November 2018

Author:Willem van WindenUIA Expert

The AS-FABRIK project Journal N°3

Project led by the city of Bilbao

JOBS & SKILLSIN THE LOCAL ECONOMY

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The AS-FABRIK project

Considering the challenge faced by manufacturing industries in the Bilbao area that are moving towards a 4.0 dimension, the AS-FABRIK project seeks to increase the competitiveness of the advanced services sector of Bilbao (Knowledge intense Business Services – KIBS), that will prepare current or future workers of the KIBS sector, to acquire the needed skills, in order to supply digital transformation demands.

Bilbao City council is therefore leading a strategic alliance between leading businesses and universities, local service providers and entrepreneurs, in order to shape a collaborative pilot ecosystem based on innovative pillars and hosted in a tailor made space for experimentation and incubation of new services. New education programs for university students, entrepreneurs and professionals addressing the new challenges of the industry 4.0 and the digital economy will be tested, while networking actions among the main stakeholders, supported by tailored IT tools, will ensure a good match between demand and supply. New business models will be prototyped to support specialised start-ups that will benefit from a Minimum Viable Product (MVP) test Fab Lab for the market validation of new products/services.

At the end of the project, KIBS providers from Bilbao will have access to AS-FABRIK, the “factory for the creation of advanced services for industry”, that will gather in a physical space an integrated kit of tools in order to shape new products and services for the new industry needs, and to reinforce their competitiveness. This new model will lead to create a new generation of young and advanced service providers able to supply the challenging digital transformation demands the manufacturing sector is growingly facing.

The content of this journal does not reflect the official opinion of the Urban Innovative Actions Initiative. Responsibility for the information and views expressed in the journal lies entirely with the author.

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Partnership:

• Ayuntamiento de Bilbao

• Bilbao Ekintza - Public Agency

• Mondragon Goi Eskola Politeknikoa J.M.A. S.COOP - Research Centre

• Mondragon Unibertsitatea Enpresagintza S.COOP - Research Centre

• MIK S. COOP. - Research Centre

• GAIA-AssociationofElectronicandInformationTechnologiesintheBasqueCountry - NGO

• DeustoFoundation-BasqueInstituteofCompetitiveness-ResearchCentre

• Asoc.ClusterAudiovisualdeEuskadi-EIKENBASQUEAUDIOVISUAL-NGO

• Mondragon Centro de Promocion, S.COOP - Business Support Centre

• IDOMConsulting,Engineering,Architecture,S.A.U.(IDOM)-PrivateCompany

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Table of Contents

1. Executivesummary 5

2. Tracking, tracing, matching 6

3. Partnership Brokering 7

4. Mentoring is needed to achieve results 9

5. Case:PurpleBlob&Techfriendly 10

6. Anewbuildingaslivingroomforknowledge- intensive business services 11

7. Keyimplementationchallenges 13

8. Conclusion 17

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1. Executivesummary

This journal summarizes the key activities thattook place in the last months in the AS-FABRIK project. It focuseson thepartnershipbrokeringactivity, aimed at promoting new innovationpartnershipsbetweencompaniestoincreasethecompetitivenessoftheindustryanddevelopnewknowledge-intensivebusinessservices.

First, it describes how AS-FABRIK maps thecompetences of players in the Industry 4.0sector through a process of tracking, tracing andmatching. Next, this journal describes the insand out of partnership brokering: bringing newcollaborators together, making optimum use ofexistingcollaborativeorganisations(suchasclusterorganisations or industry associations), but alsomore specifically by bringing together individualstakeholders that want to enter into some formof strategic collaboration with each other. Also,we describe how collaborators are coached ormentored along theway, and how the tools andmethodsforcollaborationaredesignedandshared.

Third,thisjournalprovidesanupdateabouttheconstruction of BETA II, the new building thatshouldbecomethehotspotof Industry4.0andrelatedactivityinBilbao.Thejournalendswithanoverviewof the key implementation challengesthatlieahead.Themainchallengesare:

1) Communication to several groups: citizens,potential new participating companies,and more in general, finding new ways tocommunicatetheaddedvalueandresultsofnewpartnershipstofirms;

2) Maintaining an integrated/participativeapproach, especially mainly its continuationaftertheUIAfundingends,andrelatedtothat

3) Local scaling and financing, that relies onthe ability to reach more companies and continuetheactivitiesonthelongrun.

