POLICY BRIDGE

The innovation road map For the past two years, leaders in European policy, industry and academia have been meeting to discuss new ideas in innovation policy. These are dispatches from those meetings, organised by Science|Business media network.

CMYK

Blue: 10 0/15/0/35 Orange: 0/75/90/0

With thanks to our members Aristotle University of Thessaloniki Chalmers University of Technology ESADE ETH-Zürich Imperial College London INSEAD Karolinska Institutet KU Leuven The Norwegian University of Science and Technology ParisTech (association of 10 Grandes Écoles) Politecnico di Milano TU Delft The University of Cambridge University College London The University of Warwick SetSquared Partnership of the universities of Bath, Bristol, Southampton and Surrey Editor’s Letter

Airing fresh ideas in innovation policy

Innovation is vital for jobs, prosperity and coffee and croissants, dull speeches and a social progress – and smart government brief exchange of conventional wisdom.” policy to encourage it is urgently needed. But, as anyone familiar with the inner That has to change. Europe’s innovation workings of the European Union knows, it performance is lagging – in fact, one can be very hard to get an open airing of European Commission staff analysis forecast new ideas in Brussels. that, at the rate China and India are rising and the EU is sinking, Europe may one day To help fix that, for the past two years the be the home of just 10 per cent of global Science|Business media network has been knowledge creation. Already, its universities organising a series of high-level meetings are not keeping up: only two Europeans to encourage frank debate among leaders in figure on the most widely watched list of European policy, academia and industry. This the world’s top 20 universities. At the same book comprises our dispatches from those time, if you want to start a company based on meetings – and together they present an research in Europe, there’s less than a third informative, lively record of the development as much early-stage capital available than of new innovation policies in Brussels. in the US. Patent activity is lower. Academic tenure and pension systems make mobility Making EU innovation work better is harder. And taxes are death. the objective of the Policy Bridge. At present, key policy decisions are made The Science|Business Policy Bridge is an in a democratic vacuum – decisions initiative to do something about all this – affecting how universities work, how tech starting with improving the political dialogue. companies get started, how inventions are protected or investors are rewarded. When it comes to these strands of innovation policy, coordination between Brussels and the 27 national capitals is slight. And the voices of smart outsiders – on university campuses, inside corporate labs, and in professional consulting organisations – are Richard L. Hudson only intermittently heard. As the Economist CEO & Editor put it in a trenchant 2007 opinion, the typical Science|Business Brussels policy meeting comprises “good SEASON 1 – 2007-8

MEETING 1: New Perspectives on Education and Skills for the 21st Century An open discussion of new ideas for reforming Europe - knowledge base

EFTA Secretariat, Brussels - 28 November 2007

Keynote speaker: Odile Quintin, Director General for Education and Culture, European Commission

Peter Wrobel

The European Institute of Innovation and But Quintin was reluctant to reveal which the area of renewable energies and climate Technology (EIT) has been approved by companies had expressed an interest. “We change”. ministers from member states and by the don’t want to pre-empt the formation of the Meanwhile, countries are lining up to bid to European Parliament, with some last- KICs,” said Quintin. “The day [the EIT] is host the new institute, with Germany, Austria minute horse-trading about its name and established we will see which businesses initials. But although financial support will declare themselves as wanting to be part and Poland among those that have expressed from the European Union is assured, a of this process.” She added that Commission a keen interest. That could lead to a bidding big question mark still remains over the President José Manuel Barroso has met a war that would see money flowing in to hoped-for funding from industry – without number of businesses either jointly or in the EIT – Poland, said Quintin, had already which the whole project will founder. separate discussions. pledged €1 billion to the institute in the event it gets sited in the country. Her confidence is based on the fact that The long and the short of it two possible priority areas for the EIT – Quintin was speaking at the inaugural Final agreement on the name of the EIT renewable energies and climate change – meeting of the Science|Business Policy emerged after negotiations between the are hot areas for commercial development. Bridge, a programme of EU innovation policy European Commission and Parliament. Quintin also believes that industry will be conferences and Web coverage intended Yes, it is the European Institute for attracted by the EIT’s independence from to bring together the worlds of academia, Innovation and Technology. And yes, the political pressure, as its governing board will industry and policy. Founding members of abbreviation is EIT. What is not yet clear decide what projects it will support. the Policy Bridge are Procter & Gamble, Microsoft, SAS and EuropaBio. The host was is whether the “I” stands for Institute or That could turn out to be a Catch-22, the secretariat of the European Free Trade Innovation…or for both. as although the Commission and other Assocation. European bodies have suggested priorities As Education Director General Odile Quintin for the EIT, the institute will be entirely confirmed last week at a Science|Business free to determine its own priorities, though conference, the Commission still expects Quintin added, “Of course they will take half the funding to come from industry. The account of what the Parliament and the problem is that so far not a single company has Commission have said.” publicly pledged to put money into the KICs, What the EIT decides will depend on the Knowledge and Innovation Communities the governing body, which remains to through which industry is to be involved. be appointed. The European Parliament will receive prior notice of proposals for Quintin was unfazed. Challenged on whether programmes, but will not be able to decide, more than one or two companies had said Quintin. expressed an interest in KICs so far, she said, “Frankly, I am confident. I am sure that Quintin also called on the committee business will want to participate now that we appointing the governing board to include have the political green light.” She expects that representatives from SMEs, though she will to emerge more clearly once the EIT has recognised that “it might be difficult for begun work and the KICs have been defined. some SMEs to join in the first KICs, even in

Supported by Members for Season 1 included: Our university network plus: MEETING 2: How should the EU spend its R&D money? An open discussion of new ideas on priorities for EU research spending.

