CATALYSING INNOVATION IN THE KNOWLEDGE TRIANGLE - Practices from the EIT Knowledge and Innovation Communities
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CATALYSING INNOVATION
IN THE KNOWLEDGE
TRIANGLE
Practices from the EIT Knowledge and Innovation Communities
Publication for the European Institute of Innovation and Technology (EIT)
by Technopolis |group|
More information on the European Institute of Innovation and Technology (EIT) is available at www.eit.europa.eu. Disclaimer: The views expressed in this publication, as well as the information included in it, do not necessarily reflect the opinion or position of the European Institute of Innovation and Technology (EIT) and its Knowledge and Innovation Communities (KICs) (Climate- KIC, EIT ICT Labs and KIC InnoEnergy) and in no way commit the Institute or its KICs. This publication has been prepared by the Technopolis |group| Rebecca Allinson Kincsö Izsak Elina Griniece June 2012
FOREWORD
BY THE EIT DIRECTOR
T
his EIT publication is the first in a series that aims
to create an inventory of practices emerging from
our Knowledge and Innovation Communities
(KICs) and making these available to audiences beyond
the KICs. These publications will also serve in the future
as an input to developing the EIT’s future agenda on
innovation practices and new approaches generated by
our KICs, thus providing concrete evidence on the EIT’s
contribution to the European innovation landscape to
those not yet benefiting from our activities, and strengthening our role as
an Institute for Europe.
This publication contains an overview of the EIT, the three first KICs and
their co-location centres (CLC), looking at how they have in practice set
about fostering innovation. It outlines the EIT’s pioneering role, established
in 2008 to increase European sustainable growth and competitiveness
by reinforcing the innovation capacity of the EU within a dynamic and
shifting global context.
In completing my first year at the helm of the EIT, it is a pleasure to
present this first publication developed by the Technopolis Group with
great professionalism. I would like to express my sincere appreciation
to the European Commission as well as to the first EIT Governing Board,
Martin Schuurmans and Alexander von Gabain in particular, for their
contributions. And last but not least, my special gratitude goes to the
CEOs of the first three KICs, Mary Ritter (Climate-KIC), Willem Jonker
(EIT ICT Labs) and Diego Pavia (KIC InnoEnergy). With their strong
commitment to shaping our ‘living’ partnerships, we are demonstrating
that with a good dose of creativity, determination and willingness things
can be done differently in Europe!
José Manuel Leceta
EIT Director
i
TABLE OF CONTENTS
Introduction 1
The EIT in a nutshell 2
Knowledge and Innovation Communities at the heart of the EIT 3
Co-location Centres as operational units 3
Developing Governance Practices in the Knowledge Triangle 5
Organising a Knowledge and Innovation Community 6
Searching for a Modern Collaboration Model for Europe 11
Promoting Practices in Support of Entrepreneurship and Innovation 13
Taking an integrated approach 13
Nurturing Europe’s Entrepreneurial Talent 14
Bridging the Innovation Gap between Research and the Market 21
Accelerating Business Development 25
The EIT in the European Innovation Policy Landscape 30
KIC Factsheets 35
KIC Funding Figures 38
Bibliography 39
ii
Introduction
T
his publication is the first in a The main thrust of this publication is to:
planned series that aims to create Present the innovative elements of the
an inventory of practices emerging
governance model of the KICs
from the three Knowledge and Innovation
Communities (KICs), which are worthy of Highlight KIC practices that illustrate
being shared more widely. how the EIT model is helping to solve
some of the innovation challenges that
Europe is facing
The publication has been compiled to
showcase the approach - its ‘what’ and its Explore the role of the EIT in the
‘how’ - taken by the European Institute landscape of European innovation
of Innovation and Technology (EIT) to support and the potential links with
catalyse the knowledge triangle in Europe. other policies relevant to innovation
The models of governance and the activities
emerging from the Institute’s first three The publication begins with an overview
KICs are innovative and experimental and of the EIT, the Knowledge and Innovation
these experiences should be of particular Communities and their Co-location Centres
interest to policy-makers, innovation (CLC), and presents their practices to
practitioners and analysts, as well as to foster innovation from all three sides of the
the new generation of KICs. knowledge triangle.
Subsequent chapters highlight the
The EIT is new and its mission is ambitious emerging governance model of the KICs
and the same is true for the first three in more detail. They also analyse some
KICs, which launched their first activities in of the practices of the EIT and the KICs
2010. KICs are long-term investments in support of entrepreneurship and
in Europe’s innovation potential and innovation. These include nurturing talent,
they will be encouraged to become bridging the innovation gap between ideas
sustainable in the future. They have all and the market and accelerating business
set themselves short, medium and long- development.
term objectives to achieve this.
Finally, the publication looks at the EIT
Whilst it is too early to evaluate the impact in the wider innovation and research
of the EIT’s and the KICs’ results, the landscape in Europe and explores the
validity of the EIT approach has already future of the EIT under Horizon 2020.
been recognised. Thus, the emphasis in
this publication is on the additional The publication is based on a literature
value that the EIT’s approach brings review, desk research and executive
to innovation support and this is based summaries of co-location visits conducted
on observations and reflections from the in summer 2011, and also interviews
practices that are emerging. with the KICs’ CEOs and CLC Directors
conducted in spring 2012.
1
The EIT
in a nutshell
T
he EIT was established in March to produce economic or social value; a
20081 as a body of the European failure to sustain and renew enterprises;
Union and its mission is “to a lack of entrepreneurial culture leading
increase European sustainable growth to a low level of innovative activity; and a
and competitiveness by reinforcing poor record of developing, attracting and
the innovation capacity of the EU”. retaining talented individuals.