Our conclusion is that the project is verywellontrackanddeliversresultsasplanned.Atthesametime,someworkhastobedonetoensurethe sustainability of the project after the UIAfundingends.

This journal summarizes the key activities thattook place in the last months in the AS-FABRIK project. It focuseson thepartnershipbrokeringactivity, aimed at promoting new innovationpartnerships between companies to increasethe competitiveness of the industry. It startswith outlining AS-FABRIK’s method to mapthe competences of players in the Industry 4.0/KnowledgeIntensiveBusinesssectorthroughaprocessoftracking,tracingandmatching.Next,wefocusonthepracticeofpartnershipbrokering:bringingnewcollaboratorstogether,byengagingexisting industry associations or other businesscommunities, but also more specifically bybringing together individual stakeholders. Wedescribe how AS-FABRIK provides coaching toinnovationpartnersalongtheway,andhowthetoolsandmethodsforcollaborationaredesignedandshared.Third,weprovideanupdateaboutthe construction of BETA II, the new buildingthatshouldbecomethehotspotof Industry4.0andrelatedactivity inBilbao. The journalendswith an overview of the key implementationchallenges that lie ahead.

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2. Tracking, tracing, matching

Developments in manufacturing and relatedservicesareveryfast.Howcanregionalcompaniesmake the most out of the new opportunities?Business intelligence is key here. An important feature of the AS-FABRIK project is to map therelevant changes in these dynamic fields (inmarkets and technologies), and also to trackand trace the actual competences and needs ofcompaniesinBilbaotodealwiththesechanges.

The research partners in AS-FABRIK play animportant role in this process. They collectand share the latest market and technology trends related to industry 4.0 (in a reporttitled “Technological and International MarketTrends”), and share it with the partners of theconsortiumandbeyond.Inthefirsthalfof2018,several“roadmappingseminars”wereorganised,withindustrialcompanies,servicesprovidersandICTfirms,inordertosystematicallyassesscurrentchallenges,competences,toidentifygaps,andtopinpointspecificareaswhereregionalplayersinthe industry 4.0 field might benefit from eachotherthroughcollaboration(seethe2018Zoom-in reportformoredetails).

The outcomes of these seminars provided aquitedetailedpictureof theneedsof industrialcompanies in terms of new technologies andcompetencies.Itbecameclearthatindustrialfirmsfacebigchallenges tomaketheshift toamoreservice-basedorientation,andmakeoptimaluseof thepossibilitiesofnew technologies suchasremotemonitoring,big&opendata, internet-of-things,etc.Newtypesofcollaborationareneededto reap the fruits, however, most industrial

companiescannotdo italone–even if theytry.

In the words of Antonio Martínez from IDOM

Consulting,Engineering,Architecture,“Industrial

firms have a tendency to develop solutions in-

house;itispartoftheirbusinessculturetofind

theirownanswers.Theymustlearntoengagein

partnershipswithspecialists,tomakefastersteps

forward”.Bilbaohasastrongpresenceofservice

& ICT firms with competencies in technology

andtech-relatedservices.Itisoneofthecentral

challenges of AS-FABRIK to reach a stronger

integration and collaborationbetween services,

ITcompetences,andindustrialfirms.

Bilbao is not the only region looking for new

approaches to stimulate Industry 4.0, ICT, and

servitization. A benchmarking exercise was

conducted, inorder to learnhowother leading

industrial regions approach the challenge.

It includes case studies from Brno, Tallin,

Rotterdam, Emilia Romagna, Aarhus, Tampere,

and Manchester. The results will be published

later this year.

Thetrackingandtracingactivitiessketchedabove

wereorganised in the last sixmonths,but they

arearecurrentactivityinAS-FABRIK:inadynamic

fieldsuchasIndustry4.0itisimpossibletomake

a once-and-for all assessment, as the field is

constantlyevolving.Nextyear,trendreportswill

beupdated,newroadmappingseminarswillbe

held,asabasisfornewcollaborations,ventures

and start-ups.

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3. Partnership Brokering

Now that a clear picture has emerged of the

competences and challenges, AS-FABRIK has

recently entered the stage of “Partnership

Brokering”: an intricate process of matching,

withtheaimtofosternewtypesofcollaborations

betweenregionalfirms,inordertograspsynergies

and complementarities. By March 2020, this

process should have resulted in 15 Partnership

Agreements (collaborating businesses), and

6 educational agreements (business-university

partnerships).

