WE@EU: WATER EFFICIENCY IN EUROPEAN URBAN AREAS FP7 N° [320007]

A RESEARCH AGENDA FOR EACH REGION INCLUDING CLUSTER POLICIES AND INITIATIVES AT THE REGIONAL, NATIONAL AND EUROPEAN LEVEL

Version: 1, 2014-06-28

Author: F. Javier Zarazaga-Soria & Clara Presa & Aled Jones WP 2: Analysis and integration of research agendas of actors in regional Deliverable Number:2.2 Dissemination Level: PU WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION

Document History

Date Version Editor Comments Status 29/05/14 01 F.Javier First Draft Draft Zarazaga 10/06/14 02 F.Javier Aragon Report Draft Zarazaga, Clara Presa 23/06/14 04 F.Javier All regional Draft Zarazaga analysis 25/06/14 05 Aled Jones Full review of Draft document 28/06/14 1.0 F.Javier Final Final Zarazaga integration and release

List of partners

Participant nº Name Country

1 UNIZAR University of Zaragoza Spain

(Coordinator)

2 EGMA Campus for medicine and research in Galilee Israel Association

3 MIGAL Migal Galilee Technology Center, LTD Israel

4 PARAGON Paragon Limited Malta

5 PELEG-HAGALIL Peleg - Hagalil Israel

6 EA Ea eco-entreprises France ECOENTREPRISES

7 OP Opportunity Peterborough UK

8 ZINNAE Asoc. cluster urbano para el uso eficiente del Spain agua

9 ARU Anglia Ruskin University UK

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Glossary

Acronym Description RIS3 Smart Specialization Strategy EIP Water European Innovation Partnership on Water R&D Research and development

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Contents Executive Summary ...... 8 1. Methodology ...... 10 1.1. UNESCO codes analysis ...... 10 1.2. EIP working areas analysis ...... 11 1.3. The concept of impact managed...... 13 2. Research Agendas ...... 15 2.1. Aragón...... 15 2.1.1. Regional and national Cluster Policies ...... 15 2.1.2. Regional indicators ...... 18 2.1.3. ZINNAE water cluster indicators ...... 19 2.1.4. Regional innovation landscape ...... 20 2.1.5. State of the art of Companies and R&D Centres ...... 24 2.1.5.1. Regional Assets analysis based in UNESCO Nomenclature ...... 24 2.1.5.2. Regional assets analysis based in EIP Water Priorities...... 29 2.1.5.3. Conclusions ...... 34 2.2. East of England ...... 35 2.2.1. Cluster, regional and national policies ...... 35 2.2.2. Regional indicators ...... 43 2.2.3. State of the art of companies and research centres ...... 45 2.2.3.1. UNESCO based analysis ...... 45 2.2.3.2. EIP based analysis...... 49 2.2.3.3. Conclusions ...... 53 2.3. Galilee ...... 55 2.3.1. Regional and national Cluster Policies ...... 55 2.3.2. Regional indicators ...... 59 2.3.3. Regional innovation landscape ...... 63 2.3.4. State of the art of companies and research centres ...... 68 2.3.4.1. UNESCO based analysis ...... 68 2.3.4.2. EIP based analysis...... 72 2.3.4.3. Conclusions ...... 76 2.4. Malta ...... 78 2.4.1. Regional and national Cluster Policies ...... 78 2.4.2. Regional indicators ...... 80

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2.4.3. Water cluster indicators ...... 81 2.4.4. State of the art of companies and research centres ...... 83 2.4.4.1. UNESCO based analysis ...... 83 2.4.4.2. EIP based analysis...... 88 2.4.4.3. Conclusions ...... 92 2.5. Provence, Alpes, Côte d’Azur (PACA) ...... 93 2.5.1. Regional and national Cluster Policies ...... 93 2.5.2. Regional indicators ...... 96 2.5.3. Éa éco-entreprises cluster indicators ...... 96 2.5.4. Regional innovation landscape for water efficiency in urban areas...... 98 2.5.5. State of the art of companies and research centres ...... 99 2.5.5.1. UNESCO based analysis ...... 99 2.5.5.2. EIP based analysis...... 103 2.5.5.3. Conclusions ...... 108 3. Relevant European policies ...... 109 3.1. European Funding instruments ...... 109 3.1.1. Regional Assistance Funds ...... 110 3.1.1.1. European Regional Development Funds ...... 111 3.1.1.2. European Social Funds ...... 112 3.1.1.3. Cohesion Funds ...... 112 3.1.2. Competitive Funds and Community Programmes ...... 112 3.1.2.1. Horizon 2020 ...... 112 3.1.2.2. Competitiveness of Enterprises and small and medium-sized enterprises ...... 114 3.1.2.3. European Cooperation in Science and Technology...... 114 3.1.2.4. LIFE ...... 116 3.1.2.5. EUREKA ...... 118 3.1.2.6. Eurostars ...... 119 3.1.2.7. ERA-Nets ...... 120 3.1.2.8. Public procurement ...... 121 3.2. Water JPI ...... 122 3.3. European Technology Platforms...... 124 3.3.1. European Technology Platform for Water ...... 126 3.3.2. European Technology Platform for Sustainable Chemistry...... 127 3.3.3. European Technology Platform on Renewable Heating and Cooling ...... 128 3.4. PPP in water...... 129 3.5. European Innovation Partnership on Water ...... 130

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3.6. Others ...... 132 3.6.1. Group on Earth Observations ...... 132 3.6.2. European Regions Research and Innovation Network ...... 133 3.6.3. Wetsus ...... 134 3.6.4. NETWERC H2O ...... 134 3. Bibliography ...... 135

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Executive Summary

WE@EU has been conceived to coordinate European R&D and Innovation in the urban-applied water efficiency market of products and services through high-level trans-national cooperation. Five European regions strongly involved in and committed to water efficiency, have met and discovered they face similar problems in their cities that affect water availability, particularly in a climate change context. They are convinced they can improve their performance in key aspects related to urban water management by opening up a win-win cooperation and joining forces cross- sectorially. In four regions in the WE@EU, a consortium with a dominant research- driven cluster exists, based on solid “triple helix collaborations”: Aragón (Spain), Provence-Alpes-Côte d'Azur (France), East of England (UK) and Eastern Galilee (Israel); a fifth region with a developing research-driven cluster in Malta has joined the consortium, through already existing collaborations. This deliverable is part of the results of task 2.1 “Elaboration of Regional Research Agendas”. This task deals with deepening and integrating the knowledge already gained during the proposal preparation, through performing a comprehensive analysis of the research-driven clusters, aimed at providing a complete picture of the state of play of each cluster and the contribution of its actors to the development of a competitive regional economy. The analysis consolidates the information available on funding resources currently allocated and foreseen in the future to support further the competitiveness of the clusters. The work accomplished in this first task will result in five regional Research Agendas, providing a complete scenario of each research- driven cluster and each region’s capabilities for promoting economic development and competitiveness through enhanced research activities in fields related to innovative technologies and concepts. This document acts as Deliverable 2.2 “A research agenda for each region including cluster policies and initiatives at regional, national, and European level”.

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1. Methodology

This sections presents the methodology followed for analysing the data collected in the five regions by using the web tool presented in D2.1 (Data collection template, including questionnaires, for the regional Research Agenda). The regional research agendas are based on the following information for each region participating in WE@EU:

• A summary of Regional cluster and or innovation policies and cluster initiatives prior to the creation of the consortium and start of WE@EU project. • A set of Regional indicators regarding their R&D and cluster profiles that will be used in the regional comparative analysis. • Regional Innovation analysis based on data collection from the most innovative actors of each region participating or linked to the regional clusters (mostly R&D centers and business entities). The data set was presented in previous deliverable (2.1 Data collection template including questionnaires). Entities’ main research lines, projects, Intellectual Property Rights and other assets have been assessed. This information has been analysed using different approaches. The aim is to detect patterns and identify areas of specialization in the Regions related to water efficiency in urban areas. The analysis developed has been done over the assets and the entities, and takes into account their classification according to the UNESCO codes and with free keywords. 1.1. UNESCO codes analysis

During the data collection process, the assets have been classified by using the UNESCO nomenclature for fields of science and technology [1]. The Proposed international standard nomenclature for fields of science and technology was proposed in 1973 and 1974 by the Division of Science Policy and Statistics for Science and Technology of UNESCO and adopted by the Scientific Advisory Committee. This is a classification system widely used in knowledge management of research projects and dissertations. Categories are divided into three hierarchical levels:

• Fields: Referring to general sections. Encoded with two digits and comprises several disciplines. • Disciplines: Provide an overview of specialty groups in Science and Technology. Encoded with four digits. Despite being different each disciplines has cross references, or will have common characteristics with others in the same field. • Subdisciplines: Entries are the more specific elements of the nomenclature and represent the activities that take place within a discipline. Encoded with six digits. These correspond to individual specialties in science and technology. The classification process was used to create the clusters. Clustering was done by using the six digit encoding to create clusters of disciplines and fields. Assets were coded using the full UNESCO code system. Any asset with more than one coding was included in each discipline that it was coded to once (such that multiple subdiscipline coding for the same asset within the same overall discipline was only counted once).

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The UNESCO codes analysis has been applied to the assets related with companies and with the assets related with research entities (University, Colleges, Research institutes, …). In both cases, the clustering counts the number of occurrences of each one of the UNESCO concepts, and compares with the total number of assets (this has been denominated impact). The analysis presents only the UNESCO codes with one or more occurrence. In order to have homogeneous views of the regions, the UNESCO analysis presents the same UNESCO codes for companies and research entities in each of the regions. As this is based on self classification it is possible to have different UNESCO codes presented in the analysis for different regions for similar assets.

In addition, each region presents a third analysis where the assets related with companies and research entities are presented altogether. In this case, the impact has been calculated as a relation of the occurrences of one UNESCO code with the total number of assets.

Let’s explain the difference with a general example. We have A assets from companies and B assets from research entities. In addition, we have a assets from companies classified by the UNESCO code Uc and b assets from research entities classified by the UNESCO code Uc. The initial impacts calculated for Uc, Ci1 for companies and Ri1 for research entities, are:

Ci1 = a/A Ri1 = b/B

If we name Ci2 (for companies) and Ri2 (for research entities) to the new impacts, the formulas to calculate them are:

Ci2 = a/(A+B) Ri2 = b/(A+B)

Finally, the analysis takes into account the comparison of the added impacts in this second case. This means: Ci2 + Ri2.

1.2. EIP working areas analysis

The information collected has been also classified by using free keywords. A preliminary analysis of the free keywords showed that the heterogeneity of them (based on the different experience, education and culture of the people that have developed the classification process) made it impossible to elaborate an analysis that could be useful for comparing different regions. For this reason it has been necessary to develop a homogenization process based on a well-known vocabulary. The selected vocabulary is based on that of the EIP on water.

European Innovation Partnerships (EIP) aim to speed up innovations that contribute to solving societal challenges, enhance Europe's competitiveness and contribute to job creation and economic growth. EIPs help to pool expertise and resources by bringing together public and private actors at EU, national and regional level, combining supply- and demand-side measures. The EIP on Water aims to: a) speed up development of water innovation; b) contribute to sustainable growth and employment; c) stimulate

11 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION uptake of water innovations by market and society1. The EIP on Water has identified the following priority areas: a) Water reuse and recycling; b) Water and wastewater treatment, including recovery of resources; c) Water-energy nexus; d) Flood and drought risk management; e) Ecosystem services. In addition, cross-cutting priorities have been identified that address framework conditions, promote connections between the different priority areas of work, and are enablers for all other actions: f) Water governance; g) Decision support systems and monitoring (including ICT); h) Financing for innovation. Furthermore, "smart technology" has been identified to be of key relevance as an enabling factor within all other priorities.

Figure 1 – EIP water areas of work (taken from [2]) During the homogenization process, each keyword used during the data acquisition process has been linked to one of the eight areas presented in the EIP. This linking process has been made manually by three persons with different education, experience and knowledge in water and innovation. The linkage of each concept has been done by voting, and deciding by majority in the voting process.

Once the homogenization process has been done, the data has been analyzed at two separated levels: assets and entities. The analysis of the information of the assets is similar to the process explained before for the UNESCO codes: each region presents an analysis of the information for assets from companies and research entities separately, and a third analysis that manages the assets related with companies and research entities altogether.

At entities level, the characterization of companies and entities has been analysed separately and jointly by using a similar pattern to that in the assets case. In addition, both companies and research entities have been compared with the results of the analysis of their assets in order to identify correspondences between the declared activities of each kind of entities, and the assets achieved by them.

Finally, but presented at the beginning of the analysis based on EIP areas of work, a tag cloud has been created by using the occurrences of each one of the eight areas presented after the homogenization process.

1 Taken from the EIP on water website: http://ec.europa.eu/environment/water/innovationpartnership/

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1.3. The concept of impact managed

As it has been mentioned before, the whole analysis presented in this study manages the concept of impact as the key element for comparing results. This impact is a percentage of the presence of one keyword or concept in the data collected by the clusters about their regions. The value of the impact can go from 0% to 100%. Nevertheless, the summation of all values in an analysis is over 100% because each entity or asset has been classified with more than one keyword or concept.

In general terms, impact with values less than 25% have not been considered very relevant. Impacts with values more than 75% have been considered to have a high level of relevance.

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2. Research Agendas

2.1. Aragón

2.1.1. Regional and national Cluster Policies

Aragón is one of Spain's seventeen existing administrative divisions. Located in the north-east of the Iberian Peninsula, Aragón has a strategic geographical location and an excellent communication network both with some of the main cities in Spain (Barcelona, Madrid, Bilbao and Valencia) and France. Aragón is the fifth most innovative region in Spain and the second one in percentage of sales volume for new or improved products.

The Government of Aragón has shifted in the past 2 years towards a focus on industry in the Region. Zaragoza, the capital, held the first European Forum for Industry and Entrepreneurship on the 2nd of April, 2014 (http://ec.europa.eu/spain/pdf/foro-europeo- emprendimiento20414.pdf), where present and future high expectations on industry in Aragon were presented by policy makers and economic actors.

In addition it has established the challenges and opportunities of the productive sector in the region through the definition of the “Aragón Strategy for Growth and Competitiveness” which supports, among other aspects, the industrial activity, innovation and value added. This Strategy collects Aragón´s economic policy guidelines for the coming years, and establishes as basic pillars: competitiveness, internationalization, finance, social dialogue and the institutional coordination in the main strategic sectors. In September 2013, this strategy was completed by the "Analysis and principles of industrial strategy in Aragón" document, which includes measures and opportunities for industries and technologies with high abilities or development potential. This analysis identifies some cross-cutting opportunities based on regional capabilities detected.

Furthermore, the RIS3 strategy in the region has been approved on the 29th of April. The strategy includes the following sectors of specialization:

• Connectivity: Integration and evolution of supply chains; Promoting intermodality; Improvement of industrial processes in the field of transport materials; and Development of more efficient vehicles. • Resource efficiency: Integration of energy storage systems; Closure of water cycles, materials and energy; and Decision and monitoring systems of water management. • Welfare and quality of life: Project development and comprehensive services (ageing, depopulation, territorial development and health), development of new products, processes and technologies in the agro-food and forestry, Improve the value chain of agri-food and tourism products based on the cultural and natural heritage. Four key Enabling Technologies (KETs), have been identified and are nanotechnology, new materials, new production technologies and Information and Communication

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Technologies (ICT).These will be used as levers to boost industrial development. Actions to develop under this new strategy are aimed at specific issues including talent, innovation, SMEs, entrepreneurship, cooperation and internationalization.

One of the actions included in the action plan (number A.5.1.) is directly aimed at the development of projects in innovative clusters, and especially in those related to the selected RIS3 sectors.

The strategic focus on a limited number of priorities is clear, but the implementation of the RIS3 will surely be a big challenge. As well, the economy in Aragón is composed mainly (99,90%) of SMEs, being another challenge to the implementation, both for the RIS3 and other regional actions. The reason is the difficulty to detect specific industrial needs quickly and act. Entrepreneurship and innovation are key actions and have to be implemented as well as defined in the strategy, requiring a deep penetration and focus of the actions.

On the other hand, Aragón has 12 clusters currently included in the register that the Ministry of Industry, Energy and Tourism maintains: Cluster Aragonés de Alimentación (agro-food industry), Aera (aeronautic industry), CAAR (automotive industry), Arahealth (health industry), AECAE (lift components industry), Anmopyc (machinery, components and auxiliary equipments for construction), Idia (horizontal cluster for innovation in processes, products, organization and markets), Alia (logistic), Tecnara (ICT), Cluster de Turismo de Montaña (mountain tourism industry), FHA (hydrogen industry) and ZINNAE (water industry). Comparatively analyzing the weight of the clusters relative to the national average, Aragon is in seventh place in the number of clusters formed and has a share of 15% of all employees classed as working in clusters in Spain. Companies associated with clusters have a global turnover of 76.377 M € representing 67.2% of regional GDP.

Aragón has the challenge of implementing different strategies around a common aim, the development of industry. It has as well a collective of clusters acting together, each one with an associated sector, dedicated to the main activities identified in these strategies.

But it suffers from a lack of global clusters policy as exists in other successful regions of Europe. It has been proved that these regions show a more innovative, competitive and sustainable industry.

At the national level, the Department of Industry and SME of the Spanish Ministry of Industry, Energy and Tourism launched in 2007 a specific programme for clusters called: Agrupaciones Empresariales Innovadoras-AEIs. Currently, there are 165 AEIs included in the national registry classified as “excellent”, ZINNAE is one of them. This programme has provided support over the last 4 years, including 492 horizontal projects with a total funding of 44,8 million € and 3.284 collaborative projects with a total funding of 1.132 million €. In 2010, the clusters in our region carried out 114 projects with the support of this program2. In 2014 the programme has to be updated with new terms and conditions for clusters at the national level.

2 AEIs Programme 2007-2013. Ministry of Industry, Energy and Tourism.

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Regional R&I Policy: towards a Smart Specialization Strategy in water

The legal framework for research and innovation at the regional level is set in the regional legislation though Law 9/2003 for Research, Development and Knowledge Transfer in Aragon. In Article 11 the aim and content of a regional Plan for research and innovation is established, including within its objectives the development of new technological applications for defense and conservation of natural environment, as well as energy saving and waste reduction. Under to this law, the Second regional Plan for research and innovation (2005-2008) already included a priority area linked to water: water resources and water quality, mentioning the need for research and innovation for more efficiency water supply, transport, sanitation, treatment, and management of water and increase water quality of rivers.

After this, Aragon Regional Government launched, in March 2011, the Regional Business Innovation Strategy (INNOVARAGON 2011-2012). It is endowed with €45 million and aims to: (1) Place Aragon as one of the 70 regions more innovative in the EU; (2) Increase the number of Innovative companies in Aragon; (3) lead product innovation in Spain and (4) increase the number of employees in innovation. ZINNAE cluster was beneficiary of two projects under this program.

Finally, in 2013 the Smart Specialization Strategy (RIS3) was developed. As mentioned before, RIS3 includes Resources Efficiency as one of the main areas of specialization, which is indeed coherent with Aragonese path.

RIS3 points out that Aragonese skills and expertise open up new opportunities for research and development in water, specially in the following strategic lines:

• Closure of water cycles, materials and energy; water and energy nexus are of vital importance, considering the amount of energy needed for water management. • Decision support systems and monitoring of water management. Both software and hardware development for water management are a strategic area for expanding R&D initiatives based in Aragonese skills. Real time monitoring and sensor devices for water management are pointed out.

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2.1.2. Regional indicators

Regional indicators Aragon Area (Km2)3 47.719,00 Number of inhabitants** 1.349.467,00 GDP** 33.506,00 Rural population density 28,28 (inhabitants/Km2) Urban population density 69,3% inhabitats living in urban areas (inhabitants/Km2) (>10.000 inhabitants) Public regulation for the efficient use of Local public regulation in Zaragoza (OMEGIA)4 water (Local, regional, national level)

Social awareness programs on efficient Regional and Local programmes. use of water (Local, regional, national • Zaragoza, ciudad ahorradora de agua level) • Instituto Aragonés del Agua • Plan Integral de ahorro de agua de Huesca

Existence of regional entities that support AREX, Cámara de Comercio e Industria. companies internationalization Total amount (€) of funding for innovation 322 Million Euro at the regional level**

3 Aragonese Institute of statistics 4 Local regulation for ecoefficiency and quality for integral water management.

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2.1.3. ZINNAE water cluster indicators

Regional water cluster indicators5

Number of partners 27

Percentage of companies 59,26%

Percentage of SMEs 37,04%

Percentage of research centers 14,81%

Percentage of public administrations 22,22%

Percentage of other social agents 3,70%

Number of workers of the cluster 2

Total Number of workers in cluster's companies6 748

Total volume of turnover of the companies members of the cluster 109 Million Euros

Percentage representing exports on turnover 17%

Number of joint actions developed with other clusters in your region 3 or country Number of joint actions developed with other clusters in other 2 countries Number of international projects 2

Number of innovation projects driven by the cluster 2

Number of business development projects driven by the cluster 1

Percentage of cluster's partners that activaly participate in the 77,78% cluster's projects Funding received from regional institutions 12.769,55 €

Funding received from national institutions for promotion of 24.693,96 € innovation projects Funding received from european institutions for promotion of 52.076,00 € innovation projects Funding received from the companies for innovation projects 45.892,77 €

Number of new products or services or improvements in existing 2 models Number of workers in cluster' s partners dedicated exclusively to 3.854 innovation Number of workers in cluster's business entities dedicated 54 exclusively to innovation Number of projects based in open innovation 2

5 Based in 2013 data. 6 Only employees working in Aragon

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2.1.4. Regional innovation landscape

ZINNAE members participate in the water value chain as see in the Regional innovation landscape map. Members and collaborating entities of ZINNAE that participate in the cluster activities are drawn on the picture. All of them contribute with innovation and internationalization activities to increase the competitiveness of Aragonese water sector, further explained below .

