are largely ignored. These institutions determine who benefits from the world economy and who does not."

Given the interconnectedness, the key to change, Senge believes, is collaboration. To illustrate his point at the MIT Sustainability Summit 2010, Senge asked the question: What would it take to get rid of disposable cups? Who would have to work together to eliminate disposable cups? The answers suggested include everyone from Starbucks and its competitors to paper manufacturers, food service providers, recyclers and municipal governments. To make real headway on really tough sustainability issues is a "massive undertaking in collaboration". Furthermore, the parties that need to collaborate often are not naturally inclined to.

Senge concludes that a good guy/bad guy mentality can be a barrier to such collaboration.

"You've got to wake up and say 'We're all part of the system'. You know who is causing the destruction of species? You and me. You know who's causing the huge waste problems around the world? You and me." Once you become more open-minded to this possibility, then you can look for collaborative solutions. "Look for small steps of things you can do together with people with whom you traditionally would never have cooperated and do something useful, no matter how small."


ΒΙΟ

Dr. Wayne Visser is the Director of the think-tank Kaleidoscope Futures and Founder of CSR International. In addition, Wayne is a Senior Associate at the

University of Cambridge Programme for Sustainability Leadership. He is the author of seventeen books, including "The Quest for Sustainable Business"

(2012) and has been listed as one of the Top 100 Thought Leaders in Trustworthy Business Behavior in 2013. His work has taken him to 65 countries in

the last 20 years.

KALEIDOSCOPE FUTURES LTD

Kaleidoscope Futures Ltd. is a think-tank using creativity, collaboration and foresight to shape strategic solutions for a brighter future which is safe,

smart, shared, sustainable and satisfying.

www.kaleidoscopefutures.com

www.waynevisser.com

www.csrinternational.org

CAPACITY FOR INNOVATION

FACTS & STATS

Sour

ce: W

orld

Eco

nom

ic F

orum

, Exe

cutiv

e O

pini

on S

urve

y, 2

010

and

2011

edi

tions

.

RANK COUNTRY/ECONOMY VALUE 1 MEAN 3.2 7

1 Japan 5.8

2 Switzerland 5.8

3 Germany 5.7

4 Sweden 5.7

5 Finland 5.6

6 Israel 5.3

7 United States 5.2

8 France 5.1

9 Denmark 5.1

10 Netherlands 5.0

11 Qatar 5.0

12 Austria 4.8

13 United Kingdom 4.8

14 Belgium 4.7

15 Taiwan, China 4.7

16 Luxembourg 4.5

17 Norway 4.5

18 Iceland 4.4

19 Malaysia 4.3

20 Korea, Rep. 4.3

21 Saudi Arabia 4.3

22 Singapore 4.3

23 China 4.2

24 Canada 4.1

25 Czech Republic 4.0

26 Italy 4.0

27 Australia 4.0

28 Slovenia 3.9

29 New Zealand 3.8

30 Indonesia 3.8

31 Brazil 3.8

32 United Arab Emirates 3.8

33 Ireland 3.8

34 Estonia 3.7

35 India 3.6

36 Spain 3.5


109 Chad 2.6

110 Serbia 2.5

111 Nicaragua 2.5

112 Uganda 2.5

113 Madagascar 2.5

114 Cameroon 2.5

115 El Salvador 2.5

116 Paraguay 2.4

117 Bahrain 2.4

118 Mauritania 2.4

119 Albania 2.4

120 Trinidad and Tobago 2.4

121 Bangladesh 2.4

122 Zimbabwe 2.4

123 Venezuela 2.4

124 Bosnia and Herzegovina 2.4

125 Ethiopia 2.3

126 Dominican Republic 2.3

127 Mozambique 2.3

128 Burkina Faso 2.3

129 Nepa 2.3

130 Haiti 2.3

131 Belize 2.3

132 Timor-Leste 2.2

133 Côte d'Ivoire 2.2

134 Syria 2.1

135 Swaziland 2.1

136 Lesotho 2.1

137 Cape Verde 2.1

138 Algeria 2.0

139 Kyrgyz Republic 2.0

140 Burundi 1.8

141 Angola 1.6

142 Yemen 1.5

In your country, how do companies obtain technology? [1= exclusively from licensing or imitating foreign companies; 7= by conducting formal research and pioneering their own new products and processes] | 2010-2011 weighted average