A major driving force in research and The EIT is a timely response to these
innovation has traditionally been the innovation challenges and, in itself,
pursuit of knowledge itself, pushing out the it exemplifies innovation. It is novel
existing boundaries of what is known and in the sense that its main activities
understood in a multiplicity of domains. In are implemented through a distributed
much of the modern world, this force has network of Knowledge and Innovation -
been systematically harnessed to policies Communities (KICs). The KICs gather
of economic growth and the associated together close-knit partnerships of
innovation and technological change has European education, research and
produced impressive, and sometimes business entities – the so called
unexpected, value in terms of prosperity knowledge triangle – and also
and quality of life. involve public authorities in these
partnerships. The EIT provides physical
Europe, as well as the rest of the world, sites, called Co-location Centres, in which
is responding to the changing patterns the partners can meet to work together on
of global competition and it is clear that shared innovation challenges. Thus, the
there is a new imperative to address EIT aspires to scale-up the concentration
urgent societal challenges, such as of knowledge and skills, to share ideas and
sustainable energy and transport resources, to create and sustain businesses
and climate change mitigation, which and to trigger the entrepreneurial spirit.
goes beyond a simple speeding up of the The overall objective of all these activities
pace of technological change. This has led is to develop solutions to the grand
Europe, in particular, to reconsider how the societal challenges whilst, at the same
framework for conducting research and time, improving Europe’s competitiveness
fostering innovation can best tackle complex on the global stage.
societal problems. In fact, Europe is
“reinventing innovation”2 by coupling The EIT can also be regarded as a model
academic research and knowledge of innovation governance and financing in
production with an entrepreneurial the European Union. It has been given an
spirit and a greater interdisciplinary important role as part of Horizon 2020, the
focus on social and organisational framework programme for research and
practices and innovation end-users3. innovation for the period 2014-2020, with
This coupling is underpinned by the notion the objectives of addressing societal
of the knowledge triangle of research, challenges and assisting the EU to gain
education and innovation. leadership in enabling and industrial
technologies4. Horizon 2020’s proposed
As a first step, Europe identified the financial contribution to the EIT is €3.18bn
considerable deficiencies that need over 2014-2020. The plan is to increase
to be addressed and these include: the budget to enable the first three KICs to
fragmentation of the innovation system; consolidate and grow, and to pave the way
underuse of existing research strengths for the creation of six new KICs by 2018.
2
1 The idea of the EIT has been on the policy-makers’ agendas since 2005. In April 2008, the EIT regula-
tion came into force and after two years it began its operational activities with the establishment of the
EIT headquarters in Budapest
2 Expert group to the European Commission (2007). Taking European Knowledge Society Seriously. Re-
port
Knowledge and Innovation Com- Co-location Centres as operational
munities at the heart of the EIT units
The Knowledge and Innovation Communities The backbones of the KICs are their
are the main vehicles through which the EIT Co-location Centres (CLCs). These
undertakes its activities. The concept of CLCs are the operational units that
the KIC represents an innovation in itself, bring together groups of people,
as there is no other similar initiative regional and local clusters and nodes
combining such large trans-European of excellence. CLCs are an important
and thematic partnerships organised element in the distinctive EIT approach
in committed legal entities. All three KICs to the integration of the knowledge
are structured around a partnership of triangle. Each KIC has five or six Co-
20-30 core partners from all sides of the location Centres. In line with each KIC’s
knowledge triangle. Each KIC also includes substantial overall autonomy, the CLCs
a large number of affiliated, associated or are organised and structured according
network partners that contribute to the KIC’s to their respective national and regional
activities but do not participate directly in its innovation context to include partners
governance. KICs apply a very open entry from research, education, business and
and exit strategy with regard to the affiliated at times from local authorities. A number
partners and so the wider KIC community is of the Co-location Centres involve science
a living network with evolving membership. parks, existing clusters and regions of
competitiveness, which provides much
KICs operate by networking the wider access to start ups and SMEs with a
partners that carry out specific activities potential interest in either engaging with,
in the three focus areas of Innovation/ or using the results of, the KIC activities.
Research, Education and Business The CLCs are regional, networked eco-
Creation and by building a pipeline of systems with a global outreach.
projects through a bottom-up approach.
Each KIC is led by a Chief Executive Officer Figure 1 Map of the Co-location Centres
(CEO) appointed by the board of the KIC
partnership. The main aim of the KIC is
to provide a platform where ideas, skills,
business models from a wide range of
partners with a common thematic focus can
be translated effectively into innovations.
KICs aim to foster the creation of new
businesses and to establish favourable
conditions that will accelerate their growth.
The first three KICs were designated
in December 2009 and started work in
2010. The KICs’ themes reflect the
challenge-led realms in which a
boost of innovation is needed if smart,
sustainable and inclusive growth is to be
attained in Europe.
They are: Each KIC structures its co-location to
best suit its objectives. In the case of
1. KIC InnoEnergy - sustainable energy
Climate-KIC and KIC InnoEnergy, the
2. EIT ICT Labs - future information and partnerships of the Co-location Centres
communication society are not limited to their regions of origin,
3. Climate-KIC - climate change mitigation as several partners collaborate directly
and adaptation5 with various CLCs and engage directly at
3
3 The European Science Foundation and COST (2011). Responses to Environmental and Societal Chal-
lenges for our Unstable Earth (RESCUE)
4 http://ec.europa.eu/research/horizon2020/pdf/press/horizon_2020_budget_constant_2011.pdf
5 For more information on the KIC objectives, Co-location Centres, themes and partners see KIC Fact-
sheets pp 35-37
the KIC level. For instance, institutions and the Co-location Centres, in practice
from Hungary participate in the activities artificial distinctions should not be drawn
of the Co-location Centre in Poland. In the between these levels and the EIT should
case of EIT ICT Labs, Co-location Centres be seen as a seamless organisation
tend to be tighter geographical nodes6 with for innovation. The EIT gives the vision,
key partners located within 50 kilometres the KICs provide the forum for strategy-
of each other7. The Co-location Centres’ making in the selected areas of societal
offices are usually in the premises of one challenges and the Co-location Centres
of the core partners, or on a campus. are the primary delivery mechanisms for
the KICs, an essential system by which the
Even if there is a differentiation between range of activities in terms of education,
the levels of the EIT Headquarters, the research and innovation, are implemented.