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Water sector in Aragon from a triple Helix perspective

Water management is linked to the history of Aragon as the first River Basin Authority was created in this region: the Ebro River Basin Confederation (CHE). The institution is still a reference in water management because of the development of the Automatic System for Hydrological information (SAIH7) of the river basin.

In relation to local policy, water supply, sanitation and treatment are municipal competences. Zaragoza City Council is strongly committed to water efficiency. Through the Plan for Improving the Management and Quality of Water, Zaragoza has made an important renovation of its supply networks and systems and a spectacular reduction in water consumption of 24% over a 2 year period (136 litres per person per day in 2010 against 104 litres per person and day in 2012). In addition, important by- laws have been implemented (such as the Municipal By-law for Saving and Efficient Use of Water), the number or annual breaks have been reduced from 0.71 km/year to 0.31 km/year and a new water supply service that has improved the quality of water has been established. The new system of sustainable rates encourages water saving and penalizes an excessive consumption. Municipal Government of Zaragoza adopted by Resolution on 24 March 2004 the setting up of the Agenda 21 Local.

Other regional key actors include the Aragonese Institute of Water, in charge of regional water policies implementation. And the public corporation SARGA that boosts most of the water infrastructure built in the region.

As for regional RTDI capacities, there is a wide range of stakeholders working in water- related issues through the University of Zaragoza, EUPLA-Engineering Technical College, CIRCE - Research Centre for Energy Resources and Consumption, ITAINNOVA (all members of ZINNAE) and other public institutions such as Estación Experimental Aula DEI from CSIC national research Center (linked to water irrigation), as well as private institutions such as Fundación San Valero and Universidad San Jorge. Finally, New Water Culture Foundation, based in Zaragoza, is a think tank that integrates many researchers linked to water at the national level.

Aragon concentrates a significant group of business entities directly involved in the water industry, including products manufacturers and water services providers as well as water management companies, among others. Also, building and high-tech companies in the ICT sector, water products suppliers and renewable energy sector are represented by around 3.618 companies in Aragon that employ 4.295 people8.

Many water-related stakeholders in Aragon are represented in the “Urban Cluster for the Efficient Use of Water ZINNAE”. Officially created in 2010, with the aim to unite and coordinate regional efforts to improve efficiency in water usage. ZINNAE is comprised of 27 members, of which 17 are business entities (60%, of which 37% are SMEs). The ZINNAE Cluster is a beneficiary of national and regional programmes to promote competitiveness of SMEs through the creation and development of research-driven clusters and it is included, since 2010, in the AEIs registry for Cluster initiatives by the Ministry of Industry, Energy and Commerce of Spain.

7 http://www.saihebro.com/saihebro/index.php 8 Data based in SABI database 2012. 21

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Relevant water related events, infrastructures and Demonstrative Initiatives

Expo Zaragoza 2008, Zaragoza became in 2008 the world capital of water, holding Expo 2008 with the title "Water and Sustainable Development". The Water Tribune, an intellectual center for debate with the participation of more than 300 speakers and 3,000 experts, has left a legacy of commitment for the future related to water and sustainable development.

SMAGUA (Zaragoza’s Fair) is a part of the leader fair organizations in Spain and the most of the performed contests are in the lead of the international outlook of the professional auditorium in Europe. SMAGUA, organized bi-annually is a fair of reference in the water sector. The 2014 edition enabled 43.000 m2 of exhibition surface, 1.037 exhibitors, and 32.624 visitors. Since 2010, SMAGUA is also organized in Morocco, China and 2015 it will be organized in Brazil.

UN Office of International Decade for Action Water for LIFE 2005-20159 is also located in Zaragoza. The primary goal of the 'Water for Life' Decade is to promote efforts to fulfil international commitments made on water and water-related issues by 2015. Focus is on furthering cooperation at all levels, so that the water-related goals of the Millennium Declaration, the Johannesburg Plan of Implementation of the World Summit for Sustainable Development, and Agenda 21 can be achieved.

Valdespartera Ecocity10 is a residential area in the city of Zaragoza that aspires to sustainable development through criteria such as : 1) Affordable Housing; 9,687 flats, 97% of which are council-owned and has been built on transferred land, thanks to a town planning agreement; 2) Integrating Town Planning; The project is targeted at people coming from different social backgrounds in order to create, thanks to a varied typological offer, an integrating urban environment; 3) Bio climatic Architecture; Dependency on non-renewable resources is reduced while it is intended to make a greater use of alternative energy; 4) Design of ecological corridors to improve the new Eco-city environmental integration.

Finally, some Demonstrative projects are also worth mentioning for a better comprehension of Aragonese capabilities in water efficiency:

“ZARAGOZA, A WATER SAVING CITY. SMALL STEPS, BIG SOLUCIONS” (LIFE96 ENV/E/000509, 01 Feb 1997 – 30 Nov 1998; Coordinator: ECODES; Funding body: EU; Budget: 240.115,34 €). The project was aimed at solving water scarcity problems by promoting water saving habits and efficient technology. Water savings of 5,6% over domestic consumption rates was achieved upon termination of the project. The project has been appointed as a remarkable water-saving related project at the European level and also international level. The project consortium leaded by ECODES and Zaragoza City Council ensured the project continuation until 2008 addressing project activities to different target groups / water consumers in urban areas.

OPTIMIZAGUA - DEMONSTRATION OF WATER SAVING FOR WATERING USES THROUGH THE EXPERIMENTATION OF ARTIFICIAL INTELLIGENCE INTEGRATED IN TRADITIONAL SYSTEMS OF WATER CONTROL” (LIFE03

9 http://www.un.org/waterforlifedecade/ 10 www.valdespartera.es

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ENV/E/000164, 01/10/2003 – 30/09/2006; Coordinator: Fundación San Valero; Funding body: EU; Budget: 691.565 €). The project was a pilot for water efficiency in irrigation of green areas which combined intelligent irrigation systems and traditional systems for water collection and water storage. Great results on global water savings were reached in irrigation of public green areas (+68%) in private green areas (+50%) and agriculture systems (+40%) upon termination of the project.

“AQUANET – EXPERT TRAINING ON PROFESSIONAL AND KEY SECTORS IN THE „EFICIENT WATER MANAGEMENT“ (ES/07/LLP-LdV/TOI/149053, 2007 – 2010; Coordinator: Fundación San Valero; Funding body: EU). AQUANET intends to transfer an international reference model for an efficient use of water by tackling certain needs of continuous training for professions and key sectors related to the effective water management.

“SWITCH – SUSTAINABLE WATER MANAGEMENT IMPROVES TOMORROW'S CITIES'HEALTH” (FP6, 01/02/2006 – 30/04/2011; Coordinator: UNESCO-IHE Institute for water education – Netherlands; Funding body: EU; Budget: 20 M€). The SWITCH project aimed at the development, application and demonstration of a range of tested scientific, technological and socio-economic solutions and approaches that contribute to the achievement of sustainable and effective UWM schemes in 'The City of the future'. Zaragoza was a demonstration site, in the areas of water network and water consumers policies.

“WATER CORE: WATER SCARCITY AND DROUGHTS; COORDINATED ACTIONS IN EUROPEAN REGIONS” (Interreg IV, 2010 - 2012; Coordinator: Ministry of Environment, Energy, Agriculture and Consumer Protection of Hessen – Germany; Funding body: EU; Budget: 2,5 M€ ). This project provides an exchange platform for water scarcity and drought issues on regional and local level by exchanging good practices and adapting these to their local or regional conditions.

”POWER - PROJECT FOR OPTIMISATION OF WATER AND EMISSIONS REDUCTION” (LIFE08 ENV/E/000114, 01/01/2010 – 31/12/2012; Coordinator: Fundación San Valero; Funding body: EU; Budget: 651.213 €). The POWER project is aimed at implementing additional monitoring devices to improve the hydric/water savings demonstrated by OPTIMIZAGUA, also demonstrating and quantifying the potential energy savings derived from the use of efficient water management models and the use of renewable energy-based devices applied to water pumping systems, and contributing to reduce greenhouse gas emissions derived from energy used in moving water.

Most recently, in 2013 Zaragoza City Council launched the “OPEN URBAN LAB”. It is a municipal programme from ETOPIA center for Art and Technology and Zaragoza Activa. It aims at boosting innovation in the city through meetings facilitation among citizens, public administrations and business entities/entrepreneurs. Though it is not directly linked to water, but a horizontal initiative to boost innovation for smarter cities.

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2.1.5. State of the art of Companies and R&D Centres

2.1.5.1. Regional Assets analysis based in UNESCO Nomenclature The analysis of the company’s assets by using the UNESCO codes simplified to four digits (see next figure) shows a clear predominance of “Construction technology” (58,82%) and “Environmental technology and environmental” (35,29%).

Figure 2 - Assets from companies classified by UNESCO codes (Four digits) Regarding the research entities (Figure 3), there is also a high presence of “Construction technology” (28,57%), but the situation has a better balance because four other topics are over the 20 % (“Computer Sciences”: 28,57%, “Hydrology”: 23,81%, “Sectorial economics”: 28,57%, and “Economic Geography”: 23,81%). In addition, five other topics are around 10% (“Physical chemistry”, “Forestry”, “Environmental technology and environmental”, “Economics of technological change” and “Policy sciences”).

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Figure 3 - Assets from research entities classified by UNESCO codes (Four digits) Comparing the data from companies and research entities (Figure 4), there are clear benefits to bringing both types of entities together. Only in the area of “Policy Science” is there a similar level of asset clustering, but with less than 10% of impact.

Figure 4 - Assets from companies and research entities classified UNESCO codes (Four digits) If the entities assets from both types of entities are analyzed together (Figure 5), there is still a high prevalence of “Construction Technology” with more than 40% of impact. The next highest impacts (around 20% of impact) are “Computer Science”, “Hydrology”, “Environmental technology and environmental”, and “Sectorial Economics”. Thirdly (from 10% to 15 % of impact), the topics are “Biochemical technology”, “Economic Geography” and “Policy Science” appear.

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Figure 5 - Joint assets from companies and research entities classified UNESCO codes (Four digits) In general, the four digits analysis shows a large number of areas with a very low presence (less than 5% each). This is likely due to the disaggregated nature of the area categories in the UNESCO-four-digit-Nomenclature for science and technology. This level of analysis sets a large amount of related areas at the same level. For instance, according with the UNESCO classification, “Biochemical technology”, “Computer technology“, “Construction technology“, “Electronic Technology“, “Environmental technology and environmental”, “Food technology“ and “Instrumentation Technology” are related (under the umbrella of “Technological Sciences”). The next figures present the clustering of the concepts in two digits of UNESCO Classification. As a consequence, it is possible to identify that there exists a clear prevalence of “Construction technology” (with around 80%) in the innovation work developed by the companies. Nevertheless, in the case of the research centres (see Figure 7), there is a more homogeneous distribution of the work. In this case, it is possible to identify a high relevance of “Earth and Space Sciences”, “Technological Sciences” and “Economic Sciences”. In a second level, “Computer Science & Mathematics” and “Geography”.

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Figure 6 - Assets from companies classified by UNESCO codes (two digits)

Figure 7 - Assets from research entities classified by UNESCO codes (two digits) Comparing companies and research entities together (see next figure), “Technological Sciences”, “Political Science” and “Agricultural Sciences” are the only areas that have relevant balance between the assets of companies and research entities, with “Technological Sciences” having the highest impact.

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Figure 8 - Assets from companies and research entities classified UNESCO codes (two digits) If the data from companies and research entities are analyzed together (see Figure 9), “Technological Sciences” maintains its preponderance, but other topics such as “Computer Science & Mathematics”, “Earth and Space Sciences” and “Economic Sciences” can achieve the barrier of 20% of presence.

Figure 9 – Joint assets from companies and research entities classified UNESCO codes (two digits)

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2.1.5.2. Regional assets analysis based in EIP Water Priorities A first approach analyzing companies and R&D centres assets based in EIP Water Priorities (see next figure) shows that in Aragon there is a high prevalence of decision support systems (jointly with monitoring and ICT) and wastewater treatment. In a second level, the innovation in this region is structured around water-energy nexus, water quality and water governance. Further analysis below.

Figure 10 – Global view of the EIP analysis Figure 11 presents the assets from companies classified by EIP Water priorities. It presents a distribution of the innovation results obtained by companies with presence in all the topics proposed by the EIP. Although there is a topic that has a high relevance (“Water & Wastewater Treatment” with more than 30%), there are four other topics with around 20% impact (“Water Reuse & Recycling”, “Water-Energy Nexus”, “Water Governance” and “DSS, Monitoring and ICT”). Only “Financing for Innovation” has a small presence.

Figure 11 - Assets from companies classified by EIP areas of work Regarding the results obtained by research entities (Figure 12), it is easy to identify the two topics with less relevance: Water Reuse & Recycling (with no innovation results) and Ecosystem Services (with less than 5% impact). There is also another topic with low presence: “Financing for Innovation”. In this case, it is easy to understand this average because the main research and innovation area in this topic is public procurement and it is very difficult to develop many research lines and innovation results in such a “young” area. The rest of the topics have an impact that goes from 15 % to 32 %.

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Figure 12 - Assets from research entities classified by EIP areas of work A comparative analysis (Figure 13) identifies a clear imbalance in the synergies across the EIP areas of work. On one side, “Water Reuse & Recycling” in companies does not have any kind of equivalence in research entities. On the other side,” Flood & Drought Risk Management”, “Water Governance” and “DSS, Monitoring and ICT” have a good balance between companies and research entities.

Figure 13 - Assets from companies and research entities classified by EIP areas of work Regarding the joint analysis of the assets from companies and research entities, it is possible to identify the EIP priorities with a maximum 26% relevance.

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Figure 14 – Joint assets from companies and research entities classified by EIP areas of work Analysing the declared activities of the companies in relation with the EIP areas of work “Others” represent the maximum value with an impact around to 40%. Only “Ecosystem Services” (35%) has an impact close to ”Others”.

Figure 15 - Companies activities classified by EIP areas of work The alignment between the declared activities of the companies and their research and innovation assets presents a good balance with only one inconsistent value in “Ecosystem Services”. The reason for this imbalance may be the presence in this analysis of companies related with the design and management of green areas. These companies have a low level of innovation investment, but they are designing innovation lines.

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Figure 16 - Companies activities and their assets classified by EIP areas of work The analysis of the research entities activities related with the EIP areas of work shows that only “DSS, Monitoring and ICT” (with more than 50%) has a significant overlap of activities across entities. All the other areas have an overlap with less than 15%.

Figure 17 - Research entities activities classified by EIP areas of work The comparison of the activities and the assets of the research entities (Figure 18) shows some areas of imbalance between their declared activities and their research and innovation results.

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Figure 18 –Research entities activities and their assets classified by EIP areas of work Finally, the analysis of the alignment of the companies and the research entities under the umbrella of the EIP areas of work shows that there is no clear synergy between both types of entities when their declared activities are taken into account.

Figure 19 - Companies and research entities activities classified by EIP areas of work

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2.1.5.3. Conclusions Assessing the UNESCO classification, the companies from Aragon have a high level of specialization around the “Technological Sciences”. This specialization has a discipline focus in the fields of “Computer technology”, “Construction technology”, “Electronic Technology“ and “Environmental technology and environmental”. Within companies, “Construction technology” has the main level of assets with a very high gap with the others topics. Nevertheless, in the case of the research entities there is not such a specialization. The results for research entities present a more homogeneous distribution of the works with a high relevance of “Earth and Space Sciences”, “Technological Sciences” and “Economic Sciences”.

On the other hand, there is a wider spread of identified EIP areas of work in companies and research entities. The maximum % clustering is 32%, and the average is 16% in companies and 15% in research entities. These results imply a low alignment of the innovation results with the EIP that may represent a low level of specialization in the region along the EIP topics or may represent a low penetration of EIP terminology into the water sector in the region. By analysing the alignment of the companies and research entities activities with the EIP, the results show higher degrees of clustering (35% for “Ecosystem Services” in companies, and 53% for “DSS, Monitoring and ICT” in research entities).

In general, the companies in Aragon have a better alignment between their declared activities and the innovation assets than the research entities.

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2.2. East of England

2.2.1. Cluster, regional and national policies The East of England is one of England’s nine official regions. It is the second largest region in the UK with the fourth largest population, yet has the highest rate of business and research development expenditure of any English region. In 2011, businesses in the East of England spent £3.6 billion on research and development, approximately 20% of the UK’s expenditure. The East of England is comprised of six counties; Cambridgeshire, Norfolk, Suffolk, Bedfordshire, Hertfordshire and Essex, including several cities such as Peterborough, Cambridge, Ely, Norwich, St Albans, Chelmsford and numerous large towns including Luton, Bedford and Ipswich. The East of England is predominately rural with some coastal regions any many smaller market towns.

The city of Cambridge is one of the most highly skilled cities in the country, with 46% of the residents educated to degree level, compared with 26% nationally. Cambridge is renowned for its high-tech and biotech industries but also has a thriving range of finance, legal, business, hotel and restaurant activities as well as public administration, education, healthcare and tourist industries. The city of Peterborough is one of the UK’s top commuter cities with a vibrant workforce of predominately younger workers, compared with the UK on average. Peterborough is home to the UK’s largest cluster of environmental business, with in excess of 380 and rising, including partners like IBM. The city is also currently home to the UK largest low-carbon housing developments.

The East of England has strategic links with the rest of Europe, serviced by four international airports at London Stansted, London Luton, Norwich International and London Southend alongside the ports of Felixstowe, Ipswich and Harwich, two of which make up the UK’s largest container port. This is reflected in export trade as the East of England was the third biggest exporter in the in UK in 2010, behind London and the South East, contributing to 9% of the total UK export. The southern part of the East of England region forms part of the London commuter belt. Many of the cities in the East of England are approximately 1 hour from London by train, with most serviced by a direct line into London King’s Cross and London Liverpool Street railway stations. The region has benefitted greatly from its proximity to London and now has strong links with London and the South East through the labour and housing markets.

The East of England economy is largely service based with a strong financial service sector. It is also highly active in manufacturing (e.g. automotive, pharmaceuticals) and ICT. The East of England is home to several companies including Aviva, BT, General Motors, GSK, Sanyo UK in addition to a number of large food and drinks manufacturers. The economy is however highly variable, with earnings and gross value added (GVA) noticeably higher nearer to London, in places like Hertfordshire, and much lower in areas like Peterborough and Norwich. Reasons for these variations are complex, but have been attributed to industrial restructuring, accessibility to large markets and differences in re-employment rates and skills. As of 2010, the East of England had a GDP of €24,800 per citizen, below the UK average of €27,500. As of 2012, it had the highest employment of any region in the UK, nearing 75% for the fourth quarter of 2012.

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The East of England has a strong research community and heritage with eight universities located in the region, including some of the world’s leading research institutes including the University of Cambridge, Cranfield University and the University of East Anglia and Anglia Ruskin University. The well-renowned research skills and facilities of the University of Cambridge have attracted both multinational corporations and technology based start-ups to the area. A number of technology clusters have developed around Cambridge with a strong focus on ICT and biotechnology, with the range of skills and capabilities offered by the university attracting the R&D activities of both Toshiba and Nokia. As of 2011, 47.7% of citizens were employed in science and technology.

The East of England is also home to numerous world-class public research institutes such as the MRC Laboratory for Molecular Biology, National Institute for Biological Standards, Babraham Bioscience Technologies Ltd, John Innes Centre and Rothamsted Research, British Antarctic Survey, Tyndall Centre for Climate Change Research and the National Institute for eScience. While the region has an excellent track record in R&D and the development of new technologies, the Regional Development Agency (RDA) have previously raised concerns that the region is less able to reap the economic benefits of these advances and the extent of this innovation is still limited to isolated pockets in and around Cambridge.

The English Regional Development Agencies (RDAs) were previously responsible for the regional innovation policies in all nine UK regions (NUTS 1). However their closure in March 2012 signalled a shift from structural regional policies to more local and varied approaches to growth and development. There is no longer a single body responsible for regional innovation, although individual governing bodies do remain in the Devolved Administrations in Wales, Scotland and Northern Island. Today, innovation measures and strategies in the East of England are now the responsibility of either Local Authorities or Local Enterprise Partnerships. The East of England is now governed by the East of England Local Government Association (EELGA), an association of 52 local authorities that was set up in April 2010 following the abolishment of the East of England Regional Assembly. The EELGA are responsible for running the East of England Innovation Programme, which provides support services and funding of up to £500,000 for 2014/2015 to support local authorities in developing new and innovative ways to meet current and future challenges. In addressing issues created by prolonged austerity, rising demand and declining resources the EELGA have chosen to focus on five priority areas; adult social care, children’s service and health, economic development, environment and waste, and resources. As part of the environmental and waste and resources areas, the EELGA are working with their members to develop innovative models and efficiencies while supporting service re-design programmes.