The brokering is led by MIK (Mondragon

Innovation & Knowledge), and done in two

ways,asNekaneMorales(workpackageleader)

explains. First, there is a group approach. Industrial cluster organisations in the region(some of them are also part of the AS-FABRIKconsortium)mobilise theirmembers to explorenewpartnershipopportunities.Forexample,on11October2018,AFM,theclusterorganisationofmachinetoolproducers,organisedaseminarfortheirmembers.TheaimofthatseminarwastoexploreopportunitiesinthespecificdomainofIOT,cloud,anddata.15companiesattendedthesession;servicecompaniesshowedbestpracticesandsolutions,andtheparticipantswereinvitedtoexplorethepotentialfortheirownbusinesses.Similarsessionsareplannedwiththeautomotivecluster (ACICAE), the aerospace cluster, and

Partnership brokering session

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the Mondragon Group. Second, and in parallel, there is an individual approach, focused onspecific potential partnerships, in which firmsinvolvedwhichareinterestedincollaboratingarementoredonthepartneringprocess(forexample,seetheshortcasestudyunder“mentoring”).

Tosupport thepartneringprocess,a“Guidebook”hasbeenwritten,withinputsfromseveralpartnersintheAS-FABRIKproject.Theguidebooksystematicallydescribestheseriesofstepstobetakentoassessopportunities,challengesandcompetences,andtocreatenewpartnerships.Also,itoffersawealthofpracticaltools,formats,tips,tricksandpitfallsrelated topartnering. TheGuidebook is currentlyonlyavailableinSpanish,butanEnglishlanguageversionwillbepublishedlaterin2018.

Theguidebook ismeantasatooltofosternewtypes of partnership, and it is probably usefulalsoinothercitiesandregions.Atthesametime,AitorMarcosfromIDOMConsulting,Engineering,Architecturestressestheroleofcontext:“Everypartnership is different, and requires a tailoredapproach. Inter-firm partnerships are verysensitive, it requires strongmentoring to guidethis process”.Many questions arise in the fieldof intellectual property rights, ownership, anddivisionofrisksandreturns.Forexample:iftwoor more firms develop an innovation together,whoownstheintellectualproperty?Whocarriesthe risks of failure? What kind of partnershipagreementworksbest inaparticular situation?Howmuchcontroldoyou losewhenyoushareownership?Etc.

Stepsandactivitiesinpartnershipbrokering

TheAS-FABRIKteamidentifiesthefollowingstepsin the partnership brokering process:

A: DESIGNING partnerships

The knowledge partners created a guidebook,with steps and tools to create smart interfirm

collaborations. The guidebook presents the

following“substeps”fortheprocess:

1. Focus:AssessingtheWhy,WhatandHow

ofthecollaboration

2. Create:projectdesign,partnerselection,

choice of the type of alliance, and

developmentofthenegotiationprocess;

3. Manage:thestart-up,developmentand

monitoringofthecooperationproject;

4. Sustain: to continue or institutionalise

thecooperation.

B: SCOPING partnerships:

1. Identification of spaces of opportunity:

this was done in the Road mapping

exercises

2. Identification ofnetworkpartnerswith

collaborationpotential(alsodoneinthe

Roadmappingexercise)

3. DefinitionofMapofStakeholders

4. Identification of existing “conversation

spaces” of partners with cooperation

potential(conferences,meetings)

C:CREATINGpartnerships

1. Activation of conversation spaces:

Fosteringdiscussionsbetweenpotential

partners.

2. Identification of collaboration projects:

Active search for matches between

potentialpartners

D:MANAGING&SUSTAININGpartnerships:

Mentoring: Specialist support for potential

ad promising partnerships throughout the

partnershipdesignprocess steps (focus, create,

manage&sustain).

