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High Level Group on Key Enabling Technologies Gabriel M. Crean, VP CEA Technologies Máire GeogheganQuinn Commissioner (Abs. in picture below) Presentation to ITRE Committee European Parliament Brussels, 30th of August 2011

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  • High Level Group on Key Enabling Technologies

    Gabriel M. Crean, VP CEA Technologies

    Máire

    Geoghegan‐QuinnCommissioner

    (Abs. in picture

    below)

    Presentation to ITRE CommitteeEuropean Parliament Brussels, 30th of August 2011

  • Part 1

    Part 2

    2.1 – KETs SWOT analysis

    2.2 - KETs manufacturing initiative in US

    2.4 - Balance between basic and applied research

    KETS ?

    KETs global playing field

    Outline

    2.3 – Analysis of public supporting measures to RDI (in third countries)

    Part 3HLG recommendations 3.1 - A single and fully-fledged KETs innovation policy at EU Level

    to pass across the ‘valley of death’

    3.2 - A comprehensive strategic approach to a KETs policy at EU level

    3.3 - Combined financing to promote RDI investments in KETSPart 4

    How can ITRE Committee assist

    1.1 - Importance of KETs to address European societal challenges

    1.2 - KETs underpin significant value chains

  • 3

    Based on current global research and market trends the following could be regarded as the most strategically relevant KETs, given their economic potential, contribution to solving societal challenges and knowledge intensity :

    Nanotechnology holds the promise of leading to the development of smart nano and micro devices and systems and to radical breakthroughs in vital fields such as healthcare, energy, environment and manufacturing;

    Micro- and nanoelectronics, including semiconductors, are essential for all goods and services which need intelligent control in sectors as diverse as automotive and transportation, aeronautics and space….

    Photonics is a multidisciplinary domain dealing with light, encompassing its generation,detection and management. …

    Advanced materials offer major improvements in a wide variety of different fields, e.g. in aerospace, transport, building and health care.

    Biotechnology brings cleaner and sustainable process alternatives for industrial and agri-food operations.

    For instance, CCS and CO2-related transport grids will be needed to reduce CO2emission in countries that will continue to rely heavily on fossil energy sources.

    In the supply chain of KETs, advanced manufacturing systems are important to produce high value marketable knowledge-based goods and the related services .

    The European Commission communication 2009 defined the initial KET’s perimeter:

    Advanced manufacturing systemsAdvanced manufacturing systems

    Nan

    o-te

    chno

    logI

    esN

    ano-

    tech

    nolo

    gIes

    Mic

    ro a

    ndna

    noel

    ectr

    onic

    sM

    icro

    and

    nano

    elec

    tron

    ics

    Phot

    onic

    sPh

    oton

    ics

    Adv

    ance

    dm

    ater

    ials

    Adv

    ance

    dm

    ater

    ials

    Bio

    tech

    nolo

    gyB

    iote

    chno

    logy

    The HLG KET mid-term report was validated by HLG Members and Commissioners Tajani, Kroes and Geoghegan-Quinn on the 9th of February 2011

    KET’s perimeter

    The High Level Group focused on the following six KETs :

  • Chip

    Next ?

    substrate

    Mems

    Camera

    KETs are essential to develop and manufacture advanced products

    Societal Challenge

    Advanced materials

    Photonics

    Microelectronics

    Nanotechnologies

    Biotechnologies

    Digital Society

  • DNA

    Optical detection

    Fluidics

    Biochip

    NanolabelsSocietal

    Challenge

    Advanced materials

    Photonics

    Microelectronics

    Nanotechnologies

    Biotechnologies

    Effective timely detection and

    diagnostic systems

    KETs are essential to develop and manufacture advanced products

  • PV modules

    Societal Challenge

    Si Nanowire

    Organic product

    Smart meter for utility energy consumption

    Advanced materials

    Photonics

    Microelectronics

    Nanotechnologies

    Biotechnologies

    Combating climate change

    KETs are essential to develop and manufacture advanced products

  • Biotechnologies

    Micro & Nano 

    electronics

    PhotonicsAdvanced 

    materials

    Advanced 

    Manufacturing 

    Systems

    Nanotechnologies

    EnergyGreen Car Value Chain Case Study De-carbonisation of transport

    Advanced materials

    KETs are essential to develop and manufacture advanced products

  • Material Solution Component System Soc.issu eRecyclin

    g Product

    Nano-technologies

    Photonics

    AdvancedMaterials

    Biotechnology

    Micro- andNanoelectronic

    s

    Non-KET domain

    BMS1

    Battery Electrical Vehicle Mobility

    Material separation

    Advanced Manuf.