The East of England is also home to several Local Enterprise Partnerships (LEPs) which are voluntary partnerships between local authorities and business. The LEPs were setup up in 2010 by the BSI to help identify priority areas for local economic development, as well as lead growth and create jobs in the local area. There are currently 39 LEPs in operation in the UK, several of which operate either fully or in part across the East of England, including the Greater Cambridge and Greater Peterborough LEP, New Anglia LEP and the South East LEP. LEPs are commonly overseen by a board comprising local businesses, public sector leaders and local

36 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION universities. The LEPs are not explicitly tasked with innovation policy but instead provide support, develop the local private sector and stimulate growth. In some cases, and where there is an identified need in the region, these activities may include the creation of an innovation agenda. To date, most LEPs are informal arrangements with one local authority taking responsibility for financial and contractual matters on behalf of the partnership. More formal organisations and governance models are however beginning to emerge with several LEPs managed via a “delivery board” including staff from local authorities and regional bodies such as the Chambers of Commerce. In 2013, the UK Government announced that LEPs will be tasked with delivering large parts of the EU Structural and Investment Funds for 2014-2020, which includes innovation. Currently, most LEPs are in the process of developing strategic plans which align with the national policies and which include their EU investment strategy.

The Greater Cambridge and Greater Peterborough LEP was purposely setup up help drive sustainable economic growth in the East of England and includes representatives from local business, education providers, voluntary organisations, social enterprises and the public sector. They recognise four key areas; economic vision, infrastructure, skills and funding, To date, they have been allocated £16.1 million worth of Growing Places Funding in order to stimulate economic growth and to create the necessary infrastructure to support new jobs and homes. In terms of the smart specialisation, the Greater Cambridge and Greater Peterborough LEP have identified the following emerging technologies which could provide a competitive advantage, including Stem Cells, Mobile Communications, Advanced manufacturing, CleanTech, Internet of Things, Agri-tech, Synthetic Biology, Education, Semi-conductors and Behavioural Change (including Gaming).

The New Anglia LEP was setup in December 2010 and has recently launched the Agri- Tech Growth Initiative. This initiative provides £2.5 million of funding to assist local businesses to invest in new markets and supply chains, to provide skills development and assist commercialisation of R&D across the East. This initiative is jointly funded by the Greater Cambridge and Greater Peterborough LEP and New Anglia LEP, and provides two sources of funding, namely the Agri-Tech Growth Fund and the R&D and Prototyping Fund. The Agri-Tech fund provides £2.5 million of funding, split into grants of £25,000 - £10,000 to support improvements in agricultural productivity. The R&D and Prototyping Fund provide a £540,000 fund, split into grants of £10,000 - £60,000 to support the development of innovative technology. The New Anglia LEP has already been highly successful in creating the Great Yarmouth and Lowestoft Enterprise Zone, securing Green Pathfinder status and securing £30 million of funding to help grow business in Suffolk and Norfolk. The New Anglia LEP has already setup a Smart Specialisation Working Group which includes organisations across Norfolk and Suffolk. It is the job of this working group to develop a smart specialisation approach to stimulate growth. Initial analysis suggests that the core innovation strengths and assets of Norfolk and Suffolk are CleanTech, Bio Tech, Info-Tech, Specialist Med- Tech/Pharma and Agri-tech/food Tech. This analysis, like the other LEPs is still in its early stages, although a model will be developed in line with a partial RIS3 approach.

The South East LEP brings together representatives from local government, business and higher education, with the goal of creating an enterprising economy through

37 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION exploring opportunities and addressing the barriers to growth. The South East LEP goals are; to secure two enterprise zones in Harlow, Essex and Sandwich, Kent; create 20,630 jobs and 25,000 homes by investing £50 million of Growing Places Funding; and create an innovative construction apprenticeship agency to create further jobs across East Anglia and the South East. The South East is currently bidding for £1.2 billion from the UK government to leverage £10 billion of investments in the area with the goal of stimulating growth, creating jobs and supporting house building until 2021. They aim to create 200,000 private jobs, build 100,000 new homes and renovate business and transport infrastructure. The South East LEP have recently embarked on a process of smart specialisation in order to better focus efforts on sectors where they might have a competitive advantage including Advanced Manufacturing, Transport and Logistics, Life Sciences and Healthcare, Environmental Technologies and Energy, Creative, Cultural and Media and the Visitor Economy.

Regional innovation policy in the UK initially began with the RDAs which were established in 1998 under the Labour Government. Over many years, innovation became an important feature of their activities with many policies implemented across the UK. Typically these policy responses included support for clusters and science/innovation parks, knowledge transfer between industry and research, investment in R&D infrastructure and centres of excellence. In 2006 and 2007, a range of programmes and services for business support including innovation were simplified considerably, leaving a national policy that was then delivered locally by the RDAs. Since the abolishment of the RDAs many existing innovation support mechanisms and their funding have returned to a national system of delivery, managed in most cases by the Technology Strategy Board (TSB).

There has recently been an overhaul in the UK with regards to innovation regional/local policies and their governance. Currently, it is not yet clear how much LEPs will focus on local innovation policies. At present most innovation policies are largely dominated and delivered at the national level, designed by the Department for Business, Innovation and Skills (BSI) and delivered by the TSB.

The state of future goods and services remains unknown, although a significant driving force behind their delivery will be Key Enabling Technologies (KETs) such as nanotechnology, micro and nanoelectronics, advanced materials, biotechnology and photonics. The UK has many structures in place to promote KETs as well as numerous instruments providing a range of innovation support services such as direct R&D support, public procurement measures, public participation in VC funding, technology transfer, knowledge transfer and larger infrastructure and project support. The dominant force behind policy measures required to the KETs is the BSI and TSB. The BSI are responsible for several activities designed to encourage knowledge exchange and encourage technology adoption such as Knowledge Transfer Networks, Knowledge Transfer Partnerships and Technology and Innovation Centres as well as the Small Business Research Initiative. The TSB act on behalf of the UK government and are responsible for formulating and installing innovation support mechanisms through technology transfer and commercialisation efforts. The TSB can easily install new programmes and mechanisms and adjust them according to address market needs. They are often responsible for managing several initiatives at the same time, meaning policy beneficiaries such as small companies, large companies, and

38 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION universities can make informed choices of where to seek funding. The TSB are increasingly encouraging academics and policy makers to consider the impacts of their research, with the aim of encouraging the commercialisation of results. A summary of the current policy initiatives and their target KETs is provided below:

Policy initiative Targeted KETs

Collaborative Research & Development (CRD) Nanotechnology / Micro- and nanoelectronics / Industrial biotechnology/ Photonics/ Advanced materials / Advanced manufacturing technologies Innovation Platforms (IP) Nanotechnology / Micro- and nanoelectronics / Photonics/ Advanced materials / Advanced manufacturing technologies Knowledge Transfer Networks (KTN) Nanotechnology / Micro- and nanoelectronics / Industrial biotechnology/ Photonics/ Advanced materials / Advanced manufacturing technologies Knowledge Transfer Partnerships (KTP) Nanotechnology / Micro- and nanoelectronics / Industrial biotechnology/ Photonics/ Advanced materials / Advanced manufacturing technologies Micro and Nanotechnology Manufacturing Nanotechnology / Micro- and nanoelectronics Initiative (MNM)

Small Business Research Initiative (SBRI) Nanotechnology / Micro- and nanoelectronics / Industrial biotechnology/ Photonics/ Advanced materials / Advanced manufacturing technologies UK Strategic Investment Fund (SIF) Micro- and nanoelectronics / Industrial biotechnology / Advanced materials / Advanced manufacturing technologies

The Collaborative Research & Development (CRD) policy initiative is the responsibility of the BSI and TSB. The primary aim of this policy initiative was to stimulate collaboration between industrial and research initiatives and encourage them to work towards R&D projects in strategically important areas of science, engineering and technology, from which new products, process and services can be ultimately derived. The CRD policy initiative together with the KTP policy initiatives are responsible for issuing funding calls three times a year. Proposals for these funding calls are highly competitive and assessed according to several priority areas; Design Engineering and Advanced Manufacturing, Electronics and Photonics, Emerging Energy Technologies, Sustainable Production and Consumption, Bioscience and Health, Advanced Materials and Information & Communication Technology. The CRD policy initiative, together with the KTN initiative, has a budget of €385.5 million and has so far funded over 600 R&D projects since its formulation in 2004.

The Innovation Platforms (IP) policy initiative is the responsibility of the TSB as the main administering agency. The IP aims to bring together representatives from government, research funders, and other stakeholders in order to address societal challenges and stimulate dialogue between parties and foster innovation. The primary aim of the IP is to help to align innovation policy and government procurement in order to deliver quality public services and provide the correct solutions for the market place.

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The IP are currently active on six societal challenges. Intelligent Transport Systems and Services which is predominately focussed on addressing issues associated with transport infrastructure, including traffic, crime and safety. Low Impact Buildings, designed to assist business to harness the growing sustainable buildings market and Assisted Living, which focusses on people who are currently suffering from chronic long term conditions to enable them to live independently. Network Security deals with the availability and integrity of communications infrastructure, Low Carbon Vehicles is concentrated on low carbon vehicle research in order to achieve the wider carbon reductions set by government. The final priority area, Detection and Identification of Infectious Diseases Agents is targeted at developing new diagnostic tests to reduce the number of deaths associated with new diseases. Together these programmes address the following focus areas; Advanced Materials, Bioscience, Built Environment, Creative Industries, Development, Digital, Electronics, photonics and electrical systems, Emerging technologies and industries, Energy, Food supply, Healthcare, High value manufacturing, High value services, Information and communication technology, Nanotechnology, Space, Sustainability and Transport, Between 2008 and 2011, the TSB spent €200 million on IP.

The Knowledge Transfer Networks (KTN) provide opportunities for businesses, trade associations, research and technological organisations with the opportunity to network and share mutually beneficial information, The KTNs are designed to provide an easy to use and effective service, and thereby encourage knowledge sharing between the supply and demand sides of technology enabled markets. Several KTN have already been setup in priority areas including; Aerospace and Defence, BioProcess UK, Bioscience for Business, Chemistry Innovation, Electronics-enabled Products, Food Processing, Low Carbon and Technologies, Grid Computing, Industrial Mathematics, Integrated Pollution Management, Location and Timing (GPS applications), Materials, Health Technologies, Photonics. Resource Efficiency and Waste Management, Sensors, UK Displays and Micro and Nanotechnology. To date, services provided by KTN have been highly successful, with 75% of business respondents stating that KTN were effective of highly effective.

The Knowledge Transfer Partnerships (KTP) are led by the TSB and funded by approximately 20 public bodies, including the Research Councils, DEFRA, DH, the Regional Development Agencies of England and the Devolved Administrations of Northern Island, Scotland and Wales. Typically KTPs involve a three-way partnership between a business, a recent graduate and a senior academic acting as a supervisor. The primary aim of KTP is to increase the interaction between Universities, Research Organisations and Further Education Colleges representing the knowledge base and companies. The KTPs have a budget of €35 million and have so far generated high levels of satisfaction amongst business, academics and associates, with each partnership creating three additional jobs in addition to that of the associate.

The Micro and Nanotechnology Manufacturing Initiative (MNM) is jointly funded by the Government, Regional Development Agencies and the Devolved Administrations of Wales and Scotland. The primary aim of the initiative was to take advantage of the commercial opportunities offered by nanotechnology, by helping industry build upon the expertise of the UK science base. The MNM has a budget of €328.68 million and is expected to deliver significant opportunities for the UK economy. The TSB is currently

40 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION provided £54 million to establish and maintain a series of micro and nanotechnology centres across the UK, the funding is expected to last 5 years after which point the centres are expected to be self-sustaining.

The Small Business Research Initiative (SBRI) is supported by the BSI through the TSB. The SBRI is primarily focused on SMEs, with the aim of helping them gain access to R&D opportunities through Governmental department procurements. The SBRI actively encourages SMEs to pitch their research ideas to Governmental departments which have identified gaps in the market or opportunities for innovation. Concept contracts of up to €113,000 are awarded to successful SMEs pitching a viable idea. The SBRI focus on a variety of priority areas including; providing additional opportunities to small business firms by supplying further market opportunities, providing public procurement opportunities increasing R&D capabilities of SMEs and giving them a greater chance of exploiting new market opportunities, In doing so, the SBRI has helped to strengthen R&D capabilities and capacities of SMEs and created opportunities for start-up, new-technology based or knowledge-based businesses. The overall budget of SBRI is €54 million; during the period 2007/2008 SBRI assigned a total of £47.7 million to R&D contracts, equivalent to approximately 11% of the Governments research budget.

The UK Strategic Investment Fund (SIF) is managed and implemented by the UK Government; the fund is primarily designed to support targeted investments in industrial projects that are of strategic importance. The SIF is designed to strengthen the UK’s economy’s capacity for innovation, job creation and growth. The fund is forward looking in its outlook; it is believed that it will allow the UK to remain globally competitive even after it emergences from an economic downturn against a backdrop of rising competition. Investments are currently provided in a range of industrial fields where the UK is seen as already having a competitive advantage such as low carbon vehicles, wind and wave power and renewable chemicals. The SIF also provide seed capital for the UK Innovation Investment Fund. Funding from SIF is designed to fund measures that will subsequently fund organisations and businesses to undertaken projects as opposed to directly funding the projects themselves, To date, SIF has supported the expansion of the Printable Electronics Centre and the Manufacturing Advisory Service as well as the development of the Centre for Excellence for Silicon Design with the support of South West RDA and an Industrial Biotechnology demonstrator. The overall budget of SIF currently stands at €1,117,647,058 and has so far supported new advanced manufacturing technologies including printable electronics and industrial biotechnology.

The East of England is also serviced by Waterwise East, which provides a regional centre of excellence for water efficiency. Waterwise is an independent, not-for-profit, non-governmental organisation focussed on decreasing water consumption in the UK and growing an evidence of large-scale water efficiency. Waterwise East currently work with water companies, governments, manufacturers, retailers, NGOs, regulators, academics, agricultural groups, business, domestic consumers, media and other stakeholders. Their primary aims are; to encourage an economy and society where water efficiency is mainstreamed; support large scale retrofits which would have a significant impact on supply-demand balances; create a regulatory framework which incentivises greater demand management; and install a water meter, supported where

41 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION necessary by social tariffs to support vulnerable customers and provide assistance with retrofitting.

The East of England is also supported by the Water Innovation Network (WIN), via Opportunity Peterborough part of Peterborough City Council and Anglian Water. WIN was established in 2010 with the support of the East of England Development Agency and Anglian Water, the largest water and water recycling company in England and Wales by geographic area, supplying more than six million domestic and business customers. The primary aim of the network is to stimulate innovation in the water supply chain through the creation of a water innovation partnership, supported by a national network of business, organisation and research institutions. The partnership provides an effective platform through which members can network and collaborate and in turn stimulate innovation and growth. WIN provides a range of activities to support innovation including a formal ideas submission process, through which members can submit innovative concepts, ensuring they reach the right people within Anglian Water. The network also provides information about potential opportunities, through external events, site visits and valuable insight into the key challenges faced by water companies in the region.

The UK, like many other countries, is facing increasing competition in R&D and innovations, particularly from Asian economies. In order to boost its competitiveness in an international market, the UK should seek to support SME-university collaborations. The UK has been especially successful and strong in curiosity-led “blue skies” research and this is reflected in university ranking and the number and quality of scientific publications per pound spent, However, in order to succeed in a global innovation economy, the UK must broaden its market appeal and embrace and accelerate commercialisation of emergent technologies. In order to achieve this, the UK must continue to fund basic research as well as increase funding where possible, but also focus more on improving the interface between business and research, providing better conditions for commercialising research. This can be achieved through the creation of Technology and Innovation Centres to act as catapult centres, the setting up a new elite national networks and the provision of tax credits to SMEs undertaking R&D activities so the UK can quickly respond to emerging global challenges through R&D and innovation.

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2.2.2. Regional indicators

Regional indicators East of England

Area (Km2) 19,100

Number of inhabitants 5,847,000

GDP GDP not reported in the East of England.

GVA 113.7 Billion (2011)

Total population density 309 (2012) (inhabitants/Km2)

Rural population density Not reported (inhabitants/Km2)

Urban population density Not reported (inhabitants/Km2)

Public regulation for the Water Framework Directive 2000/60/EC efficient use of water (Local, regional, national Water Industry Act 1999 level) Defra (2005) Making space for water: Taking forward a new Government strategy for flood and coastal erosion risk management in England

Defra (2006) Delivering a sustainable water supply; government gives company wider powers to meter

Defra (2007) Securing a healthy natural environment: an action plan for embedding an ecosystems approach

Defra (2008) Future Water: The Government’s water strategy for England

Defra (2009) River water quality indicator for sustainable development 2008 results. Statistical release 203/09

Defra (2010) Water leakage statistics

Water Act 2003

Flood and Water Management Act 2010

POST (2011) Natural Flood Management. POSTNote 396. Parliamentary Office of Science and Technology

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Social awareness Defra (2011) Water for Life programs on efficient use of water (Local, regional, Environment Agency (2010) The state of river hábitat in England, national level) Wales and the Isle of Man Environment Agency (2012a) Catchment based approach for a healthier water environment

European Union (2000) Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy

European Union (2011) Blueprint to safeguard Europe’s water resources

Natural England (2011) A guide to catchment sensitive

farming. SSF017

The Institution of Civil Engineers, Oxfam GB, and WaterAid

(2011) Managing water locally: an essential dimension of community water development

Waterwise (2010) Water efficiency in new developments: A best practice guide

Existence of regional UK Trade & Investment East of England entities that support companies East of England Local Government Association internationalization East of England European Partnership

Greater Cambridge and Greater Peterborough Local Enterprise Partnership

New Anglia LEP

South East LEP

Enterprise Europe East OF England

Business in the Community East of England

Total amount (£) of funding 4.531 Billion for innovation at the regional level

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2.2.3. State of the art of companies and research centres

2.2.3.1. UNESCO based analysis Through analysis of East of England companies’ projects, research lines and intellectual property (defined assets) using the UNESCO codes simplified to four digits the results show a clear predominance of “Construction technology” (around 60% as seen in Figure 20) in the region. The second most popular area of interest is s “Environmental Technology and Environmental” followed by “Inorganic Chemistry” at approximately 15%. The remaining classifications are less than 10% of the overall impact and indicate there is a clear specialisation in companies.

Figure 20 - Assets from companies classified by UNESCO codes (4 digits) Within research entities, the above specialisation in certain classifications is not as predominant and there appears to be a better balance across the subjects. The main area of interest is within the “Environmental technology and environmental” theme (46% as seen in Figure 3). Between 15% and 30% there are a number of equally important areas including “Computer Sciences”, “Forestry”, “Hydrology”, “Instrumentation Technology”, “Computer Technology”, “Construction Technology”, “Sectorial Economics” and “Biochemistry”.

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Figure 21 - Assets from research entities classified by UNESCO codes (4 digits) By comparing the data from companies and research entities in Figure 22 the data identifies that there is no clear correlation between the two different entities.

Figure 22 - Assets from companies and research entities classified UNESCO codes (4 digits) If the result from both types of entities are compared alongside each other, as in Figure 23, the volume of “Construction Technology” and “Environmental Technology and Environmental” projects can be seen to be much greater.

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Figure 23 - Joint assets from companies and research entities classified UNESCO codes (4 digits) In the case of companies, given the predominance of “Construction Technology” and “Environmental Technology and Environmental” the 2-digits UNESCO parent code “Technological Sciences” (see Figure 24) obtains a relevance of more than 70% (far outweighing “Chemistry” with around 15%).

Figure 24 - Assets from companies classified by UNESCO codes (2 digits) In the case of research centers (see next figure), “Technological Sciences” is the predominant areas of interest at around 53% but the distance between the other topics is less than in comparison with the companies. “Mathematics”, “Earth and Space Sciences”, and “Agricultural Sciences” also have a majority share at around 30%.

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Figure 25 - Assets from research entities classified by UNESCO codes (2 digits) This imbalance identified in the UNESCO 4-digits analysis continues in the 2-digit analysis as seen in the next figure.

Figure 26 - Assets from companies and research entities classified UNESCO codes (2 digits) If we join the data from companies and research entities (see Figure 27), “Technological Sciences” remains dominant.

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Figure 27 – Joint assets from companies and research entities classified UNESCO codes (2 digits)

2.2.3.2. EIP based analysis Based on the European Innovation Partnership (EIP) analysis Figure 28 indicates that in the East of England there is a high proportion of work related to flood and drought risk management and the governance of the water. ICT, ecosystem services and wastewater treatment are also highly regarded in this area.

Figure 28 – Global view of the EIP analysis

Figure 29 below identifies the assets from companies classified by the main EIP areas of work (Water reuse and recycling; Water and wastewater treatment, including recovery of resources; Water-energy nexus; Flood and drought risk management, and Ecosystem services). It presents the innovation results obtained by companies with presence in most of the topics proposed by the EIP, with only “Financing for Innovation” having no presence.

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Figure 29 - Assets from companies classified by EIP areas of work In relation to the results obtained by the research entities (Figure 30), it is easy to identify the two topics with least current relevance: “Water Reuse & Recycling” and “Financing for Innovation”. Conversely, there are three topics with a higher relevance ranging from 20% to 35%, these topics are: “Flood and Drought Risk Management”, “Ecosystem Services” and “Water Governance”.

Figure 30 - Assets from research entities classified by EIP areas of work In a comparative analysis highlighted in Figure 31 it is possible to see that again there is no strong synergy between companies and research entities in their strategic approach to EIP areas.

Figure 31 - Assets from companies and research entities classified by EIP areas of work

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In relation to the joint analysis of the assets from companies and research entities, it is possible to see a fairly even spread of the EIP areas of work within them apart from financing for innovation.

Figure 32 – Joint assets from companies and research entities classified by EIP areas of work Analysing the declared activities of the companies in relation with the EIP areas of work, only “Water & Wastewater Treatment” has the highest figure in excess of 50%.