Knowledge and Innovation Communities
4
6 I CT Labs refers to its Co-location Centres as nodes throughout its documentation
7 ECORYS (2011). Study on the concept, development and impact of co-location centres using the exam-
ple of the EIT and KIC. Report commissioned by the European Commission, DG Education and Culture
Developing Governance Practices
in the Knowledge Triangle
O
ne of the main purposes of the bringing new products and processes to
EIT is to create eco-systems that the market. In return, knowledge and
can breed world-class businesses. new market developments should have a
The KICs are anchored in regional and local feedback loop to educational programmes.
communities via their Co-location Centres Similarly, new knowledge is the source
and the EIT is a new mechanism to link of innovation and in return, new market
the knowledge triangle components prospects for innovation can point towards
of education, research and businesses new avenues for research. This process is
across Europe and into the wider world. captured by the concept of the knowledge
triangle (figure 2).
Several concepts have emerged in recent
decades to interpret and illustrate the The knowledge triangle concept
process of knowledge creation and its highlights the positive benefits that
application through innovation and these can be derived from such strong links.
have come from a number of different This has led to an acknowledgement that
disciplines. However, they share several policies in support of innovation should
core conclusions about the non-linear foster systemic interaction between the
nature of innovation and the multiple three forms of activity — education, research
input and feedback loops that exist and business. The knowledge triangle has
between the actors in an innovation also been strongly embedded in the 2020
system. For example, a skilled workforce Vision for the European Research Area8 and
is the basis for undertaking research and this has increased the importance of its role
development activities, as well as for in European policy-making.
Figure 2 The Knowledge Triangle
5
8 Council of the European Union (2008). 2020 Vision for the European Research Area
This chapter will explore how the KICs own strategy for its activities through the
have addressed the issue of govern- preparation of an annual business plan.
ance in the knowledge triangle. As gov- This reflects the autonomy that the KICs
ernance practices are constantly revisited have to steer their approaches and their
and refocused in the process of learning by flexibility to develop innovation models
doing, this publication initially presents a through learning by doing.
brief review of the organisational challeng-
es and managerial dilemmas that KICs are The KIC concept is new and the setting-
facing and then looks at how the resulting up process for the first three KICs
governance models can fit into the land- has demonstrated the complexity
scape of innovation hubs and networks. of establishing such partnerships
when members are all independent,
highly successful organisations that
Organising a Knowledge and are geographically dispersed and also
Innovation Community dispersed across the fields of education,
research and business. Stakeholders
The KICs have a mission to foster innova- admit that the process has been much
tion and entrepreneurship and to deliver more difficult than was anticipated at the
solutions to societal challenges. In fulfill- outset. One major obstacle stemmed from
ing this mission, they are also bringing a low level of understanding amongst the
about organisational innovation. partners of the implications of creating
a KIC structure. This highlights some of
The core principle that distinguishes the main challenges in forming a KIC,
the KICs from other, more traditional, namely, how the partners can come to an
research and innovation arrangements understanding of each other’s motivations
is the explicit link between all the for involvement, how to align interests and
elements in the full innovation cycle, overcome any risks of competition and
from education and knowledge creation to how to build trust within the partnership.
new market opportunities and innovative The danger is that in aligning diverse
business support. Whilst Europe has made strategic interests, the result might be
numerous attempts to bring research the lowest common denominator and that
and business organisations into closer simply does not fit with the urgent need to
partnerships, the addition of the higher address major innovation challenges.
educational dimension represents
distinct progress9. In addition, a concerted An important factor in this respect is
effort has been made to integrate sets of that the KIC partners are legally and
diverse stakeholders, from the outset of financially committed for a period of
the partnership, and to develop with them 7 years, which is longer than other trans-
a shared vision of entrepreneurship. This European networks, such as the consortia
is a robust response to the perceived in FP7 projects. Members’ awareness that
fragmentation in Europe’s existing they have to work with the same partners
innovation system. In essence, the KICs for a considerable period of time may
are innovative webs of excellence that lead to changes in their attitudes and in
are testing the practical application of the decision-making. Early results indicate
knowledge triangle across Europe. that the EIT approach has brought
more long-term stability to existing
cooperation, as partners do not have to
Setting-up the Partnership and shift between the roles of competitor and
Promoting Community Building collaborator. For example, KICs reported
that certain industrial partners who
The EIT gives a substantial degree were in competition across CLCs
of flexibility to the KICs to allow came together as partners in the KIC
experimentation and break new Steering Committee – a move which
ground in understanding how such may have a positive impact on common
large-scale, public-private networks standards in the European market. The
can best operate. Each KIC defines its Innovation Radar10 of EIT ICT Labs is seen
6
9 For a comparison of the existing instruments see Haegeman, K. and Cagnin, C. (2011). Priority Areas
for the Next Waves of Knowledge and Innovation Communities: Exploration of Critical Success Factors,
Alternative Options and Characteristics for Design. JRC-IPTS report, p.11
10 Thom, N. (2011). Foresight in Innovation Networks: The EIT Innovation Radar Example. Paper present-
ed at 4th ISPIM Innovation Symposiumas another positive example of potential IMPLEMENTED BY THE EIT, THE KICs ARE:
competitors coming together in an open
…the first European innovation iniatives
innovation network. Organisations such
that links all sides of the knowledge trian-
as Siemens, Ericsson and other industrial gle: research, business and education.
players have joined forces through the EIT
ICT Labs with the objective of identifying …characterised by a long-term commit-
future market trends in ICT. ment of partners based on trust and a
sense of community.