    systems

    Electrodes Material

    (Nanostructured Multimaterials)

    Powder Ink

    Cells & Modules

    High-tech Mechanosynthe -sis equipment2

    Anhydrous envir. +

    Clean Room Facilities

    Characterization Characterization

    Biomass Bio isopreneBio based

    synthesis rubber, elastomers

    Bio Tires

    Lamp

    Chips SensorsSiSOI

    Software

    GaN MOCVD3 reactor LED

    Clean Room Facilities

    Energy Efficiency

    Nano-Coating

    1. Battery Management System 2. Inert atmosphere 3. Metal-Organic Chemical Vapour DepositionSource: HLG documents of phase 1, Expert interviews, own analysis

    Hybrid nanomaterials

    Green Car Value Chain Case Study (2/2) Zoom on KETs

  • 9

    KETs are strategic all along EU value chains

    KETs: -Advanced materials-Nanotechnologies-Biotechnologies

    KETs: -Advanced manufacturing Systems

    -BiotechnologyKETs: -Nanoelectronics -PhotonicsF

    rom

    KET

    s to

    fina

    l pro

    duct

    Material

    Equipment

    Component

    From

    prod

    uct

    to s

    ocie

    talc

    halle

    nge Product

    Solutions &services

    Societalchallenges

    Biomass

    Biolsoprene

    BiobasedSynthesis rubber,

    Adhesives, elastomers

    Car tyres

    Biobased tyres

    CO2 reductionEnergy efficiency(Climate change)

    Car industry

    MOCVD reactor

    Lighting

    GaN

    LED

    Lamp

    Lighting

    Energy efficiency

    (Climate change)

    Nomadic communication

    Nano component (Low power)

    Litho scanner

    Nanoelectronics

    Knowledgesociety

    SOI material

    Mobile phone

  • Part 1

    Part 2

    2.1 – KETs SWOT analysis

    2.2 - KETs manufacturing initiative in US

    2.4 - Balance between basic and applied research

    KETS ?

    KETs global playing field

    Outline

    2.3 – Analysis of public supporting measures to RDI (in third countries)

    Part 3HLG recommendations 3.1 - A single and fully-fledged KETs innovation policy at EU Level

    to pass across the ‘valley of death’

    3.2 - A comprehensive strategic approach to a KETs policy at EU level

    3.3 - Combined financing to promote RDI investments in KETSPart 4

    How can ITRE Committee assist

    1.1 - Importance of KETs to address European societal challenges

    1.2 - KETs underpin significant value chains

  • 11

    Concerning patent activity Europe is still in the KET’s race

    Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), TKM 2011

    Shares of EPO/PCT patents by regions (percent) All KETs cumulated

    2008

    2008 priority patents (published) 0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

    East Asia

    Europe

    RoW

    North America

  • EU actors at top of KET patent1 ranking Global TOP10 per KET

    1. EPO/PCT patents, 2000-2007Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), TKM 2011

    Nano-technologIes

    Nano-technologIes

    Micro andnanoelectronics

    Micro andnanoelectronics

    All actors

    SamsungHPUniv. of CaliforniaCanon3MAgilentJSTAHitachiSonyMatsushita

    InfineonTokyo ElectronMatsushitaSamsungApplied MaterialsFujitsuNikonST MicroelctronicsNECIBM

    R&D actors

    CEAUniv. of CaliforniaJSTACNRSMITUS DoEAISTNI of HealthUniv. TexasFhG

    CEAUniv. of CaliforniaIMECFhGAISTCNRSMITJSTAIKETRUniv. Tohoku

    SamsungMatsushita3MCorningFuji FilmOsramSumitomoSharpKodakSony

    PhotonicsPhotonics

    CEAFhGMITUniv. of CaliforniaUS DoECNRSAISTJSTAUS gvmt.ETRI

  • 13

    Disconnect between EU patent base

    and EU manufacturing share

    1 - Lithium-ion batteries for low-carbon electric vehicle

    3 - PV cells for solar renewable energy

    Examples from three dedicated KETs case-studies

    2 - Bioethanol production

  • 14Source: European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW), CGGC, Lithium-ion