Figure 33 - Companies activities classified by EIP areas of work The alignment between the declared activities of the companies and their research and innovation assets presents two different scenarios. On one side, “Water & Wastewater Treatment” presents a lot of activity in relation to the innovations results. On the other side, the remaining areas present high innovation results in relation to their activities. In some cases the innovation is very near to the declared activities (such in “Water Reuse & Recycling” and “DSS, Monitoring and ICT”). Whereas in other cases there is a high impact in innovation results in relation to their activities, such as in “Water Governance”.

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Figure 34 - Companies activities and their assets classified by EIP areas of work By analysing the research entities’ activities in relation to the EIP areas of work the results show a lower participation in these areas. However, it is important to highlight that the classification of “Other” increases above 40%

Figure 35 - Research entities activities classified by EIP areas of work The comparison of the activities and the assets of the research entities (Figure 36) identifies a good balance between their declared activities and their research and innovation results in the areas of “Flood & Drought Risk Management”, “Ecosystem Services” and “Water Governance”. However, “Water Reuse & Recycling” and “Financing for Innovation” both have declared activities but no relevant innovation results.

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Figure 36 –Research entities activities and their assets classified by EIP areas of work Finally, the analysis of the alignment of the companies and the research entities under the umbrella of the EIP areas of work shows that there are no clear synergies between both types of entities if their declared activities are taken into account.

Figure 37 - Companies and research entities activities classified by EIP areas of work

2.2.3.3. Conclusions Related with the UNESCO classification, the companies from East of England have a high level of specialization around the “Technological Sciences”, specifically “Construction Technology” and “Environmental Technology and Environmental”. This dominance of “Technological Sciences” is similar for research entities, but in this case the base is open to other topics such as “Mechanical Engineering and Technology”, “Instrumentation Technology”, “Electronic Technology” and “Computer Technology”.

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However, there is a low presence of identified EIP areas of work in companies and research entities. In relation with the innovation results, the maximum percentage present is 35%, and the average just over 16% in companies and 13% in research entities. These results imply a poor alignment of the innovation results with the EIP, thus representing a low level of specialisation in the region when compared with the EIP topics or a low level of engagement with or understanding of EIP classifications.

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2.3. Galilee

2.3.1. Regional and national Cluster Policies

Regional Policy

The Galilee does not have a regional water policy regarding research or developing the water resources. Mekorot Water Company Ltd. is a Government-owned company and, as Israel's national water company, is responsible for managing the country's water resources, developing new sources and ensuring regular delivery of water to all localities for all purposes. Mekorot is in charge of the wholesale supply of water to urban communities, industries and agricultural users. Mekorot produces and supplies about two-thirds of the total amount of water used in Israel. The remainder is provided through privately-owned facilities. Water is also supplied to Jordan and the Palestinian Authority, in accordance with the peace accord.

The shortage of water in the southern, semi-arid region of Israel required the construction of an extensive water-delivery system that supplies water to this region from resources in the north. Thus, most of the country's fresh water resources were inter-connected into the National Water Carrier, commissioned in 1964. The National Water Carrier supplies a blend of surface and groundwater. Water not required by consumers is recharged into the aquifer through spreading basins and dual-purpose wells. The mayors and leaders of the Eastern Galilee municipalities have done together a Strategy for Innovation and Entrepreneurship in which they examined the strengths and weaknesses of the region and came with some ideas to develop different regional technological sectors. This strategy was developed by the GAL-EDGE project, inside the EU RIS project, followed by the REFORM foresight exercise. An important element of this strategy in developing the Eastern Galilee is to promote technology transfer from the knowledge base institutes to the industries and business sector by promoting links with business and by developing business skills among the most able young scientists and engineers.

The local structures of water management for irrigation or other uses are a figure of water management specific to the Galilee, with historical institutions that are sometimes older than the State of Israel, that may serve as example of experiences of participative and democratic management in the framework of a sustainable use of water, on the one hand, and as a diversified mechanism that complicate and inhibits the development of a common modern water management system. The challenges to improve the public participation have to do mainly with legislation in some cases, better use of the technologies of information, awareness and organization of the different economic sectors to cooperate in the public decisions. The main concerns are the quality of supplied water and the sensitivity of the most fragile sectors to the variations of water prices.

Regarding support technological research and innovation, the progress of water treatments and recycling, and modernization of irrigation systems are remarkable. However it is necessary to improve the access of the Galilee region's industries to

55 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION funding for research and development, and for training of the different operators. The communication between economic operators to monitor and benchmark the improvements achieved, including best practices, is also necessary.

Drip irrigation, perhaps the most valued innovation in agriculture worldwide, was invented in Israel by the industries and not by any regional or national entity. Partially funded by the Ministry of Industry, Trade and Employment, the Chief Scientist Office the industries were able to develop their R&D, which was found to be very successful.

The Galilee Water cluster is combined on all interested bodies in the Galilee which are dealing with water. It includes, therefore, Water management entities; wastewater processing providers; companies that are dealing with developing and selling high-tech equipment and systems and researchers.

The cooperation in the cluster or outside it is aimed to retain and enhance traditional industry manufacturing in the Galilee by providing product integration services that will enable component suppliers to offer high quality products, on time delivery, and competitively priced complete subsystems for products at any complexity level, based on up-to-date know-how.

Similar to existing MAGNET programs at the Office of the Chief Scientist of the Ministry of Industry, Trade and Employment, supplier integration programme helps existing qualified product integrators expand their services and also help selected component suppliers add integration services to their product mix.

The Water Cluster is built around the MIGAL institute with all the Technological Incubators of the Eastern-Galilee participating, as well as delegates from the Colleges in the Galilee, but mainly based on the industries dealing with Water Technologies and distributing water and treated water to all sectors in the region.

There is much willingness from the members of the cluster to collaborate and participate in European projects, a fact that will provide funds to the cluster and will be an important tool for the internationalization of the cluster. Both the companies and the research institutes believe that this kind of collaboration will help them to expand their activities and exchange knowledge on water technologies.

Innovation

Water is considered as a national resource of utmost importance in Israel. In recent years new and upgraded intensive regional treatment plants were set up in the region. The ultimate objective is to treat the wastewater to a level enabling unrestricted irrigation in accordance with soil sensitivity and without risk to soil and water sources, saving the high quality water resources for drinking.

Innovation born of a near-desperate situation has transformed Israel into a leader in water technology. With limited resources and no cooperation from neighbouring countries, authorities in Israel quickly understood that they would have to bootstrap what little water options they have, to irrigate the Israeli very dry land. Necessity spurs innovation, and along the way, Israel and the Galilee created an industry. Drip

56 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION irrigation, perhaps the most valued innovation in agriculture worldwide, was invented in Israel by Netafim. Irrigation is an important sector in the Galilee and it is estimated that 70 percent of the world's water is transferred via irrigation. Until now drip irrigation is just at the beginning of penetrating the world market - it is still only about 6% of the total irrigation market.

All these innovative results and products come from research institutes and companies whose main field of activity is on water technologies and wastewater treatment.

The Galilee agriculture has become increasingly dependent on recycled sewage and other types of low-grade waters which are unsuitable for drinking. Hence, the oft- repeated argument that Israel's water crisis can be resolved by reallocating water used by the agricultural sector to the non-agricultural sector sounds good, but is simply untrue - unless we are to drink these low-grade waters.

Regional and Trans-Regional Initiatives

Following the peace accord with Jordan, Mekorot - the national water company of Israel is fulfilling all government commitments to supply the Hashemite Kingdom with the agreed additional quantities of water. Mekorot is also engaged in all activities resulting from the agreements with the Palestinian Authority. In the regional level at the Galilee there are some initiatives with partners from the Palestinian Authority and with Jordan.

The National Water Authority of Israel

The Water Authority will draw up a plan to pump water back to springs and wells in an effort to prevent the drying up of reservoirs and waters in national parks. The authority's policy-making council has decided that 3 million cubic meters of water will be added to the 15 million cubic meters already pumped back to nature annually - and some springs will be replenished, most of these in the Galilee and the Golan Heights.

The decision will force the authority to find alternatives for some consumers, such as farmers. In some cases farmers will receive water from nearby wells, in others the water may flow from springs through reservoirs and only then be used for agriculture.

The Water Authority of the KINNERET- Management of the Lake Kinneret Watershed

The area of Lake Kinneret is 170 sq.kms., but it collects water from a basin of 2,730 sq.kms. in area, most within the boundaries of the State of Israel. The Lake Kinneret Authority is a regional and state body established to manage this watershed.

Lake Kinneret is a reflection of all that happens in the area of the collection basin, and any long-lasting change in the quality of the water in the basic appears in concentrated form in the waters and on the bottom of the lake.

Lake Kinneret has a great variety of uses:

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• It serves as a reservoir gathering rain and surface run-off water from rainy season to dry season, being Israel's major source of fresh water. • The water is rich in fish life. • The water is both potable and can be used for irrigation, and is pumped to the center of the country and to the Negev for these purposes. • The lake has religious significance and many vacationers visit its beaches. • It is the only open, fresh water lake in the State of Israel. Treating the water in the lake and streams was found to be unviable, as "end of the pollution process" treatment would have accumulative and unforseeable effects. The preferred agreed-upon solution is to reduce and avoid pollution before the water reaches the lake - namely, treatment in the collection basin, coordinating activities in the spheres of urbanization, industry, agriculture and tourism so as to reduce pollution in a controlled and organized manner. Various bodies are involved in this effort, including government ministries, municipal authorities, the Jewish National Fund, the Nature Reserves Authority and other public bodies.

The ministry of National Infrastructures - The division for the promotion of water saving

The division's main tasks are in the policy field concerning water saving in the private and public sectors, initiating and promoting activities in the sphere of standardization and enforcement, promotion of local and national projects on the subject of efficient water usage, water shortage and expanding the up-to-date technological solutions in the aforementioned sphere.

Likewise, the division deals in the concentration and distribution of up-to-date information in the sphere of water saving for the relevant public, both in the municipal sphere (including private and public gardening) and in the agricultural and industrial sphere.

In addition, the division deals with the initiation of surveys and researches in the spheres within its professional responsibility.

The ongoing activities of the division's staff also include advice to planners, engineers and manufacturers on all the division's spheres of activity and professional training (courses, workshops and seminars, etc.).

Local water corporations

Water distribution and sanitation has historically been the responsibility of municipalities, consisting of 76 cities (with a population ranging from 2,500 to 750,000 inhabitants),144 local councils in small towns and 53 regional councils in rural areas. The Water and Sewerage Corporations Law of 2001 provides for the gradual transfer of water and sewerage services from the municipalities to newly created corporate entities. The 2001 Law aims at, inter alia, full cost recovery and the promotion of

58 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION private sector investments for infrastructure. The transfer of service provision from municipalities to public service entities (called "Water and Sewerage Corporations") is initially voluntary, but at a later stage it will become compulsory. It is envisaged that by 2010 all municipal water and sewerage services will be transferred to Water and Sewerage Corporations. The Corporations may serve the area of one or more municipality, although in the latter case all municipalities in the service coverage area have to agree. The Corporations have quality of service obligations and are required to obtain a permit from the Ministry of the Interior. The Corporations may be owned either by the municipality (ies) in whose service area they operate or by private investors. The Government may intervene in the operation of the Corporation, including transferring the provision of the services to another entity in case of failure in service provision, including in case of bankruptcy.

An example of a multi-municipal utility that precedes the 2001 law is the Dan Regional Sewerage Board (Shafdan), which includes seven municipalities in and around Tel Aviv. It owns the Dan wastewater treatment plant, the largest wastewater treatment plant in the country which treats about 130 million cubic meters of wastewater annually for reuse in agriculture (see under reclaimed water). Mekorot operates the plant on behalf of Shafdan.

More national and regional institutions that promotes development:

• Israel NEWTech - Investment Promotion Centre • MEKOROT- ISRAEL NATIONAL WATER CO • GALILEE DEVELOPMENT AUTHORITY - Promotes the Social, Economic, Scientific, and Technological Development of the Galilee

2.3.2. Regional indicators

The Galilee region is located in the northern part of Israel. It includes some 15 different municipalities, without an official regional government for the area as a whole. It is a small region, and a mere 100 kilometres separate its northern border from its southernmost boundary. Its 7,000 square kilometres encompass, however, contrasting scenery: mountains and valleys, fertile plateaux and stark cliffs. It varies in topography (with snow at least once a year on most Galilee Mountains and for 3-5 months on the Hermon Mountain, and hot valley at sea level – the Hula Valley). The Galilee is of immeasurable important to the international bird world, not only as a bird migratory route but also as a resting place and for winter quarters. The Galilee also varies in its population. It includes rural and urban communities, Jews, Christians, Moslems and Druze and different kinds of settlements – from Kibbutzim to Arab villages and towns.

The population in the Eastern-Galilee is around 120,000 people, with the highest percentage of people working in agriculture in Israel – over 9.3% (compared to 2.1% in Israel). As a whole, the economic activity in the region is mainly based on industry (79%), agriculture (18%) and tourism. The regional economy combines both low-tech and high-tech industry. While agriculture still plays an important part, there are a large number of high-tech companies operating in the region. The social and economic

59 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION parameters, based on regional and national statistics, show that the Galilee, as a peripheral region, is lower in almost every parameter compare to the rest of Israel. While agriculture still plays an important part, especially in the eastern part of the Galilee, there are a large number of high-tech companies operating in the region. The main industrial sectors/clusters include plastics, automated machinery, chemicals, machinery and equipment, industrial equipment for control and supervision, communication and information technology, electronics, optics, semiconductors, life sciences, medical and scientific equipment, biotechnological products, and cosmetics & pharmaceutics. Multinational companies located in the region include Motorola, Netafim and Dan (producers of the most advanced irrigation systems in the world), and Shamir.

Primary Sector

Agriculture is the main primary production in the Galilee, accounting for over 16% of the regional GDP (with less than 6% employment), at Kibbutzim and Moshvim. Wineries are scattered over the Galilee – from 2 big manufacturing to many boutique wineries. The Galilee Development Company (owned by the Galilee's Kibbutzim) is operating processing and packaging of fruits, poultry, bread, Cold Storage systems and Transportation Company, Pri-Ha-Galil and some other fruit processing plants.

Fishery, mainly in fish-ponds, is scattered all over the Galilee.

Quarries: Kfar-Giladi Quarries is Israel’s leading manufacturer of industrial minerals: calcium carbonate powders, accurate aggregate, granulated quartz and quartz micro powders for the industrial sector; Yiftah quarries of marble;

Environmental problems

The Galilee’s agriculture is characterized by a high technological level and is based on drip irrigation systems, automatic and controlled mechanization, and high quality seeds and crops. Despite the grave scarcity of water and land resources, the Galilee produces over Total economic activity in the Galilee agriculture is estimated at 480 millions Euros, 14% of the total production of Israel. Yet this agricultural output is accompanied by environmental risks associated with the use of pesticides and fertilizers and with the generation of agricultural waste. Agricultural wastes and chemicals adversely impact public health, contaminate soil and water quality and degrade the landscape.

The integration and adjustments between tourism and the environment is also an important issue for the Galilee, since the region is the most popular site for tourism, from Israel and abroad.

Research Infrastructures in the region

The Eastern Galilee counts on skilled manpower and technological capabilities. It also counts on 4 industrial parks, 810 companies and factories (approx. 90% SMEs), 3 technological incubators and 5,400 scientists and engineers. There are four academic colleges in the region (Tel-Hai College, Braude Academic College, Tzfat Academic College, Kinnorot.), proximity to important Institutes of Higher Education (Technion, and Haifa University) and several research institutes and technological incubators,

60 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION including MIGAL, Post-Harvest Laboratory and Meytav Biotechnological Incubator. MIGAL Research Institute brings together some of Israel’s foremost researchers in life sciences.

As a ‘Convergence Region’ the area offers priority developmental packages to companies in the fields of electronics, optics, biotechnology, environmental quality, software and computers. Enterprises in the region are investing in RTD and many are sub-contractors to clients in the centre of Israel. On the other hand, in many of the region’s kibbutzim innovative activity is taking place with the development of new products and industrial lines.

Strong points of the region

In region of Galilee there are many research and technological institutes, laboratories and universities and educational centres that promote in the region a high quality education and research systems with many scientists and innovative results. There are a few prosperous industries in Galilee; collaborations with Meytav technological Incubators are increasing; the level of support from TEVA is encouraging with many discussions leading to new developments. There are also Tax Shelters as a "Confrontation Line" region, which can facilitate the transformation of research outputs into industrial applications in the Galilee. Some agriculture sectors - mainly apple trees, generate significant income for the region. These rely on the continuing research at MIGAL. The region is the Green-Lung of Israel. Many Nature attractions are located in the region that could be further developed, supported by the environmental department at MIGAL.

Furthermore, the local structures of water management for irrigation or other uses are a figure of water management specific to the Galilee, with historical institutions that are sometimes older than the State of Israel, that may serve as example of experiences of participative and democratic management in the framework of a sustainable use of water, on the one hand, and as a diversified mechanism that complicate and inhibits the development of a common modern water management system. The challenges to improve the public participation have to do mainly with legislation in some cases, better use of the technologies of information, awareness and organization of the different economic sectors to cooperate in the public decisions. The main concerns are the quality of supplied water and the sensitivity of the most fragile sectors to the variations of water prices.

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Regional indicators Galilee

Area (sqrk) 1,804

Population 133,000

Self-Employees (not including agriculture) 18,200

Gross domestic product (per capita) in € 27,476

General education school population 35,136

Total college and university student population 6,095

Total personnel in R&D work in the industrial sector 438

Total personnel in HE institutions and research institutions 223

Local units, manufacturing 12,800

Employees, manufacturing 7,240

Tourism - Overnight stays 792,000

Exports (in Millions of €) 354.2

Potential of the region The Galilee region is characterized by innovative and pioneer industrial water sector. Most of the big companies for irrigation and technologic solutions for agriculture are located in the Galilee – that’s why it has huge potential to enlarge the products and to get into the "Urban Water World".

Since the Galilee water basin is very essential for the State of Israel and water are pumped from the Galilee all the way to the Negev desert, the use of fresh water becomes more difficult. In this situation, additional water contributions need to be made through water treatment but since the population in the Galilee is small the potential for treated water is small. The water management system in Israel is centralized and governs by the Israeli Water Authority, but in order to facilitate the water supply system in the Galilee an integrated water management is needed with an integral institutional framework, coordination and public subsidiary. One of the problems is the numerous entities, public and private, that are dealing with water supply and treatment without too much coordination between them. Regarding support technological research and innovation, the progress of water treatments and recycling, and modernization of irrigation systems are remarkable. In addition, there are number of infrastructure projects in different stages of implementation;

• Advancement of water infrastructures • Sea water desalination • Construction of a corporate water authority in several parts of Israel

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• Contraction of waste water treatment plants • Better control of water loss • New wells • Drought taxes for the excessive water use • Project through which have been established water corporations • Lakes were reflooded in order to prevent soil deterioration • Technologies for sensor meters for water leakage • Water security • Monitoring the water management systems and controlling pressures and air realist

2.3.3. Regional innovation landscape

Main research institutions focused on the water topic.

MIGAL- Galilee Technology Center is an applied research institute working in the fields of biotechnology, environmental sciences and agriculture. The institute, which is located in Kiryat Shemona, is a subsidiary of the Galilee Development Company.

Migal was established in 1979 and employs 40 scientists with doctorates, among a total staff of more than 150 researchers, engineers, and students for advanced degrees, all residents of the Galilee. MIGAL's vision is to develop in the Galilee a knowledge based economy in life and environmental sciences. Such development is made possible through implementation of the research conducted at the institute in business applications, as well as commercialization of intellectual property.

MIGAL serves as a focus for the development of relations between science and community in the Galilee. The exposure of the community to scientific endeavor, and the integration of the general public in scientific activity in general, and in life and environmental sciences in particular, serve to create and to strengthen the ties between science and scientists, and the Galilee community.

Israel Oceanographic and Limnological Research (IOLR) is a national research institution (non-profit governmental corporation) established in 1967 to generate knowledge for the sustainable use and protection of Israel's marine, coastal and freshwater resources. The IOLR is affiliated with the Earth Sciences Research Administration of the Ministry of National Infrastructures. The IOLR includes three research centers: The National Institute of Oceanography in Haifa, the Yigal Allon

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Kinneret Limnological Laboratory near Tiberias; and the National Center for Mariculture in Eilat.

The Yigal Allon Kinneret Limnological Laboratory (KLL) located on the NW shore of Lake Kinneret (Sea of Galilee), monitors major environmental factors that determine the state of the lake and conducts limnological and hydrological research aimed at understanding how present and future conditions might affect the water balance of the lake, the ecosystem, and the quality of its water. The results of KLL's research and monitoring activities provide scientific support for decision-making on the management of the Kinneret as a sustainable source of national water supply and on its other major uses (recreation and fisheries). The laboratory provides data, information and advice to the Water Authority, to the Mekorot Water Company, to the Kinneret Authority and to the Meteorological Service of Israel (MSI), as well as other local and governmental agencies operating in the lake area.

Northern R&D is dealing with regional agriculture production systems. It covers regional applied research needs in 10 different disciplines. The different climatic areas mean various agricultural activities whose responsibility is of different work group within Migal Agro Innovation. Not only that the areas of activity of the department are characterized by extreme differences of topography and climate, it also includes a wide variety of different forms of settlement and business models.

The scientific agenda of it reflects a “Bottom UP” approach whereby the farmer’s participant regularly in setting up objective for the overall activity. Northern R&D is based on scientific staff of Ph.D. level, which caters for 50% of the personnel. The rest of technicians and extension service are of M.Sc. and B.Sc. level. There are eight working groups in the organization dealing with different plant and animal sciences. Each work group set up its own objective in a process of analysing the needs and requirement resulted from a continuous and transparent discussion with farmers all year round.

