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TNO Annual Report 2019

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TNO Annual Report 2019 GROWTH AND IMPACT 2019 ANNUAL REPORT TNO.NL 2019 ANNUAL REPORT CONTENTS PROFILE AND MISSION 3 COMPOSITION OF THE COUNCIL FOR DEFENCE RESEARCH 35 GAME CHANGERS OF 2019 REPORT OF THE EXECUTIVE BOARD 5 COMPOSITION OF STRATEGIC ADVISORY COUNCILS 37 CORONAVIRUS 7 TNO ORGANISATION 40 The boxed sections throughout this report highlight the game changers of 2019, i.e. technological STRATEGY FOR 2018-2021 9 FINANCIAL INDICATORS FOR 2019 43 innovations that TNO has developed together with its partners. For more background information on a SPIN-OFFS 14 FINANCES AT A GLANCE 44 game changer, simply click the box to go to the TNO website. REPORT OF THE COUNCIL FOR DEFENCE RESEARCH 15 APPENDICES Corporate Governance 49 REPORT OF THE SUPERVISORY BOARD 19 Risk management and control system 52 RISK MANAGEMENT AND CONTROL SYSTEM 23 PUBLICATION AND ADDRESS DETAILS 55 RESPONSIBLE INNOVATION 26 COMPOSITION OF THE EXECUTIVE BOARD 30 COMPOSITION OF THE SUPERVISORY BOARD 32 The original financial statements were drafted in Dutch. This document is an English translation of the original. In the case of any discrepancies between the English and the Dutch text, the latter will prevail. 2019 financial statements REPORT OF THE REPORT OF THE COUNCIL REPORT OF THE RISK MANAGEMENT RESPONSIBLE EXECUTIVE BOARD STRATEGY FOR DEFENCE RESEARCH SUPERVISORY BOARD AND CONTROL SYSTEM INNOVATION FINANCES APPENDICES 2/56 2019 ANNUAL REPORT PROFILE AND MISSION The power of innovation lies primarily in making smart Knowledge application connections across the boundaries between scientific domains Contract Research TNO connects people and knowledge to create and sectors of society. This is where TNO stands out: by being At the point where a client’s and partner’s needs become more innovations that boost companies’ competitiveness a multidisciplinary research organisation with dedicated people specific and clearly defined and a need for customised research and increase well-being across society in a who work in dynamic partnerships, coalitions or alliances and by emerges, it is common practice for follow-up research to be sustainable way. offering the kinds of solutions that our clients and partners are handled within broader collaborations. In such cases, we offer looking for. contract research that is financed entirely by the client. This is Besides in-depth expertise, this also requires where TNO gradually operates closer to the market. skills in connecting and integrating the various We only work on innovative solutions when there is a crystal-clear knowledge domains, systems and sectors of society. answer to the question of who will be using it and what for. Technology Transfer As knowledge becomes increasingly dynamic and This is how TNO helps its clients and partners to be successful Technology Transfer is the final step in TNO’s innovation cycle. widely accessible due to advances in information and works to make the Netherlands safe, healthy, competitive This phase sees TNO take knowledge to market by licensing technology and other areas, it is ever more and sustainable, with excellent quality of life. it to existing companies and setting up spin-offs. TNO holds important to harness knowledge in a way that approximately 900 active patent families that are used in is both smart and effective. INNOVATION CYCLE different projects and which are commercialised through TNO’s research can roughly be divided into knowledge licences. A number of these patents are used in the Technology development and knowledge application, which are two fields Transfer programme. that differ from each other in terms of objectives, management and financing. The cycle of the four successive phases specified above enables TNO to create substantial value. For more detail on how TNO Knowledge development works, please visit our website (www.tno.nl), which is also where Early Research Programmes (ERP) you will find more information about the use of the portfolio of Our Early Research Programmes are all about building and intellectual property rights and our research programmes. substantially innovating knowledge. In 2019, there were 21 such extensive research programmes ongoing. This kind of research SPECIAL-PURPOSE FUNDING is most closely related to the fundamental research done at TNO fulfils its role as an innovation leader for the Dutch Ministry universities and is the furthest removed from the market. of Defence, the Dutch Ministry of Social Affairs and Employment and the Dutch Ministry of Economic Affairs and Climate Policy in Shared Research a unique way. Knowledge-intensive government duties (statutory This is where knowledge is developed further through pre- duties) in the areas of defence, safety and security, labour force competitive partnerships with public-sector and private-sector participation and geological surveying have all been delegated partners. Shared research includes Demand-Driven Programmes to TNO. (DDPs) that are (partly) publicly funded. These collaborations generally materialise in the form of a Joint Innovation Centre (JIC) or public-private partnerships (PPPs). REPORT OF THE REPORT OF THE COUNCIL REPORT OF THE RISK MANAGEMENT RESPONSIBLE EXECUTIVE BOARD STRATEGY FOR DEFENCE RESEARCH SUPERVISORY BOARD AND CONTROL SYSTEM INNOVATION FINANCES APPENDICES 3/56 2019 ANNUAL REPORT THE EXECUTIVE BOARD THE EXECUTIVE BOARD IN 2019 FROM LEFT TO RIGHT: PETER WERKHOVEN, CHIEF SCIENTIFIC OFFICER (CSO) PAUL DE KROM, CHIEF EXECUTIVE OFFICER (CEO) CIS MARRING, CHIEF FINANCIAL OFFICER (CFO) MAARTEN TOSSINGS, CHIEF OPERATING OFFICER (COO) REPORT OF THE REPORT OF THE COUNCIL REPORT OF THE RISK MANAGEMENT RESPONSIBLE EXECUTIVE BOARD STRATEGY FOR DEFENCE RESEARCH SUPERVISORY BOARD AND CONTROL SYSTEM INNOVATION FINANCES APPENDICES 4/56 2019 ANNUAL REPORT REPORT OF THE IMPACT to set up five to ten new companies every year based on It is TNO’s mission to generate impact, i.e. to add value for TNO-developed technology and knowledge. The programme has EXECUTIVE BOARD partners and customers, and this is the central focus of the meanwhile produced nineteen start-ups representing a total current strategic plan. A study published in 2019 shows that value of EUR 57 million and 128 new jobs, making TNO’s 2019: A SUCCESSFUL YEAR FOR TNO collaboration with TNO has a significant positive impact on Technology Transfer programme one of the most successful The Executive Board can look back on a successful companies that innovate together. This study compares the in Europe. year. In 2019, TNO actively contributed to the value added for companies that have partnered with TNO and formulation and further pursuing of the Netherlands’ companies that have not. The value added by teaming up with Examples of TNO-developed potential game changers include the mission-driven innovation policy. Additional TNO is estimated to be between 14% and 17%. A reputation and conversion of CO2 into methane using solar energy and the government investment has enabled TNO to grow, brand image survey has shown that TNO is a strong brand which development of a thermal battery for home heat storage. Beating step up its efforts in helping the country fulfil its outscores the average public-sector organisation. competition from parties such as Harvard, Princeton and MIT, missions (in the areas of sustainability, safety and TNO landed a call in the area of Sensible Artificial Intelligence health) and close the year with a budget surplus. On 11 November 2019, TNO signed a new Knowledge and (SAI) and small data. A programme for the development of laser TNO is well on track to achieving the strategic plan. Innovation Covenant (KIC) with other knowledge institutions, satellite communications was launched, with great support from New projects were launched (Petten site) and others government bodies and industry partners in which TNO commits industry. both funds and its best efforts to the further elaboration of the were finalised (Ypenburg site). That said, we cannot mission-driven policy. Aside from that, TNO was commissioned to COLLABORATION IN THE NETHERLANDS AND INTERNATIONALLY afford to sit back and take it easy in 2020. work on politically and socially sensitive matters such as the To be able to continue to operate at the forefront of technology Developments, including those in the technology investigation into the safety of the Stint cart and the fuel supply development and innovation, it is crucial for TNO to have the right domain, are rapidly unfolding all over the world. issues at Amsterdam Schiphol Airport. ties with the international innovation ecosystem. TNO operates in Impending trade wars, increasing international over 40 countries across the globe. When it comes to strategic competition, major climate and energy challenges In 2019, TNO developed a new brand strategy that revolves partnerships, the focus is primarily on Europe. Talks with and less rosy economic prospects are calling for around impact. Thanks to TNO’s unique and distinctive Germany’s Fraunhofer Gesellschaft and France’s CEA are greater flexibility and alertness. One particular focus multidisciplinary structure, a ‘unified TNO’ is more than the meanwhile under way to strike up more strategic collaboration point is the level playing field with competitive sum of its constituent parts. The ‘Zie het voor je’ (Visualise it) in Europe in areas such as artificial intelligence (AI) and energy institutions outside the Netherlands and with campaign was launched to bring TNO’s impact on society clearly and climate. These initiatives are set to be turned into specific universities (in terms of funding, corporation into view. In 2019, TNO’s operations were linked to the United programmes in 2020. The TNO branch offices on Aruba and in tax and VAT). Nations’ Sustainable Development Goals to better define TNO’s Singapore were closed in late 2019 and research activities there impact and make it clear for everyone to see. TNO actively takes will continue in a different format. part in the European Union’s Responsible Research and Innovation Programme (RRI), which covers focus areas such At the same time, TNO is teaming up with partners for the further as sustainability, ethics and integrity.
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