    Batteries for Electric Vehicles : THE U.S. VALUE CHAIN, October 2010

    Europe

    % Li-ion battery cell production share in 2008

    Asia

    87%31%

    Advanced Material Patent Share%

    USA

    12%

    35%

    30%

    4%Others

    Disconnection between patents share and manufacturing shareCase Study: Li-ion battery production

    1%0%

  • Electric Vehicles: a worldwide race Is Europe running ?

    U.S. EU ASIA

    EC: 100M€ (EV+HEV)

    FR: 545M€ (EV+HEV)

    D: 770 M€ (EV+HEV)

    ARRA1: 1.855B€ (EV including 1,16b€ Batteries)

    ATVMIP 2 : 6.57B€ (EV+HEV)

    Michigan: 260M€ (Industrialisation of batteries)

    Prog DOE: 484M€ (including 58,5M€ Batteries)

    JP: 2.15B€ (Batteries)

    KR: 460M€ (EV + HEV)

    CH: > 700M€ (EV + HEV)

    > > 9.2B9.2B€€

    > 1.2 B> 1.2 B€€> 3.3 B> 3.3 B€€

    ~ ~ 1,48b1,48b€€batteriesbatteries

    ~ ~ 2.5B2.5B€€batteriesbatteries

    15Source:2 Advanced Technology Vehicles Manufacturing Incentive Program

    1 American Recovery and Reinvestment Act

  • Barack H. Obama, State of The Union 2011 speech, Jan 25

    “At stake [right now] is whether new jobs and industries take root in this country, or somewhere else. […] The rules have changed. In a single generation, revolutions in technology have transformed the way we live, work and do business. […]

    Meanwhile, nations like China and India realized that with some changes of their own, they could compete in this new world. And so they started educating their children earlier and longer, with greater emphasis on math and science. They're investing in research and new technologies. Just recently, China became the home to the world's largest private solar research facility, and the world's fastest computer.

    John Seely Brown, former director of Xerox’s Silicon Valley research center, co-chair of the Deloitte Center for Edge Innovation(Financial Times, Jan 28, 2011)

    “We really have to get back to building things, we can’t just design things. […] The president’s emphasis on the need to improve the nation’s infrastructure, alongside spending on basic research and improvements in education, could pay dividends in the long term. ”

    Andrew Grove's proposal to rebuild America's economy

    “The United States must restructure its government around

    the idea of attracting foreign manufacturers to America in order to put Americans back to work […], National manufacturing ecosystems compete with each other"

    Founder and former chairman and CEO of Intel Corp.

    “The Rules have Changed”

    The future is ours to win. But to get there, we can't just stand still.[…] We know what it takes to compete for the jobs and

    industries of our time. We need to out-innovate, out-educate, and out-build the rest of the world. All these investments -- in innovation, education, and infrastructure -- will make America a better place to do business and create jobs.

    The first step in winning the future is encouraging American innovation. […] In America, innovation doesn't just change our lives. It is how we make our living. […] This is our generation's Sputnik moment. […] We'll invest in biomedical research, information technology, and especially clean energy technology an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.”