Northern R&D's scientific mode of operation is maintained and reflected in different national, regional, Bi-lateral and International programs such as Ministries of Science, Agriculture, Industry & trade, INCOMED, MERC, CDR, BARD, FP6 and others. Our business mode of operation is based on market-oriented philosophy. Commercial project for private customers are planned based on vertical and horizontal analysis of the market needs and cost/benefit considerations.

Tel Hai College - located north of Kiryat Shemona just south of Israel's border with Lebanon, was established in 1996 as part of a national effort of making higher education accessible to students of the periphery, in the periphery. Tel Hai has grown steadily by approximately 10% annually and has become one of Israel's most prominent colleges. Throughout the years, Tel Hai College has maintained and promoted its mission of bringing academic excellence and social and economic growth to the northern periphery of Israel.

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In 2010, over 3000 students are enrolled in full time academic programs, of which 83% are Jewish and 17% Non-Jewish.

80% of the students come from areas outside the Upper Galilee, attesting to the national standing the college has gained over the years.

The Faculty of Science and Technology offer BSc and MSc tracks in Biotechnology, BSc in Computer Science, BSc in Environmental Science, BSc in Nutrition Studies and BSc in Food Sciences.

Water efficiency related R&D&I initiatives in the Region

The Hula Restoration Project

The three main principles of the Hula Restoration Project are:

• Maintenance of a high water table and year-round green cover on the peat soils in order to slow down the decomposition and subsidence processes; • Creation of a small shallow lake rich in plant, fish and bird life and surrounded by green pastures with grazing safari animals to serve as a centre for tourism and recreation; • Minimization of the flow of pollutants into Lake Kinneret from both the communities of the Hula Valley and from the peat soils. SWAM – Region of Knowledge project

The SWAM Project aims to reinforce the competitiveness of the Water Technology sector and its potential to contribute to economic growth in the Regions of Murcia, Eastern Galilee and Western Greece.

It is focused on improving links between regional authorities, research entities and the local business communities, in order to foster transnational, cross-border and inter- regional co-operation of mutual or multi-lateral benefit between regional partners.

In this sense, SWAM will make a positive difference to all the partner regions in terms of

• Enabling them to become a pioneer meta-clusters with economically viable RTD projects in water technologies and sustainable water management, with a view to doubling exports in Water Technology by 2013. • Creating sustainable coordination networks and enhancing interaction between producers, suppliers traders and researchers in areas of common interest, and encouraging the exchange of know-how. • Increasing the market-share of regionally branded products through the development of the Water Technology know-how in regional companies and access to foreign markets. • Increasing the successful development of new products and innovative technologies and reducing the time-to-market.

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MISSTOW - CIP-ECO-INNOVATION - approval of joint project "MISSTOW", on Olive Oil Wastewater.

The objective of the MISSTOW project is to bring into the market an innovative integrated system to treat organic wastewater such as olive oil mill, winery & swine wastes. The system entitled "Mobile Integrated Sustainable System for Treatment of Organic Wastewater".

KALIL RIVER PROJECT - for ecological solution by wetland. Kinneret Drainage Authority and MIGAL.As a result of the cluster meetings a collaboration was established to clean the Kalil brook in the Galilee by the wetland technology.

"Shamir" Drilling - In cooperation with the "Mei Golan" Water Development Cooperative of the Golan Heights and with the support and assistance of the Israel Water Commission and the Ministry of Agriculture and Rural Development, the company currently is operating three drilling platforms in the "Shamir" Drilling Field.

Educational projects

The River Ranger Project

River Ranger is a unique project that unites all the authorities around the region. In the project groups of students from schools in the Upper Galilee adopt part of a river near schools. Students getting to the river once a week learning and conduct research, and most importantly – have a restoration and explanation activities, which emphasis on long-term action. Some examples for actions have been done: Returning endanger plants species to the river banks, building observation and research points, creating hiking trails to keep plants safe, taking care on neglected places along the rivers, information through signage, videos, represent, and more.

LTER – Long Term Ecological Research, is a program carried out in deferent places around the world. LTER-EDU is a developing program for schools, base on the scientific knowledge of long term ecological research. Ramat Handive Educational Center Implement LTER-EDU and build a model for schools and teachers.

As part of the River rangers we want to promote long-term monitoring as generous level model exists in Ramat Hanadive, which offers training classes for teachers and writing a program, preparing the area for monitoring and in the next step, activities with students (attached document with the generous level program details)

Such a program may help address the very broad field of science: introduction to ecological research, developing research skills, questioning ecological questions, data collection, use measuring tools, work according to high standards and constant prices, expenditure and income of a central database.

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Main water related companies

• AMIAD. Producer of automatic, self-cleaning filtration solutions. • Galcon Controllers for Irrigation and Water infrastructure • Aqwise. Water & Wastewater treatment innovative technology provider (both design and construction) for municipal and industrial sectors • BERMAD. Bermad designs, develops, manufactures and markets state-of-the- art control valves and related products, along with comprehensive system solutions for a range of water management needs for the Irrigation, Landscape, Fire Protection and Waterworks segments. • Ligam. Environmental engineering, stream and river rehabilitation, water quality management, drainage engineering, landscape architecture and design, touristic development and more. • WellToDO. WellToDo developed a unique catalyst for the conversion of Nitrate in water to Nitrogen. This enables a physical chemical process for the removal of Nitrate without generating any brine or by-product. The process is applicable for other contaminants such as hexavalent Chromium , per-chlorate and others • Mekorot. The Israeli national water and wastewater company • Saturas. Development of advanced water sensor for precision agriculture • A.R.I. A.R.I. is a leading manufacturer and provider of solutions for the protection of liquid transmission systems worldwide. The company manufactures and markets a complete line of air valves, check valves, and unmeasured flow reducers (UFR) as well as providing software system analyses for surge and air valve sizing and placement. • GES – Global Environmental Solutions. Water & Wastewater solutions • AFCON. AFCON Holdings Ltd serves as turnkey supplier and systems integrator of mission critical systems. All project life cycle activities are provided: Project management, Project engineering, Application software design, Documentation, Project commissioning, Training, Support and on-site servicing, Spare parts & repairs, Continued engineering.

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2.3.4. State of the art of companies and research centres

2.3.4.1. UNESCO based analysis The analysis of the company’s assets by using the UNESCO codes simplified to four digits (see next figure) shows a clear predominance of “Environmental technology and environmental” (around 70%) and “Computer Science” (around 55%). After these, there are an important set of topics with an impact around 40%. At this level, that means a good balance in the innovation results in companies.

Figure 38 - Assets from companies classified by UNESCO codes (4 digits) The situation has some parallels with the research entities side (Figure 39). In this case there is also a clear predominance of “Environmental technology and environmental” (around 75% of impact), but the second highest is “Agricultural engineering” (45% of impact). After these, there are several topics with around 30% of impact.

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Figure 39 - Assets from research entities classified by UNESCO codes (4 digits) Comparing the data from companies and research entities (Figure 40) it can be seen that there are very good synergies between both types of entities. The key areas for these synergies are “Environmental technology and environmental”, “Agricultural engineering”, “Biochemical technology”, “Forestry”, “Microbiology”, “Food technology” and “Inorganic chemistry”. There is also a good balance in “Physical chemistry”, “Construction technology” and “Hydrology”. There are also other good balances but with an impact less than 10%.

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Figure 40 - Assets from companies and research entities classified UNESCO codes (4 digits) If the result from both types of entities are joined (Figure 41), the focus on “Environmental technology and environmental” is maintained. Nevertheless, a better balance among the in their impact of secondary areas is seen.

Figure 41 - Joint assets from companies and research entities classified UNESCO codes (4 digits) In the case of companies, the predominance of the 4-digit areas is transferred to their 2-digits parent “Technological Sciences” and “Mathematics” (see Figure 42). They obtain a relevance of around 70% and 55%.

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Figure 42 - Assets from companies classified by UNESCO codes (2 digits) In the case of research entities (see next figure), the 2-digit analysis highlights the following areas of focus:

• “Technological Sciences” and “Agricultural Sciences” with more than 40% of impact. • “Chemistry”, “Life Sciences” and “Earth and Space Sciences” with around 30% of impact • “Mathematics” and “Physics” with around 20% • And other topics with less than 10% of impact.

Figure 43 - Assets from research entities classified by UNESCO codes (2 digits)

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The balance identified in the 4-digits analysis is maintained in the 2-digist analysis as can be seen in the next figure. Only “Mathematics”, “Economic Sciences” and “Political Science” show a significantly different impact between companies and research centres.

Figure 44 - Assets from companies and research entities classified UNESCO codes (2 digits) If we join the data from companies and research entities (see Figure 45), “Technological Sciences” is dominant.

Figure 45 – Joint assets from companies and research entities classified UNESCO codes (2 digits)

2.3.4.2. EIP based analysis An initial analysis (see next figure) shows that in Galilee there is a high focus on wastewater treatment. Ecosystem services and works related ICT are in secondary.

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Figure 46 – Global view of the EIP analysis Figure 47 presents the assets from companies classified by EIP areas of work. It shows “Water & Wastewater Treatment” (50% impact) in innovation results obtained by companies as the highest impact. “DSS, Monitoring and ICT” and “Ecosystem Services” (around 30% of impact) are next highest.

Figure 47 - Assets from companies classified by EIP areas of work The research entities (Figure 48) also have the highest impact associated to “Water & Wastewater Treatment” (more than 35% impact). “Ecosystem Services” and “Water Reuse & Recycling” are next.

Figure 48 - Assets from research entities classified by EIP areas of work In a comparative analysis (Figure 49) it is possible to identify a clear balance of the synergies in two relevant areas: “Water & Wastewater Treatment” and “Ecosystem Services”.

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Figure 49 - Assets from companies and research entities classified by EIP areas of work The joint analysis of the assets from companies and research entities shows clear leadership in “Water & Wastewater Treatment” followed by “Ecosystem Services” and “Others”.

Figure 50 – Joint assets from companies and research entities classified by EIP areas of work Analysing the declared activities of the companies in relation with the EIP areas of work, again “Water & Wastewater Treatment” has the top position (with more than 50% of impact). ICT is also very significant with an impact around 50%.

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Figure 51 - Companies activities classified by EIP areas of work The alignment between the declared activities of the companies and their research and innovation assets in the EIP areas of work with most impact shows fairly good alignment.

Figure 52 - Companies activities and their assets classified by EIP areas of work The analysis of the research entities activities related with the EIP areas of work shows a high impact in “Water & Wastewater Treatment” and “Water Reuse & Recycling” (with around 60%). However, “Others” has an impact near 80%.

Figure 53 - Research entities activities classified by EIP areas of work

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The comparison of the activities and the assets of the research entities (Figure 54) in general shows a higher impact of the activities than assets as would be expected in research entities.

Figure 54 –Research entities activities and their assets classified by EIP areas of work Finally, the analysis of the alignment of the companies and the research entities under the umbrella of the EIP areas of work shows that there are clear synergies between both types of entities in the areas of “Water & Wastewater Treatment” and “Water Reuse & Recycling”.

Figure 55 - Companies and research entities activities classified by EIP areas of work

2.3.4.3. Conclusions By using the UNESCO classification, the companies and the research entities maintain a high level of activity in the topic of “Technological Sciences”. But at the same time there are also good balances among others topics.

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On the other hand, using EIP areas of work in companies and research entities only “Water & Wastewater Treatment” has a high level of presence with more than 50% in companies and more than 38% in research entities.

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2.4. Malta

2.4.1. Regional and national Cluster Policies Malta is a southern European country in the Mediterranean Sea. It lies 80km south of Sicily, 284km east of Tunisia, and 333km north of Libya. The country covers just over 316km2, making it one of the world's smallest and most densely populated countries. Malta is classified as an advanced economy together with 32 other countries according to the International Monetary Fund.

Malta initiated its cluster policy after joining the EU (since 2006). The key catalyst to clustering activity in the light of Malta joining the EU was through Malta Enterprise which focuses on attracting inward investment to Malta and supporting its enterprises (on an overarching scale). To date, Malta has not developed an explicit cluster policy. Cluster policy planning and strategy is a direct and integral part of the national industrial policy and has been instituted within industrial policy since 2006.

Initially, cluster establishment was mainly supported through public policy and funding, but in recent years there has been a shift to increased industry led initiatives. The national strategy known as ‘Vision 2015 and Beyond’, aims to identify unique economic development opportunities by leveraging Malta’s unique assets. The strategy, which may be indirectly connected to policy planning, identifies the potential for clustering initiatives. The development of cluster support and policy planning is financed by the Ministry of the Economy, Investment and Small Business.

Due to the size of the country, one cannot speak of regional division in Malta, thus there is no form of regional cluster policy. Though national strategy is such that it does not implement policy directly towards clusters, strategies are more often than not aimed at specific high potential sectors which often run parallel to the industries of the country’s strongest clusters. The main aim in cluster development and support is to enable Maltese companies to internationalise. Given the small size of the country and the small size of industry and companies, critical mass is a major barrier to developing industries. A strong sectoral approach is therefore of priority; such initiatives have an indirect positive effect on the formation of future clusters.

Malta has the highest population density in the EU which has excessively increased the demand for natural resources and basic products. Malta faces environmental challenges, especially within urban regions. Key environmental challenges concern the quality and stabilisation of water, soil and air, as well as improvements in the efficiency of solid and liquid waste management. Eco innovation is not widely applied in the country. However, the emergence of an eco innovative strategy seems to have increased in national priority. Current support for eco innovation is primarily diffused through voluntary and grant schemes.

Cluster policy does not target environmental performance or eco innovative practices. Eco-innovation only relates to environmental policy at present and there is no explicit linkage between environmental strategy and cluster policy.

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Though policy at national level has not targeted the formation of environmental industries or eco-clusters, various support initiatives have been implemented to stimulate the growing waste and recycling sector which may potentially develop into a cluster. A successful scheme which until 2013 was promoted by Malta Enterprise was called the ‘ERDF Innovation Action Grant’ and aimed to catalyse the uptake of SME pro-environmental practices. Eco-innovative practices have directly and indirectly been improved due to a higher emphasis on generic innovation activity with the National Policy Agenda. As there are limited number of clusters and industries, there are currently no initiatives to develop or promote the formation of eco-clusters.

An ongoing incentive promoted by Malta Enterprise is the Research and Development Cluster Scheme. The objective of this scheme is to support formal collaboration between enterprises by assisting in the setting-up, expansion and animation of innovation clusters. The aid will be provided exclusively to the enterprises operating the cluster which must have the sole purpose of promoting Industrial Research and Experimental Development.

On February 18th 2014, Cabinet endorsed Malta’s new National Research and Innovation Strategy 2020. This document sets out Malta’s research and innovation strategy for the forthcoming seven year period. Recognising the progress made over the last few years and acknowledging that there is still a way to go in achieving the objectives set out in the 2007-2010 R&I Strategic Plan, the ultimate goal of this Strategy remains that of embedding research and innovation at the heart of the Maltese economy to spur knowledge-driven and value-added growth and to sustain improvements in the quality of life.

Sources : http://www.maltaenterprise.com/en http://www.mcst.gov.mt/sites/default/files/pa_documents/ri_strategy_2020.pdf

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2.4.2. Regional indicators

Country indicators Malta

Area (km²) 316km²

Number of inhabitants (per km) 416,055

(2011)

GDP (PPP) €6.58 billion (in 2011)

Rural population 21021,22

Urban population 393947,3

Public regulation for the efficient use of water Malta River basin management plan (local, regional, national level) National climate change adaptation strategy

Social awareness programs on efficient use EU Life + Investing in water of water Catch the Drop Campaign

Existence of regional entities that support Malta Chamber of Commerce, Enterprise and companies internationalization Industry

Malta Enterprise

Malta Information Technology Agency (MITA)

Malta Council for Science & Technology (MCST)

Total amount (€) of funding for innovation at FP7 : €17.4 million11 the national level ERDF Funding (2007-2013): around €37Million

11 https://education.gov.mt/en/resources/News/Pages/News%20items/A-new-Horizon-- Research-and-Innovation-Opportunities-in-Malta.aspx

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2.4.3. Water cluster indicators

National water cluster indicators12

Number of partners 24

Percentage of companies 20.83%

Percentage of SMEs 25%

Percentage of research centers 16.67%

Percentage of public administrations 20.83%

Percentage of other social agents 12.5%

Number of workers of the cluster13 2

Total Number of workers in cluster's companies

Total volume of turnover of the companies members of the cluster

Percentage representing exports on turnover

Number of joint actions developed with other clusters in your region or country

Number of joint actions developed with other clusters in other countries

Number of international projects

Number of innovation projects driven by the cluster

Number of business development projects driven by the cluster

Percentage of cluster's partners that activaly participate in the cluster's projects

Funding received from regional institutions

Funding received from national institutions for promotion of innovation projects

Funding received from european institutions for promotion of innovation projects

Funding received from the companies for innovation projects

12 The cluster for Malta is not as yet an official cluster. Meetings have been held with various entities and work has commenced on the formation of an official cluster. The figures listed in this chart indicate the entities that have shown interest in forming part of this cluster. 13 Paragon staff (at present)

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Number of new products or services or improvements in existing models

Number of workers in cluster' s partners dedicated exclusively to innovation

Number of workers in cluster's business entities dedicated exclusively to innovation

Number of projects based in open innovation

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2.4.4. State of the art of companies and research centres

2.4.4.1. UNESCO based analysis The analysis of the company’s assets by using the UNESCO codes simplified to four digits (see next figure) shows a clear specialization around five main topics: “Food technology” (with 67% of impact), “Environmental technology and environmental” (with 39%), “Biochemical technology” (with 31%), “Sectorial economics” (with 31%) and “Forestry” (with 14%).

Figure 56 - Assets from companies classified by UNESCO codes (4 digits) In the research entities side (Figure 57), the situation is very different. All of the topics taken into account have an impact of 10% or more. The most relevant ones are “Sectorial economics” (with 50% of impact), “Environmental technology and environmental" (with 39%), “Hydrology” (with 33%), and “Economics of technological change”, “Geography”, “Geology” and “Geophysics” with around 28%.

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Figure 57 - Assets from research entities classified by UNESCO codes (4 digits) Comparing the data from companies and research entities (Figure 58) it can be seen that there are no clear synergies between both types of entities. Only in the areas of “Sectorial economics” and “Forestry” there are a good correlations (but in this second case with less than 10% of impact).

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Figure 58 - Assets from companies and research entities classified UNESCO codes (4 digits) If the result from both types of entities are analysed together (Figure 59), the high level of specialization of the companies (in relation with the low level of the research entities) creates a graphic that maintains a lot of similarities with the result of the analysis of the companies.

Figure 59 - Joint assets from companies and research entities classified UNESCO codes (4 digits)

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The high level of specialization presented in companies in the 4-digits analysis is increased in the results of the 2-digits analysis. Figure 60 shows how the impact of the concentration of the 4-digits topics in the 2-digits topics has as a near the 90% of impact of “Technological Sciences”. This is nearly three times more impact than the second one, “Economic Sciences”, with around 30% of impact. “Agricultural Sciences” with more than 10% is in the third place. The rest of the topics do not have any kind of relevance.

Figure 60 - Assets from companies classified by UNESCO codes (2 digits) In the 2-digits analysis for research entities, the grouping of topic with the same parent provides more differences than the company analysis. “Economic Sciences” has an impact of 50%, “Technological Sciences” more than 35%, and “Agricultural Sciences” more than 25%. The other topics fall to 20% or less.

Figure 61 - Assets from research entities classified by UNESCO codes (2 digits)

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Comparing at the same time companies and research entities (see next figure), the high level of specialization of the companies is not matched in the research entities which are more diverse.

Figure 62 - Assets from companies and research entities classified UNESCO codes (2 digits) If we join the data from companies and research entities (see Figure 63), “Technological Sciences” maintains its preponderance with 70% of impact. “Economic Sciences” and “Agricultural Sciences” maintain also the same position as that in the company’s analysis. Finally, “Earth and Space Sciences” achieves forth place with 10% of impact thanks to its presence in research entities.

Figure 63 – Joint assets from companies and research entities classified UNESCO codes (2 digits)

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2.4.4.2. EIP based analysis A first analysis (see next figure) shows that in Malta there is a high relevance of Governance, water reuse and recycling, and wastewater treatment. If we take into account that Malta is an island in the Mediterranean area, these initial results are logical. At the same time, it is also logical to have ecosystem services and flood and drought risks as second most identified areas.

F igure 64 – Global view of the EIP analysis Figure 65 presents the assets from companies classified by EIP areas of work. It presents clear prevalence of “Water & Wastewater Treatment” (with 80% of impact), “Water Reuse & Recycling” (with 30% of impact), and “Water-Energy Nexus” (with around 15% of impact). There are no results in the other EIP areas.

Figure 65 - Assets from companies classified by EIP areas of work In relation with the results obtained by the research entities (Figure 66), “Water Reuse & Recycling” (with more than 60% of impact) and “Water & Wastewater Treatment” (with near 50% of impact) are the most relevant EIP areas of work.

Figure 66 - Assets from research entities classified by EIP areas of work

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In a comparative analysis (Figure 67) it is possible to identify the high prevalence of “Water & Wastewater Treatment” and “Water Reuse & Recycling”. This prevalence with respect the other areas is increased when the results of both kinds of entities are joined (Figure 68).

Figure 67 - Assets from companies and research entities classified by EIP areas of work

Figure 68 – Joint assets from companies and research entities classified by EIP areas of work Analysing the declared activities of the companies in relation with the EIP areas of work, it is possible to see the high impact of three areas: “Water Reuse & Recycling” and “Water & Wastewater Treatment” (with more than 70% of impact in both cases), and “Water-Energy Nexus” (with more than 65% of impact). “Water Governance” has also a relevant impact with more than 30%.