73 Guyana 3.0

74 Senegal 3.0

75 Brunei Darussalam 3.0

76 Mexico 3.0

77 Argentina 2.9

78 Romania 2.9

79 Benin 2.9

80 Rwanda 2.9

81 Malawi 2.9

82 Bulgaria 2.9

83 Egypt 2.8

84 Slovak Republic 2.8

85 Cambodia 2.8

86 Macedonia, FYR 2.8

87 Ecuador 2.8

88 Honduras 2.8

89 Mauritius 2.8

90 Kuwait 2.8

91 Barbados 2.7

92 Jordan 2.7

93 Ghana 2.7

94 Zambia 2.7

95 Philippines 2.7

96 Greece 2.7

97 Jamaica 2.7

98 Panama 2.7

99 Peru 2.7

100 Suriname 2.6

101 Kazakhstan 2.6

102 Namibia 2.6

103 Georgia 2.6

104 Botswana 2.6

105 Mali 2.6

106 Lebanon 2.6

107 Moldova 2.6

108 Morocco 2.6


37 Portugal 3.5

38 Russian Federation 3.5

39 Hong Kong SAR 3.5

40 Costa Rica 3.4

41 Hungary 3.4

42 Ukraine 3.4

43 Latvia 3.4

44 Tunisia 3.4

45 Puerto Rico 3.4

46 South Africa 3.4

47 Kenya 3.3

48 Lithuania 3.3

49 Poland 3.3

50 Sri Lanka 3.3

51 Pakistan 3.3

52 Azerbaijan 3.2

53 Montenegro 3.2

54 Nigeria 3.2

55 Tanzania 3.2

56 Thailand 3.2

57 Oman 3.2

58 Vietnam 3.2

59 Colombia 3.2

60 Cyprus 3.2

61 Armenia 3.1

62 Gambia, The 3.1

63 Malta 3.1

64 Croatia 3.1

65 Uruguay 3.0

66 Chile 3.0

67 Iran, Islamic Rep. 3.0

68 Tajikistan 3.0

69 Guatemala 3.0

70 Bolivia 3.0

71 Turkey 3.0

72 Mongolia 3.0

CHARTING THE DIGITAL DIVIDE

Source: The Global Information Technology Report 2012, Living in aHyperconnected World, World Economic Forum and INSEAD, 2012.

10. Social impacts

1. Political and regulatory environment

2. Business and innovation environment

3. Infrastructure anddigital content

9. Economic impacts

8. Government usage

7. Business usage

4. Affordability

5. Skills

6. Individual usage

ADVANCED ECONOMIES

LATIN AMERICA AND CARIBBEAN

DEVELOPING ASIA

SUB-SAHARAN AFRICA

Performance in the NRI:Αdvanced economies and selectedemerging regions

160

About EuroCharity

– Established in 2006 with offices in Brussels and Athens and a rapidly-expanding network of members, clients, partners and ambassadors.

– The reference point for sustainability.

– Offers innovative on-line and off-line services to 470+ members and clients from the corporate, financial, public, third and academic sectors.

– A unique social entrepreneurship model in Europe, a values-based, independent firm and a catalyst for change.

– Facilitates synergies among members, among the corporate and third sectors as well as key stakeholders.

– Effectively communicates CSR and sustainability news, reports, events, and information on behalf of members and clients, with a geographic focus on Europe and with a global audience.

– Supports companies and organisations in implementing corporate responsibility and sustainability strategies, while providing networking opportunities with well-respected and credible institutions.

– UN Global Compact signatory, co-founder of the Global Compact Network Hellas and member of Global Compact Network Belgium.

– Member and partner of CSRwire, LLC, U.S.A., The Corporate Social Responsibility Newswire.

– Data Partner for Global Reporting Initiative and Organisational Stakeholder (OS).

– An affiliate partner of ABIS - The Academy of Business in Society.

– Partner of the "A world you like. With a climate you like" communication campaign launched by the European Commission Directorate-General for Climate Action.

– Funds hard-needed, not-for-profit projects making an impact (children, social care, the elderly, refugees, protection of endangered species, the natural environment and biodiversity).

– Has financed 14 charitable projects, carried out by EuroCharity's NGO members, to date.

– Participates in, presents at and officially supports local, regional and international conferences, events and exhibitions organised by prestigious companies and organisations, including the Economist Conferences, Ethical Corporation, FT Business, Social Capital Media - SOCAP/Europe, Transparency International, TBLI Conference B.V., EBD Group AG, Gens Terra Quaestus Ltd., GRI, Institute of Directors and Enterprise Asia.

– Co-organiser of numerous sustainability conferences, including the Sustainability Forum, a training, networking and professional development event.

– Conducts research on sustainability, CSR, green economy and the third sector for members and clients, and has launched the EuroCharity in Academia research programme.

– Operates as a 100% carbon neutral company.

– Has published six EuroCharity Yearbooks to date.