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4. Mentoring is needed to achieve results

Partnership formation is a difficult trajectory.It can be enhanced when an independentthird party takes an intermediary, mentoring role. This is why AS-FABRIK has provided for amentoring activity. 90 hours of mentoring areavailable to firms that want to partner withotherfirmsorwith auniversity. Thementoringisprovidedbyarangeofknowledgepartnersintheproject.Thementorsareseasonedadvisers,knowledgeableinthefieldofindustry4.0.Theyuse the “Guidebook” with tools, and are abletohelp thepartners in theprocess. So far, twopilotmentoringtrajectorieshavebeendone,andseverallessonscameoutofthat.First:mentoringhelps.Companiesappreciatedverymuchtheroleofanintermediaryexpertthatcanhelptofindabalancedapproachintheinterestofbothparties.Second:thereisagreyfieldastowherementoring

endsandtechnical/legaladvicestarts.Fromtheoutset,theideawastohelpfirmsfromastrategicpointofview,askingquestionssuchas“howcouldthis partnership add to your general business strategy”, or “how does it expand/supplementyourcorecompetencies”.But itturnedoutthatthe questions asked by the partnering firmsbecameverytechnical/legal.Athirdlessonfromthetwopilotcasesisthatthementoringprocesscouldandshouldbefasterandmorestructured.Inthetwopilotcases,ittooktoolongbeforethepartnerships were secured, meaning foregonebusiness opportunities. As Aitor Marcos, fromIDOMConsulting,Engineering,Architecturesaid,“weneedtodevelopamoresystematicandfastapproach, with less time between mentoringmeetings”. That lesson is taken into the nextroundofmentoringmissions.

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5. Case:PurpleBlob&Techfriendly

Purple Blob is a young firm specialised in bigdata analysis. TechFriendly is a larger companythatdoesconsultingworkforalargenumberofmunicipalities in Spain. Both wanted a deeperpartnershipwitheachother.Beforetheyenteredthementoringprocess,thetwofirmshadworkedtogetheronaprojectbasistoanalysebigdatasetsfrom Spanish cities. The projectwas a success,but both felt the need that a more structuredand formalised partnership would be neededto extend and deepen their joined activity. Buthow? IDOM, one of the AS-FABRIK partners,mentored the process, using the guidebook and

applying it to the specific case. Several optionswere considered: a radical one (TechFriendlybuyingPurpleBlob),andmorelightcollaborationtypes.Intheend,afterlongdeliberations,PurpleBlogagreeda20%ownership increase,but stillmaintainsfullcontroloveritsowndecisions,andcan use the valuable network of TechFriendly.Legaladvicewashiredforthemoretechnicallegaldetailsofthedeal.Whatweretheresultsofthispartnership?Itisalwayshardtoassigncausestoconsequences,butfactisthatPurpleBlobgrewfrom 2 to 4 employees, and proudly presenteditselfattheprestigiousB-Ventureevent.

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6. Anewbuildingaslivingroomforknowledge-intensive business services

TheAS-FABRIKprojectisacoinwithtwosides:ontheoneside,itpromotes“smartspecialisation”,aiming to make manufacturing –a traditionallystrongsectorinthecity-andrelatedknowledgeintensivebusinessservices (KIBS) servicesmorecompetitive. The activities described abovefit in thispicture.Butat thesametime, it isaninstrument to improve the spatial conditionsofthe local economy, through the regenerationof the Zorrotzaurre area, a former industrialpeninsulathatwillbeturnedintoaninnovationdistrict: a knowledge-based new part of thecity, with a mix of residential areas, R&D, andleisure.ForthecityofBilbaotheredevelopmentof Zorrotzaurre Island is a priority for the nextdecades. It is a multi-million Euro programme,tobedeveloped instages,witha largenumberof stakeholders, public and private, and withinvolvement of the citizens that currently livethere. The AS-FABRIK project is one piece ofthis very large and long puzzle. It is part of aportfolio of other projects (European, national,regionalandlocal)thatshouldcontributetotherevitalisationofthearea.

Innovation in advanced manufacturing andserviceswillbeoneoftheeconomicenginesofZorrotzaurre. The island will be the home formany of the innovative activities of AS-FABRIKdescribed above and in earlier journals. Toachievethat,thecityacquiredabuilding(namedBETAII)inZorrotzaurre,anddecidedtorefurbish

rather than demolish it: the costs would havebeen similar but the building has authenticfeatures that are worth preserving. During thefirstmonthsof theproject, thebuildingqualitywasanalysed,andtheprocessofthefunctionaldesign of the building was initiated. Accordingto the original plan, around 2 floors (4000m2)of the building would be dedicated to (and co-fundedby)theAS-FABRIKproject. However,theinteresttousethebuildingwasbiggerthanexpected.BySeptember2017,itwasdecidedtoallocateadditionalfundingtodevelop4floorsofthebuilding (totalling10,000m2), tohouse theindustry4.0ecosystem.ThereareplanstoacquirealsoaplotsurroundingtheBETAIIbuilding;thatwould allow to develop a public plaza, to givethe building an open andwelcoming character,connectedwiththeneighbourhood.