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Figure 69 - Companies activities classified by EIP areas of work The alignment between the declared activities of the companies and their research and innovation assets presents a very good balance in the case of “Water Reuse & Recycling”. The other topics are imbalanced.

Figure 70 - Companies activities and their assets classified by EIP areas of work The analysis of the research entities’ activities related with the EIP areas of work presents a poor participation of this kind of entity in these areas. Only “Water-Energy Nexus” and “DSS, Monitoring and ICT” have a representative value (with around 30% of impact). It is very significant that the “others” options has an impact of around 65%.

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Figure 71 - Research entities activities classified by EIP areas of work The comparison of the activities and the assets of the research entities (Figure 72) presents a clear imbalance between their declared activities and their research and innovation results.

Figure 72 –Research entities activities and their assets classified by EIP areas of work Finally, the analysis of the alignment of the companies and the research entities under the umbrella of the EIP areas of work shows that there are not clear synergies between both types of entities if their declared activities are taking into account.

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Figure 73 - Companies and research entities activities classified by EIP areas of work

2.4.4.3. Conclusions Related with the UNESCO classification, the companies and the research entities from MALTA have a high level of specialization around the “Technological Sciences” and “Economic Sciences” topics.

From the EIP areas of work point of view, the companies in MALTA have a very high level of specialization in three areas. “Water Reuse & Recycling” has an impact of more than 70% in declared activities, and more than 80% in innovation results. This high level of specialization in companies has a good correspondence in research entities in the case of the innovation results in the for “Water & Wastewater Treatment” and “Water Reuse & Recycling” areas. Nevertheless, this is not reflected in the declared activities of the research entities. This may be due to their lack of engagement with EIP as a tool for declaring their activities (a good indicator is the high relevance of the topic “Others”).

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2.5. Provence, Alpes, Côte d’Azur (PACA)

2.5.1. Regional and national Cluster Policies The region Provence-Alpes-Côte-d'Azur (PACA) is located in the south-East of France surrounded by the Mediterranean Sea and the Alps Mountains. PACA region is France’s third most populated region (4,92 million inhabitants) and is home to two of the largest metropolitan centres in France : Marseilles/ Aix-en-Provence (1,4 million of inhabitants) and Nice (0,9 million of inhabitants) together with Toulon (547 000) and Avignon (275 000).

Assets for economic growth:

• 3rd French region in terms of GDP(about €138 billion). • 1st University of France (70 000 students) • Big projects like ITER • A R&D driven by start-ups and Young Innovative Enterprises • Emerging industries, an important element But structural weaknesses:

• Small size companies (98% of companies have less than 10 employees) • Regional economy based on services rather than industry • Weak R&D ratio in the GDP • Weak R&D investments by Big companies • SME experience difficulties to access funding

Water in PACA

PACA Region is the 4th French region in eco-industries, where more than 800 companies specialized in this sector (400 of which are in the water sector). Turnover for the water sector represents more than 1 billion €.

There are 3 International Water Groups (Veolia, La Saur, Suez), 2 main regional water companies (Société du Canal de Provence et Société des Eaux de Marseille) and a large proportion of SMEs (94%) and start-up. There are 4 main universities in the Region (Avignon, Aix-Marseille, Toulon and Nice) which host numerous laboratories and offer a wide range of research groups working in water issues. Overall, around 5,000 persons work in the water sector in the region.

The Regional Council developed a strategic plan for a rational and sustainable use of water resource (SOURSE). This initiative aims to optimize the use of water in the Region by 2030.

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Find more information about the organization of water management in France (French water policy and its overall organization) in the document released by the International Office for Water (OIEAU).

Innovation and R&D policy in PACA

A Regional innovation strategy: PACA authorities have defined, for 2014-2018 a strategic plan (Regional Innovation Strategy-3S), including a Smart Specialization strategy.

This strategy focuses on 5 priority domains (DAS) in which the region can develop niches of differentiation:

• Energy transition and energy efficiency • Risk, security, safety • Health, food • Intelligent and sustainable mobility • Tourism, cultural industries and digital content Besides these 5 DAS, the Key Enabling Technologies (KETs) defined by the European Commission are also a priority for the Region.

A dynamic cluster policy: PACA region has a dynamic regional cluster and innovation policy and created in 2007 regional clusters, known as PRIDES (Regional Cluster for innovation and sustainable Development), financially supported by Regional authorities. Their main objective is to strengthen the regional business network, to support and develop innovation, especially between SMEs, local representations of international groups, research laboratories and local authorities. 16 clusters have been approved as PRIDES for 2014-2018, 11 of which are also national pole of competitiveness (clusters financed by the national government to finance innovation).

R&D&I investments: R&D&I investments (both public and private) account for around 2% of the GDP. More than 75% are done by SMEs which generally invest about 10% of their turnover. The Region, along with the government, contributes to finance R&D&I through different programs and instruments. Public and private actors in the PACA region have planned to invest around €534 Million until 2017 in projects related to the water industry (Reinforcement of the Hydraulic infrastructures, new research programs…).

Created in 2014, this agency is in charge of the operating management of the programs of the SRI-3S, and of economic and international development of companies. The agency manages a network called Paca Innovation which unites together all actors supporting innovation and innovative companies with the following actions :

• Give support for the creation and hosting of innovative companies, and for project managers setting up their own business • give a better understanding of the local actors involved

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• support collaborative programs between innovation actors, sharing together a mutual vision of the future, • Manage a Regional Innovation Observatory A cluster specialised in eco-technologies

Éa éco-entreprises is a non-profit association and a specialised cluster in environmental and sustainable development of more than 140 members. It was founded in 1996 to promote the economic development of its affiliated members. In 2007, and then 2014 the cluster was certified by local Authorities as a “Regional Cluster for Innovation and Socially Responsible of Economic Development” (PRIDES Label). Since 2010, Éa éco-entreprises is also the regional delegation of the pole Eau (international WATER cluster) in Provence Alpes Côte d’Azur region.

Éa éco-entreprises members are business entities and R&D&I entities. It also has many institutional partners (public entities). Some of the members of Éa éco- entreprises working in the water sector:

Business entities R&D&I entities

A3I Innovation Aix Marseille Université Altereo Cerege Aquaétudes IMBE Asconit consultants IRSTEA ATR créations LM2P2 AX’Eau BRGM BURGEAP C2S-analyses Capazur environnement Chess’epur Eco raider Ecotank Epur Nature Erg environnement Eurofins Eole water Fuitexpert Pizzorno environnement Helio Pur Technologies ImaGeau O2Pluie Phytorem Recycl’eau SECMMI SERAMM Société Canal de Provence Sol expertise environnement SPGS-Groupe des eaux de Marseille Stoc environnement TPMG Veolia Eau Water world solution

More information: http://www.ea-ecoentreprises.com

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2.5.2. Regional indicators

Regional indicators PACA Area (Km2) 31 400

Number of inhabitants 4 900 000

GDP 138,8 billion €

Population density (inhabitants/Km2) 156

Urban population density (inhabitants/Km2) Marseille : 3500 Nice : 4700 Toulon : 3800

Existence of public regulation that - National : Loi n° 2006-1772 du 30 encourages the efficient use of water décembre 2006 sur l'eau et les milieux aquatiques (LEMA) - National : ICPE - Regional : SDAGE 2010-2015 Existence of social awareness programs on Water agency Rhône-Méditerranée-Corse efficient use of water programs

Existence of regional entities that support ARII, clusters, CCI, Ubifrance and many others companies internationalization Total amount (€) of funding for innovation 2,9 billion € at the regional level

2.5.3. Éa éco-entreprises cluster indicators

Regional Cluster indicators (2013)

Number of members 145

Percentage of big companies 7%

Percentage of SMEs 62%

Percentage of research centers 4%

Percentage of public administrations 27%

Percentage of other social agents 0%

Number of workers of the cluster 8

Total Number of workers in cluster's members 3000

Total volume of turnover of the companies members of the 350M€ cluster

Percentage representing exports on turnover 11%

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Number of joint actions developed with other clusters in your 11 region or country

Number of joint actions developed with other clusters in other 7 countries

Number of international projects in the current year 3

Number of innovation projects driven by the cluster in the 23 current year

Number of business development projects driven by the 34 cluster in the current year

Percentage of cluster's partners that activaly participate in 25% the cluster's projects

Funding received from regional institutions for promotion of 132 120 € innovation projects in the current year

Funding received from national institutions for promotion of 40 000 € innovation projects in the current year

Funding received from european institutions for promotion of 58 833 € innovation projects in the current year

Funding received from the companies for innovation projects 0 in the current year

Number of workers in cluster's SMEs dedicated to innovation 45

Number of workers in cluster's research centers, dedicated 2048 to innovation

Number of projects of open innovation 0

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2.5.4. Regional innovation landscape for water efficiency in urban areas The following entities have been considered for constituting the innovation landscape

Companies Laboratories Others A3I innovation CEA ONEMA Acri ST CEREGE Action Air environnement ECCOREV Altereo EMMAH ATGeo I-City AX’EAU IRSTEA Epur Nature LCE Heliopur technologies LM2P2 Imageau LSBB Phytorem Recycl’eau SCP Seakalia SEM Seres environnement TPMG WIT WWS

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2.5.5. State of the art of companies and research centres

2.5.5.1. UNESCO based analysis The analysis of the company’s assets by using the UNESCO codes simplified to four digits (see next figure) shows a clear predominance of “Environmental technology and environmental” with 55% of impact. Secondly, we have “Hydrology” (30%), “Computer Sciences” (25%) and “Construction technology” (20%). The other topics identified have 10% of impact or even less.

Figure 74 - Assets from companies classified by UNESCO codes (4 digits) In the research entities side (Figure 75), there is a clear dominance of “Environmental technology and environmental” with more than 83% of impact. Secondly we have “Hydrology” with more than 33% of impact. The other UNESCO 4-digits topics with presence in the analysis have only around 16% of impact.

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Figure 75 - Assets from research entities classified by UNESCO codes (4 digits) Comparing the data from companies and research entities (Figure 76) it can be seen that there is alignment around the environmental technologies. Nevertheless, no clear synergies between both types of entities are seen in other areas.

Figure 76 - Assets from companies and research entities classified UNESCO codes (4 digits)

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With both types of entities together (Figure 77), the presence of “Environmental technology and environmental” and “Hydrology” increase their prevalence in relationship with the other topics.

Figure 77 - Joint assets from companies and research entities classified UNESCO codes (4 digits) In general, the 4-digits analysis shows a high degree of specialization of companies and research entities. This specialization is transferred to the 2-diits analysis where the parents of the topics with more impact increase their relevance (see Figure 78). In the case of research entities (see Figure 78), this increase of prevalence goes to 100% for “Technological Sciences”. That means that all the innovation results achieved by research entities can been characterized under this topic. In the case of companies the specialization around this topic goes to 75%.

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Figure 78 - Assets from companies classified by UNESCO codes (2 digits)

Figure 79 - Assets from research entities classified by UNESCO codes (2 digits) Comparing at the same time companies and research entities (see next figure), the alignment identified in the 4-digits analysis is maintained around the “parent” of the corresponding topics: “Technological Sciences”. In this case, it is easy to identify that the presence of innovation results is bigger in companies than in research entities. The 100% of the innovation results in research entities belongs to the “Technological Sciences” topic. However, this represents less than 25% of the total.

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Figure 80 - Assets from companies and research entities classified UNESCO codes (2 digits) A joint analysis of the data from companies and research entities (see Figure 81), shows “Technological Sciences” maintains its dominance with around 80% of impact. Beyond this, only “Earth and Space Sciences” obtains an impact over 30%.

Figure 81 – Joint assets from companies and research entities classified UNESCO codes (2 digits)

2.5.5.2. EIP based analysis A first analysis (see next figure) shows that in PACA there is a clear dominance of wastewater treatment innovation results. Secondarily, the innovation in this region is structured around decision support systems (jointly with monitoring and ICT) and water reuse and recycling.

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Figure 82 – Global view of the EIP analysis This analysis of the assets from companies classified by EIP areas of work (Figure 83 presents a situation where “Water & Wastewater Treatment” has an impact of 50%, “DSS, Monitoring and ICT” has an impact over 30%, and “Water Reuse & Recycling” has an impact over 25%. Additionally, “Water-Energy Nexus” has a presence around 15%, and the rest of topics have no presence (“Financing for Innovation”) or their presence is symbolic (less than 5%).

Figure 83 - Assets from companies classified by EIP areas of work In relation with the results obtained by the research entities (Figure 84), the prevalence of “Water & Wastewater Treatment” is also very high (around 45%). But in this case, only “Water Reuse & Recycling” (with a presence near 20%) has an additional important impact. The other ones have no presence (“Water-Energy Nexus” and “Financing for Innovation”) or their presence is symbolic (10% or even less).

Figure 84 - Assets from research entities classified by EIP areas of work In a comparative analysis (Figure 85) it is possible to identify some symmetry around “Water & Wastewater Treatment” and “Water Reuse & Recycling”. Nevertheless, the other topics present high degrees of imbalance.

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Figure 85 - Assets from companies and research entities classified by EIP areas of work In relation with the joint analysis of the assets from companies and research entities, it is very similar with the one done for company’s assets..

Figure 86 – Joint assets from companies and research entities classified by EIP areas of work Analysing the declared activities of the companies in relation with the EIP areas of work, the specialization is even higher than in the case of the innovation assets. The companies declared their activities only in four areas: “Water & Wastewater Treatment”, “DSS, Monitoring and ICT”, “Water Reuse & Recycling” and “Ecosystem Services”.

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Figure 87 - Companies activities classified by EIP areas of work The alignment between the declared activities of the companies and their research and innovation assets presents a good balance in the three main topics: “Water & Wastewater Treatment”, “DSS, Monitoring and ICT” and “Water Reuse & Recycling”. But only in the first case the impact of the innovation results are over the impact of the declared activities. There are also two additional situations to be commented on. On one side, “Ecosystem Services” has an important presence in the declared activities, but with a very low innovation results. On the other side, there are no companies that declared activities in “Water-Energy Nexus”, but there are significant results in this topic.

Figure 88 - Companies activities and their assets classified by EIP areas of work The analysis of the research entities activities related with the EIP areas of work presents a poor participation of this kind of entities in these areas. The maximum impact achieved is 35% and there are three areas with no presence.

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Figure 89 - Research entities activities classified by EIP areas of work The comparison of the activities and the assets of the research entities is shown in Figure 90.

Figure 90 –Research entities activities and their assets classified by EIP areas of work Finally, the analysis of the alignment of the companies and the research entities under the umbrella of the EIP areas of work shows that there are no clear synergies between both types of entities if their declared activities are taken into account. Only the work in “Water & Wastewater Treatment” has a good balance (this is part of the specialization of the region as it has been mentioned at the beginning of this chapter).

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Figure 91 - Companies and research entities activities classified by EIP areas of work

2.5.5.3. Conclusions Using the UNESCO classification, the companies and the research entities from PACA have a high level of specialization around the “Environmental technology and environmental” and “Hydrology” at the 4-digits analysis, and around their corresponding “parents” at the 2-digits analysis: “Technological Sciences” and “Earth and Space Sciences”.

On the other hand, there is a low presence of identified EIP areas of work in companies and research entities. The maximum % of presence of their innovation results is 52%, and the average is 16% in companies and 12% in research entities.

In general, only “Water & Wastewater Treatment” is a topic where companies and research entities in PACA have important levels of specialization and alignment of their works.

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3. Relevant European policies

The research and innovation strategy for water in Europe has a large amount of elements that constitutes the European Landscape in Water (Figure 92).

Figure 92 - European Landscape for WATER R&I14 In this section this major actors are going to be presented.

3.1. European Funding instruments The EU has taken some steps to mobilize funding for eco-innovation (i.e. through the ETAP15 or Cohesion Policy16) which will be reinforced under the multiannual financial framework 2014-2020. Within this, the water efficiency sector can greatly benefit by gaining better access to finance and global markets. Probably the most relevant financial instruments at European level are the following:

14 http://www.euwi.net/files/Horizon_2020__Water_EU_WI_22.01.2013.pdf 15 http://ec.europa.eu/environment/etap/index_en.htm 16 http://ec.europa.eu/regional_policy/index_en.cfm

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LEVEL/INSTRUMENTS EU Funds EU financing framework (2014-2020) Regional Assistance Funds European Regional Development Funds European Social Fund Cohesion Funds PUBLIC Competitive Funds and Community Programmes FUNDS Horizon 2020 Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) COST LIFE+ EUREKA & EUREKA CLUSTERS – ACQUEA Eurostars ERA-NET Public Procurement Risk-sharing finance facility PRIVATE European Investment Bank (EIB) FUNDS Venture capital: European Investment Fund (EIF) Private investors, business angels, etc.

3.1.1. Regional Assistance Funds Previous regional assistance programmes have been supported by the European Structural Funds (ESF). In this new period, the ESF have been transformed into the European Structural and Investment Funds (ESIF). Each region is asked to develop a Research and Innovation Strategy for Smart Specialisation defining its regional unique innovative ecosystem. The goal of this RIS3 is to increase job creation, competitiveness, economic growth, improved quality of life and sustainable development.

Specialisation means choosing, this partly will be an academic exercise, partly an industrial competency assessment and partly a political choice. It means that a region needs to define where to concentrate funding and where not to fund. At the same time the policy up to 2020 clearly offers possibilities for new members states (EU12) to

110 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION enhance their innovative capacity, create new (or upgrade existing) centres of excellence and create more cooperation between universities and companies.

Several regions within the EU have already outlined the water component within their RIS3. Some regions still take abundant water of the right quality for granted. However water is a strategic risk that should be included in every regional assessment. Without water there is no economic growth opportunity and huge challenges for society at large. At the same time European industry already takes water challenges seriously and water availability has become one of the key parameters for industrial investments in new production plants and up scaling production in existing plants. The European wide call for re-industrialisation of Europe as a way out of the current economic crisis should therefore take water into account more seriously.

The ESIF, composed of European Regional Development Fund, European Social Fund and Cohesion Fund, accounts for more than one third of the EU’s overall budget and forms the ideal basis for innovation and investments in water. One of the main fields of investment across all cohesion policy programmes is environmental protection and risk prevention. Cohesion funds allocated to environmental programmes are around 100 billion. Half of this investment is devoted to infrastructure investments related to water and waste water treatment, renewal of contaminated sites, pollution reduction, and support for nature protection and risk prevention.

3.1.1.1. European Regional Development Funds The European Regional Development Funds (ERDF) aims to strengthen economic and social cohesion in the European Union by correcting imbalances between its regions. The ERDF focuses its investments on several key priority areas. This is known as ‘thematic concentration": Innovation and research; The digital agenda; Support for small and medium-sized enterprises (SMEs); The low-carbon economy.

The ERDF resources allocated to these priorities will depend on the category of region. Furthermore, some ERDF resources must be channelled specifically towards low- carbon economy projects.

The ERDF also gives particular attention to specific territorial characteristics. ERDF action is designed to reduce economic, environmental and social problems in urban areas, with a special focus on sustainable urban development. At least 5 % of the ERDF resources are set aside for this field, through ‘integrated actions’ managed by cities.

Areas that are naturally disadvantaged from a geographical viewpoint (remote, mountainous or sparsely populated areas) benefit from special treatment. Lastly, the outermost areas also benefit from specific assistance from the ERDF to address possible disadvantages due to their remoteness.

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3.1.1.2. European Social Funds The European Social Funds (ESF) invests in people, with a focus on improving employment and education opportunities across the European Union. It also aims to improve the situation of the most vulnerable people at risk of poverty. The ESF investments cover all EU regions. More than €80 billion is earmarked for human capital investment in Member States between 2014 and 2020, with an extra of at least €3.2 billion allocated to the Youth Employment Initiative.

For the 2014-2020 period, the ESF will focus on four of the cohesion policy’s thematic objectives: promoting employment and supporting labour mobility; promoting social inclusion and combating poverty; investing in education, skills and lifelong learning; enhancing institutional capacity and an efficient public administration

In addition, 20% of ESF investments will be committed to activities improving social inclusion and combating poverty. This is known as thematic concentration.

3.1.1.3. Cohesion Funds The Cohesion Fund is aimed at Member States whose Gross National Income per inhabitant is less than 90 % of the EU average. It aims to reduce economic and social disparities and to promote sustainable development. For the 2014-2020 period, the Cohesion Fund concerns Bulgaria, Croatia, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia.

The Cohesion Fund allocates a total of €63.4 billion to activities under the following categories:

• trans-European transport networks, notably priority projects of European interest as identified by the EU. The Cohesion Fund will support infrastructure projects under the Connecting Europe Facility; • environment: here, the Cohesion Fund can also support projects related to energy or transport, as long as they clearly benefit the environment in terms of energy efficiency, use of renewable energy, developing rail transport, supporting intermodality, strengthening public transport, etc. The financial assistance of the Cohesion Fund can be suspended by a Council decision (taken by qualified majority) if a Member State shows excessive public deficit and if it has not resolved the situation or has not taken the appropriate action to do so.

3.1.2. Competitive Funds and Community Programmes

3.1.2.1. Horizon 2020 Horizon 2020 is the financial instrument implementing the Innovation Union, a Europe 2020 flagship initiative aimed at securing Europe's global competitiveness. Seen as a means to drive economic growth and create jobs, Horizon 2020 has the political backing of Europe’s leaders and the Members of the European Parliament. They

112 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION agreed that research is an investment in our future and so put it at the heart of the EU’s blueprint for smart, sustainable and inclusive growth and jobs.