Another important aspect of the KIC …maintaining flexibility in organisation,
partnerships is their result-oriented management and the degree of partner
nature where partner accountability is involvement.
assessed not by the efforts invested, …adopting an entrepreneurial funding
but by the innovation results achieved. model.
This is another defining feature of the EIT, …linking regional innovation hubs into
a shift from the input and expenditure trans-European and to global networks.
control approach to a much more trust-
based system in which partners join
forces to attain a commonly agreed Adopting a Business-oriented
impact. Research in the social economy Approach
has proved that mutual trust reduces
the transaction costs associated with From the outset, it was agreed that the KIC
forging new collaboration between diverse structure should be “light, transparent and
groups11. Thus, the accumulation of efficient” with an entrepreneurial corporate
social capital12 within KIC networks, as a culture to ensure rapid and coordinated
consequence of the trust-based system, responses to market developments. Each
is a crucial factor in achieving the desired KIC has its own legal entity and an
results. appointed CEO who, together with the
Executive Board, is responsible for the
One mechanism for creating this trust is coordination of the KIC strategy and the
community building. The core task of consolidation of the KIC business plan. The
the EIT and the KICs is to engage in KIC business plan sets out concrete short-
community building through targeted term and long-term targets and includes
networking initiatives and common a set of key performance indicators.
iterative learning processes. This involves An entrepreneurial culture is clearly
a range of activities such as the proactive woven into the KIC structure, as the
organisation of formal and informal KICs must develop a portfolio of assets
encounters between stakeholders to with market value.
foster communication, share ideas and
instigate new KIC activities. For example, Whilst sharing many features of a business
in the preparation of its annual business organisation, the KIC also reflects a trust-
plan, Climate-KIC organises large-scale based network of diverse partners. In
meetings in several of its Co-location short, a KIC is a business-oriented
Centres to gather and crystallise all the entity, but it does not own all the
stakeholders’ ideas for improvements resources with which it works. This
to the KIC strategy. Such a bottom-up requires a particular management style
approach to strategic initiatives vests and, as KIC InnoEnergy CEO indicated, “it is
the ownership and responsibility for the about finding the right balance” in aligning
process in the community and increases partner interests to achieve results.
the sense of a common identity. KICs are
also practising mobility in the deployment The first three KICs have chosen different
of members of their executive teams. One approaches to their legal set-up and
example of this is holding regular meetings organisation. KIC InnoEnergy is established
at different CLCs, to ensure a common as a commercial company under Dutch
understanding of the organisational and law and managed as a business, with
cultural differences and the challenges shareholders. The development of a
that partners face. portfolio of assets with market value and
7
11 e .g. Dyer, J. (2002). Effective Interfirm Collaboration: How Firms Minimize Transaction Costs and Maxi-
mize Transaction Value. MIT Libraries
12 Refers to features of social organisation such as networks, norms, and social trust that facilitate coordi-
nation and cooperation for mutual benefit; see: Putnam, R. (1995). Bowling Alone: America’s Declining
Social Capital. Journal of Democracy 6 (1): 65–78economic sustainability is embedded in delegated to a smaller Governing
all the decisions and accountability is Board comprising equal sectoral
embedded in all the roles. KIC InnoEnergy representation of partners from all
is profit oriented, but has a ‘not for dividend’ the CLCs or Regional Innovation and
financial strategy re-investing its profits in Implementation Communities (RICs) in the
its future activities. case of Climate-KIC. This supervisory body
ensures that all members’ interests are
Climate-KIC and EIT ICT Labs have chosen embodied in the KIC strategic objectives,
the legal form of Dutch and Belgian limited vision and mission and it has the power to
liability non-profit associations, respectively. appoint or remove the KIC CEO. There is a
EIT ICT Labs aspire to develop into a not for small executive team composed of the CEO,
profit company at a later date13, and also Pillar Directors of Education, Innovation
Climate-KIC has indicated the possibility of and Business Creation and CLC Directors.
re-considering its legal set-up14. This team is in charge of all operational
activities and is responsible for harmonising
The choice of the country and the form of co-location activities and integrating the
legal entity for the first three KICs turned knowledge triangle principle.
out to be a crucial aspect in framing the
partners’ commitment. Climate-KIC, However, the KIC is not an organisation, but
for example, was initially established a community-driven form of collaboration
as a Dutch Stichting15. It faced profound between academic and business partners
problems, as this legal form was overly who can put forward strategic initiatives
complex and could not be fully aligned and lead their development. This poses
with the main KIC objectives. After the new challenges to management and
appointment of a new CEO in 2011, the leadership that lie beyond the traditional
KIC changed its legal status to Association mode of organisational decision-making. To
Climate-KIC. This simplification of the achieve common ground amongst so many
legal and organisational structure re- diverse actors with their own strategic
attracted many of the initial partners and interests, it is essential to create mutual
encouraged new organisations to join. trust and a sense of unity. In other words,
it is only through a sense of community and
The business-type model ensures the common purpose that the network can use
commitment and the full engagement all its diverse resources and knowledge.
of the KIC partners and also helps to There is an undeniable need for leadership
guarantee that the people who are around in this respect. Thus, KIC CEOs must
the table are the real decision-makers. It continually balance partner interests,
is seen as a more efficient method than handle dilemmas, build trust and
other approaches to network formation and ensure the delivery of the strategy.
sustainability. However, the complexity of
the KIC network and its community-driven The current KICs are adopting a lean
philosophy raises important managerial administration system following a
dilemmas, namely, how to steer such a matrix management logic to ensure the
multi-stakeholder innovation ecosystem to coordination of network activities through
deliver concrete innovation results. a central management team and cross-
cutting working platforms. In the planning
phase, there is a convergence of the top-
Underpinning Management and down approach driven by the KIC Education,
Leadership in a Knowledge Com- Entrepreneurship and Innovation agendas
munity and a bottom-up approach emanating from
partner initiatives and CLC project ideas.