17 January 2008

Keynote speaker: Zoran Stancic, Deputy Director General, DG RTD, European Commission

Keynote speaker: Ernst-Ludwig Winnacker, Secretary General, European Research Council

Peter Wrobel

European Commission officials are studying in EU-wide R&D spending over the next But Winnacker was less hopeful in the short ways to give R&D investment an additional seven years. The sharp rise in the R&D term. “The possibility for radical changes boost from 2009, according to a senior EC budget illustrated how important politicians to the budget in the mid-term review is research official. regarded research. very small,” he said, adding that the time to The European Union has a “unique “I’m pleased to hear our political leaders present more ambitious plans for European opportunity” to boost European highlight research as a key driver for the research is when the next seven-year budget competitiveness if a mid-term review of development of the EU and the world. I is set in 2013. think we have a strong case. It’s a unique the seven-year EU Financial Perspective The only way to get more funding for for 2007–2013 leads to overall budget opportunity,” Stancicv v said”. research in the meantime is for the increases, and in the longer run in the new “The beginning of funding under FP7 is not as 27 member states to spend a larger Financial Perspectives beyond 2013, said v v steep as the research community and Industry proportion of their national budgets on Zoran Stancic, deputy director general of would like. Is the funding coming too late? We research and development. Winnacker the research Directorate-General of the can’t shift money from one budget to another European Commission, at a seminar hosted praised Switzerland, a non-EU country that but through Annual Work Programmes, [but] by Science|Business in Brussels last week. participates in EU research programmes. we can shift gears,” he said. Switzerland spends 4.2 per cent of its budget Different parts of the Commission have If there are proposed increases in the on R&D. The EU average is 1.84 per cent. already started preparing for the mid-term budget following the mid-term review, Some EU members including Italy spend less review, which will begin in earnest in 2009. the Commission will push to have those than 1 per cent on R&D. “Member states “Knowledge investment [research, education, increases reflected in the research budget. have to get their acts together: 1.84 per cent innovation] should have a strong case” for a v v Looking further forward, to the new Financial is too low,” he said. larger budget, Stancic said, in line with the Perspectives beyond 2013, research would Commission’s wider priorities. also be a contender for budget increases DG Research has a good track record for in real terms. The €72 billion figure the distributing large amounts of research Commission originally proposed investing money efficiently, he said. on FP7 when the budget was agreed two years ago was cut to €54 billion after lengthy The half-day seminar focused on the debate both by the European Parliament and question of how the €54 billion allocated the Council. to research under the seventh Framework Programme (FP7) is being spent, but Stancicv v “I don’t know if the Commission will be as raised more fundamental questions. ambitious as it was then but there’s no reason why it should be less ambitious,” he said.

“It’s not just how to spend the money but how v v much? Can we be more ambitious?” Is the Stancic ’s bullish remarks were welcomed money reserved for knowledge investment by his fellow panelist, Professor Ernst- “too little, too late?” he asked. Ludwig Winnacker, Secretary General of the European Research Council, and by around In 2006 the European Parliament and the 30 participants in the seminar from industry, Council approved a 65 per cent increase universities and government authorities.

Supported by MEETING 3: Who will lead the Lead Markets? An open discussion on the development of innovative markets in Europe.

12 March 2008 – Brussels

Jiri Plecity, Member of Cabinet for Vice President Gunther Verheugen

Pierre Vigier, Head, Innovation Policy Support, DG Enterprise

Lead markets: it’s about facilitation, not funding Paul Meller

As the European Commission embarks by some who expect it to become yet another “The Commission should make sure that on an ambitious project to help Europe way of investing public money in research, legislative changes don’t add an additional steal a commercial lead in key emerging repeating that it is not a supply-centered but burden to European companies,” she added. technologies, it is becoming clear that a demand-centered initiative. handing out public money is not part of the Joachim von Heimburg, director of corporate plan: there is no new pot of EU gold. Michael Browne, director of European R&D R&D at the consumer products company at University College London asked: “What is Procter & Gamble, echoed these sentiments. Top Commission officials addressed around the financial incentive for us to get involved in He also said the lead markets project was “a 30 company and university executives in the lead markets initiative?” wonderful opportunity for some regulations March at a Science|Business Bridge seminar to disappear”. Both Vigier and Plecity event devoted to the recently launched lead Vigier replied that there is “none directly”, confirmed that the six action plans do indeed markets initiative. but that the objective is to create a virtuous aim to improve the regulatory environment circle for investing in research, and “this is and make it conducive to innovation in a Jiri Plecity, a member of Commission vice- what Europe needs at the moment”. Plecity targeted way. president Gunter Verheugen’s inner circle of said, “The success of this initiative should not advisors, and Pierre Vigier, head of innovation depend on public money,” he said. Although in their infancy, the six chosen areas policy in the Commission’s industry already generate over €120 billion in sales and department, explained that the objective Vigier did, however, note that this doesn’t employ over 1.9 million people in the EU, the of the lead market initiative is primarily to preclude making better use of existing Commission said when it launched the lead remove obstacles that slow down the uptake resources. For instance, DG Research markets proposal in January. of new products and services and thus would be launching a call for proposals for The Commission believes that with impede the emergence of new markets. networks in support of lead markets, at the level of the regions, with the aim of designing coordinated action by the 27 member states of One aim is to make public policy tools better better relations between research agendas the Union they could grow to over €300 billion coordinated around the EU to facilitate the and industrial needs in support of lead in sales and over three million jobs by 2020. emergence of the six lead markets, identified markets in groups of regions, thus facilitating “The lead markets initiative will foster the at the beginning of this year as being areas the access of these regions and their emergence of these markets by improving where Europe could become a dominant associated research institutes to Framework legislation, encouraging public procurement commercial force and where a variety of Programme 7. and developing interoperable standards,” the obstacles have been identified, Plecity said. Call to cut red tape Commission said in a statement announcing The six markets are eHealth, protective the move. textiles, sustainable construction, recycling, While the representatives of academia The Commission insists it isn’t trying to bio-based products and renewable energies. appeared disappointed about the lack of financial incentives, company executives pick winners. It won’t favor one company or Policy deficiencies, not market ones were keen to revise unnecessary regulations research institute over another, it said, as this and to make smarter use of public would be anti-competitive. “The initiative is “We are addressing policy deficiencies rather procurement. “This initiative mustn’t lead decisively focused on a competitive, demand- than market deficiencies,” said Vigier, referring to additional burden,” warned, for instance, driven approach,” the Commission said. to areas such as legislation, the setting of Veronique De Waele, Manager for Corporate industry standards and public procurement National government ministers will debate & Governmental Relations at the German policy. “It is not about creating artificially new the lead markets initiative in May. Plecity chemicals group BASF. Instead of conducting markets with state aid or EU money” said he expects the member states of the EU new regulatory projects the EU should sign up to the plan. “We really believe in this. concentrate on getting rid of red tape, she Some delegates at the meeting said they It’s not just another coordination exercise; it said, referring specifically to two EU laws did not fully understand the methodology of should also get strong results,” he said. the project. Vigier said that indeed the lead on the handling and recycling of industrial market initiative could be “misinterpreted” waste that are being reviewed at the moment.