    16

  • HawaiiAlaska

    North Dakota

    South Dakota

    Nebraska

    Kansas

    Oklahoma

    Washington

    Oregon

    California

    Montana

    Idaho

    Nevada

    Utah

    ArizonaNew Mexico

    Colorado

    Wyoming

    Texas

    Loui-siana

    Arkansas

    Missouri

    Iowa

    Minnesota

    Wisconsin

    Illinois

    Missis-sippi Alabama Georgia

    Florida

    SouthCarolina

    North CarolinaTennessee

    KentuckyVirginia

    WestVirginia

    OhioIndiana

    Pennsylvania

    Maryland

    New Jersey

    New York

    MaineVermont

    New Hampshire

    Massachusetts

    Rhode IslandConnecticut

    Michigan

    Delaware

    HawaiiAlaska

    North Dakota

    South Dakota

    Nebraska

    Kansas

    Oklahoma

    Washington

    Oregon

    California

    Montana

    Idaho

    Nevada

    Utah

    ArizonaNew Mexico

    Colorado

    Wyoming

    Texas

    Loui-siana

    Arkansas

    Missouri

    Iowa

    Minnesota

    Wisconsin

    Illinois

    Missis-sippi Alabama Georgia

    Florida

    SouthCarolina

    North CarolinaTennessee

    KentuckyVirginia

    WestVirginia

    OhioIndiana

    Pennsylvania

    Maryland

    New Jersey

    New York

    MaineVermont

    New Hampshire

    Massachusetts

    Rhode IslandConnecticut

    Michigan

    Delaware

    HawaiiAlaska

    North Dakota

    South Dakota

    Nebraska

    Kansas

    Oklahoma

    Washington

    Oregon

    California

    Montana

    Idaho

    Nevada

    Utah

    ArizonaNew Mexico

    Colorado

    Wyoming

    Texas

    Loui-siana

    Arkansas

    Missouri

    Iowa

    Minnesota

    Wisconsin

    Illinois

    Missis-sippi Alabama Georgia

    Florida

    SouthCarolina

    North CarolinaTennessee

    KentuckyVirginia

    WestVirginia

    OhioIndiana

    Pennsylvania

    Maryland

    New Jersey

    New York

    MaineVermont

    New Hampshire

    Massachusetts

    Rhode IslandConnecticut

    Michigan

    Delaware

    Aggressive US federal and state action to attract foreign firms

    1. Argonne National LaboratorySource: BASF.com, SAFT.com, chemweek.com, prnewswire.com

    BASF breaks ground for North America's most advanced production facility for Lithium-Ion battery materials in OHIO

    2005

    2010

    BASF invests significantly in lithium-ion cathode materials research and development

    SAFT forms a joint venture with Johnson Controls20062009 SAFT America to Build New Advanced Battery Plant in Jacksonville, Florida

    The new plant will manufacture lithium-ion cells, modules and battery packs for military, industrial, and agricultural vehicles

    March 15, 2010 in Jacksonville, Florida

    $50+ million production facility$24.6 million grant from the US DoEunder the American Recovery and Reinvestment Act.

    October 27, 2010 in Elyria, Ohio $200 million production facility$95.5 million grant from the US DoE

  • 18

    Disconnection between patents share and manufacturing share Case Study: Bioethanol production

    Source: European Biomass Industry Association, European Biofuels Technology Platform (EBTP), European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW)

    Europe

    4%

    % Bioethanol production share in 2009

    China

    34%

    USA

    Brazil

    3%

    5%

    54%

    36%

    34%23%

    Asia

    7%

    Industrial Biotechnologies Patent Share%

    Others

  • 1. American Recovery and Reinvestment Act2. Financiadora de Estudos e Projetos: The Brazilian Innovation AgencySource: Own Analysis, Web site of Department of Energy, of the ARRA (American Recovery and Reinvestment Act ), www.biopreferred.gov,

    http://www.agribionet.org/client/page1.asp?page=3159&clef=19&clef2=11, http://www.energyrefuge.com/blog/brazilian-bioethanol-research- gets-funding-boost/, http://biofuelsdigest.com/bdigest/2011/06/08/brazil-to-invest-22b-in-ethanol-gm-ceo-says-ethanol-has-not-much-future-in- us/, EPIA

    In 2009, state governed Brazilian company Petrobras

    announces to invest 2,8B$ in biofuels

    July, 2010, the Brazilian Innovation Agency FINEP and 

    Brazil’s National Development Bank (BNDES) finance 

    540M$ for the country’s biofuels

    sector

    June 2011, Brazilian state‐owned development bank 

    BNDES announced that it will make $18‐22 billion in loans to the sugarcane and ethanol sector

    Brazilian government still increases its investments in Industrial  Biotechnologies

    EIB loans provided to all renewable energy sector in 2010: 6B€

    http://www.biopreferred.gov/http://www.agribionet.org/client/page1.asp?page=3159&clef=19&clef2=11http://www.energyrefuge.com/blog/brazilian-bioethanol-research-gets-funding-boost/http://www.energyrefuge.com/blog/brazilian-bioethanol-research-gets-funding-boost/http://biofuelsdigest.com/bdigest/2011/06/08/brazil-to-invest-22b-in-ethanol-gm-ceo-says-ethanol-has-not-much-future-in-us/http://biofuelsdigest.com/bdigest/2011/06/08/brazil-to-invest-22b-in-ethanol-gm-ceo-says-ethanol-has-not-much-future-in-us/