The management structure of a KIC is In the decision phase, and within the rules
not markedly different from that of a agreed by the partners, it is the KIC level
business organisation. All KICs have a that decides where the investments should
General Assembly in which core members go. In the execution or implementation
are represented and have voting rights. phase, the projects are subject to a contract
The day-to-day management is between each project and the KIC and the
8
13 E CORYS (2011). External Evaluation of the European Institute of Innovation and Technology - Frame-
work Contract on evaluation and related services. (EAC 03/06), European Commission, DG Education
and Culture
14 Climate-KIC Business Plan 2012
15 Foundation under Dutch lawFigure 3 Matrix Management Scheme of Climate-KIC
Source: Climate-KIC Business Plan
accountability for its implementation rests Building an Entrepreneurial Fund-
with the project leader, the CLC manager ing Model
and the KIC.
The financial model of the EIT Knowledge
The literature on matrix management and Innovation Communities follows an
practice16 suggests that it is particularly ‘entrepreneurial logic’. While the EIT
well-suited for sharing information provides a seed investment of up to
across internal organisational 25% of the total KIC budget, the KICs
boundaries and thus, it more readily seek to raise the remaining funds from
embraces the challenge of multi- private sources, from other EU instruments
stakeholder governance. The CLCs are such as FP or the Structural Funds or from
more exposed to local knowledge and income generated by their own activities.
within a matrix management scheme, they Between 2010 and 2012, the KICs managed
can share this experience with the KIC to attract 78.5% of the total budget, of
level. This supports the concepts of open which partner contributions constituted
innovation and user-driven innovation. 38.5%, funding from national and regional
However, it is widely acknowledged that governments represented 21.5% and
while a matrix structure is more dynamic other EU funding provided 13.5%18. The
and innovative than a managerial hierarchy EIT co-funding remains available for 7-15
its effectiveness is dependent on the years and hence over this time, KICs
existence of a shared culture and are required to become self-sustainable,
mindset17. This reinforces the importance world-class innovation hubs.
of community building and provides
further food for thought, especially as KICs In contrast to the majority of existing R&D
comprise partners that are organisationally, co-funding instruments, which provide
geographically and also culturally diverse. additional financing to attain certain
research goals, the EIT philosophy is
9
16 B artlett, C. and Ghoshal, S. (1990). Matrix Management: Not a Structure, a Frame of Mind. Harvard
Business Review
17 http://www.philipatkinson.com/matrix-organisation-management-culture-virtual.htm
18 F or more information see KIC Funding Figures page 38to make a purposeful investment in the While the wait-and-see attitude still
innovation capacity of KICs to achieve exists, the first two operational years of
positive socio-economic impacts. Thus, the the EIT have demonstrated significant
purpose of the additional EIT funding is to private sector interest in, and commitment
catalyse and exploit the synergies between to, the KIC model. The low share of co-
innovation and the entrepreneurial and funding provided by the EIT tends to filter
business activities that KIC partners and out those partners who might otherwise
the wider community are undertaking. The have been attracted simply by the money
intention is also to maximise the impact of and leaves the partners who are really
these synergies on the EU’s economy and interested in contributing to the venture.
the well-being of its citizens. This purpose All of the three current KICs have managed
is particularly evident in the approach to involve important industrial players,
taken by EIT ICT Labs which describes well positioned in the European and
its funding approach as a catalyst-carrier global market21, that now take an active
model. The idea is to add the EIT funds (the part in the KICs’ governance. Overall, the
catalyst) to existing activities (the carrier), financial contribution of industry to the
selecting those activities that have a high KICs’ budgets has varied between 20%-
innovation potential. “To be eligible for 31% during the period 2010-201222.
inclusion into the EIT ICT Labs portfolio,
the transformation of a carrier activity by While participating in a KIC incurs costs
the application of an EIT ICT Labs catalyst in terms of money and other resources,
should create significant added value for it may also lead to significant savings as
the European innovation agenda and the a result of resource pooling, infrastructure
goals of EIT”19. sharing and knowledge creation. The existing
activities and innovation projects are closely
In order to ensure the long-term viability aligned with market developments. They
of KICs, it is important to understand identify promising possibilities for new forms
and continually monitor the attitude and of collaboration and pioneer new value chain
positioning of industry towards the proposed configurations in emerging sectors, in the
innovation model. The EIT Governing case of Climate-KIC, or in emerging niches
Board assumed, from the outset, that the of already consolidated sectors, as happens
private sector would adopt a wait-and-see in KIC InnoEnergy and EIT ICT Labs. Within
approach, as the EIT financing logic may a KIC ecosystem, industrial partners are
run contrary to the usual experiences of advantageously positioned to be early
companies. The KIC model implies that adopters of new technologies and can
businesses agree to pool resources in a benefit from ready-made market analysis to
partnership with limited co-funding and to commercialise the innovation. A particular
produce significant innovation results and, gain for industry from its involvement in the
at the same time, accept a considerable KICs is easy access to a network of talent
degree of guidance from a KIC CEO20. and expertise in cutting-edge research and
to novel ideas from innovative SMEs and
entrepreneurs.