Supported by MEETING 4: New Perspectives in Intellectual Property An open discussion of new ideas for reforming the IP system in Europe.

29 May 2008 – Brussels

Margot Fröhlinger, Director, DG Internal Markets

Alain Pompidou, Adviser, Centre Nationale de la Recherche Scientifique, and former President of the European Patent Office

Machine translation could break patent deadlock Paul Meller

Brussels is abuzz with speculation that advance lay behind the raised expectations Europe’s fragmented, costly and complex for a breakthrough – at least as far as the patent regime is about to reform. At the creation of a Community Patent is concerned. end of last month experts from the worlds Machine translation of patents into all of politics, industry and academia gathered the languages of the European Union is to exchange views about the issue at a now possible, she said. “The translation of Science|Business Policy Bridge meeting. technical language is now highly precise,” While representatives from universities she said, adding: “Even if the syntax is often and business outlined their wish lists for wrong it’s understandable and good enough change, two well-placed political figures for non-legal summaries of patents.” gave their prognosis for the creation of a Compared with the astronomical cost of Community Patent and a single European translating all patents into all languages, the patent litigation system. system would not be that expensive: it would cost roughly €300,000 for each additional Some ideas from the Science|Business language pair (such a English-to-Hungarian or Policy Bridge meeting: Guiseppe Conti, English-to-Romanian) to develop the electronic Head of Technology Transfer, Politecnico dictionaries needed to translate patent di Milano summaries into each language, she said translation system we’ll miss the train. By 2010 there will be an on-line patent exchange 1. Cancel filing fees, or introduce But not all agree system created in Chicago by [the intellectual financial incentives for public Research capital merchant banking firm] Ocean Tomo. Such a simple idea could break the three- Organisations to file, thus boosting activity If there’s no single European patent by then, decade-long gridlock in setting up a in filing EU patents based on European European companies will simply bypass Community Patent to replace the patchwork public research. the European patent system and file their of national patents that exist at present. But, inventions in the US, Japan or China, because 2. Introduce a provisional procedure in characterising the progress being made by there will be no more added value from a Europe, similar to the US provisional national governments towards this end, Ms European patent,” he said. procedure, for fixing a priority date Fröhlinger said the chances have “turned quickly, with the option of filing the full gloomy” recently, because a small group of An agreement on a Community Patent would patent within next 12 months, and in Member States are disagreeing with the idea. require unanimous support from all 27 EU order to be able to publish results without member states. Spain and Italy’s objections These countries fear that they will become waiting for several weeks for the final are troubling, Pompidou agreed. He warned economic backwaters of the European Union patent document. that France, which takes over the six-month if there is an agreement to publish patents in rotating presidency of the EU from Slovenia 3. Develop guidelines for managing co- English, French or German – the three core in July, “is not ready to move because it is not ownership of IP between public research languages of the EU. They want translations sure to get unanimity in the Council”. organisations and industry. within the same legal status as the versions published in one of the core languages. A Single Litigation Area Alain Pompidou, a former president of the “There are grounds for optimism. The basis Another problem, which has been cunningly European Patent Office and member of the of an agreement is on the table now and sidelined since the end of last year, is the fact European Parliament, who now advises there is room for compromise,” she said, but that the creation of Community Patent must the French government, among others, she did warn that the EU has come close to go hand-in-hand with the creation of a single on intellectual property reform, warned agreeing on a Community Patent on three European litigation area. the 40-strong gathering that failure to previous occasions – in 1975, 1989 and 2003. make a breakthrough now could render Portugal separated the two issues during its Europe’s patent system redundant, due to Mr Pompidou agreed that the translation six months at the helm last year. The move technological changes afoot. machine could overcome the biggest cause was praised at the time because it allowed for failure in the past – language – but he discussions on both issues to progress faster Meanwhile, Margot Fröhlinger, the European added that this time the stakes are far higher. than ever before. Commission’s top IP official, told attendees at the Science|Business Intellectual Property “If there’s no breakthrough on the Community However, to pretend that one or other issue Bridge seminar that another technological Patent on the back of the automatic could be sorted out alone, without the other, is unrealistic. “There will be no Community government to support the creation of Patent without a harmonised litigation the community patent and the single system,” Pompidou said. litigation area. “He managed to persuade the Parliament to back the signing of the Sharing some of his inside knowledge of the London Protocol, so he could have another French government’s thinking, Pompidou success with the Community Patent and said that although his countrymen in office in single litigation area,” Pompidou said. Paris know what is at stake, the Ministry of Justice remains opposed to the creation of a The London Protocol is an agreement to single litigation area. streamline translation requirements. It was ratified earlier this year after France finally On the other hand, he said the French agreed to sign up to it. Many countries in the minister for Europe, Jean-Pierre Jouyet, EU, however, have refused to sign it – so its may be in a position to convince the French value is limited.

