Frank TreppeSlide 1

Fraunhofer Institute forMachine Tools and Forming Technology IWU

Initiatives in the East German State of Saxony in R & D Infrastructure Development

F. Treppe

Frank TreppeSlide 2

State of Saxony

Dresden

Leipzig

Chemnitz

Capital: Dresden

Strong industry focus with traditional markets in Middle and Eastern Europe

Inhabitants: 4, 321, 437

Size: 18, 414 km²

Source: 01.01.2004 Statist. Landesamt Sachsen

Frank TreppeSlide 3

The Origin of Machine Building in Germany

“... examples for german diligence, rare work and in the past not known perfectibility and expansion in the machine building branch“

Weltausstellung Paris 1867, Stand der Firma Zimmermann

Distribution of Factories in 1846

Frank TreppeSlide 4

Today‘s Machine Tool Industry in the State of SaxonyRepresented by 450 SMEs with a total of 34,000 employees

textile machinery

printing machinery

machine tools

Frank TreppeSlide 5

EU Structural Funds in Saxony (2000 – 2006)

ERDF ESF EAGGF

3,31,1

0,7

bn €

In combination with the requiredco-financing through governmental and private sources a total investment fund of almost 10 billion Euro is available.

Expected results:

• GDP growth of 2 % • employment rate 1 % higher than without availability of the funds

Frank TreppeSlide 6

ERDFs in Saxony (2000 – 2006)

30%

45%

24%

1%

focus 1 focus 2 focus 3 focus 4

Focus 1: Promoting competitiveness of small and medium sized enterprises

Focus 2: Infrastructure

Focus 3: Protection and improvement of the environment

Focus 4: Technical assistance

More than 25 % of the ERDFs support the regions and cities of Chemnitz, Dresden and Leipzig

Frank TreppeSlide 7

ERDFs in Saxony (2000 – 2006)Selected Goals within Focus 1

• To promote the development of new products and processes by funding 750 R&D projects of single companies or industry-oriented research centers with a total of 262 million EUR

• To promote the development of new products and processes by funding 1650 R&D projects of consortia between industry (primarily SMEs) and industry-oriented research centers with a total of 313 million EUR

• To promote technology transfer by funding 340 projects of technology transfer centers, incubators, technology demonstration centers etc. with a total of 43 million EUR

• To assist SMEs in participating in EU programs (140 projects, 3.5 million EUR)

• To assist SMEs in accessing new markets (3300 projects, 12.5 million EUR)

Frank TreppeSlide 8

ERDFs in Saxony (2000 – 2006)Selected Goal within Focus 2

• To fund and support infrastructure and applied research projects at universities and research institutes with the goal to establish an R&D infrastructure at worldclass level

institutional priority is given to the set-up and growth of Fraunhofer Institutes

technology priorities are given to new materials, microelectronics, production technology, information technology and traffic systems

Frank TreppeSlide 9

ERDFs Allocated from 1994 - 2006 for the Improvement of the R & D Infrastructure in Saxony

EU Funding ERDF Funds State Funds Total Funds Number of Number of Periodmillion EUR million EUR million EUR Funded Funded R&D Projects

Institutions

1994-1999 54 18 72 701 30

2000-2006 230 77 307 721 272 as of 30.06.05 as of 30.06.05

1 number includes applied R & D projects which consumed about 10 % of the funds

2 number includes 10 Fraunhofer Institutes

Frank TreppeSlide 10

Major R & D Providers and Recipients of ERDF in the State of Saxony

Dresden

Leipzig

Chemnitz

• 5 Universities• 5 Professional schools for

technology and economics• 10 Fraunhofer Institutes• 7 Max-Planck Institutes• 7 Leibniz Institutes

Frank TreppeSlide 11

Co-financed with Means of the ERDF BIOCITY Leipzig

A center with 20.000 m2 space for biotechnology companies and research groups.

25 % of the space is used by the university

75 % of the space is dedicated to business (start-ups and established companies)

Total investment: 35 million EUR

ERDF support: 17.1 million EUR

Frank TreppeSlide 12

Itzehoe

BerlinGolm

Magdeburg

Hannover

Braunschweig

Bremen

OberhausenDortmund

Duisburg

AachenEuskirchen

SchmallenbergSt. Augustin

Ilmenau

JenaDresden

Chemnitz

Würzburg

Erlangen

Pfinztal

Darmstadt

KaiserslauternSt. Ingbert

SaarbrückenKarlsruhe

Stuttgart

Freiburg

Freising

Leipzig

Fraunhofer-Gesellschaft in Germany

58 Institutes at approx. 40 locations

12 600 Employees

€1 billion Research budget

Frank TreppeSlide 13

Co-financed with Means of the ERDF

Fraunhofer Institute for Machine Tools and Forming Technology

Dresden

Chemnitz

Fh IWU in Numbers: 170 engineers

and scientists 130 students

and trainees 16 Mio. € annual budget

Research Focus: Machine tools Mechatronics Forming technology Precision technology

in Chemnitz and Dresden

Primary Networking with: Fraunhofer-Gesellschaft

(58 Institutes of applied research) Universities in Saxony, Germany

and worldwide Automotive industry (OEMs)

and their suppliers German and European machine tool builders

Chemnitz

Dresden

Frank TreppeSlide 14

Example 1 for IWU’s regional R & D platforms Mechanical Engineering Initiative Next Economy – MAINE

Coordinated by Fraunhofer IWUcurrently more than 20mostly Saxon companies work on altogether19 sub-projects with atotal project volumeof about 28 Mio. € .

Project Partners

I&C-Technologies for Mechanical Engineering

Presswerk

Hydroforming

ThyssenKrupp Drauz

Frank TreppeSlide 15

Example 2 for IWU’s regional R & D platforms

Competence Centre Mechanical Engineering “KMC”

Association of finalists, component suppliers, research institutions and service providers under the R&D guidanceof the Fraunhofer IWU, established in 1998

Unites about 30 companies and research institutionswith approximately 4000 employees

Annual turnover of the KMC members is about 500 Mio. €

Objectives:- Common research projects- Offering complete system solutions- Joint purchase pool

Fraunhofer IWU

RAWEMA

NILES-SIMMONS

SCHÖNHERR

Frank TreppeSlide 16

VEMAS promotes innovation and initiates market-driven technology or business

networks

Machine Builders

Consultants R & D

SuppliersService Providers

Associations Networks

Plant Builders

Example 3 for IWU’s regional R & D platforms Strategic Alliance of Machine Tool and Equipment Manufacturers„VEMAS „

Frank TreppeSlide 17

Summary and Outlook

• Structural funds had and will continue to have significant impact on driving economic growth in the State of Saxony through innovation, qualification and entrepreneurship.

• Innovation, science, research and education will continue to set the focus of the new funding period from 2007 – 2013

• The plan for further expanding the R & D infrastructure calls again for a concentration on Fraunhofer Institutes as well as competence and technology centers at universities and educational academies.

• Applied R&D projects will focus on energy technology, micro- and nanoelectronics, biotechnology and materials

• Improvement of technology transfer will play a major role in future funding.

• Infrastructure related ERDFs will for the first time be used to improve IT services.

Frank TreppeSlide 18

Thank you very much for your attention!

For more information:

Frank Treppe

frank.treppe@iwu.fraunhofer.de

Phone 0049 371 5397 1955