After some initial hickups (the purchase of thebuildingwasdelayedbecausetheprivateownerof thebuildingwasreluctanttosell it)progresshasbeensubstantialinthedevelopmentofBETAII. The building programme design is finished.Therefurbishmentofthebuildings’structureandthe 1stfloorisplannedtostartearlyspring2019,and shouldbe readybySeptember2019;Fromthenon,AS-FABRIK’sactivitiescantakeplace inthebuilding,andanumberofothertenantshaveannounced they set up shop there.

BETA II should develop as a “living room” forthe Industry 4.0 community in Bilbao and the

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Basque Country. It should become a venue forpartnershipbuilding,showcasinggoodpractices,hosting innovative start-us, and also a locationfor professional training and all sorts of eventsrelatedtosmartmanufacturingandknowledge-

intensivebusiness services.Thebuilding shouldalsohelptoshowtheaddedvalueofpartnering:by making the results of partnerships morevisible, it could induce reluctant companies totakenewstepsinthisdirection.

Some pictures of the BETA II building under construction/renovation

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7. Keyimplementationchallenges

ThissectionsummarizesthemaintypesofimplementationchallengesasidentifiedbyUIA(summarizedintable1).

TABLE1.MAPPINGAS-FABRIKAGAINSTTHEESTABLISHED UIACHALLENGES

Challenge Level Observations1.Leadershipfor

implementationLow Theleadership(cityofBilbao)isclear,consistent,acceptedbyall

partners,anditdeliversresults.

2. Public procurement

Low Thebuildingwasprocuredbythecity.Somehick-ups(aremainingtax debt by the owner, the question whether to demolish orrefurbishthebuilding)wereresolved,andledtosomedelaysofthe project implementation, but it is on track now. Contractingprocesses have started to select construction and designcompanies.

3. Integrated cross-departmental working

Medium The development of the physical space of AS-FABRIK is part ofa wider and longer term challenge to regenerate ZorrotzaurreIsland;forthis,anintensiveinterdepartmentalcollaborationisinplace(unitingdepartmentsresponsibleforenvironment,planning,transport,economicdevelopmentagency).Otherfundingsourcesareusedtodevelopthebuildinganditssurroundings.TheMayor’sOffice and the department for Public Works co-ordinate theiractionswell.

4.Adoptingaparticipativeapproach

Medium Participationoftheprivatesectorandhighereducation/knowledgeinstitutes iswell developed, and keyplayers arepartners in theproject. In thedevelopmentofBETA II theparticipationof localcitizenscouldbestrengthenedinthenextstages.

5.Monitoringandevaluation

Low At project level, the lead partner (the city) closely monitorprogress in frequent steering committeemeetings inwhich thepartnerscometogether.Onthelevelofactualresultsandimpactsin the localeconomy, the “observatory”, foundedaspartof theproject,playsakeyroletosystematicallymonitorandevaluatetheproject’simpact.

6. Financial Sustainability

Medium So far, there are no indications of financial concerns. On thelongerrun,itremainstobeseenhowAS-FABRIKwillbeabletobeeffectivewithoutEUsupport:thiswouldrequirestructuralfinancialcommitments of all partners, to update courses, to maintainstartupsupport,tofundthebrokering/networkingactivities,andtokeeptheobservatoryintheair.

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Challenge Level Observations7.Communicating

withtargetbeneficiaries

Medium The communication with the beneficiaries –companies inmanufacturing, KIBS, startups, students- is in full swing andprovidedbyallpartners.Aconcernishowtoreachindustrialfirms.Second,intheredevelopmentofZorrotzaurre,itisachallengetoengagecitizens,youngandcreativepeopleandstudentsmoreinthe design process.

8.Upscaling Medium Upscaling will be a challenge in two respects. The first task,locallyandregionally,istoengage“firstmover”companiesinthisnewwaysofworking.Overtime,morecompaniesmaywant toparticipate if theyexpect realbenefits,and if theyhearpositivestories about the project. The communication of early successstoriesisessentialinthisrespect.Second,theprojectmightscaleup to the national or international level. The Guidebook withstrategic roadmaps and tools for partnering is useful for otherregionsaswell.