  • HawaiiAlaska

    North Dakota

    South Dakota

    Nebraska

    Kansas

    Oklahoma

    Washington

    Oregon

    California

    Montana

    Idaho

    Nevada

    Utah

    ArizonaNew Mexico

    Colorado

    Wyoming

    Texas

    Loui-siana

    Arkansas

    Missouri

    Iowa

    Minnesota

    Wisconsin

    Illinois

    Missis-sippi Alabama Georgia

    Florida

    SouthCarolina

    North CarolinaTennessee

    KentuckyVirginia

    WestVirginia

    OhioIndiana

    Pennsylvania

    Maryland

    New Jersey

    New York

    MaineVermont

    New Hampshire

    Massachusetts

    Rhode IslandConnecticut

    Michigan

    Delaware

    HawaiiAlaska

    North Dakota

    South Dakota

    Nebraska

    Kansas

    Oklahoma

    Washington

    Oregon

    California

    Montana

    Idaho

    Nevada

    Utah

    ArizonaNew Mexico

    Colorado

    Wyoming

    Texas

    Loui-siana

    Arkansas

    Missouri

    Iowa

    Minnesota

    Wisconsin

    Illinois

    Missis-sippi Alabama Georgia

    Florida

    SouthCarolina

    North CarolinaTennessee

    KentuckyVirginia

    WestVirginia

    OhioIndiana

    Pennsylvania

    Maryland

    New Jersey

    New York

    MaineVermont

    New Hampshire

    Massachusetts

    Rhode IslandConnecticut

    Michigan

    Delaware

    HawaiiAlaska

    North Dakota

    South Dakota

    Nebraska

    Kansas

    Oklahoma

    Washington

    Oregon

    California

    Montana

    Idaho

    Nevada

    Utah

    ArizonaNew Mexico

    Colorado

    Wyoming

    Texas

    Loui-siana

    Arkansas

    Missouri

    Iowa

    Minnesota

    Wisconsin

    Illinois

    Missis-sippi Alabama Georgia

    Florida

    SouthCarolina

    North CarolinaTennessee

    KentuckyVirginia

    WestVirginia

    OhioIndiana

    Pennsylvania

    Maryland

    New Jersey

    New York

    MaineVermont

    New Hampshire

    Massachusetts

    Rhode IslandConnecticut

    Michigan

    Delaware

    US attracts our young KET champions (they go as far as  financing 50% of Pilot Lines, and giving loans for the rest).

    Source:Cross-sectoral Analysis of the Impact of International Industrial Policy on Key Enabling Technologies (Danish Technological Institute with IDEA Consult, 2011), http://americanfuels.blogspot.com/2011/02/ineos-bio-jv-breaks-ground-on-florida.html,

    $130 million

    production facility to produce advanced biofuels

    from waste 

    $50 million

    Grant from the U.S. Department of Energy 

    $75 million loan guarantee from the U.S. Department of Agriculture

    UK INEOS Bio builds a plant in the US with>95% subsidies and loans guarantees

    February

    2011

    http://americanfuels.blogspot.com/2011/02/ineos-bio-jv-breaks-ground-on-florida.html

  • 21

    Disconnection between patents share and manufacturing share Case Study: PV Cell production

    Europe

    Japan

    13%

    15%

    42%

    China/Taiwan

    12%

    First Solar

    18%

    % PV cell production share in 2009

    29%

    27%

    42%

    Asia

    2%

    Photonics Patent Share

    Others

    %Europe = 77 %

    of global market

    Source: Photon International Mars 2010, European Competitiveness Report 2010, European Competitiveness in Key Enabling Technologies (TNO/ZEW)« JP Morgan, PV News, Oliver Wyman Analysis”