– Twitter (@EuroCharityEU), Facebook (EuroCharityEU), LinkedIn (EuroCharity) and YouTube (EuroCharityGREU).

www.eurocharity.eu

– 6 publications with

– 180+ contributors from

– 20+ countries and

– 12,000+ recipients in

– 50+ countries

About EuroCharity Yearbooks

The idea of launching the first EuroCharity Yearbook germinated when Greece faced an environmental and social crisis of unprecedented dimensions Ð the devastating forest fires in the summer of 2007. The inaugural "EuroCharity Yearbook 2007 - The Spirit of the Forest" - The response of the corporate world to the catastrophic fires of 2007 was published in June 2008. (ISBN 978-960-14-1799-8)

A year later, the "EuroCharity Yearbook 2008 - Green Development & Sustainability" was released. It focuses on the impact of green economy on competitiveness, entrepreneurship and innovation, while showcasing green products and services developed by companies as well as policies and incentives that foster investments and initiatives in the green economy.(ISBN 978-960-14-1995-4)

The third "EuroCharity Yearbook 2009 - It's a Matter of Culture" was launched in June 2010 and highlights the importance and many aspects of corporate culture as well as the need for companies to integrate values that include corporate responsibility principles into their business strategy and management practices.(ISBN 978-960-14-2237-4)

The "EuroCharity Yearbook 2010 - The Future of Responsible Investing", which came out in June 2011, informs key stakeholders on the latest trends, research, indices, best practices, case studies, intelligence and viewpoints related to this important theme. This international publication was presented in three European capital cities.(ISBN 978-960-99967-0-9)

The "EuroCharity Yearbook 2011/12 - Leadership for Sustainability" addresses the need to adopt sustainability in leadership training and development, showcases corporate sustainability leadership best practices and presents authoritative opinions and insightful research findings on the progress and challenges in leadership for sustainability.(ISBN 978-960-99967-1-6)

More than ever, today's local and global challenges call for innovative solutions as regards technological, social and sustainable issues. The "EuroCharity Yearbook 2012/13 - Innovation for Excellence" showcases pioneering corporations, organisations and CEOs who embrace innovation and explore new, more effective and sustainable ways of growth that lead to excellence. (ISBN 978-960-99967-2-3)

The Spirit of the ForestEuroCharity Yearbook 2007

The Future of Responsible InvestingEuroCharity Yearbook 2010

Green Development & SustainabilityEuroCharity Yearbook 2008

Leadership for SustainabilityEuroCharity Yearbook 2011/12

It's a Matter of CultureEuroCharity Yearbook 2009

Innovation for ExcellenceEuroCharity Yearbook 2012/13

Acronyms and abbreviations

3GF Global Green Growth Forum

A4S The Prince's Accounting for Sustainability Project

ABI Allied Business Intelligence Inc.

ACEO Association of Chief Executive Officers

ADAS Advanced Driver Assistance System

AG Aakash Ganga

AMBA Association of Master of Business Administration

ANVISA Agencia Nacional de Vigil‰ncia Sanitaria

API Active Pharmaceutical Ingredient

APP Application

APS Automated Processing Services

ATM Automated Teller Machine

AUEB Athens University of Economics and Business

B.C. Before Christ

B.Sc./B.S. Bachelor of Science

BA Bachelor of Arts

BITS Birla Institute of Technology and Science

BMW Bayerische Motoren Werke

BoD Board of Directors

BREEAM Building Research Establishment Environmental Assessment Method

BSR Business for Social Responsibility

C(S)R Corporate (Social) Responsibility

CAFΕ Corporate Average Fuel Economy

CAPS Collective Awareness Platforms for Sustainability

CBS Columbia Broadcasting System

CDTI Centre for the Development of Industrial Technology

CEO Chief Executive Officer

CNBC Consumer News and Business Channel

CNN Cable News Network

CO2 Carbon Dioxide

CoP Conference of the Parties

CTIA Cellular Telecommunications Industry Association

DG Directorate General

Dr. Doctor

DRM Digital Rights Management

DVD Digital Versatile Disc

e.g. exempli gratia

E.VI.A. Evolution, Viability, Adaptability

EBA European Business Awards

EC European Commission

EcoAP Eco-innovation Action Plan

EFQM European Foundation for Quality Management

EIB European Investment Bank

EIP European Innovation Partnership

EIT European Institute of Innovation and Technology

EMEA Europe, the Middle East and Africa

EMS Energy Management System

ERAC European Research Area Committee

ERDF European Regional Development Fund

ERP Enterprise Resource Planning

ESA European Space Agency

ESG Environmental, Social, Governance

EU European Union

EUR Euro (Symbol œ; ISO code: EUR)

EV Electric Vehicles

FDA Food and Drug Administration

FEV Fully Electric Vehicles

FRSA Fellow of the Royal Society of Arts

GBP Pound sterling (symbol: ’; ISO code: GBP)

GDA Guideline Daily Amount

GDP Gross Domestic Product

GE General Electric

GGGI Global Green Growth Institute

GHG Greenhouse Gas

GM General Motors

GRI Global Reporting Initiative

HACCP Hazard Analysis and Critical Control Points

HC Hydrocarbon

HQs Headquarters

HR Human Resources (noun) or Human Resource (adjective)