The leadership of the project is strong, overallandonwork package level. Thework packagesare strongly interrelated functionally; frequentcontacts and briefings makes sure that theleadersarewell informedabouttheprogress ineach domain, and can play on that.

As to public procurement, after some delays,theprocurementprocessoftheBETAIIbuilding–which should become the hotbed of Bilbao’sIndustry4.0innovationandknowledge-intensiveservices- is on track now. The procurement istraditional; no specifically innovative types ofprocurement are applied in this case. It could be consideredtoapplymoreaspectsofPPI(publicprocurementofinnovation)inlaterstagesoftheimplementationofthebuilding.

Concerning integrated/cross-developmental working,thedevelopmentofthephysicalspaceofAS-FABRIK ispartofawiderand longertermchallenge to regenerate Zorrotzaurre Island; forthis,anintensiveinterdepartmentalcollaborationis in place (uniting departments responsible forenvironment, planning, transport, economic

developmentagency).Otherfundingsourcesareusedtodevelopthebuildinganditssurroundings.TheMayor’sOfficeandthedepartmentforPublicWorks co-ordinate their actionswell.Moreover,AS-FABRIK is fostering a deep collaborationbetween the city (Mayor’s office) and arms-length economic development agency BilbaoEkintza, and this works well. A main challengeis to safeguard this way of working after theUIAfundingends. Inprinciple,theveryheartof AS-FABRIK, the partnership brokering, mentoring and start-up support activities, could be takenoverbypublicstructuressuchasBilbaoEkintza,incubators, and/or cluster organisations. But a co-ordinated approach might be needed to ensure thattheseactivitiesdonotbecomescatteredandfragmented among many public agencies, butremain in place as a coherent whole. In otherwords:AS-FABRIKnowactsasaglue that stickspartnerstogether,butwhatwillreplacethisglue?

A participative approach is a red thread throughoutallactivitiesofAS-FABRIK,wherethefocus,naturally,isontheparticipationofindustry

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4.0 firms and service providers as beneficiariesof theproject.Their inputsandcomments feedback into the organisation of the work in thedifferent aspects of the project. With regardto the development of the BETA II building,citizen participation has so far not been partof the script; this needs improvement becausethe development activities will affect localinhabitants directly. In the redevelopment ofZorrotzaurre,itisachallengetoengagecitizens,young and creative people and students morein the design process. In the further processof building/restructuring the BETA II building,efforts are needed to look beyond the buildingand its immediateenvironment,andassess thelinkageswiththesurroundingsandcitizensthatlivenearby.Currently, theenergyof thepeopleengaged in the construction and planning isfocused on getting the practicalities done, tocompletethebuilding,tohostthenewtenants,andtofindadditionalfunding.ButifBETAIIistobeanengineforZorrotzaure,itshouldbepartofalargervision.

Monitoring and evaluation takes place at twolevels. At the project level, the lead partner(the city) closely monitor progress in frequentsteering committee meetings in which thepartnerscometogether.On the levelofactualresults and impacts in the local economy, the “observatory”, founded as part of the project,plays a key role to systematicallymonitor andevaluate the project’s impact. There are nospecificchallengesinthisfield.

Concerning the financialsustainability, there are no direct concerns either, but it remains to be seenhowAS-FABRIKwillbeabletobeeffectivewithoutEUsupport:thiswouldrequirestructuralfinancialcommitmentsofallpartners,toupdatecourses,tomaintainstartupsupport,tofundthebrokering/networkingactivities,andtokeepthe

observatoryintheair.IfAS-FABRIKisheretostay,freshthinkingandplanningisneededtocontinuethekeyactivitiessuchasroadmapping,training,mentoring and partnership brokering after theUIAfundingexpires.Forthecompanytrainings,fees can be considered to fill the funding gap.The taskof gatheringand sharing technologicalandmarkettrends(nowfundedbyUIA)couldbecontinuedbytheknowledgepartners.