  • TOP10 manufacturers of solar panels/cells 2004 to 2010Cell production in MWp

    2

    3

    4

    5

    6

    7

    8

    9

    10

    Sharp 75

    Kyocera 51

    Shell solar 51

    Astropower 24

    Sanyo 20

    Isofoton 16

    RWE Solar 16

    Mistubishi 12

    Photowatt 12

    1 Sharp 324

    Kyocera 105

    BP Solar 85

    Q-Cells 75

    Mitsubishi 75

    Shell solar 72

    Sanyo 65

    Schott Solar 63

    Isofoton 53

    Motech 35

    First Solar 1100

    Suntech 704

    Sharp 595

    Q-Cells 571

    Yingli 525

    JA Solar 520

    Kyocera 400

    Trina Solar 399

    SunPower 397

    Gintech 368

    Suntech 1250

    First Solar 1228

    Yingli Solar 950

    JA Solar 900

    Sharp 750

    Q-Cells 700

    Gintech 700

    Motech 600

    Trina Solar 600

    Kyocera 550

    BP solar 40

    2

    2

    4

    5

    6

    7

    7

    9

    9

    1

    5,3B$

    4,4B$

    ~21B$ “loans”by government owned banks

    for four major Chinese PV manufacturers

    Sources : Photon international mars 2010Solar Cell Production and Market Implementation in Japan, USA and the European Union - Joint Research Centre - European Commission - A Jäger-Waldau – 2002

    22

  • “China solar PV credit agreements reach ~$33.6B” Deutsche Bank Global Market Research

    Jinko

    Solar gets $7.6 Billion credit facility

    March 2011

    Jinko, a pretender for the remaining two 

    non‐Asian places 

    among the TOP10 for 2011

    Source: Photon international mars 2010, Solar Cell Production and Market

    Implementation in Japan, USA and the EU ‐

    JRC ‐

    EC ‐

    A Jäger‐Waldau

    2002, www.latribune.fr/green‐business, 

    http://www.chinadaily.com.cn/bizchina/2010‐07/09/content_10087488.htm, Bloomberg, http://www.bizjournals.com/triangle/stories/2008/07/14/daily17.html, 

    http://www.bizjournals.com/albany/stories/2010/05/31/daily1.html, http://www.iceach.com/htm_news/2010‐9/9346_873700.htm, http://solar‐energy‐news‐and‐

    views.blogspot.com/2011/03/jinko‐solar‐gets‐76‐billion‐credit.html, EPIA, Deutsche Bank Global Market Research

    http://www.latribune.fr/green-businesshttp://www.chinadaily.com.cn/bizchina/2010-07/09/content_10087488.htmhttp://www.bizjournals.com/triangle/stories/2008/07/14/daily17.htmlhttp://www.bizjournals.com/albany/stories/2010/05/31/daily1.htmlhttp://www.iceach.com/htm_news/2010-9/9346_873700.htmhttp://solar-energy-news-and-views.blogspot.com/2011/03/jinko-solar-gets-76-billion-credit.htmlhttp://solar-energy-news-and-views.blogspot.com/2011/03/jinko-solar-gets-76-billion-credit.html

  • 24

    MarketMarketKnowledgeKnowledge

    The valley

    of death

    The European ‘‘ valley of death ’’

  • China is agressively ramping up the value chain to

    address future systems markets

    Source : Yole, DOE manufacturing roadmap, Strategies Unlimited, Morgan Stanley

    Materials Chips Components Systems and luminaires

    Market size 2009 $0,07B $0,23B $0,65B $1,97B

    LED value chain

    CAGR 2009-2015 +55% +58% +59% +70%

    +1000 new MOCVD reactors

    installed in 2010-2012

    • LED cities will have at least 21 cities install a minimum of 10,000 LED streetlights each

    • Guangdong Province (China): $90 Million budget to subsidize 30% of LED street lamp cost

    2’’ equivalent per month capacity

    X10Q4 2009 : 140,000

    Q4 2011 : 1,465,000

    Governmental Incentives

    Up to 50% of the cost of a

    MOCVD reactor

    ?

    « …some Chinese programs seem to exist to

    copy western equipments.»

    “… MOCVD equipment for LED production is almost

    monopolized by German AIXTRON and American

    VEECO”

    But until when?

    Services

    Equipments$1B

    Demand Side

    Measures

  • • CNRS‐INPG‐UJF‐CEA• 30 scientists• Located

    in Minatec • Spin electronics, MRAM, magneto‐opticrecording,..