MEETING 5: Does Framework work? An exclusive roundtable meeting

20 November 2008 – Brussels

Clara de la Torre, Director, DG Research

Waldemar Kütt, Deputy Chef de Cabinet for Commissioner Potocnikv

Making the most of Framework Paul Meller

The financial crisis has quashed hopes of an Programme in DG Research. of the application paperwork and said that increase in the Framework Programme 7 Commissioner Potocnikv has committed de la Torre and Waldemar Kütt, deputy (FP7) budget. Now the focus is on making it to simplifying the Framework Programme chef de cabinet for Science and Research work better. wherever possible. Commissioner Janez Potočnik, were asked Just twelve short months ago, the mid- by several of the seminar participants why JTI overheads row simmers on term review of the European Union’s R&D the procedure for handing out FP7 funds is so The capping of overhead costs as a proportion flagship, Framework Programme Six (FP6), complicated and bureaucratic. of grants handed out under the Joint was seen as a unique opportunity to lobby “You have to find a balance between Technology Initiatives (JTIs) sparked fear and for an increase in the €54 billion budget for accountability and ease of use,” said Kalliopi loathing in roughly equal measure. Fear that science and technology research. The scale Spyridaki, EU public policy manager for the the 20 per cent rule might be introduced to of the impending global financial crisis was business intelligence software company SAS. all FP7 programmes, and loathing, because unknown at the time. “Businesses new to the world of EU research researchers argue that as overheads often One year on that opportunity has been funding and small firms will be put at a amount to 60 per cent of costs, most of them extinguished by the sudden and dramatic distinct disadvantage by the complexity of the have to be paid for by the researcher or unravelling of the world’s financial system questionnaires.” university, with no help from FP7. and the sharp decline into recession of some Lianne Pelmi, European external funding “Will it result in all FP7 projects having a of Europe’s largest economies. finance manager at Procter & Gamble gave 20 per cent cap?” asked Mikael Kekkonen, At a recent seminar in Brussels hosted a practical suggestion to make life easier: project executive at the European Association by Science|Business, two brave senior simplify the guidelines for FP7 applicants. of Research and Technology Organizations European Commission officials involved in Evaluation scores from the officials handling (EARTO). FP7 defended the programme amid specific applications are low if you don’t interpret the “Our members are not criticising JTIs as such, criticisms – and concrete suggestions for complex guidelines correctly, she said. just this 20 per cent rule. We hope it doesn’t how to make it work better – from a room full eventually work its way into FP7,” he added. De la Torre made a note of Pelmi’s of corporate executives, university directors suggestion regarding the guidelines. and research group representatives. Kütt assured Kekkonen this isn’t being More broadly, she explained that the planned and explained why it had been The optimism of last January has dissipated European Parliament demands that the introduced for the JTIs. As well as trying to somewhat. “There’s not much chance of a Commission accounts for everything encourage research organisations to apply generous budget increase now,” said Clara when it comes to distributing EU research full cost accounting methods, he said, “The de la Torre, Director for the Framework funds. Kütt acknowledged the complexity 20 per cent cap in JTIs is because we want more research for our bucks. We understand start of 2010. He also asked the Commission Why does private industry wield so much it created difficulties with some organisations. “to take into consideration the fact that power in the JTIs? asked Joanna Mastalerek, There are ways to fix this,” he said. many universities throughout Europe are finance manager at the European Liaison still not able to demonstrate Full Economic The row over JTIs, the European Union’s office of the German research organisations Costing, which means that a significant main programmes for industry/academic (KOWI). “For example, the governing board of reduction in the current flat rate would be collaboration, first erupted in November the Hydrogen and Fuel Cell JTI has just one 2008, with representatives of Europe’s detrimental to the participation level and research body member for six from industry,” universities and research and technology overall implementation of the Framework organisations claiming researchers would be Programme.” she pointed out put off applying if the European Union only “We are getting contrasting messages,” “There’s private money involved; when funded 20 per cent of overhead costs. said de la Torre. “The European Parliament industry is paying half the bill you can’t The 20 per cent cap fell far short of what was feels strongly that we need to encourage expect to have the same EC rules as in usual promised in the EU’s research strategy for universities to move towards full cost collaborative contracts,” Kütt said in reply. FP7, claimed the Deputy Secretary General of accounting. On the other hand we know that the European University Association, Dr John it is harder to do that in some countries than The Commission received praise as well Smith, who said the rules of participation in others.” as criticism, especially for the way FP7 is outlined in FP7 state that EU funds should designed to encourage cooperation with cover 75 percent of direct costs of research Why aren’t JTIs more open? asked André and 60 percent of indirect costs or overheads, Hagehülsmann, innovation manager for research bodies outside the EU. and questioned why these rules were not Europe at Microsoft. “We would appreciate Daan Du Toit, senior science and technology being applied to the JTIs more flexibility for organisations wanting to participate in FP7. FP7 should be more representative at the South African mission EARTO joined the debate, saying, “Such adaptive and reactive, and hence more agile to the EU, praised the fact that FP7 allows unrealistic capping of overhead costs displays and flexible,” he said. collaboration beyond the EU’s borders. “It’s grave ignorance of the economic realities of research.” Kütt agreed that JTIs are public–private a unique instrument for internationalising partnerships and that the private side may research, especially in the field of life Full cost accounting take into account strategic considerations in sciences,” he said. Michael Browne, Head of European R&D at building its side of the partnership. But the University College London, asked if there public contribution to a JTI is generally used Another international representative echoed was any news in relation to the flat indirect for paying projects selected through a fully this praise, saying that many SMEs in her cost rate, which is due to be adjusted for the open call. country are eager to get involved in FP7 MEETING 6: EIT – How will it work? An exclusive meeting of the Science|Business Policy Bridge

22 January 2009 – Brussels

Featuring:

• Anders Flodström • EIT Executive Committee, University Chancellor, Swedish National Agency for Higher Education • Alex von Gabain, EIT Governing Board, Chief Scientific Officer, Intercell GMBH • Karin Markides, President, Chalmers University of Technology • Lucia Recalde Langarica, Head of the EIT Task Force, Directorate-General for Education and Culture, European Commission; • Pinuccia Contino, Member of Cabinet for Ján Figel, EU Commissioner for Education, Training, Culture and Youth.