IBM International Business Machines

ICAEW Institute of Chartered Accountants in England and Wales

ICE Internal-Combustion Engines

ICT Information and Communications Technology

EUROCHARITY YEARBOOK 2012/13INNOVATION FOR EXCELLENCE/ ABBREVIATIONS AND ACRONYMS

IIRC International Integrated Reporting Council

ILF Innovation Leadership Forum

Inc. Incorporated

IPR Intellectual Property Rights

IPTV Internet Protocol Television

IR Integrated Reporting

ISO International Organisation for Standardisation

ISPIM International Society for Professional Innovation Management

ISWA International Solid Waste Association

IT Information Technology

JRC Joint Research Centre

KIC(s) Knowledge and Innovation Community(ies)

KLM Koninklijke Luchtvaart Maatschappij

KPI(s) Key Performance Indicator(s)

LED(s) Light-emitting Diode(s)

LEED Leadership in Energy and Environmental Design

LSE London School of Economics

Ltd. Limited

M.A.P. Massive Action Plan

M2M Machine to (2) Machine

MBA Master of Business Administration

MIT Massachusetts Institute of Technology

MMS Multimedia Messaging Service

M.Sc. Master of Science

MSTI Main Science and Technology Indicators

MWE Municipal Waste Europe

NASA National Aeronautics and Space Administration

NBG National Bank of Greece

NGO(s) Non-Governmental Organisation(s)

NRI Networked Readiness Index

NSRF National Strategic Reference Framework

NVRD Royal Dutch Association for waste management and cleaning

OECD Organisation for Economic Co-operation and Development

OTE Hellenic Telecommunications Organization S.A.

P&G Procter & Gamble

PC Personal Computer

PET Polyethylene Terephthalate

Ph.D. Doctor of Philosophy

PPCP Public-Private-Community Partnership

Prof. Professor

PV Photovoltaics

R&D Research & Development

RDI Research, Development, Innovation / Recommended Daily Intake

RIC(s) Regional Implementation and Innovation Community(ies)

Rs Indian rupee (symbol: ; ISO code: INR)

S.A. Social Accountability / Soci�t� Anonyme

SAM Sustainable Asset Management

sAs sustainABILITY simplicated

SASB Sustainability Accounting Standards Board

SE South East

SEO Search Engine Optimisation

SI Sustainable Innovations

SME(s) Small Medium Enterprise(s)

SMOS Soil Moisture and Ocean Salinity

SMS Short Message Service

SP Sustainability Partners

SRI Socially Responsible Investors (Investment)

U.K. United Kingdom

U.S.(A) United States (of America)

UN United Nations

USD United States dollar (symbol: $; ISO code: USD)

VC(I) Venture Capital (Investment)

VFC Vanity Fair Corporation

WICI World Intellectual Capital Initiative

WIPO World Intellectual Property Organisation

WWF Worldwide Fund for Nature / World Wildlife Fund

YEAP Young Entrepreneurship Acceleration Programme

TITLE SOURCE(S) PAGE

Voice of the innovator www.innovationexcellence.com 14

The global innovation map Martin Prosperity Institute 15

IIRC structure IIRC 31

Idea generation and conversion Booz & Company 34

Innovation spenders Booz & Company / Bloomberg data 35

Green business in 2013 GreenBiz Group / Trucost 48

Business model innovation WWF-U.K. / researched by Verdantix 49

Action for innovation TrendChart / ERAWATCH 60

Innovation leaders European Commission 61

Financial innovation and sustainable development

Public Research Centre Henri Tudor 67

Values-driven innovation sustainABILITY simplicated 72-73

How to create values-driven innovation sustainABILITY simplicated 74

Scenarios for internet evolution DG Communications Networks, Content & Technology / European Commission

76

Global innovation index rankings INSEAD/WIPO 78-79

ESG geographic coverage Bloomberg 83

High technology exports Eurostat 92

Turnover from innovation Eurostat 93

Proportion of innovative enterprises by type of innovation, 2008-2010

Eurostat 108

TITLE SOURCE(S) PAGE

Value creation framework ABIS 109

Researching innovation in Greece EuroCharity / ICAP 117-118

Venture capital investments Eurostat 124

Total R&D expenditure Eurostat 125

World leaders in innovation Thomson Reuters 134

Geographic distribution of 2012 top 100 global innovators

Thomson Reuters 135

Financing instruments for promoting innovation

OECD / NIST / Corporate Venture Capital

146

Funding R&D MSTI / OECD 147

Capacity for innovation World Economic Forum 158

Charting the digital divide World Economic Forum 159

List of tables, graphs, figures,facts and stats

eurocharity yearbook 2012-13

Documents

fsc certification

fsc standards

fsc system

fsc principles

eurocharity corporate

certification services

general information

forest products companies