    O. Redon B. DienyJP. NozieresCEA CNRS co‐foundersEuropean

    VC

    "success story"

    Our KET champions are as well attracted by Russia, thanks to its

    Rusnano

    investment fund

    RUSNANO Enters $300

    Million

    Deal to Build Advanced MRAM Manufacturing Facility in Russia

    "We selected Crocus because we believe 

    their technology is best‐in‐class and 

    promises to bring differentiated MRAM 

    products to market", said A. Chubais, CEO 

    RUSNANO

    2011

    http://www.crocus-technologies.com/

  • US‐PCAST (similar to EC HLG)  obtained similar findings to us !

    May 2011Intermediate report 

  • 1. President's Council of Advisors on Science and TechnologySource: Report to the President: Ensuring American Leadership In Advanced Manufacturing (PCAST, 2011),

    http://www.manufacturingnews.com/news/11/0531/ami.html

    Recommended actions by the PCAST1

    – strong overlap with HLG‐KET recommendations can be observed

    Valley

    of death

    Pillar

    2: accelerating

    the 

    manufacturing

    process

    Pillar

    3: co‐location

    R&D/Manufacturing 

    Combining

    the funding

    Pillar

    1: technology

    infrastructure

    Pillar

    3: overcoming

    the market

    failure

    http://www.manufacturingnews.com/news/11/0531/ami.html

  • 1975 1995 2005Shift from a PRO1‐centered 

    innovation system to a 

    firm‐centred one

    Consolidation of R&D 

    infrastructure with the 

    construction of 199 state of 

    the art State Key 

    Laboratories (SKL)

    80/199

    SKLs

    are explicitly 

    dedicated to the KETs•

    ~32000 employees

    “most Chinese enterprises don’t 

    have research teams of their own”

    1. PRO : Public Research OrganizationSources: A Guide to the Chinese State Key Laboratories by the Helmholtz Gemeinschaft Beijing Representative Office 2007, OECD

    China has put firms at the centre of innovation  and supports  specific KETs State Laboratories

  • International benchmark on the share of basic, applied and development  activities funded by China, Korea, the US, the Member States and

    the EU

    Korean, Chinese and US federal R&D funds mainly go to applied “Development”

    whereas Europe has the highest 

    share of Basic Research Funding

    Source: Key Science and Engineering Indicators, National Science Board, 2010 Digest, NSF, http://cordis.europa.eu/erawatch, OECD " Research and Development Statistics “, Own analysis

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    100

    11%

    32%

    58%

    China

    24%

    32%

    44%

    Korea

    24%

    28%

    48%

    US

    36%

    45%

    19%

    Sum of MemberStates

    7th

    FWPEU 2010

    FP782%

    EIT+JTI - 7%

    CIP+PPP - 11%

    EU

    Basic FP7 Applied Development

    http://cordis.europa.eu/erawatch

  • Part 1

    Part 2

    2.1 – KETs SWOT analysis

    2.2 - KETs manufacturing initiative in US

    2.4 - Balance between basic and applied research

    KETS ?

    KETs global playing field

    Outline

    2.3 – Analysis of public supporting measures to RDI (in third countries)

    Part 3HLG recommendations 3.1 - A single and fully-fledged KETs innovation policy at EU Level

    to pass across the ‘valley of death’

    3.2 - A comprehensive strategic approach to a KETs policy at EU level

    3.3 - Combined financing to promote RDI investments in KETSPart 4

    How can ITRE Committee assist

    1.1 - Importance of KETs to address European societal challenges

    1.2 - KETs underpin significant value chains

  • A KETs label and fully-fledged KETs innovation policy at EU Level…to pass across the ‘valley of death’

    A single and integrated approach to KETs

    The three pillars bridge

    Recommendation 2:“The EU should

    apply the TRL scale R&D definition’’

    Recommendation 4:“Rebalancing of EU RDI funding programmes’’

    Recommendation 3:“Fully exploit the scope of relevant R&D definitions’’

    Recommendation 1:“Make KETs a technological priority for Europe’’

    ‘‘ an integrated KETs policy (CSF, regional policy, EIB)’’

  • A comprehensive strategic approach to a KETs policy at EU level

    Industrial driven approachto maximise the European added value

    Recommendation 6: “Establish an appropriate set of rules to implement KETs programmes’’