10
19 h ttp://eit.ictlabs.eu/ict-labs/catalyst-and-co-funding-model/
20 E IT (2011). Strategic Innovation Agenda: Investing in Innovation Beyond 2014
21 See KIC Factsheets pp 35-37Tapping into the Wealth of EU regions. This network was initially an
Networks FP7 project in the Regions of Knowledge
Initiative that recognised the value of
The configuration of the KIC network continuing the cooperative relationships
reflects the landscape of European, that had been established. The network
regional and national initiatives. KICs comprises partners from city and regional
are “networking and reconfiguring authorities, as well as from research and
existing networks” by connecting with the private sector in six European regions23.
cluster initiatives and business support
organisations and regional associations. For In reality, climate innovation is driven by
example, KIC InnoEnergy Alps Valley Co- regions and cities that are the main actors,
location Centre is building upon the clusters which are currently experimenting with new
in the energy sector in France. EIT ICT Labs approaches. In comparison to the Co-location
Stockholm Co-location Centre is situated Centre partners, the focus of RIC actors is
in the Kista Science City and has access to primarily on context-driven knowledge and
over 1,100 ICT companies. EIT ICT Labs practice-based competences and learning.
forge alliances with other organisations Climate-KIC has recognised that regions are
in the Kista environment, including Kista indispensible to their innovation system, as
Science City AB, Stockholm Innovation and they can highlight local needs and point to
Growth, ACREO and Stockholm University. innovation challenges. In addition, regions
In Paris, a part of EIT ICT Labs’ activities can also be test-beds for climate innovation
are carried out in cooperation with two pilot initiatives and become the first
regional competitiveness clusters. Within customers of the products and services that
this network of networks, there is access are developed. Thus, Climate-KIC extends
to over 24,000 ICT companies. the innovation model that is conceptualised
as an innovation pyramid.
Figure 4 The Innovation Pyramid.
Searching for a Modern
Collaboration Model for Europe
As indicated above, the EIT KICs provide
a test bed for growing collaboration
mechanisms amongst innovation actors in
Europe. The partners of the KICs are closely
connected via the Co-location Centres and
through joint actions and these connections
represent a novel way of strengthening
innovation hubs in Europe and of creating
new innovation networks between them
that can also be extended globally.
Knowledge creation and diffusion is
highly localised and entrepreneurship
Source: Climate-KIC Business Plan thrives best in areas of concentrated
skills and capital, notably in clusters that
Recognising the need to tailor the KIC represent regional groups of interconnected
structure to meet the specific requirements companies and associated institutions in
of climate innovation, Climate- related industrial fields (Porter, 2003). At
KIC has integrated an extended the same time, business innovation arises
network of Regional Innovation and from collaboration in increasingly complex
Implementation Communities (RICs) networks (e.g. Ernst and Young, 2008;
into its governance model. RICs build OECD, 2008). Companies find it harder to
upon the European Regions Research achieve results and produce cutting edge
and Innovation Network (ERRIN), which innovation in an era of dispersed knowledge
is a dynamic network of more than 90 and technology (Esade, 2011). This
11
22 E IT (2011). Information note on business involvement in the activities of the EIT and its Knowledge and
Innovation Communities (KICs)
23 See KIC Factsheets pp 35-37changing nature of business development The co-location approach creates the
is often referred to as open innovation. environment for the robust governance
Chesbrough (2003), coining the term, of the KICs, tapping into the existing
described it as the understanding that “not provision in Europe’s regions and
all the smart people work for us; we need to strengthening the approach through its
work with smart people inside and outside long-term commitment to international
our company” wherever they might be. collaboration. A recent study on the impact
of co-location, using the example of the
Innovation and research are not just more EIT25, highlighted the fact that the Co-
open, they are increasingly becoming location Centres have a significant impact
global activities, as innovators draw upon on bringing people together “conceptually
technologies and ideas developed in through shared goals and operationally
multiple locations (Santos, 2003). There through shared infrastructure, capacity and
are more extensive groups of stakeholders activities….” There is reported evidence of
that include users and civil organisations, the importance of creating both trust in
wider topics such as societal challenges and networks and a sound legal basis for the
more inter-disciplinary activities and cross- integration of partners.
sectoral collaboration. Today’s economy
is determined by extended relationships, As has already been highlighted, CLCs
wider geographical outreach and more are fundamental pillars in the architecture
sources of talent. In this environment, of the KICs and not entities in their
European clusters generally lack the own right. The co-location approach
critical mass to compete at global creates the environment for the robust
level, and so need to create links governance of the KICs, tapping into the
to other clusters in order to exploit existing provision in Europe’s regions and
complementary strengths and economies strengthening the approach through its
of scale24. Successful clusters rely not only long-term commitment to collaboration.
on the local wealth of social capital but are
also well connected to the wider world. As
several authors have pointed out, what
companies actually need is access to
both a thriving local environment and
to global markets and technology (e.g.
Ketels, 2011; Camagni, 1991; Becattini
and Rullani, 1996).
In the context of these changing innovation
processes, the EIT Knowledge and
Innovation Communities are integrated
initiatives that support regional innovation
hubs and also strengthen their trans-
European and global links through the Co-
location Centres. The potential of the KIC
and CLC approach lies in demolishing
the silos and lock-ins in national and
regional innovation systems.
12
24 See also the final report of the high-level European Cluster Policy Group available at http://www.
proinno-europe.eu/ecpg/newsroom/ecpg-final-recommendations
25 ibidPromoting Practices in
Support of Entrepreneurship
and Innovation
I
n the quest for a more entre even drastically altered, to take account
preneurial Europe, the KICs of the valuable experience gained. Thus,
have taken up the challenge after only eighteen months of active
of experimenting with activities that operation, it would be inappropriate
reduce fragmentation, accelerate to undertake an assessment or
innovation and change mindsets. Their evaluation of the KICs’ practices and
overall mission is to deliver solutions to the performance.
grand societal challenges by integrating
higher education, research and business The rest of this chapter highlights
across Europe and entrepreneurship is
the thread that runs through the KICs’ KIC ACTIVITIES ARE …
practices: ... integrated actions of education, innova-
tion and business development which link
For ‘education’ European Masters and the elements of the full innovation cycle.
PhD programmes and programmes for
… embedded into a committed innovation
professional development have been community and not only project-based.
established
... building upon existing initiatives and
For ‘innovation’ innovation support pro- strengthening synergies among European,
jects are being co-funded national and regional level policies.