Thecommunicationwiththe targetbeneficiaries –companies in manufacturing, KIBS, startups,students- is in full swing and provided by allpartners. A continuing concern is how to reachindustrialfirms.Itremainsachallengetoattractmore industrial companies to the meetingsand seminars. They tend to be very busy (fullorder books), and AS-FABRIK “competes” withan overwhelming number of industry 4.0activitiesandevents.Akeylessonistoorganisemeetings that are quite specific and targeted(to differentiate from more generic Industry4.0 events), to design interactive meetings, tocompresstheminashorttimeslot,andtoclearlycommunicatetheaddedvalue.

Specifically, it is essential to communicateeffective messages about the results andpotential of innovation partnering, and makeclearer what the added value can be. Manyindustrialcompanieshaveanaturaltendencytodevelop in-house solutions: it gives themmorecontrol and ownership, and less complexity.But this approach often leads to suboptimalsolutions,becausetheytendtohaveinsufficientknowledge and competences to achievepowerful servitization and ICT solutions. Firmstend to agree with the general statement thatcollaboration is “important”, but are morereluctanttoreallyactivelyengageinpartnerships.It is a key challenge to highlight and showcasegood practices, to show 1) that collaboration

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yields real returns and 2) that it is feasible in

terms of management and control. This is a

matterofvisualisingsuccessesandstory-telling,

andperhapsthenewBETAIIbuildingcouldplay

a role in that.

Upscaling, finally, will be a challenge in two

respects. The first task, locally and regionally,

is toenlarge thenumberofparticipatingfirms/

beneficiaries in the city and region. There is

a need to engage “first mover” companies inthis new ways of working. Scaling depends oncommunication:overtime,morecompaniesmaywant toparticipate if theyexpect realbenefits,andiftheyhearpositivestoriesabouttheproject.The communication of early success stories isessentialinthisrespect.Second,theprojectmightscaleuptothenationalorinternationallevel.TheGuidebookwithstrategicroadmapsandtoolsforpartneringisusefulforotherregionsaswell.

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8. Conclusion

This journal has highlighted the activities ofmatchmaking, partnership brokering, and networking,andreportedontheprogressoftheBETAIIbuildingthatwillbecomethehotspotofIndustry 4.0 innovations. Progress in AS-FABRIKproject is substantial, theplannedactivitiesareontrackandonschedule,andhaveproventheirvalue.Andtheprojecthasalreadyyieldedsomelessons that could be valuable for other citiesthat consider a similar approach.

Wealsohighlighted somechallenges thatneedattention in the remainder of the project. Themainonesare1) communication to citizens, topotentialnewparticipatingcompanies,andmorein general, finding new ways to communicatehowpartneringbringsaddedvalueandresultstofirms;2)maintaininganintegrated/participativeapproach,especiallyaftertheUIAfundingends,andrelatedtothat,3)localscalingandfinancing,that relies on the ability to reach more companies andcontinuetheactivitiesonthelongrun.

Thenextjournalswillcontinuetoprovideupdates

on the project’s progress. Specifically, the next

journal’saimistotakeacloserlookataparticular

output of AS-FABRIK: a comparative study of

Industry4.0/knowledgeintensivebusinessservice

promotionandpartnershipbuildingapproachesin

other European industrial regions, and the lessons

thatweredrawnfromthat.

Interview partners:

Aitor Marcos, Idom

AntonioMartínez,Idom

JordanGuardo,CityofBilbao,ProjectLeader

Eduardo Castellano, MIK - MONDRAGON

InnovationandKnowledge,Mondragon

University

Nekane Morales, MIK-Enpresagintza

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Urban InnovativeActions (UIA) is an Initiativeof the European Union that provides urbanareas throughout Europe with resources to test newandunprovensolutions toaddressurbanchallenges. Based on article 8 of ERDF, theInitiative has a total ERDF budget of EUR 372millionfor2014-2020.UIA projects will produce a wealth ofknowledgestemmingfromtheimplementationof the innovative solutions for sustainableurbandevelopmentthatareofinterestforcitypractitioners and stakeholders across the EU.ThisjournalisapaperwrittenbyaUIAExpertthat captures and disseminates the lessons learnt from the project implementation andthegoodpractices identified.Thejournalswillbe structured around the main challenges ofimplementation identified and faced at locallevelbyUIAprojects.Theywillbepublishedona regular basis on the UIA website.

ThecontentofthisjournaldoesnotreflecttheofficialopinionoftheUrbanInnovativeActionsInitiative.Responsibilityfortheinformationandviewsexpressedinthejournalliesentirelywiththeauthor.