    ‘Simultaneous commitments from stakeholders’’

    Recommendation 5: “A strategic approach to KETs programmes’’

    ‘‘Top down calls ’’

    Recommendation 9:“Globally competitive IP policy in Europe’’

    ‘Similar to Bayh Dole Act’

  • Technology competitivenessManufacturing capacity competitiveness

    Public driven Private driven

    Combination funding

    Memberstates

    EU

    Combination funding

    DG …

    DG …

    DG …

    Combined financing to promote RDI investments in KETS

    Recommendation 8 : “KETs state aid provisions’’

    Recommendation 7:“Combined funding mechanisms’’

  • Recommendation N° 10 

    ERC 

    Basic research Technological research

    Build, strengthen and retain KETs skills

    The High Level Group recommends that the EU should create a European  Technology Research Council (ETRC) to promote individual excellence 

    in technologically focused engineering research and innovation and establish  the appropriate framework conditions through the ESF regulation in order 

    to support KETs skills capacity building at national and regional level.

  • 1.1 - HLG KETs timeline

    1.2 - KETs phase 2 methology

    Part 1

    Part 2

    2.1 - Latest news

    2.2 - Advanced manufacturing initiative in US

    2.4 - Balance between basic and applied research

    Methodology

    Outline

    Part 3Proposals and recommendations 3.1 - A single and fully-fledged KETs innovation policy at EU Level

    to pass across the ‘valley of death’

    3.2 - A comprehensive strategic approach to a KETs policy at EU level

    3.3 - Combined financing to promote RDI investments in KETSPart 4

    How can ITRE Committee assist

    2.3 – Analysis of public supporting measures to RDI (in third countries)

    Update on KETs global playing field

  • How can ITRE Committee assist ?

    • Recommend to EC the immediate and full implementation of the High Level Group on KETs recommendations in the context of the common negotiation on CSF / Horizon 2020

    • Demand clear and unambigous targets with EC research and innovation budgets for Basic, Applied and Development research funding (aligned with international best practice)

    • Hold full ITRE Parliament hearing on “Level Playing Field for KETs European industry”

  • European KETs for the global marKETConclusion

    KETs for marKETsand

    Máire

    Geoghegan‐QuinnCommissioner

    (Abs. in picture

    below)

    Thank you for your [email protected]

    Diapositive numéro 1Diapositive numéro 2Diapositive numéro 3Diapositive numéro 4Diapositive numéro 5Diapositive numéro 6Green Car Value Chain Case Study� De-carbonisation of transportGreen Car Value Chain Case Study (2/2)� Zoom on KETsKETs are strategic all along EU value chainsDiapositive numéro 10Concerning patent activity �Europe is still in the KET’s raceEU actors at top of KET patent1 ranking�Global TOP10 per KETDiapositive numéro 13Diapositive numéro 14Electric Vehicles: a worldwide race�Is Europe running ?Diapositive numéro 16Aggressive US federal and state action to attract foreign firmsDisconnection between patents share and manufacturing share �Case Study: Bioethanol productionBrazilian government still increases its investments in Industrial BiotechnologiesUS attracts our young KET champions (they go as far as financing 50% of Pilot Lines, and giving loans for the rest).Disconnection between patents share and manufacturing share Case Study: PV Cell productionDiapositive numéro 22“China solar PV credit agreements reach ~$33.6B”�Deutsche Bank Global Market ResearchDiapositive numéro 24China is agressively ramping up the value chain to address future systems marketsDiapositive numéro 26US-PCAST (similar to EC HLG) �obtained similar findings to us !Recommended actions by the PCAST1 – �strong overlap with HLG-KET recommendations can be observedChina has put firms at the centre of innovation �and supports specific KETs State LaboratoriesInternational benchmark on the share of basic, applied and development activities funded by China, Korea, the US, the Member States and the EU�Korean, Chinese and US federal R&D funds mainly go to applied “Development” whereas Europe has the highest share of Basic Research FundingDiapositive numéro 31Diapositive numéro 32Diapositive numéro 33Diapositive numéro 34Diapositive numéro 35Diapositive numéro 36How can ITRE Committee assist ?Diapositive numéro 38