For ‘entrepreneurship’ support services
for business development are being the most important KIC activities and
facilitated illustrates how their practices can
contribute to solve certain challenges,
The activities are results-oriented and especially in the areas of:
respond to the often cited concerns about N urturing Europe’s entrepreneurial talent
the fragmentation of the innovation
landscape in Europe. The EIT ICT Labs Bridging the innovation gap between
Master Class programme is, for instance, ideas and the market
the first European-wide ICT Master’s Accelerating business development
School that is business-driven. As such, it
educates a new brand of innovators with
entrepreneurial skills and global ambitions. Taking an integrated approach
KIC InnoEnergy’s innovation projects aim
to produce tangible outcomes. Already, A first important observation is that the
they have filed 11 patents and brought 23 practices of the EIT and its KICs should not
new products to the market in 2011, which be viewed in isolation, as their strengths
means 1 patent per €1m invested26. lie in their integrated approach that
gives partners and other beneficiaries
KICs and CLCs are experimenting with access to talent, to finance, to
new types of approaches, partnerships knowledge and business support at
and delivery mechanisms. There is the same time. This access is available
recognition that over the coming years through one integrated community
much will be learned in the course of of actors and thus the activities are
their implementation and that they will embedded in the KIC and are not simply
need to be continuously fine-tuned or single, project-based initiatives.
13
26 Presentation of Diego Pavia, KIC InnoEnergy CEOFigure 5 The Holistic Approach of the KICs to Innovation
The three areas of innovation, education The novelty of these activities lies in
and business development are also the coupling together of the education-
bundled together into a single package. research-business development activities
For example, PhD candidates represent and in the realignment of the key innovation
the bulk of the ‘work force’ inside several actors to act with a common purpose to
InnoEnergy projects. They are the people solve specific societal challenges. These
who are driving a significant number of the approaches are presented in more detail in
innovation projects, and they participate the following sections.
in industrial projects of different kinds,
ranging from the design of highly
specialised components to overall system Nurturing Europe’s Entrepreneurial
studies related to future energy systems. Talent
Similarly, Climate-KIC innovation projects Education is a key area of investment
are tightly integrated across the project and development for the Knowledge
portfolio and within the education and and Innovation Communities and there
entrepreneurship activities. If a student is strong commitment in their business
follows one of Climate-KIC’s educational plans to the production of EIT graduates.
courses, he or she can then conduct The KICs and the EIT have to overcome
research within an innovation project fragmentation in Europe if they are to
and the results of this research will be attract top talent and produce the next
nurtured, in Climate-KIC entrepreneurship generation of European entrepreneurs.
ecosystem, to become a real business. Investment in education and skills
constitutes a wider key policy area for
An additional point to be noted is that the the EU and it is essential to economic
activities of the KICs are not completely growth and to the development of a
new and nor are they detached from knowledge-based economy.
what is already going on at European,
national and regional level. They tap In 2010, there were over 93 million
into existing seeds of initiatives and people aged from 25 to 64 in the EU
existing networks of institutions and human resources science and technology
organisations of excellence. field (HRST)27. Of these, 38 million were
14
27 E urostat (2012). Key Figures on Europe
28 http://www.kic-innoenergy.com/education.html‘senior’ HRST or between 45 and 64 years academic backgrounds. It aims to facilitate
of age, and they represented 41 % of multidisciplinary innovation and has a
the HRST in the EU. This illustrates the special track for those students who want
need for more urgency in Europe’s to follow a professional career in the field
efforts to educate and produce more of sustainable energy. Taking advantage
talent. However, higher education is an of the diverse mix of participants with
international industry with a world market. backgrounds ranging from engineering
Europe needs not only to nurture its own and science to management, the venue
top talent but also to attract talent from provides a forum for the exchange of
across the globe and so it must develop ideas on multidisciplinary innovation. The
outstanding courses and opportunities EIT ICT Labs Master School has used the
with a strong and recognisable branding. knowledge and expertise of European
The educational reputation of Europe in Business Schools to help develop the
the field of entrepreneurship must be modules that are necessary to deliver
developed, with input coming from all innovation and entrepreneurial skills.
the partners in research, education and
business. EDUCATION/ KEY FEATURES
Strong focus on the delivery of entrepre-
Throughout Europe the development neurship and innovation skills and involv-
and implementation of entrepreneurship ing industry in curricula development
education is very uneven. A European Aim at breaking fragmentation through
Commission survey in 2008 on Europe-wide masters and doctoral schools
entrepreneurship in higher education
Nurturing a ‘game changer’ attitude of
highlighted the disparities in student
young people who dare to think differently
access to entrepreneurship education,
which is often determined at institutional
level. This was confirmed during the The courses of the KICs being devised at
2011 Budapest high-level symposium on Masters and PhD level are exploiting the
entrepreneurship education. networks of the Co-location Centres
and using the higher education
All three KICs have strong, focused institutes, researchers and industry
approaches to education, which is often partners to design and deliver the
considered to be the weaker side of the courses. This implies new working
knowledge triangle. KIC InnoEnergy28 relationships, as well as new course content.
offers a specialised Master Programme, Climate-KIC’s educational initiatives all
an Executive Master Programme, a PhD capitalise on the strengths of the partners
programme with thematic tracks and and the Co-location Centres to deliver new
a Post-Master programme, as well as skills and competences. During five weeks,
life-long learning modules. Climate- theJourney programme leads students
KIC29 provides mobility programmes and through several Co-location Centres where
professional education courses on climate each node overlays its field of expertise on
innovation. It is also preparing to launch top of the core entrepreneurship theme. In
Masters and PhD tracks. EIT ICT Labs30 a similar manner, the Pioneers into Practice
has already launched innovation and initiative uses the RIC network to provide
entrepreneurship education for Master’s internship placements.
and Doctoral programmes.