Science|Business Special Briefing: EIT – How it will work Paul Meller

The European Institute of Innovation and excellence-driven. It will target excellent highly integrated partnerships. They won’t Technology, known simply as the EIT, will people in what amounts to a global outreach be starting a project from scratch, but rather soon be inviting universities, research with the secondary goal of reversing the building on research that is already under institutes and companies to participate in brain-drain from Europe,” said Lucia Recalde way. The Commission and Member States new research projects. Langarica, head of the EIT task force, in will play no role on the governing Board. the Commission’s Directorate General for The aim: to create a dynamic new force Education and Culture. What are its biggest challenges? for innovation in Europe, with business and academia working together not only “EIT is not just another EU research The money issue is challenging, make-or- in the lab, but also in converting scientific programme. We have too many of those break. If EIT can attract private funding it will breakthroughs into commercial reality. already. The aim here is to cluster fly. If not, it will fail. research and education together with EIT challenges: the need for Science|Business held a half-day seminar on entrepreneurship and industrial partners. A the subject on 22 January. Speakers included entrepreneurship, building networks and typical KIC would be situated in a university deciding how co-location will work; also officials from the European Commission, and town that has a good business school and by telephone from Stockholm and Vienna, the question of money – €20 million to €25 a history of entrepreneurial spirit,” said million will go into each KIC each year, but two members of the governing board of the Alexander von Gabain, chief scientific officer, the KICs need an annual budget of €100 EIT. Herewith, a briefing on the EIT, gathered Intercell and EIT governing board member. from information presented at the meeting. million to get them moving. How did it come into being? What is the EIT? What is its budget and how much of that It was advanced in 2005 by Commission comes from the private sector? “It is not like MIT (Massachusetts Institute President José Manuel Barroso. of Technology), nor is it a network, nor is The initial budget of €309 million covers the it a virtual entity. It is an EU body unlike Political agreement was secured in April last period up to 2013. That’s not a lot – it is seen any that currently exists, in that it doesn’t year. Soon after that Budapest was chosen as a launch period. The politicians don’t want have an executive role, nor is it a regulatory to host the headquarters, a chairman of the to give billions to EIT yet, but more funds will body. It has a governing board located at EIT’s governing board, Martin Schuurmans, follow after 2013 if they are convinced during the headquarters in Budapest; the KICs was picked, and now the governing board is this first phase. Success depends on how (knowledge and innovation communities) are drawing up the official call to participate in many KICs the EIT proposes. The EIT will halfway between networks and universities. the EIT. cover 25 per cent of the cost of each KIC. KICs will have proven themselves by the summer of The projects they will run will last between 7 What decisions lie ahead? and 15 years with the joint aims of education, 2011 when the governing board will produce research and business realisation,” said In the next few months the board will select its first strategic agenda for beyond 2013, and Pinuccia Contino, Member of Cabinet for KICs. There’s a stringent deadline for this – possibly request more funding. January 2010. The call for proposals will be Ján Figel, EU Commissioner for Education, So where will the 75 per cent of the budget launched in April this year and run until the Training, Culture and Youth. come from? From universities, corporations, end of August, followed by four months for other EU programmes such as structural “EIT is the first institution trying to see the evaluation. whole innovation chain, from education funds. The governing board doesn’t want to business. There will be a focus on How will it operate? funding for the KICs spread too thinly in entrepreneurial education. EIT is trying a new terms of geography. There has to be a The EIT governing board will choose the way of doing business, trying to capitalise concentration of efforts – this is central to the areas on which to focus but then the KICs will on existing but fragmented excellence. EIT EIT vision. adopt a bottom-up approach. Any decisions is also a new way to promote innovation; to commercialise a piece of research will be A word of warning: “The Commission must it’s about putting people together, VCs, taken by the KIC, not by the EIT board. How the all along channel more funds into EIT. With researchers, corporations etc. EIT is the KICs are structured still remains to be seen. only the resources we have the EIT won’t take only initiative of its kind with a strong brand off in the way we hope,” said von Gabain. image. These are all elements that make The KICs’ shape is the burning issue for the EIT different to what already exists. EIT is governing board. They won’t be networks, but What will the first KICs focus on? For now, three themes: Renewable/ sustainable energy, climate change and IT. So either you find a way to focus on one of those three or you can’t participate this time. How does a university get involved in a KIC? If researchers already get funding, they brings it with them to the KIC. The KICs will also apply directly for FP7 money, not via the EIT. The same goes for private sources of funding.

The EIT: a two-edged sword, says leading rector Paul Meller

There is as much to be lost as gained some pride. “The big companies function on mind, she urges the EIT’s governing board for Europe’s academic community from a global, as well as a local level. You have to to “ask for growth and goal indicators in the creation of the European Institute be aware of that and you have to be humble,” the KICs, rather than just defining entrance for Innovation and Technology (EIT), she adds. rules”. according to Karin Markides, rector of Chalmers University of Technology in Working together with companies is the best “There are as many risks as opportunities Sweden and vice-president of the CESAER way for science and technology to make an with the EIT. It’s important to take into (the Conference of European Schools for impact in society. But for the relationship account the experiences and good practice Advanced Engineering Education and to work successfully “you must consider in Europe so that we don’t make this big Research). the culture and the driving forces” of your project hamper existing long-term innovation corporate partners, and they have to do the capacity building,” she says. “This is why I But she wants Chalmers to participate in same, she says. think that the CESAER network would be a the EIT project, which got the political go- most useful ‘benchmark’ group to provide “Our entrepreneurial school and innovation ahead last year and will soon invite colleges, ‘next practice’ for the development of EIT.” system need private sector funding and the institutes and businesses to compete for personal engagement of senior businessmen CESAER is a non-profit-making international places in its so-called knowledge and and women. We get both through the trust association of 60 European engineering innovation communities (KICs). we have built dealing with the CEOs of universities, colleges and schools. Its main For someone who has spent their whole companies,” she says. objective is to improve links between the working life inside universities, apart from students and researchers in its members. And here’s the rub. “By joining a KIC, a two-year stint at Vinnova, the Swedish Chalmers could put these close ties with Does she also see Chalmers, with its ties government innovation agency, Markides shows companies, and the trust they are built on, between business and basic science, its an unusual awareness of the world of business. at risk.” science parks and its specialised clusters as And ironically, it is this awareness that fuels a role model for the EIT? “You could learn a So why is she willing to take that risk? “It is her doubts about the grand European project, lot from it,” she says modestly. important that Chalmers contributes in the inspired by European Commission president development of the next practice to make José Manuel Barroso – ironic because the Europe a good place to do research,” she says. role of the private sector is crucial to the success of the EIT. She has some specific concerns about the way the EIT is being set up. She is a great In an interview with Science|Business last fan of benchmarking and she argues that week at a meeting in Brussels, Markides this process appears to have been somewhat explained how her university has embraced overlooked by the architects of the EIT, the world of business through partnerships although the structure has been developed and collaboration. with MIT and Cambridge as models. Chalmers claims to be a pioneer in Europe in “I think it is important to evaluate your the field of start-up companies. In addition to process against the best process already technology, natural sciences and architecture around. With the EIT I don’t think this is part – its three academic fortes – it also teaches of the plan for the launched KICs,” she says. entrepreneurship and innovation, and it hosts science parks and incubators for Decision time for the EIT young technology firms. Big companies such as Ford subsidiary Volvo Cars and truck The EIT’s first call for proposals will run from maker Scania are partners in the Chalmers April to August this year. Markides said the Automotive Academy. way it is written will be vital. “The EIT must decide if it wants to build functional clusters ‘You have to be humble’ or networks of partners situated in different locations around Europe,” she says. “Our contacts with businesses are at the highest level, CEOs,” Markides says with And especially with the private sector in MEETING 7: time for a global patent? Hosted by 21 April 2009 - Brussels