By coupling research and innovation, Horizon 2020 is helping to achieve this with its emphasis on excellent science, industrial leadership and tackling societal challenges. The goal is to ensure Europe produces world-class science, removes barriers to innovation and makes it easier for the public and private sectors to work together in delivering innovation.

Figure 93 – Water in Horizon202017 The key areas for funding water projects in Horizon 2020 (see Figure 93) are:

• Under Social Challenges: inside the topics related with “Food security and sustainable agriculture” (possible linked to the relation between water and food), in the topics related with “Secure, clean and efficient energy” (possible linked to the energy capacities of water), in “Smart, green and integrated transport” (possible related with the measurement of green transport), in “Inclusive, innovative and security societies” (possible related with the water innovation and water security) and mainly in “Climate action, Resource Efficiency and Raw Materials”. • Under Industrial Leadership: mainly in “Leadership in enabling industrial technologies” (all kind of industrial technologies related with water), but also in “Innovation in SMEs”. • In “Excellence Science” it could be possible to identify water related challengers (this is not a very restricted scheme in topics). • Joint Research Centre: under its own funding lines and institutes (mainly the Institute for Environment and Sustainability, the Institute for Energy and Transport, the Institute for Health and Consumer Protection, and the Institute for the Protection and Security of the Citizen).

17 http://www.euwi.net/files/Horizon_2020__Water_EU_WI_22.01.2013.pdf

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3.1.2.2. Competitiveness of Enterprises and small and medium-sized enterprises Competitiveness of Enterprises and small and medium-sized enterprises (COSME) is the new programme launched by the European Commission to encourage the competitiveness of enterprises and small and medium-sized enterprises. The programme is planned to run from 2014 to 2020 with an earmarked budget of €2.3 billion. Small and medium-size enterprises (SMEs), current and potential entrepreneurs and business support organisations are the main targets of this new initiative, whose goal is to foster the competitiveness and sustainability of the EU enterprises by providing better access to finance and markets, delivering business support services and promoting entrepreneurship.

More specifically, COSME programme will provide the following kind of support:

• Loan guarantees for SMEs having difficulties to obtain loans from the banking system. • Capital for risk capital funds providing investments for SMEs in their expansion and growth stage. • Free of charge practical information and direct services to companies looking for partners, funding, information on new markets, EU programmes or legislation. • Networking and exchange actions for policy makers aiming at reducing the administrative burden on SMEs and improving the framework conditions for businesses. • Benchmarking and studies to improve the knowledge and monitoring of industrial sectors at European or global level, or on SME-related policies in Europe. COSME will contribute towards the implementation of smart, sustainable and integrated growth priorities under the Europe 2020 strategy and together with Horizon 2020 will continue the activities that are currently under the Competitiveness and Innovation programme (CIP).

3.1.2.3. European Cooperation in Science and Technology As one of the longest-running European instruments supporting cooperation among scientists and researchers in Europe and beyond, European Cooperation in Science and Technology (COST) funds pan-European, bottom-up networks of scientists and researchers across all science and technology fields. These networks are called ‘COST Actions’ and promote the international coordination of nationally funded research.

COST Actions have a four-year duration and require a minimum participation of five COST Countries. They are open to researchers from universities, public and private research institutions, as well as to NGOs, industry and SMEs. Proposals for research networks are sent through a continuous Open Call. Researchers can use this unique opportunity to exchange knowledge and to embark on new European perspectives. Moreover, they can also join existing Actions.

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The funding offered by COST covers the costs of networking activities such as meetings (e.g. travel, subsistence, local organiser support), conferences, workshops, short-term scientific meetings (STSMs), training schools, publications and dissemination activities. COST does not fund the research itself.

COST Actions are open to international cooperation, by also allowing the participation of researchers from Near Neighbour Countries and International Partner Countries on the basis of mutual benefit. In addition, COST has signed Reciprocal Agreements with Argentina, New Zealand and South Africa as a pilot exercise to facilitate cooperation with researchers from these countries.

Water-related Actions spread across 3 of the 9 scientific domains: Food and Agriculture (FA), Forestry and their Products and Services, (FPS) and Earth Science and Environmental Management (ESSEM).

Main water-related COST Actions in FA:

• COST Action FA0901 “Putting Halophytes to Work – From Genes to Ecosystems” will tackle the problems of salt-affected agricultural land and support the timely development of a saline agriculture using brackish water as a replacement or a supplement for diminishing freshwater. It also aims to deepen the understanding of plants that grow in waters with a high salt content as a potential untapped source of food, fibre and bioenergy. • COST Action FA869 “Mitigation Options for Nutrient Reduction in Surfaces Water and Groundwater” has tackled one of the global water supply challenges directly. This Action mainly focused on the quality of both surface and groundwater and its impact on ecosystem health: losses of certain nutrients from agricultural soils or activities, which can lead to eutrophication of surface water and quality deterioration of drinking water. • COST Action FA0605 “Signalling control of stress tolerance and production of stress protective compounds in plants” looks at ways to improve plant stress resilience to hopefully help fight salinisation and other threats for food safety such as drought.. Main water-related COST Actions in FP:

• COST Action FP0601 ‘Forest Management and the Water Cycle‘ (FORMAN) also brings the issue of water in the COST Domain Forestry, their Products and Services (FPS). This Action has brought together experts from systems ecology, landscape ecology, basic and applied forest sciences, soil science, hydrology and biodiversity research by pulling together the enormous potential of forest- and water-related research in Europe. Main water-related COST Actions in ESSEM

• COST Action ES1105 ‘Cyanobacterial blooms and toxins in water resources: Occurrence, impacts and management’ (CYANOCOST) focuses on toxigenic cyanobacteria that produce a wide range of potent toxins with adverse health effects on humans and animals exposed to them via drinking water, aquaculture and recreation. Its goal is to coordinate and network the ongoing efforts and capabilities across Europe for the risk management of cyanobacteria and cyanotoxins in water bodies, by establishing strong collaboration between academia, authorities, industry and citizens.

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• COST Action ES1106 ‘Assessment of European Agriculture Water use and trade under climate change’ (EURO-AGRIWAT) works on the EU-wide assessment of water use and trade associated to key food and energy crops. The Action aims at delivering and disseminating recommendations and guidelines for a more efficient water resource management in relation to agricultural activities in Europe under climate change and variability. • COST Action ES624 “Optimal management of wastewater systems” focused on the optimisation of wastewater management by increasing the knowledge of microbial processes and by implementation of integrated plant wide control based on a description of the entire wastewater system. This provides new concepts for dealing with wastewater in the future and moves society on its way towards sustainable society development. The Action created a unique network in Europe within its topic. Almost all major research institutes and universities have participated. More than 300 scientists from 23 countries have attended 33 scientific events organised in the frame of the Action. • COST Action ES718 ‘Meteorological Applications for Agriculture’ addresses climate change and its impact on agriculture. It has created an online version of an agro-meteorological model for practical use in terms of crop and pest control. The model helps predict and forecast crop yields and productions, support decisions and minimise environmental costs of agriculture with short- term consequences (quality of products, pesticide use) and outputs or inputs with long-term consequences (reduction of water resources, modifications of climate).

3.1.2.4. LIFE The LIFE programme is the EU’s funding instrument for the environment. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental policy and legislation by co-financing pilot or demonstration projects with European added value.

The LIFE multiannual work programme for 2014-2017 sets the framework for the next four years for the management of the new LIFE Programme 2014-2020. It contains an indicative budget, explains the selection methodology for projects and for operating grants and establishes outcome indicators for the two LIFE sub-programmes – for Environment and for Climate Action. The total budget for funding projects during the period covered amounts to €1.1 billion under the sub-programme for Environment and €0.36 billion under the sub-programme for Climate Action.

For the first time LIFE project funding also will be provided through innovative financial instruments. The LIFE Environment sub-programme contributes to one such instrument, the pilot Natural Capital Financing (NCFF) financial instrument, which falls under the Nature and Biodiversity project area and will help finance biodiversity projects, amongst other things. The work programme also features an indicative timetable for the calls for proposals for action and operating grants as well as for the two pilot financial instruments covered by it.

LIFE Environment priority areas:

• “Environment and Resource Efficiency”, which is made up of thematic priorities of ‘Water’, ‘Waste’, ‘Resource Efficiency’ (including soil, forests and green and

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circular economy), ‘Health’ (including chemicals and noise), and ‘Air Quality and Emissions’ (including urban environment). • “Nature and Biodiversity”, which focuses on the implementation of Directives 92/43/EEC and 2009/147/EC (Habitats and Birds directives, respectively); implementation of the Union Biodiversity Strategy to 2020; information, communication and awareness raising campaigns in line with the 7th Environment Action Programme. • “Environmental Governance and Information” Climate Action priority areas:

• “Climate change mitigation”, which focuses on the reduction of GHG emissions. • “Climate change adaptation”, which supports efforts to increased resilience to climate change. • “Climate change governance and Information”, which promotes awareness raising on climate matters and better climate governance, as well as contributing to the enforcement of EU climate legislation Furthermore, as well as pilot, demonstration, best practice and information and communication projects, the new regulation creates several other types of project:

• Integrated projects that aim to implement on a large territorial scale plans and strategies required by EU legislation in the areas of nature, water, waste, air and climate mitigation and adaptation. These projects must mobilise at least one other relevant EU, national or private source. • Technical assistance project that help applicants develop integrated projects. • Capacity-building project that support capacity building in Member States in order to enable them to participate more effectively in the LIFE Programme. • Preparatory projects that aim to support specific needs for the development and implementation of EU environmental or climate policy and legislation Concerning water, LIFE projects support the management of water resources in the EU and the implementation of water policy, notably the EU Water Framework Directive, by addressing a wide range of issues, including river basin management, water scarcity, water/wastewater management (households and industry) and improving groundwater quality. Out of the 3,954 project co-funded so far, 460 have focused exclusively on water, with over €330 million allocated. In fact, water is the second most tackled theme of the programme.

The new LIFE Programme address water issues within the LIFE Environment sub- programme. During the 2014-2020 period, LIFE will support projects developing, testing and demonstrating integrated approaches for the implementation of plans and programmes in line with EU environmental water policy and legislation.

The thematic priorities for water include:

• Integrated approaches for the implementation of Directive 2000/60/EC; • Activities for the implementation of Directive 2007/60/EC of the European Parliament and of the Council;

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• Activities for the implementation of the programme of measures of Directive 2008/56/EC with a view to achieving good environmental status of marine waters; and • Activities to ensure safe and efficient use of water resources, improving quantitative water management, preserving a high level of water quality and avoiding misuse and deterioration of water resources. The LIFE Programme is open to public and private sector applicants that can implement projects both alone and in partnership.

3.1.2.5. EUREKA EUREKA is an intergovernmental organisation for market-driven industrial R&D. It is a decentralised network facilitating the coordination of national funding on innovation aiming to boost the productivity & competitiveness of European industries. The network integrates over 40 pan-European economies, but also includes Israel, South Korea, and Canada. Following a bottom-up approach with projects being in any technological area with a civilian purpose, EUREKA has been the driving force of innovation in Europe for over 25 years. The three main types of EUREKA projects are: EUREKA individual projects, EUREKA Umbrellas, and EUREKA Clusters.

Individual projects are market-oriented R&D projects funded and coordinated through EUREKA and given a EUREKA label upon approval. The individual projects follow a bottom-up approach which means that any project in any kind of technology can receive support, so long as the business plan is good. These projects are led by small to medium enterprise (SMEs) businesses and involve a partnership of at least two EUREKA member countries. Partners can consist of SMEs, large companies, research institutions and even universities. Building partnerships, accessing new markets and agreeing upon intellectual property rights are all important elements of a partnership within EUREKA individual projects. Together, the partners develop new technologies and/or services with the ultimate goal of reaching the market with their innovation.

Umbrellas are thematic networks within the EUREKA framework which focus on a specific technology area or business sector. The main goal of an umbrella is to facilitate the generation of EUREKA projects in its own target area. Umbrella activities are coordinated and implemented by a working group consisting of EUREKA representatives and industrial experts. The working group meets on a regular basis.

EUREKA Clusters are long-term, strategically significant industrial initiatives. They usually have a large number of participants, and aim to develop generic technologies of key importance for European competitiveness, primarily in ICT and, more recently, in energy and biotechnology. Initiated by industry in close collaboration with national funding authorities, each Cluster has a technological roadmap defining the most important strategic domains. Specific goals are achieved through scores of individual projects. A key asset of EUREKA is its flexibility: roadmaps and projects are continuously adapted in response to the rapidly changing technological environment and market demands. There are 7 clusters in the EUREKA network. One of them ACQUEAU.

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ACQUEAU is the first EUREKA cluster dedicated to financing water innovations. It is a market and industry driven initiative, joined by more than 20 countries and 100 companies across Europe and beyond. Its goal is to promote transnational collaboration for developing innovative projects in water technologies.

ACQUEAU’s vision for water innovation aims to ensure that the European water sector remains the leading international centre of expertise for providing safe, clean and affordable water services while protecting the environment and managing the water resources for the next generation. ACQUEAU is working to strengthen the competitiveness of the European water sector, including driving innovation and technology developments in the larger context of the different European programmes. ACQUEAU is a key programme for:

• Shaping standards and creating new markets, services and technologies at the European levels. • Strengthening the sector by building new networks and new collaborative projects among different partners i.e. industries, SMEs, universities and research organizations. • Contributing to economic growth through knowledge and innovation but also ensuring the effective implementation and commercialization of the technologies developed To encourage the development of new technological products and services, ACQUEAU has developed a technological road map called the Blue Book, based on the water cycle – water sourcing, treatment and distribution, wastewater collection and treatment. ACQUEAU focus on 9 main technological areas and has identified five key challenges to boost the competitiveness of the European water sector with a bottom-up approach based on the needs of the industry: Water resources, Water treatment, Water distribution, Customer requirements, Agriculture, Industry, Urban drainage and wastewater collection, Wastewater treatment, and Biosolids.

In addition, ACQUEA has its focus in 5 key challenges: Low environmental impact of disinfection and oxidation processes; Low energy wastewater treatment; Membrane technologies; Real-time system management; and Materials for pipes and coating.

3.1.2.6. Eurostars The Eurostars Programme is a joint initiative between EUREKA and the European Commission, specifically dedicated to R&D-performing SMEs. With a total budget of 1.14 billion euro under Horizon 2020, the Eurostars programme is supported by 33 EUREKA countries and the European Union. Eurostars is a programme supporting research-performing small and medium enterprises, which develop innovative products, processes and services to gain competitive advantage. Eurostars does this by providing funding for transnational innovation projects, the products of which are then rapidly commercialised.

Eurostars is a transnational programme, where projects have partners from two or more Eurostars countries. Thanks to this international collaboration, SMEs can more easily gain access to new markets and innovative skills.

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3.1.2.7. ERA-Nets The objective of the ERA-NET scheme is to step up the cooperation and coordination of research activities carried out at national or regional level in the Member States and Associated States through:

• the networking of research activities conducted at national or regional level, and • the mutual opening of national and regional research programmes. The scheme contributes to making a reality of the European Research Area by improving the coherence and coordination across Europe of such research programmes. The scheme will also enable national systems to take on tasks collectively that they would not have been able to tackle independently.

ERA-NET Cofund under Horizon 2020 is designed to support public-public partnerships, including joint programming initiatives between Member States, in their preparation, establishment of networking structures, design, implementation and coordination of joint activities as well as Union topping-up of a trans-national call for proposals. It is based on the merger of the former ERA-NET and ERA-NET Plus actions and is implemented by using ‘programme co-fund actions'. It allows for programme collaboration in any part of the entire research-innovation cycle.

The main and compulsory activity of the ERA-NET Cofund under Horizon 2020 is the implementation of the co-funded joint call for proposals that leads to the funding of trans-national research and/or innovation projects (one co-funded call per Grant Agreement). In addition to the co-funded call the consortia may implement other joint activities including other joint calls without Union co-funding.

The duration of ERA-NET Cofund actions is set at 5 years. During this time the consortium has to prepare and implement the call, select and negotiate the projects, finalise the projects including final payment to their beneficiaries. A shorter duration than 5 years is not feasible. It is possible to amend the grant agreement and allow for a longer duration, e.g. when consortia face problems in finalising the funded projects.

Some of the latest ERA-NETS funding actions related with water has been:

• CIRCLE-2: Climate Impact Research and Response Coordination for a Larger Europe - Science meets Policy Environment (including climate change). • ERNEST: European Research NEtwork on Sustainable Tourism. • IWRM.Net-CA: Towards a European-wide exchange Network for improving dissemination of Integrated Water Resources Management research outcomes. • SNOWMAN: Network Knowledge for sustainable soils. Sustainable management of soil and groundwater under the pressure of soil pollution and soil contamination. • SPLASH – EUWI: European Water Initiative - ERA-NET: Coordination of Member state research programmes in water science and technology for the developing world. Some calls have been launched for 2014. In addition, there are also several calls open for 2015 where a proposal related with water could be accepted:

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• Climate action, environment, resource efficiency and raw materials WATER-3- 2015: Stepping up EU research and innovation cooperation in the water area. Grant budget: 15M€. Deadline: 10 March 2015. • Climate action, environment, resource efficiency and raw materials SC5-2- 2015: ERA for Climate Services. Grant budget: 25M€. Deadline: 10 March 2015 • Climate action, environment, resource efficiency and raw materials SC5-15- 2015: Strengthening the European Research Area in the domain of Earth Observation. Grant budget: 15M€. Deadline: 10 March 2015. • Europe in a changing world – inclusive, innovative and reflective Societies EURO 5 - 2015: ERA-NET on Smart Urban Futures. Grant budget: 5M€. Deadline: 7 January 2015.

3.1.2.8. Public procurement Public procurement accounts for some 19% of GDP in the EU and offers an enormous potential market for innovative products and services. For spending on construction this figure reaches 40% and for defence, civil security and emergency operations almost 100%. At the same time there is a "market failure". On one hand, the demand is not able to encourage the market to answer to its needs. On the other hand, the offer is not known. In a time of severe economic, social and environmental crisis, entrepreneurs and investors are more exposed to risk taking which makes it even harder to develop new markets and to support innovation transfers. That is where the power of public purchasing has to play a role.

Improved public procurement practices can help foster market uptake of innovative products and services. At the same time these practices will raise the quality of public services in markets where the public sector is a significant purchaser. Public authorities should act as "launch customers" by promoting the use of innovation-friendly procurement practices. Member States are encouraged to take specific measures to stimulate innovation and research through improved public procurement practices. That requires changes in the administrative processes typically used by national, regional and local public procurement offices in preparing calls for tenders.

The Europe 2020 flagship initiative Innovation Union underlines the importance of Public Procurement of Innovation: "From 2011, Member States and regions should set aside dedicated budgets for pre-commercial procurements and public procurements of innovative products and services. This should create procurement markets across the EU starting from at least €10 billion a year for innovations that improve the efficiency and quality of public services, while addressing the major societal challenges. The aim should be to achieve innovative procurement markets equivalent to those in the US. The Commission will provide guidance and set up a (financial) support mechanism to help contracting authorities to implement these procurements in a non-discriminatory and open manner, to pool demand, to draw up common specifications, and to promote SME access."

European Commission services will present 2015 calls for proposals as well as future financial instruments (Horizon 2020, CEF, Structural funds 2014-2020) to support the demand for innovation and innovative procurement.

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Water PiPP project financed by EU 7th Framework programme was launched in 2013 for exploring new innovation procurement methodologies and testing it in water sector. Exploring new procurements methodologies and connecting water policy objectives to procurement practices, the project will help to reinforce the "Demand size", creating a credible critical mass of customers offering to buy solutions metting certain requirements and able to satisfy public needs. More information on the project’s website.18

3.2. Water JPI

The European Commission Communication 494 dated 10 July 2013 on public-private partnerships in the EU strategy for research and innovation Horizon 2020 identified the channels of external advice for the development and the implementation of this ambitious programme. Among the relevant supporting structures European Technology Platforms, Joint Programming Initiatives and European Innovation Partnerships will play an important role.

The European Union has the objective of strengthening its scientific and technological basis by achieving a European Research Area in which researchers, knowledge and technology circulate freely. According to the new EU research and innovation strategy the partnership between European Commission and Member States will be improved and designated EC representatives belonging to various Directorates-General will actively participate in the work of the European Technology Platforms, of the Joint Programming Initiatives and European Innovation Partnerships.

The overall aim of the Joint Programming process is to pool national research efforts in order to make better use of Europe's precious public R&D resources and to tackle common European challenges more effectively in a few key areas. It is a structured and strategic process whereby Member States agree, on a voluntary basis and in a partnership approach, on common visions and Strategic Research Agendas (SRA) to address major societal challenges. On a variable geometry basis, Member States commit to Joint Programming Initiatives (JPIs) where they implement together joint Strategic Research Agendas. Under this context, the Joint Programming “Water Challenges for a Changing World” (Water JPI) aims to achieving sustainable water systems for a sustainable economy in Europe and beyond.

18 http://www.waterpipp.eu/

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Figure 94 – Partners of the Water JPI19 Answering the call published on 12th January 2012 for a Coordination and Support Action in support to the Joint Programming Initiative on “Water challenges for a Changing World” many of the institutions involved in the Water JPI took part in the submission of the WATEUR proposal which started on 1st January 2013. This CSA sustains the overall coordination and capacity-building process for the Water JPI with the initial aim of shortening the time required to reach the implementation phase and then allow the adoption of effective and efficient methods of collaboration among the partners in water research. This action helps establish effective JPI governance structures and develop a sharply focused and realistic research agenda based on the mapping and analysis of the state of the art in the specific field both at European and international level.