In the EIT ICT Labs Master School,
The education programmes of all students can pick their entry university for
the KICs have a very strong focus the first year and their exit university for
on the delivery of entrepreneurship their second year, from amongst the top
and innovation skills, which are more technical universities in Europe, and the Co-
tailored to the needs of the European location Centres provide an environment
innovation system. KIC InnoEnergy for students, researchers, and business
Masters, for instance, has a specific partners to share and stimulate ideas.
MSc in Innovation and Entrepreneurship
targeted at participants from various
15
29 h
ttp://www.climate-kic.org/academy/
30 h ttp://eit.ictlabs.eu/evsgl/educationOffering a Real-life Experience of Realising a Multidisciplinary
Innovation Approach
All the educational approaches of the The societal challenges addressed by the
KICs are driven by excellence and KICs also require multidisciplinary and
involve learning by doing. From day one, cross-sectoral approaches to education and
students at all levels deal with industrial skills training. There is also associated up-
and commercial product developments for skilling required in businesses, government
which they will have to devise innovative departments and research institutions.
and entrepreneurial solutions. The European higher educational
and research landscape is still much
Both in KIC InnoEnergy and the EIT ICT too oriented towards individual
Labs Master Schools, there is significant academic disciplines and the narrow
industrial involvement in the development specialisation of many businesses is
of the learning outcomes. Although the unsuited to the demands of systemic
KICs maintain overall responsibility for the innovation.
design of the curriculum and its quality
assurance, the industrial partners advise KICs are changing this environment and
on their skills needs and provide structured offer networks for accumulating, sharing
placement opportunities for students. KIC and exploiting a body of knowledge that
InnoEnergy PhD Clean Coal track involves otherwise would not be accessible to
industrial partners from the very beginning. individual students and entrepreneurs.
Partners from Poland, Germany, Sweden Such an experience can empower them to
and Portugal helped to develop the PhD become change agents. KIC InnoEnergy
track, giving lectures and participating in points out that educational activities
the students’ business plan development are about nurturing the future’s ‘game
exercises. In return, these industrial changers’ - people who do not think in
partners have access both to new ideas and traditional ways, but have a new vision
to an expanding pool of talent. and the courage to dare to deconstruct
and restructure current methodologies. An
The partners in the KICs believe that example of this ‘game-changer’ attitude
the involvement of industry in such a and mindset is provided by the students
structured manner is an aspect that from Italy, US, South Africa, Canada
is particularly new. The KIC model has and Argentina who participated in KIC
enabled the AGH University of Science InnoEnergy’s Master’s SELECT programme.
and Technology in Krakow to improve, They have developed a solution for Solaraid,
deepen and extend its existing industrial a UK-based NGO that is involved the mass
collaboration on the basis of being implementation of micro solar products in
considered as an equal partner by the Africa. This solution called, Sunny Money,
industries concerned. offers solar technology to poor African
families through a specific credit system
There are many opportunities for PhD that is operated through mobile phones.
students to access innovation projects.
KIC InnoEnergy and Climate-KIC connect Another example is Climate-KIC’s Pioneers
the students in their PhD programmes with into Practice. It is a programme which
innovation projects that are happening in requires participants to undertake two
the field. This access to real innovation one-month internship placements, over a
projects can be regarded as something new twelve-month period, in one of the regional
in that it seldom happens in a structured partners of Climate-KIC. The variety of
way in traditional university education. locations enables participants to understand
16the challenges of applying innovation in The creation of completely new
very diverse contexts and sectors of activity. programmes that are unencumbered
The programme aims to develop a new by existing institutional and faculty
generation of specialists, entrepreneurs structures helps to break down some
and policy-makers which will be equipped of the artificial barriers. In the USA, for
to shape systems and processes for the example, new universities such as Arizona
transition to low carbon economy. State have been reorganised around societal
challenges. However, in Europe, cross-
Cross-disciplinary approaches to teaching disciplinary education is more likely to be
still vary greatly in European universities provided through small modules attached
and they are invariably shaped by a to existing programmes and mostly this
number of factors such as: organisational happens within a single institution and not
aims and structures; existing courses; on the scale foreseen by the KICs. The EIT
government funding; location; heritage; approaches taken in the area of education
national/local government agendas; and showcase the changes that are taking
links with industry. place in educational delivery, content and
structure and the growing emphasis on new
skills combinations for the future economy.
Spotlighting the Journey of Climate-KIC
Developing a Community of Climate Innovators
The scale of the climate change challenge and the urgent need to address it
necessitates the active development of talented and skilled people, who can conceive
new climate-neutral solutions, bring them to the market and promote their uptake
in wider society. The scope of the competences needed for climate innovators is very
broad and includes knowledge from multiple scientific disciplines, entrepreneurial
skills and an understanding of the broader context for the transition to a low-carbon
society. Climate-KIC has set-up a programme called theJourney that addresses the
heart of this problem, namely, how to reinvigorate the innovative and entrepreneurial
instincts of young Europeans and provide them with the necessary interdisciplinary
knowledge to develop approaches to mitigating global warming and adapting to
its effects. In other words, theJourney seeks to inspire and equip the future ‘game
changers.’
Offering Climate-focused Education
Climate-KIC ecosystem provides a unique setting for the development of cross-
cutting and multidisciplinary educational opportunities. The approach brings together
students from a large variety of disciplines, backgrounds, cultures and academic levels
and sets them off on a five-week, context-rich journey across Europe to experience
the realities of climate change. The students learn about the scientific theses that
underpin climate change and gain an understanding of how different regions and
countries respond to the challenge. They visit three Climate-KIC Co-location Centres
where the partners provide their particular expertise through lectures and on-site
visits. Without the KIC network, it would be very difficult to deliver such a cross-
disciplinary and practice-driven programme.
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