Featuring: Alison Brimelow President of the European Patent Office

Patents: slow and steady wins the race? Paul Meller, Brussels

Alison Brimelow, EPO President any harmonisation on substantive matters. Even within Europe, in some areas, patents The European Patent Office is pushing for don’t get treated the same in different slow, steady coordination of the way that countries”. She continued: “Do I think the patent offices work in the world’s five biggest time is right for a global patent system? No. patent systems, according to EPO president Do I think we should work towards creating Alison Brimelow. The outcome won’t be a one? Yes.” Better coordination with other ‘world patent’ system any time soon – but it Offices is essential, she added, “if the patent will go a long way towards making the system system is to remain relevant.” more efficient. She described the growth in the number Brimelow believes that while a global patent of patent applications around the world as regime is unrealistic, there are many ways “remorseless”, and warned that without of working better together. Speaking at a more coordination, patent offices will get Science|Business policy bridge meeting in buried in work, which will delay the process Brussels on 21 April, she said that work has of assessing applications. begun on harmonising the way each of the biggest five patent authorities in the world “Is a patent still relevant if it takes seven – the US, the EU, China, Japan and Korea – years to get approval? We are living on classifies its patent applications. While not borrowed time,” she said. Efforts to unite glamorous, a common classification system Europe’s fragmented patent jurisdictions would at least permit inventors to search regime were stepped up last month when more easily for prior art across the five the European Commission announced it is regions. launching a renewed effort to create a single patent litigation system for the EU. “If you want to harmonise the litigation system you first have to harmonise the However, many delegates participating in process of granting patents.” Bruno the seminar, who included patent attorneys, Vandermeulen of law firm Bird & Bird. examiners, company executives and university representatives, remain sceptical “I expect we will be able to do this within of there ever being a breakthrough. the next two to three years,” Brimelow said. Similarly, working together on training patent “If you want to harmonise the litigation system examiners and streamlining their databases you first have to harmonise the process of could help bring the regimes closer together, granting patents,” said Bruno Vandermeulen, a she said. partner at the law firm Bird & Bird. But Europe has been trying to forge a single Community These are a few of the ten projects the Patent for over 30 years without success, and five patent authorities have signed up to. Vandermeulen doubted the politicians are ready Brimelow hopes that they will serve as for a breakthrough now. “building blocks” for a global patent system, but she doubted there will ever be global “There’s no doubt that we need a Community unity on patents. Patent. However, prospects of obtaining a rapid solution seem dim,” Brimelow said. “There are things that are patentable in the US that are simply inadmissible in Europe,” she said, adding, “I don’t see much hope of Hosted by

Is the demand for patents stifling reform? Paul Meller, Brussels

It may seem an odd time to be discussing could be achieved within two to three years, Brimelow said the failure of European the creation of a global patent system. Brimelow said. countries to overcome their national self- Gardens around the offices of the Munich- interest and forge a single patents regime is based European Patent Office were besieged She is less precise about the other initiatives but very clear about one important fact very unsatisfactory and is largely down to a by pigs and tractors recently, as part of a ‘what’s in it for me’ attitude. demonstration against biotech patents. standing in the way of a truly global patent system. “There won’t be technical Vandermeulen went further, suggesting Meanwhile, campaigners against the cooperation concerning the substance of that the inertia shows that Europe’s patents introduction of patents on pure software are patents so I do not see Europe accepting US- community comprises “the last racists in starting to crank up their lobbying ahead of style business methods,” Brimelow said. an enlarged board of appeal examination of Europe”. the issue later this year. One of the fears – particularly in the software community – is that globalization of patents “A lot of costs are caused by the current “There is a sense of disquiet. This is a clear will mean dumbing down to the system in the discrepancy between the various national political fact that makes me pause when US, where the bar for what can be patented is systems as they are now. By creating an EU- discussing the idea of a global patent,” said set lower than in Europe. wide patents system then the national level EPO president Alison Brimelow. would have to disappear.” In the EU the system not only sets tougher However, in spite of anxieties in some standards for applicants, it’s also much more The language issue is often cited as the quarters the demand for patents continues to expensive to litigate here than stateside, rise, especially in Asia. But even in developed, main stumbling block for the creation of partly because you have to fight it out in a Community patent. But Brimelow said western economies the demand is relentless, several different national patent courts, that it has nothing to do with problems of Brimelow told a gathering of patent lawyers, rather than in just one in the US. technology transfer experts from universities expression or being understood. “It’s about and corporate executives. “We file only in the US, for reasons including national identity and as such very important,” the cost of filing and litigation in Europe she said. This rocketing demand poses threats to the as well as the complexity of the system system. “Patents are all about being open here. Within the EU patent reform, it will be Similarly, many patent practitioners feel that and clear. If you have volumes of unapproved important to consider mechanisms to ensure the need for a national patent office in all 35 patents pending the system can’t be open high-quality patents,” said Kalliopi Spyridaki, EPO countries is more about emotion than and clear,” she said. EU affairs manager at SAS. about real need. If patent offices around the world coordinated Talk of a global patent seems all the more their efforts more this could help tackle the They suggest that the way patent offices relentless demand, she said, as failure to premature when Europe can’t even agree on are funded and structured needs to be re- cooperate results in wasteful duplication of a single patent regime for itself. Earlier this worked. Countries feel they need a patent efforts. The five most important patent offices year the European Commission launched a office like they need a national airline but it new drive to create a single patent litigation – in the US, Japan, China, South Korea and was suggested that there should be more system for Europe, but Brimelow, among the EU – have begun 10 projects intended to cooperation, so that, for example, the best others, wasn’t very impressed. serve as building blocks for a global patent examiners in one particular field handle all system. “If you want to harmonize the litigation applications in that field across Europe. The projects include an attempt to harmonise system you have to harmonize the system Another suggestion for the national patent the classification of patents, how patent of granting patents first”, said Bruno examiners are trained, and how patents are Vandermeulen, a partner at the law firm Bird offices that arose from the seminar: small searched. A further idea is to help examiners & Bird. The creation of a single European innovators especially will always want to to connect to each other, for example via a patent, known as the Community Patent, has work in their own language, so perhaps the version of facebook. been blocked for over three decades, he said. majority of national patent offices should serve as advisors to potential applicants Harmonisation of patent classification is the One way forward would be for EU countries most likely of these projects to be carried to reach an agreement along the lines of the rather than as patent examiners. out. The idea is to adapt all patent offices Paris Convention (which covers other types of Food for thought indeed. to the best ways of classifying being carried intellectual property such as trade marks and out by the five patent offices at present. This copyright), Vandermeulen suggested. MEETING 8: Research and innovation: what’s next in Brussels? 6 November 2009