WATEUR actively contributes to the overall EU objective of building the European Research Area (ERA). WATEUR and Water JPI benefit researchers, policy-makers, water authorities, utility operators, industry, farmers, and citizens by developing new solutions to water challenges. WATEUR and Water JPI promote the harmonization of research agendas and activities in partner countries, support European leadership in water science and technology, foster effective use of Europe's limited public research funds, and pave the way for efficient sharing of best practices across national programmes.

19 http://www.aquafit4use.eu/userdata/file/Final%20Conference%20Presentations/Session%201/F uture%20perspectives_Horizon2020_052012.pdf

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3.3. European Technology Platforms

European Technology Platforms (ETPs) are industry-led stakeholder fora that develop short to long-term research and innovation agendas and roadmaps for action at EU and national level to be supported by both private and public funding. ETPs span a wide range of technology areas and have to date played an important role by developing joint visions, setting Strategic Research and Innovation Agendas and contributing to the definition of the research priorities including those under the Research Framework Programmes.

Building on the strategies for Europe 2020 and for an Innovation Union, the Commission's Horizon 2020 proposal for an integrated research and innovation framework programme recognises the role of ETPs as part of the external advice and societal engagement needed to implement Horizon 2020.

ETPs will therefore be a key element in the European innovation ecosystem and will help turn Europe into an Innovation Union, by taking a holistic view and:

• developing strategies and provide a coherent business-focused analysis of research and innovation bottlenecks and opportunities related to societal challenges and industrial leadership actions • mobilising industry and other stakeholders within the EU to work in partnership and deliver on agreed priorities • sharing information and enable knowledge transfer to a wide range of stakeholders across the EU. The European Commission does not own or manage European Technology Platforms, which are independent organisations.

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Figure 95 – Current ETPs20

European Technology Platforms (ETPs) are industry-led stakeholder organizations, supported by both private and public funding, that develop long-term research and innovation agendas for action at European and national level. ETPs were established in 2003 but their specific role in the frame of Horizon 2020 has been recently redefined. Building on the strategies for Europe2020 and for an Innovation Union, the European Commission's proposal for an integrated research and innovation framework programme, Horizon2020, recognises the role of ETPs as part of the external advice and societal engagement needed to achieve the new programme’s objectives.

In the water domain there are three related ETPs: European Technology Platform for Water, European Technology Platform for Sustainable Chemistry and European Technology Platform on Renewable Heating and Cooling.

20 http://cordis.europa.eu/technology-platforms/individual_en.html

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3.3.1. European Technology Platform for Water WssTP, the European Technology Platform for Water, was Initiated by the European Commission in 2004, WssTP strives to promote coordination and collaboration of Research and Innovation in the European water sector, thereby improving its competitiveness. WssTP actively aims to facilitate and encourage members’ involvement in research and innovation projects contributing to solving the water- related challenges Europe is facing, facilitating the implementation of European water- related policy and increasing the competitiveness of the European water industry. The platform has the active involvement of 50 WssTP members in 186 EU funded projects in environmental research. WssTP also contributes to the development and implementation of key policy dossiers of the water sector, by providing significant input on how to face major water challenges and reach the core objectives of the European water sector.

WssTP appears to have played a critical role in the position of water projects on the European Commission’s Research Framework Programme FP7 as well as the participation of its members in the funded projects. Analyzing the figures given by the European Commission, it becomes evident that the funding allocated to water projects has been essentially doubled between 2007 and 2012, while WssTP members’ involvement in FP7 projects has seen a constant rise throughout these years. WssTP members have participated in a total of 186 projects, funded to the tune of 661,032,177 euros.

Additionally to WssTP success in projects, WssTP has developed a Water Vision, a Strategic Research Agenda and an Implementation Document, published many reports on specific challenges and technologies, describing the state of the art, technological challenges, the barriers to innovations, and making suggestions on how to address these. WssTP’s reports have served, amongst others, as input for the definition of the research priorities under the Research Framework Programme.

WssTP has also acted as an initiating catalyst for many EU projects among them E4Water, TRUST, Prepared, ChemWater and ZELDA and is involved in communication at policy, regulation, strategy and technical detail levels such as: Inputs on the Strategic Implementation Plan for the EIP on water, Barriers to innovation and examples of solutions including the role of standardisation, financing innovation in the European water sector etc.

Bringing together a broad range of actors from the water industry, universities, RTO’s and water users, WssTP has been the ‘spokes-person’ for those organizations when it comes to liaison with different DGs of the European Commission (DG Environment, DG Research & Technology Development, DG Regio, DG Connect, DG Development), the European Parliament and other European stakeholder organizations.

WssTP, also, liaises with the DG’s / Parliament to ensure the state-of the art views on, and possibilities of, water innovation are taken up in processes such as the Blue Print on EU’s water, the implementation of Horizon2020, the Cohesion Package, the EIP Water, EIP Raw materials, the EIP SMART Cities and Communities and other relevant policy dossiers.

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It facilitates amongst other: Collaboration and coordination on water-related challenges dealing with RTD&I; Improvement of global market opportunities for the European water-related technology, service, and knowledge providers; and Promotion of consortium opportunities.

The platform has the following Working Groups: Financing for EU Competitiveness; Water & ICT; Water-Energy-Food Biodiversity Nexus; International Relations; Water and Industry; Resource Recovery; Membrane Technologies; Emerging Compounds; Urban Water Pollution; Bathing Water; Agriculture & Irrigation; Eco-System Services; Green Infrastructure; Managing Hydroclimatic Extremes Events; Shale Gas; and Techwatch.

Participation to WssTP Working Groups is in principle only open for representatives from WssTP members and WssTP strategic partners.

3.3.2. European Technology Platform for Sustainable Chemistry SusChem, the European Technology Platform for Sustainable Chemistry, was created in 2004 as a joint initiative between Cefic, DECHEMA, EuropaBio, GDCh, ESAB and RSC with the main objective to revitalise and inspire European chemistry and industrial biotechnology research, development and innovation in a sustainable way. SusChem addresses challenges that are specific to Research and Innovation in the European chemical industry and in the industrial biotechnology industries. It favours a value-chain vision, in full coordination with other industries and ETPs and in connection to the societal challenges expressed in the Innovation Union and in Horizon2020.

SusChem is an open organization with regular yearly stakeholders’ meetings and brokerage events to boost collaboration between all the interested parties in the value- chain. The activity of the European organization is leveraged through the SusChem National Technology Platforms.

SusChem fully supports the Innovation Union and the goals of the EUROPE 2020 Strategy. The SusChem priority areas follow the path laid by the Innovation Union with four of them directly addressing technical innovation areas and two supporting areas:

• Resource and energy efficiency – the chemical industry has a long track record of ‘doing more with less’. By developing an integrated resource efficiency strategy throughout the process industries, input resources (including raw materials, renewable feedstock, energy, water), all processes, all output materials (including products, by-products, waste streams) and recycle options can be significantly optimized. For a wider picture of the importance of the chemical industry in this area, you can look at CEFIC's publication "The Chemical Industry in Europe: Towards Sustainability". • Water – as one of the biggest water consumers and one of the largest providers of water treatment materials, chemistry can help boost innovation in various sectors by improving efficiency and management of abstraction, consumption and recycling of water for its urban, rural and industrial uses.

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• Raw materials – to secure future supplies of raw materials requires increased reuse, recycling and intelligent substitution with new materials: all areas where sustainable chemistry is an essential element. • Smart cities – improved quality of life in urban areas can be achieved by deployment of low carbon and eco-friendly technologies, by boosting innovation in buildings and in energy generation, storage and use and by looking into innovative mobility concepts. Major Chemical companies involved in construction materials are actively participating in the Smart Cities EIP. • Enabling technologies – SusChem’s three enabling technologies (Industrial Biotechnology, Materials Technology, and Reaction and Process Design) will be essential to support sustainable innovation in all areas of the Innovation Union. • Education – developing programs to ensure the European workforce has the right technical, business and personal skills is an essential step to delivering smart inclusive economic growth.

3.3.3. European Technology Platform on Renewable Heating and Cooling Every year, almost 50% of the total energy consumed in Europe is used for the generation of heat for either domestic or industrial purposes. The vast majority of this energy is produced through the combustion of fossil fuels such as oil, gas and coal – with an impressive environmental impact in terms of greenhouse gas emissions. Today the social, natural and economic costs of climate change highlight the urgency of moving towards a new and more sustainable energy scenario. For all these reasons policy makers, investors and citizens are realizing that the time for heating and cooling from renewable energy sources has come.

The European Strategic Energy Technology (SET) Plan – proposed by the European Commission in order to accelerate the deployment of low-carbon energy technologies – recognizes the essential role of renewable energy sources for heating and cooling as a part of the EU’s strategy to improve the security of the energy supplies and to foster a competitive edge in the related highly innovative industries.

The European Technology Platform on Renewable Heating & Cooling (RHC-Platform) brings together stakeholders from the biomass, geothermal and solar thermal sector - including the related industries - to define a common strategy for increasing the use of renewable energy technologies for heating and cooling. Building on the experience matured since 2005 within the European Solar Thermal Technology Platform (ESTTP), now incorporated in the RHC-Platform, four major European organizations – EUREC, AEBIOM, EGEC and ESTIF – are leading the process towards the definition of a joint Vision and Strategic Research Agenda for the renewable heating and cooling sector.

As part of the RHC-Platform, and related with water, the Geothermal Technology Panel has been set up. This panel was launched on April 2009. It is composed by 300 geothermal experts from industry and the research sector. The secretariat of the panel is managed by the European Geothermal Energy Council – EGEC.

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The panel aims at formulating a vision 2030 for the geothermal heating and cooling sector, presenting the contribution of the geothermal sector towards a 100% Renewable heating and cooling scenario in Europe. The Geothermal Panel intends also to elaborate a detailed research strategy to reach ambitious objectives notably for costs reduction. The Geothermal Technology Panel is composed of the three following Focus Groups.

• Focus Group 1: Shallow geothermal heat pump systems: WG 1a: Underground; WG 1b: System in­stallation components; WG 1c: Integrated system de­sign, WG 1d: Exploitation, LCA, sustainability. • Focus Group 2: Deep geothermal: WG 2a: Resource assessment; WG 2b: Deep drilling; WG 2c: Production technologies; WG 2d: Surface systems; WG 2e: EGS. • Focus Group 3: Non technical issues: WG 3a: Economy and Finance; WG 3b: Policy and Regulations; WG 3c: Education and Training

3.4. PPP in water

A public–private partnership (PPP) is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. On 17 December 2013 the European Commission launched eight contractual Public Private Partnerships (PPPs) of strategic importance for European industry. These PPPs are based on roadmaps for research and innovation activities which are the result of an open consultation process and which have been positively evaluated by the European Commission with the help of independent experts. The partnerships are leveraging more than €6 billion of public investments with each euro of public funding expected to trigger additional investments to develop new technologies, products and services which will give European industry a leading position in world markets.

The eight PPPs are the following: Factories of the Future (FoF), European Green Vehicles Initiative (EGVI), Photonics, Robotics, High Performance Computing (HPC), Advanced 5G networks for the Future Internet (5G), and Sustainable Process Industry (SPIRE).

A.SPIRE is an international non-profit association formed to represent the private sector as a partner in the Sustainable Process Industry through Resource and Energy Efficiency (SPIRE) Public-Private Partnership (PPP). This association represents more than 90 industrial and research process industry stakeholders from over a dozen countries spread throughout Europe. A.SPIRE was established by the joint efforts of 8 industry sectors: chemical, steel, engineering, minerals, non-ferrous metals, cement, ceramics, and water.

The mission of A.SPIRE is to ensure the development of enabling technologies and best practice along all the stages of large scale existing value chains that will contribute to a resource efficient process industry. Through purposeful cooperation across all

129 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION sectors and regions, A.SPIRE has developed a multi-year, strategic and dynamic roadmap that will address research, development and innovation activities as well as policy matters towards the realisation of its 2030 targets. The ultimate goal is to promote the deployment of innovative technologies and solutions required to reach long term sustainability for Europe and its process industries in terms of global competitiveness, ecology and employment.

3.5. European Innovation Partnership on Water

European Innovation Partnerships (EIP) aim to speed up innovations that contribute to solving societal challenges, enhance Europe's competitiveness and contribute to job creation and economic growth. EIPs help to pool expertise and resources by bringing together public and private actors at EU, national and regional level, combining supply- and demand-side measures. The EIP on Water aims to: a) speed up development of water innovation; b) contribute to sustainable growth and employment; c) stimulate uptake of water innovations by market and society21.

The European Innovation Partnership on Water (EIP Water) is an initiative within the EU 2020 Innovation Union. The EIP Water facilitates the development of innovative solutions to address major European and global water challenges. At the same time, the EIP Water supports the creation of market opportunities for these innovations, both inside and outside of Europe. It aims to remove barriers by advancing and leveraging existing solutions. In its implementation phase, the EIP Water will promote and initiate collaborative processes for change and innovation in the water sector across the public and private sector, non-governmental organisations and the general public.

The vision of the European Innovation Partnership on Water is: “To stimulate creative and innovative solutions that contribute significantly to tackling water challenges at the European and global level, while these solutions are stimulating sustainable economic growth and job creation”. In other worlds, the EIP aspires to speed up the water innovation and stimulate the uptake of water innovations by market and society.

EIP Water is led by a Steering Group consisting of high-level representatives of relevant stakeholder groups spanning both the demand and supply sides of innovation. The Steering Group meets twice a year to provide strategic guidance and recommendations to the European Commission on policy and implementation and, together with the EU Commission, is the decision-making body of EIP Water.

The Steering Group is supported by a Task Force. It is composed by 45 stakeholder representatives that provide technical advice and expertise. It enables stakeholder groups and enablers for water and innovation to meet and discuss the strategic agenda for water and innovation, plays an important role in coordinating EIP Water activities, and mandates the development of EIP Water tools. Expert groups, comprising of co-

21 http://ec.europa.eu/environment/water/innovationpartnership/

130 WE@EU FP7 Nº 320007 A RESEARCH AGENDA FOR EACH REGION opted experts, can be created by the Task Force to provide the necessary background analysis and input for decision-making. An “Industry Expert Group on Barriers to Innovation” is currently supporting the activities of EIP Water.

The EIP Water Secretariat has been established by the Directorate General Environment (DG Env) of the European Commission. It supports the EIP Water and its various working groups in all aspects of the development and implementation of the Strategic Implementation Plan (SIP). The support is being provided by a Consortium of Intecsa-Inarsa with the following partners: Fresh-Thoughts GmbH, Semantic Web Company, Eef Leeuw Consultancy, Baur Technology and pr audit.

Figure 96 - EU Policy framework IP Water22

Finally, through Action Groups, stakeholders are invited to work on specific innovative solutions to deal with water challenges. These innovations should be able to be applied and where relevant, commercialized. Action Groups should be composed of both demand and supply side actors in innovation. Furthermore, the EIP water works on identifying key barriers to innovation in the field of water and implementing action plans to remove these barriers. Currently, the following actions groups are operative:

• Anaerobic Membrane Bioreactor for Recovery of Energy and Resources (AG036) • ARREAU - Accelerating Resource Recovery from Water Cycle (AG108) • AugMent - Water Monitoring for Decision Support (AG124) • CITY BLUEPRINTS - Improving Implementation Capacities of Cities and Regions (AG041)

22 http://www.aquafit4use.eu/userdata/file/Final%20Conference%20Presentations/Session%201/F uture%20perspectives_Horizon2020_052012.pdf

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• COWAMA - Mitigation of Water Stress in Coastal Zones by Sustainable Water Management (AG111) • CTRL+SWAN - Cloud Technologies & ReaL time monitoring + Smart WAter Network (AG126) • DISSME - Demand-Driven Innovation Support for SMEs via NNWPs (AG131) • EBCF - European Benchmark Cooperation Foundation (AG125) • ESE - Ecosystem Services for Europe (AG052) • EWW - Energy and Water Works - energizing sustainable deltas (AG115) • FinnoWater (AG013) • InduRe - Industrial Water Re-use and Recycling (AG045) • MAR Solutions - Managed Aquifer Recharge Strategies and Actions (AG128) • MEET-ME4WATER - Meeting Microbial Electrochemistry for water (AG110) • MSWTP - Modular low-cost concept for WWTPs design and build (AG118) • PVAIZEC - Large PV Pumping Systems for zero energy irrigation (AG103) • Renewable Energy Desalination (AG025) • RESEWAM-O - Remote sensing for water management optimization (AG132) • RTWQM - Real Time Water Quality Monitoring (AG100) • SPADIS - Smart Prices and Drought Insurance Schemes in Mediterranean Countries (AG014) Meanwhile the JPI on Water seeks to align EU and National and Regional programs/funds, the EIP on Water has as objective to accelerate innovation, by innovating sites, seeking for a mix of policy and tools (technological, financial, managerial).

3.6. Others

3.6.1. Group on Earth Observations The Group on Earth Observations (GEO) is coordinating efforts to build a Global Earth Observation System of Systems, or GEOSS. GEO was launched in response to calls for action by the 2002 World Summit on Sustainable Development and by the G8 (Group of Eight) leading industrialized countries. These high-level meetings recognized that international collaboration is essential for exploiting the growing potential of Earth observations to support decision making in an increasingly complex and environmentally stressed world.

GEO is a voluntary partnership of governments and international organizations. It provides a framework within which these partners can develop new projects and coordinate their strategies and investments. As of 2013, GEO’s Members include 90

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Governments, including the European Commission. In addition, 77 intergovernmental, international, and regional organizations with a mandate in Earth observation or related issues have been recognized as Participating Organizations.

3.6.2. European Regions Research and Innovation Network The European Regions Research and Innovation Network (ERRIN) is a dynamic network of, currently, more than 90 European regions and their Brussels-based EU offices. ERRIN facilitates knowledge exchange, joint action and project partnerships between its members with the aim to strengthen their region's research and innovation capacities. It also aspires to influence EU policies in order to make them respond better to the needs of European regions and to that end engages in debate with EU institutions. For this reason ERRIN is partner to key strategic coordination actions and projects of benefit to all its members.

ERRIN members meet regularly in thematic working groups and at key network events to exchange information and know-how about EU funding and project opportunities, present regional good practice, build transnational consortia and develop joint projects. One of these thematic working groups is the Water Working Group.

One of the activities developed by this group is participation in the frame of implementation phase of the EIP on Water. A large number of issues, policy initiatives and funding opportunities in the water sector are being developed by the group, particularly those directly linked to the EIP Strategic Implementation Plan. The group works on a bottom-up basis and is open to expressions of interests in topics from all group members.

The group focuses its work on the following priorities:

• To support Brussels representatives through sharing and dissemination of up- to-date information on water initiatives at European level. • To support Brussels representatives in sharing knowledge of the actions and experiences from their regions. • To build trusting relations between Brussels representatives from different regions and raise awareness of water in innovation and regional policies both at European and regional levels. • To support networking and project development among practitioners in member regions and relevant external stakeholders. • To build capacity among Brussels representatives and practitioners in terms of engaging with EU water policy making and opportunities. • To stimulate cooperation between the different Directorates - General of the European Commission working on Water in order to raise awareness of the potentials of those sectors for growth and economic development. • To develop links and collaboration frameworks with other existing water-related networks.

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3.6.3. Wetsus Wetsus, centre of excellence for sustainable water technology is a facilitating intermediary for trend-setting know-how development. Wetsus creates a unique environment and strategic cooperation for development of profitable and sustainable state of the art water treatment technology. The inspiring and multidisciplinary collaboration between companies and research institutes from all over Europe in Wetsus results in innovations that contribute significantly to the solutions to global water problems. Innovation, partnership, joy, cooperation and reliability are the values around which all Wetsus’ activities are organized and performed.

Wetsus acts as Technological Top Institute for Water technology. Wetsus’ scientific research program is defined by the private and public water sector and conducted by leading universities.

Wetsus’ main objective is to develop (pre)competitive know-how with respect to water treatment technology, by bringing scientists and entrepreneurs together. It is crucial that this know-how is converted into successful, profitable innovations, not only to create business, but also to help solve the global water crisis. In this respect, the proximity of test facilities, proper business education, availability of venture capital and other facilitation of start-ups, and a stimulating climate for collaboration in the water sector are of great importance. This support is available for the entire water sector, not just for Wetsus participants.

3.6.4. NETWERC H2O The Network for Water in European Regions and Cities, NETWERC H2O is an association for European municipal and regional governments whose objective is the promotion and development of sustainable practices related to water management. Founded by research entities and European, Middle Eastern and American bodies, NETWERC H2O aims to be a channel of communication, a forum for knowledge exchange and a platform for project development.

The objective is to create a European organization which promotes, supports and improves the application of sustainable practices in the use of water at regional and municipal level, becoming an efficient channel of communication and exchange of the latest smart technology for the benefit of our local communities be they capital cities or the smallest of villages.

NETWERC H2O is a forum, both real and virtual where both decision makers and technicians are able to disseminate and exchange experiences whilst being in permanent contact with experts from associate members such as universities, research centers and numerous other entities of international prestige who are prepared to contribute to this experience advancing the issue of water in Europe and beyond. 66 members from public and private sector are part of NETWERC H20.23 One of the projects of NETWERC H2O is the coordination of AG City Blueprints of the EIP on water.

23 http://www.netwerch2o.eu/members-netwerch2o.php

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3. Bibliography

[1] J. A. Pastor Sánchez, “SKOS: UNESCO nomenclature for fields of science and technology,” Vocabularios SKOS. [Online]. Available: http://skos.um.es/unesco6/. [Accessed: 20-May-2014].

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