Featuring • Prof. John Wood, Chair of the European Research Area Board (ERAB) • Maria Da Graça Carvalho, MEP, member of the Committee on Industry, Research • and Energy (ITRE) • James Elles, MEP, member of the Committee on Budgets • Diogo Vasconcelos, Chair of the Business Panel on Future EU Innovation Policy, • and Distinguished Fellow, Cisco Systems International • Olof Sandberg, Senior Adviser, Ministry of Education and Research, Sweden • Luc Soete, Chair, Knowledge-Based Economy Expert Group and Director, United • Nations University-MERIT • Bjarne Kirsebom, Minister, Research, Permanent Representation of Sweden to the • European Union • Gernot Klotz, Executive Director Research and Innovation, CEFIC • John Wyles, Director, Science|Business Innovation Board

What next in Brussels? Anna Jenkinson

One Lisbon process is on the way out: the aim into the heart future EU policy. a member of the European Parliament’s of Europe becoming the most competitive committee on industry, research and energy. In the aftermath of the elections to the knowledge-based economy in the world by She urged the definition of innovation to be European Parliament several groups set 2010. That process and its targets are being widened, to cover for example innovation in out their recommendations to European quietly forgotten. But another, broader, childcare, education and healthcare services. policymakers on what the major challenges political process is under way, with the “Innovation and knowledge are going to be for society are and what needs to be done if Lisbon Treaty set to come into force by the central to a lot of other EU policies,” she said. end of 2009. A new European Commission they are to be tackled. A Science Business is being formed and a new European Policy Bridge event, held in Brussels on 6 This central role for innovation and Parliament was voted into power just a few November, brought these different groups knowledge was underlined by a plea from months ago. together with the aim of finding common the expert groups that RDI programmes ground on the essential principles needed for focus on the “grand challenges” – the major The hope among several scientific advisory an EU policy on research, development and challenges facing society. groups is that the momentum around these innovation fit for the 21st century. developments will provide an opportunity for This does not mean climate change alone. the EU to update its approach to research, “We need a radical new approach for It includes issues such as healthcare for development and innovation (RDI) and bring it innovation,” said Maria Da Graça Carvalho, an ageing population and sustainable consumption and production. A step in the But grand ideas are not enough. If the grand Investment Bank, it could be a European right direction, said seminar participants, challenges stand any chance of being solved, Innovation Bank, putting innovation at the is the EU’s Lund Declaration from July EU member states need to coordinate core of financial institutions. 2009, which says that “European research better, there needs to be less paperwork, must focus on the Grand Challenges of our and all aspects of RDI funding, regulation Whatever the avenue pursued, Europe has to time moving beyond current rigid thematic and standard-setting must pursue the same find fiscal policies and new public-private co- approaches”. aims, the expert groups said. financing methods that will make it easier for researchers, engineers and entrepreneurs to The expert groups are not short of specific Go for gold find the cash they need to get their ideas to suggestions on how to turn this wish into the marketplace, the groups agreed. reality. Ideas include directing a third of all EU programmes need to play a greater role funding and a third of all scientists towards and ensure that they are more attractive to The overriding message: innovation must play research focused on societal challenges. industry and academia by being more flexible a pivotal role in the EU. By coming together – and being the gold standard for excellence, and sharing their ideas and suggestions, the Come together the groups said. various expert groups underlined the urgency of the need to change the EU’s mindset. It Bringing people together and removing Once again, money matters, and how to remains to be seen whether they can convey barriers between individual disciplines was fund all these ideas of focusing on the grand that urgency to policymakers. also emphasised by the European Technology challenges, investing in world-class research Platforms expert group, which was formed to infrastructure, open innovation and better give the European Commission advice on the governance is another big issue. future role of these platforms. ETPs, which connect European companies, knowledge MEP James Elles, the longest-serving institutes and policy makers in individual member of the European Parliament’s technology fields, should form temporary budget committee and one of the seminar’s clusters to work on solutions to a particular speakers, said that a scarcity of funds and societal challenge, the ETP expert group said. high government deficits means that a focus on excellence is required more than ever to Such clusters will also help foster an make the most of available funds. The more environment of open innovation, considered the focus is on excellence, the more likely it is a key element if Europe is to innovate in a that the funds will be available, he said. globally significant way. Several financing ideas generated interest. “Open innovation is based on the power of For example the Knowledge-Based Economy networks and access to knowledge across expert panel has suggested a new target for Europe and globally,” said the Business target Europe’s knowledge investment target: Panel on Future EU Innovation Policy, which 3 per cent. By 2020, said the panel, 1 per cent emphasises how information technologies of Europe’s GDP should be spent from public are transforming how people interact. funds on research and development and 2 Meanwhile, the European Research Area per cent on higher education. Board has said knowledge institutions of the future will be open and digitally networked, The Business Panel on Future EU Innovation and they will cooperate with industry and Policy came up with a new meaning for society. the acronym EIB: rather than European Research and innovation: ideas on the table Science|Business reporting

An overview of some of the recommendations discussed at the Science|Business Policy Bridge event “Research and innovation: what’s next in Brussels?”, held in Brussels on 6 November 2009.

FOCUS/SCOPE • Use public procurement as a tool to OPEN INNOVATION encourage innovation. • Focus on the direction, not the rate, • Improve mobility of researchers to of technological change. Focus RDI • Reform of the EU administration for RDI encourage cross-fertilisation of ideas and priorities on the Grand Challenges/ through: people across borders, disciplines and societal challenges. - Creation of arms-length agencies the industry/academic divide. • Broaden the definition of innovation in - Reform the financial regulations to - End academic tenure? policy. Think globally in innovation policy reduce red tape • Get a community patent – reform and programmes. - Create more flexibility in programming, to adjust to changing needs intellectual property rules to create a • Invest in e-science and digital single market infrastructure, e.g. broadband in every • Create new platforms and networks home and office and smart electricity grids. FUNDING for innovation. European Technology • Focus on excellence and encourage risk- • Raise the focus and profile for innovation Platforms should broaden to include taking. EU programmes should stand for at the European Investment Bank, and innovation action plans. best practice across Europe. make a European Innovation Bank, to • Improve public attitudes and the focus on the knowledge economy. • Funding for demonstration projects innovation culture through: should be easier. • Create new joint partnerships between - An emphasis on trust and ethics in R&D the European Investment Fund and - Highlighting the role of others, e.g. in corporate venturing and GOVERNANCE entrepreneurship social innovation funds. • Improve systematic long-term planning • Create a European version of Britain’s for RDI policy and programmes, including post-war 3i: a public/private direct a Green Paper exercise to include many investment fund to encourage stakeholders. restructuring towards innovation. • Better coordinate/synchronise EU policy • Set a new, post-Lisbon 3% target for between Brussels and the member- public-sector spending: 1% of GDP goes states, and between governments and to R&D, 2% to higher education. other stakeholders. Engage social actors in policy formulation from the start. • Define the new Chief Science Advisor role as a step towards good advice and leadership on RDI issues at the EU. European Parliament proposes €1M system to improve foresight research Science|Business reporting

The European Parliament is proposing plans its policies. The Parliament is due to One of his goals for the new parliamentary to spend €1 million to improve long-term release a report, “EU policy challenges 2009- term is to put a greater focus on how a policy research in order to inform decisions 2019”, the first time it has drawn up such a trans-Atlantic partnership can address global taken by the leadership of the European long-term analysis. Meanwhile, the European challenges. Union. The aim is for all EU institutions to Commission recently published its foresight be able to approach policy-making from the report, “The World in 2025.” And in recent One manifestation of US’s technological basis of common analyses of the probable weeks several scientific advisory groups have advantage over Europe can be seen in the outcomes of major issues facing Europe, handed policy makers their assessments vastly greater strength of its IT sector. Part of said MEP James Elles in an interview with of the major challenges for society and the reason for Europe’s long-term failure to Science|Business. recommendations of what needs to be done foster global IT companies is that European to tackle these issues. policy does not recognise the extent to which The proposal, made in a recently adopted the Internet is a tool for innovation, Elles amendment to the EU’s draft budget for Elles, the longest-serving member of the said. 2010, calls for a system to be set up across European Parliament’s budget committee, the EU’s various institutions that would told Science|Business that examining long- The European Internet Foundation – co- be coordinated between the European term trends must become a central a part founded by Elles in 2000 and led by MEPs Parliament, the European Commission and of European thinking, as is the case in the with membership from technology companies the Council of Ministers. The goal is for it to US and China. Such an approach is essential and associations – aims to change that be up and running by 2012. for effective forward planning and the right mindset. In its latest report, the foundation budgetary analysis, he said. analysed probable outcomes for how the Elles, who tabled the amendment on digital world may look in 2025, and identified behalf of the European Conservatives and “There is very little capacity for the analysis areas that should therefore be EU policy Reformists group, said the system would of long-term trends in Europe,” Elles argues. priorities. have a similar function to the US National Too much time has been spent concentrating Intelligence Council, which describes itself on “reassuring and underpinning our There seems to be no shortage of as, “A centre of strategic thinking within the structures” rather than on the debate of, recommendations circulating, but it remains US Government,” providing the President and “how we remain competitive in the 21st to be seen to what extent this advice is senior policymakers with analyses of foreign century,” he said. heeded and coordinated. policy issues. Elles founded the Transatlantic Policy The move by the European Parliament – Network way back in 1992, and relations which awaits approval by the Council – is one between business and policymakers in the of a series of calls to improve the way the EU US and Europe is an issue close to his heart. “A lot of costs are caused by the current discrepancy between the various national systems as they are now. By creating an EU-wide patents system then the national level would have to disappear.” POLICY BRIDGE

The media network to bring fresh ideas into the European policy debate

An independent network for R&D investment Innovative format Science|Business is the fastest-growing pan- - A mix of online and offline European news and events network targeted at - Not just one-off events university, corporate and policy professionals seeking - We create a community around each topic business opportunities in the scientific marketplace.

With its unique expertise, Science|Business is: - Focused on science, well-connected with academia and business R&D leaders - A European network with continuous input of fresh perspectives - A group of top communicators with unique insight into R&D and the EU - Innovative communications and events

MEDIA UNIVERSITIES

INVESTORS PUBLIC AFFAIRS PROFESSIONALS

BUSINESS LEADERS RESEARCHERS

LAWYERS POLICY MAKERS

Our partner network Aristotle University of Thessaloniki Why you should get involved Chalmers University of Technology ESADE Keep tech and innovation policy high on the political agenda ETH-Zürich - Help build a “Speakers’ Corner” here in Brussels Imperial College London - Place your ideas and proposals in front of key policy makers INSEAD Karolinska Institutet Act now: the plans of the new European Commission are in KU Leuven the works today The Norwegian University of Science and Technology Join today: ParisTech (association of 10 Grandes Écoles) Politecnico di Milano - Get a 30% discount on founders’ fees TU Delft - Secure a seat on the steering committee The University of Cambridge - Guaranteed access to all members-only events University College London - Guaranteed access to all subscribers-only content The University of Warwick - Brand your organisation as an innovation leader SetSquared Partnership of the universities of Bath, Bristol, Southampton and Surrey - Current founding members

For more information: Andre Rampat +32 2304 7577 [email protected]

A BRIDGE ACROSS THE GAP DIVIDING INDUSTRY, UNIVERSITY AND POLICY